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3ma exhaustion EA

  • #1
  • First Post: Jul 17, 2016 1:50am Jul 17, 2016 1:50am
Hi,

I started this EA for practice coding a while ago. It's very simple. No iCustom indicators. just uses in built ma.

Once price is a long way from the 300 moving average (As determined by grid setting.)
The EA simply opens up one trade, on the open of every single bar, back towards the Moving Average until price is no longer above/below the grid setting.
It uses only a take profit. And leaves many many trades open until price has returned back through the take profits.

With the right settings, This system would never lose....but... of course most brokers have a 200 trade limit. So it eventually overtrades and goes into Ordersend error 148. Even on higher timeframes.

So I have some spare time. Any thoughts on how I should finish it? How to more accurately detect the price exhaustion, spread out the trades etc? Filter ideas?

(End goal being to be able to leave the EA on 24/7. Lower the drawdown and keep trades under 200.)

Appreciate any feedback.
TD.
Attached File(s)
File Type: mq4 MAGrid (1).mq4   2 KB | 731 downloads
You can lead a man to knowledge, but you can't make him think.
  • #2
  • Jul 17, 2016 7:59am Jul 17, 2016 7:59am
Hi TD, good that you've taken up writing EAs!

I've had a look at your EA and the first thing I noticed is that you don't have a stop loss set. This is quite dangerous and you should aim for EAs that set SL in either a fixed or a dynamic way (e.g. based on recent highs/lows or ATR).

You're basically hoping that the price reverts back to the mean (or the 300 MA), but you could end up with a lot of losses since this will not always result in winning trades. Why not try to use the same strategy, but only run a single open trade at a time and see what happens? Something like this:
Inserted Code
    int total = OrdersTotal();
    if (total < 1) {
        // Open your order
    }
  • #3
  • Jul 17, 2016 10:09pm Jul 17, 2016 10:09pm
Thanks smartfx, it seems a good hobby.

I've added a second MA. Stop loss. And one order at a time as above.

Heres the results of 4 yrs, 1 min timeframe. 99.9% tick quality.
No Stop Loss. Many trades. No losses but high equity drawdown.

Attached Image (click to enlarge)
Click to Enlarge Name: NoSL.png Size: 13 KB


One trade at a time, no Stop loss. Very few trades, very few losses, but not much profit.
Attached Image (click to enlarge)
Click to Enlarge Name: OnetradeNoSL.png Size: 9 KB


One trade at a time. SL at double take profit. Not currently profitable
Attached Image (click to enlarge)
Click to Enlarge Name: OneTradewithSL.png Size: 12 KB


Regarding a dynamic Stop Loss. Could I use iHighest/Ilowest for this? And set it just outside? Welcome to all ideas.
Attached File(s)
File Type: mq4 MAGrid.mq4   3 KB | 731 downloads
You can lead a man to knowledge, but you can't make him think.
  • #4
  • Last Post: Jul 18, 2016 4:16am Jul 18, 2016 4:16am
See, that equity curve (green line) on the first image scares me. This means that at one time, your open trades were in the loss for almost 4000! An ascending balance line like you have might seem nice, but not having stop losses (or any other exit mechanism) is the quickest way to get margin called and blow your capital. Sure, it looks good, but you're taking enormous risks. It's like a martingale system, might work for a while but every now and then you'll lose everything you have.

This might sound preachy and conservative, but it's how successful forex traders work. Look up R/R, risk and money management and try to adjust your EA in a way that it's still profitable AND incorporates these concepts.

As for dynamic stop loss: you could iHighest/iLowest for this yeah. For example iHighest/iLowest of the past 20 bars ± 5 pips or similar. Good luck!
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