PARMAR 3P Trading System

Trading Systems Free Forex Trading Systems
738

Although I do appreciate all of the time and effort you have put into this EA. I guess it is time for me to wish you best of luck and move on from this myself. You may not have noticed but my original post, which re-awakened this thread, was to others that might be using it, not specifically to yourself, but I have added my comments about your last post below. Maybe you will actualy learn something.

Hello Grock,

I really need to emphasis that you should consider going through BabyPips School of Pipsology as you seem to be missing some key points in your understanding of Forex.

Let’s take a look at that below.

• Time-Zones:
The examples you gave (3:00 PM EDT, 6:00 PM EDT, 7:00 PM EDT) are not time-zones but times. EDT is the time-zone (with Daylight Savings). Other examples are EST, UTC+2, etc.

All I was doing was giving you the time that the daily bar closed and a new bar opened for each broker. I am sorry for giving you additional information. I did not realize that would end up being a problem for you. It seems pretty obvious from my answers what time zone I was talking about, and I do directly answer your redundant question at the bottom of your questionnaire. Maybe if you read everything first before breaking out your poison pen it would save you some ink.

In the EA, if you set the Open Hour to “-1”, it should automatically adjust for the correct times, so do that instead of trying to set a specific hour. Please read the EA’s PDF documentation.

I had the EA Open Hour set to “-1”, yet the EA was still using different bars for the daily high and daily low. If this EA is at all based on the original poster’s system then the daily high and low would be from the same bar using the New York open and closing time regardless of the broker’s time zone.

• Stop Level:
This is the Brokers Stop-Level conditions and is not the size of Stop-Loss or Trailing-Stop you use in the EA. Each broker defines different levels depending on type of account and the symbol or currency pair used.

Apparently you do not know everything about brokers. There are many brokers who do not use a “Stop Level”. Their margin call and what you call stop level is the same at 100%. My brokers are two of them.

Please reference your brokers details and get back to me with this info so that I can provide you with the proper sizes for the S/L and T/S to be used in the EA.

100%

• Leverage (Margin Ratio):
For a Margin Ratio (Leverage) of 1:50, it is obvious that you are going to have difficulties in using 1-2% Risk with a balance of just $372.00. It is ludicrous. For a 5 pip S/L at 2% Risk, that would mean using a volume of 0.14 lots which would give you a risk of approximately $7.00. However, that same volume would be equivalent to a margin of approximately $448 which is more than your available balance. Even for a 1% Risk, a volume of 0.07 lots would be about 60% of your account in margin alone.

It is ludicrous? Let’s take a look at the simple mathematics. With a 5 pip stop loss and a $38.00 (and yes I did write $38.00) per microlot margin requirement, I could trade 9 microlots per trade without reaching a margin call. At 90% margin maximum ($334.80) which is what I had the EA set at and 1% risk maximum, a setting that I also tried, the EA should have entered a trade of 7 microlots. It did not. It traded 1 microlot. You also failed to notice that I mentioned that I was running your EA on two demo accounts. One with an approximate $10,000 balance and one with $50,000. They are doing the same thing risking much less than 1%.

It is obvious that you will not be able to do much with just $372 and a margin ratio of 1:50. That is why most of us here use much higher leverage (such as 1:500) for small accounts. You really need to do some research before committing your money. Unless your strategy can guarantee high win rates and extremely small drawdowns there is no way you can use such a small balance and low leverage with 1-2% Risk.

Looking at simple mathematics again you will notice that it does not really matter how much money a person is trading with, I could have an account with a million dollars, with leverage of 1:50 and a margin requirement of $38.00 per microlot traded the highest percentage that could be risked using such a small stop loss strategy is approximately 1.32%. I live in the USA. The highest leverage available to us is 1:50. Why would my 1-2 % risk strategy have to “guarantee high win rates and extremely small drawdowns” any more than anyone else’s? 1% is 1% no matter how much money you are dealing with. The only difference the leverage makes is how much risk one can take. As I stated in my last post I am only looking to risk 1-2%. In this specific case the most I could risk is 1% but my account balance has absolutely no bearing on this.

That is why the EA is forcing you to use a lower risk. It is probably using 0.01 lots for volume which is the smallest that it can go and represents $32 in margin and 0.13% Risk per trade for the stop-loss.

