Hi guys,
For the past few weeks I have been developing a grid trading EA. It is incomplete at the moment, otherwise I’d post it. Basically the way it works is this (in a M15 period):
-
Use an indicator or combination of indicators to find a sideways market (no trading during trending periods).
-
Create a “frame” around the price; for example 0.5% above the price and 0.5% below the price.
-
Trade WITHIN the frame as long as the indicator shows that no serious trending is going on.
-
If the price leaves the frame, hedge with the same currency to freeze the losses.
-
Goto 1
At the moment the only indicator that I am using to determine if the market is sideways-enough is Alligator. I enter when the mouth is closed.
Am I right to think that this indicates a sideways market?
What other indicators would be useful?
I need an indicator that would determine a good size for my frame; so that the size of the frame coincides with pivot points of the market.
I was thinking of using one of the many RL/SL indicators out there for the frame size. Any suggestions?