How to Trade 5 Minute Chart with Engulfing Bar Price Action?

Hi Gordon,

If been following your engulfing strategy now over the past week and its some very interesting stuff and would love to know please continue to post strategy details and trading activities

Mekail

Hi Tinny 79,

The strategy is wery good and profitable but I cant see the rule of getting profit. You are showing many examples of profit more than 2 to 1. When exactly do you decide to take profit? Where is the end of moving and profit?

Best regards,
Nikoilay

Hey, where's Timmy?

Hi.
Can't play smartass here but according to my recent mt4 EA testing of above algorithm :

1.
Result [if there are many break even hits?] is strongly dependent on spread u pay.
Difference between 2 or 3 pips on AUDUSD is like get rich or die tryin.
So use ECN broker , feed them and hit for any commission discounts.

2.
I found useful [1H] to filter be,entry and exit by a fraction of a difference between 10 period LWMA on high and low price - something i think is called implied volatility - IV for short.

3.Try my game,
watch it trades,
drop here any problem/solution pairs or comment it in a polite way.

Here is short exp of params
extern double _Risk = 150; -- risk in cash , total for two trades
extern double _RiskInCandles = 1.2; -- stop loss distance = total height of an engulfing candle multiplied by this fraction (im gonna test tangent and constant instead of proportions)
extern double _atrFractionToEnter = 1; to enter the candle should be greater than fraction of IV (not ATR as name indicates),
extern double _atrFractionToClose = 0.5; // to close - by opposite engulfing, IV above 0.5
extern int _dojiMaxSize=3;// ignore dojis - candle body below 3 pips
extern double _tp1_RiskFraction=1.5; - first tp
extern int _nBarsAvg = 20; -- n bars for moving avgs used to calc IV
extern double _baRiskFraction=1.0; -- after opening a trade its break even is fraction of risk

Hi there, Januszo, had tried your EA on a demo (with Forex.com) and it did great. Out of 8 entries, only 2 failed to get some pips.

Will be looking forward in using it with my Live Account (ECN).



Have a few observations though, there was an instance wherein it entered twice on the same pair, thought that I had opned two charts on the same currency pair but upon checking there's only one chart opened for that currency.


With the 8 entries entered, these 2 pairs that failed to give me winning Pips are the ones that was entered twice.


And is there a way where I can choose the lot size?


The EA randomly enteres different lot size (like .32 .72 .37)

Great EA though. Looking forward to using it on more.


AgaJo

Hi AgaJo,here are some answers :

1.
Will be looking forward in using it with my Live Account (ECN).
--
-- I beg U don't do it
-- Play smart. Keep it online for a month or two on demo.
-- take 1 symbol, say 1H frame, two month period for traning
-- [ pick 3 or 4 params and optimize them in pairs
-- pair by pair - that is 3 or 5 times run mt4 optimisation , one time for each pair , uncheck genetic , pick params with low
-- drawdown % and reasonable balance ]
-- , then run on live demo for two weeks. Repeat few times.
-- After all add up results, check ur drawdowns and if feel
--- comfortable try again on small real account.
-- Also: try this say 2month /2week simulation historically and post us some results!


2.
Have a few observations though, there was an instance wherein it entered twice on the same pair, thought that I had opned two charts on the same currency pair but upon checking there's only one chart opened for that currency. With the 8 entries entered, these 2 pairs that failed to give me winning Pips are the ones that was entered twice.
--
-- this EA opens two trades at once, one with Take Profit specified and another without.
--


3.
And is there a way where I can choose the lot size? The EA randomly enteres different lot size (like .32 .72 .37) Great EA though. Looking forward to using it on more. AgaJo[/quote]
--
-- Lot size is proportional to parameter :_Risk
-- When stop loss is hit (on both trades) - it costs (around) amount of cash specified by this parameter (_Risk)
-- Stop loss distance is proportional to engulfing candle total height times _RiskInCandles parameter.
--

Cheers!

unfotunately i've had mostly losses with this ea on the 5min tf. can you provide the settings you use?

​so try out my EA posted above.it uses simple iv filter turning off trading when engulfing candle is below some prescribed fraction of iv value.
​
i got positive long run historical passes on 1H chart.but to
​keep lower overall drawdown and dd duration i reccomend frequent

​say 2month 2 week optimisation/trading periods
​
​please try and share with us some foward walks on5m or longer timeframes.

Next shot:

1.
I just wrote new version of above EA with linear parameters,
also filtered by NN similar to Mr Reshetov's EA Combo_Right.mq4 (copy paste code to be exact, almost since i put 1 instead of zero you ll see where , just check perceptron3 function)

Read : https://www.mql5.com/en/code/7917
in order to properly train this EA.
Parameter :
pass = 1 - NN (perceptron3 function) allows always trade to be made
pass = 2 NN allows trade when its value is above 0



2.
U ask about M5 frame - it produces very rare trades - this EA is still quite distant from good selection of significant candles on M5.
Neverhteless 4h,1h perform well,check this out.



3.
AFAISee MT4 optimiser chooses linear term dependence on IV mainly for close and break even conditions.


4.
===
Think about that:
==
I give U an EA,
in return please try to play with its parameters and present some foward test results here or elsewhere dropping link.
I am awaiting for an open discussion here.
==
5. Next step is to migrate this code to MT5 and play with mean reverting [read about it here http://epchan.blogspot.com/ ] portfolios 3 or 10 instruments .. does engulfing apply there too?

==
Cheers,mates.

Next shot (3)

I ve added importand missing aspect of Timmys strategy,that was :
put orders below or above the candle.Instead market orders stop orders are put.

3 params were added

input double _stopOrderGapRiskFraction=0; -- simply ignore this param , risk fraction component of below explained value, i see that mt4 optimiser avoids nonzero values

input double _stopOrderGapConstInPips=12; -- how many pips from the engulfing put stop order

input int _barsStopOrderTimeout=16; -- how many bars stop order will last

There is another one:

No support , no resistance just.
Candle up - buy
Candle down sell

Once I saw youtube video where Timmy was trading simply 1h bars like that.
This performs quite interestingly on Crude pair USDCAD H1.
Check on dukaskopy data or demo .

No break even or nn filtering is set.
Rest of params explained in posts above.

Where is Tinny now???? His website is down and all his videos are taken off youtube!!! LOL....HE IS probably living under a bridge somewhere!!!