That may be what it is doing, but that is not your explanation of what it should be doing.

In summation, I think it best that you first do some research and learn more about trading Forex before you attempt to do any trading at all, let alone use an EA. Put in the effort and do your homework before attempting anything else with my EA.

I have been relatively successful trading forex for over two years and have been studying it even longer. I have several accounts with different funding levels. I use demos and very small live accounts for untested and potentially unreliable systems. Although I do feel the system that Vijaykumar came up with and you customized is potentially profitable based on your back testing, I have noticed that up to this point Vijaykumar’s seems to be doing much better on a live account.

Personally I have had enough of your sanctimonious attitude and answers to continue testing this with your input. I will continue testing both methods on my own.

Regards,
Carnino

EDIT: PS! Margin calculations depend on Account Currency and Symbol being used. In the case of the GBP/USD and a USD Account, the margin will fluctuate depending on current GBP/USD prices. Hence the reason for your quote of $38 for a microlot and my calculation of $32 instead, based on the price at the time I placed the post.

As for this last tidbit of inaccurate or incomplete information, my broker uses a flat rate of $38.00 per microlot as a margin requirement for the GPB/USD. Although this amount can fluctuate it has not for as long as I can remember and it is not based on the “current” daily price, and it is not $32.

Last edited by Carnino; 10-16-2014 at 07:57 PM.

Read more: 301 Moved Permanently

Good day and good luck.

739

Well Grock! If, as you wrote, my variation on the strategy “sucks”, then I suggest you stop trying to use it and concentrate on other strategies and EA’s that are more to your liking.

Also, since you are all knowing, please note that there is a difference between “stop-level” (related to stops) and “stop-out level” (related to margin call). What I asked was “stop-level” to which you answered “5 pips on all accounts”.

But I digress, I really had much more to write, but decided it would not be worth it because if you are such a successful and knowledgeable trader (as you claim) and I am an idiot with a sanctimonious attitude, then all I can say is “best of luck”. I never once disrespected you or anyone else here, and so I would appreciate the same level of respect.

Have a good day and best regards,
Carnino

740

In my previous post here, addressed to “[I]Grock[/I]”, I was rather brash and a little short-sighted, but it was not really useful or fair to other traders. In my defense, I felt personally attacked and disrespected.

However, at the risk of being accused again of having a sanctimonious attitude, the fact of the matter is that we are all here on [I]BabyPips[/I] to share knowledge and experience, both by learning and teaching. So I decided to offer a few informative posts on some of the topics that I referenced in previous posts to “[I]Grock[/I]”.

Please note, that should you not agree with any of the information, then please feel free to respectfully correct me, preferably with some reference material. I do not in any way claim to be fully knowledgeable of all things Forex nor do I claim to be a highly successful trader. My success rate at trading Forex, I believe, is higher than average but no way good enough to make a living off it. However, all information I present here, I back-up with reference information, so that you will know that I am not just “inventing” such things.

I will be breaking the information up into separate posts. This one is just an introduction to the follow-up posts. The next few posts will be about “Stop-Level” & “Stop-Out Level”, followed by Leverage and Margin calculations, and after that we will see where the discussion leads.

Regards,
Carnino

741

Ok, so here is the follow-up post I promised. First topic I wish to discuss here, is about the confusion that may exist about the concepts of “Stops Level” and the “Stop-Out Level”. This post will focus on “Stops Level” and the next on “Stop-Out Level”.

[ul]
[li][B]“Stops Level”[/B]
[/li]
This parameter, the “Stops Level” or “Stop Level”, refers to the minimum price delta between the current closing market price of an order and the placement of the stops, namely the Stop-Loss and Take-Profit.

In [I]MetaTrader 4[/I], this parameter can be viewed by going to the [I]Symbols Window (Ctrl+U)[/I] and pulling the [I]Properties[/I] sub-window for the Currency Pair in question. This message window is also known as the [I]Contract Specification[/I], as described in the application’s online help. The parameter is described as follows in the documentation:

[I]Stops level — minimum distance to the current price in points at which Stop Loss and Take Profit orders can be placed;[/I]

In [I]MetaTrader 4 Expert Advisors[/I], this parameter can be referenced by the “MarketInfo()” function with the “MODE_STOPLEVEL” identifier or via the “SymbolInfoInteger()” function via the “SYMBOL_TRADE_STOPS_LEVEL” identifier. Please note that I am referencing the MQL Online documentation so that you can confer.

