Looking for EA robot for psar and adx system

Hi,

I have a nice system I’m hoping someone can build an EA robot for. Works with Parabolic Sar and the Adx indicator. Adx level is set at 20 and when the buy line crosses the sell line and then crosses the 20 level and the parabolic sar dots confirm the direction it’s a signal to buy. And when the sell line crosses the buy line and crosses the 20 level it’s a signal short. All this time the adx line cannot be touching or below the 20 level line.Itf it is there is no signal. I’ve been using this on the hour time frame and it wins about 85% of the time. Good for 25-40 pips easy on all pairs or 50 pips or more for GBP/JPY. This is the only method I trade manually now. I use about 12 pairs.Very simple. Now hopefully someone can build an ea for it. Thanks, Ron

P.s.I set my stop at 50 pips but I move it to break even when I’m up about 6 or 7 pips. Rarely does it lose a trade. Close to holy grail.

Dear Friend,

Please could you explain which of the{ADX} lines is the buy and which of it is the sell lines? Because I have never uses {ADX} before.

Thanks

+d1 is long and -d1 is short.
That’s why they’re colored blue and red. Ron

FXSterling

I’ll have a go this weekend for you. I need to know

  1. Is the period setting for the ADX also 20, as well as the ‘threshold’ level.
  2. “When the buy line crosses the sell line and then crosses above 20” - do I take it from this that the buy signal is only valid if the lines cross below 20, then the buy moves above 20, or can they cross above 20 ?
  3. Do you set stops mechanically - ie always 50pips then move to breakeven or do you take eg the low of the last 5 candles ?

Think thats all but I’ll probably come up with other questiona as I go.

Andy

  1. Period is default 14 and threshold level is 20.
    2.It’s o.k. if they cross above 20 but they cannot cross above adx line. If all 3 lines are bunched up together there is no signal. If adx line is below buy and sell line there is no signal.
    I use 50 pips on all pairs except for GBP/JPY where I set at 120. This is discretionary. For instance I had one trade today the AUD/USD up about 13 pips and I set stop to break even. It got up to 23 pips then reversed and took out my stop and went down another 10 then reversed and would’ve won the trade on the next candle.But I didn’t lose anything. That was a close trade and not a good one. Ron

Do you mean the D+ or D- has to cross above 20 or the ADX line has to cross above 20?

Do you only trade on a fresh cross?

If, for example, you have your cross and your D+ and D- in place, will you wait for the PSAR to flip?

Thanks

oops, forgot to ask- what TF do you trade on?

Time frame is very good on the hour but it is excellent on the 4 hr. except you don’t get as many signals. That’s why I use alot of pairs.

I do sometimes not wait for it to flip on the psar ( although i should) as it wins most of the time when the buy crosses the sell line and goes at or above the 20 level. I’ll wait for a fresh candle and begin there. The best signals are when the psar is in agreement with the cross and then buy of sell line goes on or above the 20 level. It needs to cross and go on or above the 20 level.It’s ok. to cross above 20 as long as the adx line is ABOVE the buy and sell lines. If the adx line is on or below the 20 level there is no signal in any circumstance. If all the lines and adx lines are bunched together there is no signal even if it’s above the 20. Ron

Also, does the cross of (say) D+ up through D-, AND the move of D+ above 20 have to happen at the close of the same candle, or if the lines cross (but below 20) and then D+ moves above 20 1 or 2 candles later is the signal still valid ?

Thanks

Also I think we may need to set some risk:reward strategy in terms of stops, and profit levels, and when to move stop to BE.

Very good question. yes, it has to happen within 2 candles for signal to be valid.

It’s probably best to wait for 11 pips to move to break even as such brokers such as North Finance only allow stops from 10 pips or more from price.

Hi Andy,

How are you doing with the production of the EA robot? Anything else I can help you with? Thanks, Ron

Hi

Firstly I’ve written a quick indicator to check the logic. I’ve attached this (it may need recompiling). Can you put this on a chart with the normal indicators (PSAR & ADX) and have a look to see if its pulling out the right signals.

NB When it shows 2 or 3 arrows together it just means we would have bought/sold on the first one.

I’ve had a look on USD/JPY one hour but it doesn’t look that great. Maybe the system is generating returns more due to the rapid movement of stop to BE ? Anyway, please can you check that the signals are correct and we’ll move on from there.

Andy

Thanks I’ll test it out. Ron

Hi Andy,

I got the arrows on the charts and it looks fantastic! I made the arrows bigger and made them blue and red. Yes, the first arrow is the best one for entry. I say go for a 25 pip take profit on all pairs except for GBP/JPY where I’d go for 45 pips. Move the take profit to break even after about 7 pips of profit. Ron

OK

I’ll run with this and turn it into an EA.
So…

  1. Fixed TP at 25 (or 45) pips
  2. Stops 50pips (or 120)
  3. Move to BE after 7pips, or I may have to use 11 with NF

My only concern atm is the R:R ratio. Of every 4 trades, we need to win 3 to make a profit.

is it any chance someone can make an EA robot for the james 45 pips system?

You can leave the stop loss optional. I would say maybe 1 to1 ratio default but with the capabilities to change take profit and stop losses and trailing stops if someone wants that. Some people may want to look at the 4 hr. or go long term and look at the daily as this system works well on those time frames also. This way we can leave the take profit and stop loss and trailing optional where people can input the settings they’re comfortable with. Ron

Andy,
Fxsterling needs to verify this, but I notice the indicator signals buys when the D+ is below the ADX line and sells when the D- is above the ADX line.

I think that one of the rules is that the ADX must be above on buys and below on sells.

Thanks

BillB

I understood the rules to be buy/sell when D+ / D- crosses and moves above 20. All the time ADX should be above 20. I think the crosses can also occur above 20 as long as the ADX line is above, not below.

Perhaps Ron can clarify this.

This is what I had reference to:

Fxsterling-
2.It’s o.k. if they cross above 20 but they cannot cross above adx line. If all 3 lines are bunched up together there is no signal. If adx line is below buy and sell line there is no signal.

The indicator will give an up arrow even though the D+ is above the ADX.

Otherwise, it looks great.
Good work.
Thank you.

Ahh I see where you’re coming from…

My interpretation (and the way I coded it) was that its OK for the signal (D+ or D-) line to cross above ADX, its just that the cross of D+ and D- must happen below ADX initially for the setup to be valid. This means in a strong move, D+ could go from below D-, 20 and ADX to above all three in one candle. This would be valid.

Is this whats happening with the signals you are seeing? Do all the crosses of D+ over D- occur below ADX even if D+ ends up above ADX ?

I’d be grateful if you can check this and if there’s a problem post a chart, or tell me on what chart/timeframe/time you’re seeing the problem so I can check it.

Cheers

PS I’ll be getting on with coding the EA tomorrow (UK time) so if this logic needs clearing up lets get it sorted!
Andy