This information should also be available at you Broker’s website in regards to [I]Contract Specifications[/I] for the various types of accounts they might have. If they do not have this, request it and make sure that they abide by it. As an example, here is the reference link to my brokers contract specifications for the account type I have for live trading: RoboForex Contract Specifications

Please note, however that some brokers do not set this parameter and allow you to trade with stop sizes as small as a Pip or even a fraction of a Pip (pipette).

[B]Since the strategies discussed on this thread, use very tight stops, this parameter in conjunction with the spreads, limit the minimum stop size that can be used with the strategy, and in particular, the EA I shared.[/B]
[/ul]
Next post will be on “Stop-Out Level” and “Margin Call” …

Regards,
Carnino

A related parameter which is also important but for which I have not yet added code for in my EA is the [I]“Freeze Level”[/I]. The reason I have not coded this yet is due to the fact that the brokers I use do not set it and so I have not given it much priority. However, should you be using my EA and your broker does set [I]“Freeze Level”[/I] and you are being limited by it in the use of my EA, let me know and I will dedicate some time to its implementation.

742

If you are using Leverage with your account, then you will have to know about the [I]“Stop-Out Level”[/I] and [I]“Margin Call Level”[/I].

With leverage, every time an order is opened (buy or sell), a certain amount of value known as [I]“Margin”[/I] will be calculated and compared against your current balance and equity as a limiting factor. As you place new orders and continue to leave previous orders open, this amount of Margin will continue to increase and accumulate.

When the amount of accumulated Margin reaches a certain level, known as [I]“Margin Call”[/I], you will receive a warning message so that you may choose to close off some orders to bring down your Margin. If you fail to do this or if Margin continues to increase until it reaches the [I]“Stop-Out Level”[/I], your orders will then be forcefully closed by the platform.

Some brokers do not refer to the [I] “Stop-Out Level”[/I] and only refer to the [I]“Margin Call Level”[/I]. In these cases they become one and the same, meaning that you will not receive any previous warning and your orders will just be closed out at that very moment that the limit level is reached.

[B]As you can now see, this has nothing to do with the [I]“Stops Level”[/I] discussed in the previous post.[/B]

Here are some reference links about [I]“Stop-Out Level”[/I] and [I]“Margin Call”[/I]:

[ul]
[li]Forex Margin Call Explained (BabyPips School of Pipsology)
[/li][li]Margin Call & Stop Out level (100 Forex Brokers)
[/li][/ul]
Next post will be about [I]“Leverage”[/I] and [I]“Margin Requirement”[/I] calculations.

Regards,
Carnino

743

In this post I will be discussing Leverage (or Margin Ratio or Percentage) and how Margin is calculated when an order is placed.

To make things more simple and clear I will be using an example and will use the details given by “Grock” as the reference, namely Leverage of 1:50, Volume of one micro-lot trading the GBP/USD with an Account in USD.

Let us start with the Leverage. In this example, a Leverage of 1:50. This would mean a ratio of 1/50 = 0.02 or 2%. Most brokers will require the full amount of margin when an order is placed. However, some brokers may have a different requirement. Also, when orders are hedged, the margin requirements may be less, but for the purposes of this example calculation, let us say that the Margin Required is the full 2%.

Now, let us assume that you will be trading the GBP/USD. This means that the Base Currency is GBP and it is in this Currency that the Margin is calculated. So, for 1 Standard Lot, of a Contract Size, the total value is £100000 Pounds Sterling (GBP). For a Leverage of 1:50, the full amount of margin would be 2%, namely £2000 Pounds Sterling (GBP). Please note that this is always in the Base Currency and not in the Counter or Quote Currency or even in your Account Currency.

Now that we know the Margin for a Standard Lot we can calculate the Required Margin for a different volume. So for 1.00 lot, £2000 GBP is required, for a mini lot or 0.10 lots, £200 GBP is required and for a micro-lot or 0.01 lots, £20 GBP is required.

Now that we know what the margin of a micro-lot is, we still need to convert it into out Account Currency. So, assuming that we have an account is US Dollars, we apply the conversion based on current price, say it is currently 1.6165 USD per GBP. So the final Value of the margin for a micro-lot is £20 x 1.6165 = $32.33 USD, giving us a final margin value in our account currency.

Now, you may have noticed that in “Grock’s” case he said that his broker states that their margin requirements is a constant $38 per micro-lot. That unfortunately just does not compute. If your account currency is not the same as the Base Currency then you cannot have a Constant Leverage and Constant Margin Value at the same time - one invalidates the other. In order to have a constant margin of $38 per micro-lot, then the Leverage would have to fluctuate and could not stay at the 1:50 ratio. The only exception is when your Account Currency is the Same as the Base Currency. In this example, they would have to be both GBP in order for the Leverage and Margin to remain constant for a fixed volume size. This is however, not the case.

As a reference to this post, I would recommend reading the entire section dedicated to [I]Leverage[/I] and [I]Margin[/I], here on [I]BabyPips School of Pipsology[/I], very notably entitled: [B]The Number 1 Cause of Death of Forex Traders[/B]. There are two sections of great relevance that will serve as a backdrop for my next post. These two sections are entitled:
[ul]
[li]Ignoring Leverage: Why Most New Forex Traders Fail
[/li][li]See How Leverage Can Quickly Wipe Out Your Account
[/li][/ul]
My next follow-up post will probably not be put up today, as I have other obligations to attend to, but will be dedicated to how risk and margin are calculated and managed in my EA (the one I shared here) and how the two main Risk and Money Management parameters control this in order to prevent you from wiping out your account.

Regards,
Carnino

744

This will be the final post of the series, that I had originally set out to write, and is about how Risk and Margin are controlled in the Expert Advisor that I shared here before.

In my EA, there are two parameters that control and limit, Risk and Margin, when orders are placed, namely “dblRiskMaximum” and “dblMarginMaximum”, with default values of 1.0 and 5.0 (percentage) respectively.

When an Order is placed, the volume to be used is the lesser of the two calculated limits. I will describe these two calculations using as an example, some of the reference data supplied by “Grock”, namely an Account balance of $372 USD with a Leverage of 1:50, trading GBP/USD. Let us also assume that the opening price of an order is 1.6165 and that the Stop-Loss is 5 pips.

[ul]
[li]First off, in my EA the Balance used for all calculations is the Minimum value of the Account Balance, Equity and Free Margin. However, assuming that there are no other orders open, these three should all have the same value. We will thus be using a value of $372 USD as per the example.
[/li]

[li]“dblRiskMaximum = 1.0”
[/li]Let us first look at the Risk calculation based on the Stop-Loss of 5 pips. Since the default value for this limit is 1.0 (%), then the risk is $3.72 USD. The Pip Value of the GBP/USD is $10.00 per standard lot, and so for a Stop-Loss of 5 pips, the risk would be $50.00 per standard lot. Our limiting volume is thus $3.72 / $50.00 = 0.0744. However, assuming that the minimum lot interval is 0.01, our calculated volume is thus 0.07 (working backwards, this is a total of 0.07 * $50.00 = $3.50 risk, representing approximately 0.94% of the Balance).

[li]“dblMarginMaximum = 5.0”
[/li]Now let us first look at the Margin calculation based on the Leverage of 1:50. In our previous post we have already calculated part of this information, specifically that the margin for these example values, is $32.33 per micro-lot or $3233.00 per standard lot. However, since we have set a limit of 5.0 for this parameter, this means that we want to limit our Margin on the order to no more than 5.0% of $372, namely $18.60 USD. So our maximum volume based on Margin is $18.60 / $3233.00 = 0.00575. This is obviously less than the minimum lot size, so we will have to use a volume of 0.01 instead (working backwards, this is a margin of $32.33, representing approximately 8.69% of the Balance).

[li]”The lesser of the two evils.”
[/li]The final volume used for opening the order is thus the smaller of the two calculations, specifically 0.01 lots. This would make our risk 0.01 * $50 = $0.50 for the 5 pip Stop-Loss, which represents 0.13% Risk of our balance when we originally wanted 1%.
[/ul]
NB! Obviously these two parameters are there to limit your risk and margin and thus protect your account from being wiped out. However, that does not mean that the EA will not run with higher risk or margin. [B]If you don’t want the margin protection, then just set the “dblMarginMaximum” to the value that pleases you, such as 100.0 (%)[/B], or if your broker allows for more, then feel free to set it higher, for example 120%. Obviously, I think that would be a foolish, but that is your choice to make and you are free to adjust the parameters as you see fit.

Also, please remember that even though you have set the Risk Limit, there can be slippage when an order hits a stop-loss, so that the resulting loss can be greater than the anticipated risk. During high volatility this can result in much higher loss than anticipated. So if you have a small balance and you have allowed for greater allowable margin, then the total value of the [B]potential loss plus margin could be greater than the account balance, causing your account to be stopped out and cleared completely[/B]. Hence, the need to limit your risk and margin and prevent wiping out your account.

Regards,
Carnino

745

Thank you Carnino for the posts, There are a lot of good informations.

746

You are welcome! It was my pleasure!

748

Hi guys,
I have done an experiment on this strategy.
I have downloaded the data of the real one from here PARMAR 3P Trading System by vijaygpfx | Myfxbook and I have applyed on this equity a 3 MA and a 5 MA.
I suppose to run the strategy on a demo account and on a real account, applying the moving average on the equity of the demo account and I follow the rule:

  • if the demo equity goes below the MA, I turn off the real one but continue to run on the demo account.
  • if the demo equity goes up the MA, I turn on the strategy on the real account

In the picture you can see my results: the blue line is the original equity, the red line is the equity obtained using a 3 MA, the green line is the equity obtained using a 5 MA.

The results are great! What do you think?

Cattura.jpg700×363 25.3 KB

749

Hello nicogaglia,

I apologies for commenting so late, almost 3 months after, but I only saw the post now.

Your idea is however quite interesting and it inspired me to create a “virtual order system” on my EA’s, which would be equivalent to running a demo account for comparison, and then applying your MA analysis to enable/disable the live trading.

I will try to add it to my DayBreakTrail EA within the coming weeks and then post it here.

Regards,
Carnino

750

Hi…is there anyone still trading using this EA? I have been following this thread. I need some assistance. I have attached the EA to the H1 chart but when i press F3 the global variables inputs are blank. Am i doing something wrong or am I supposed to manually enter all the parameters? Regards.

751

Hi!

The EA is quite old, but can still be used for testing purposes. I don’t know how effective it will be at the moment as the version I currently use has long surpassed the version available here.

As for the Global Variables (F3), there is no need to manually create them. They should be created automatically the first time you run it (attach to a chart). However, if that does not happen, then most probably something is wrong.

Since, it is old code and MetaTrader has since evolved (newer versions), before attaching it to a chart, first make sure that it is compiling correctly without any errors.

If it does compile correctly, then next familiarise yourself with it first by running it in the Strategy Tester.

If after that, if you still have trouble with it when attaching to a chart, verify that the “AutoTrading” is enabled (green) and that Live trading is enabled in the properties.

752

Thank you for the quick reply. I have enabled automatic trading and the EA has a smiley:-). I am able to run the tester though global variables is still blank. Could you be kind enough to share your updated version? Could be the previous one is not compatible with the updated MT4.

Much regards,
Mary.

753

Also,how do i check whether the EA has compiling errors? Do i check for that in the journal of the tester?

Regards,
Mary.

754

Right-Click on the EA name and then choose “Modify”. When the MetaEditor opens, then click on the “Compile” button at the top. Then look at the output at the bottom in the “Errors” tab.

If there are any errors, post them here.

755

Sorry, but the newer version is private! A lot of work went into it and also, it no longer resembles the simplified strategy described on this forum.

756

Description: DayBreakTrail.v1.013.mq4
’stdlib.mqh’
'stderror.mqh’
0 error(s), 0 warning (s)

757

Kindly assist me on how i can still use this old version on a live account. Am very desperate. If only it can be compatible i can still use this old version.

Regards!

758

I just did a quick test on my own system and attached that very same version and there was no problem. The Global variables were immediately generated as soon as it started.

A few questions:

  1. Who is your Broker?
  2. What currency pair are you attaching to?
  3. What is your MetaTrader Version/Build?
  4. When you attach the EA, does is display its status (name, spread, S/L, etc.) in the top/left corner?
  5. Are you making any changes to the parameters or are you just accepting the default values?

Also, can you please post a screen shot of the chart, after attaching the EA as well as a screen shot of the F3 Global Variables dialog box?