Set variables
a. extern double Lots = 0; manual override of lot size calculations.
b. extern double TakeProfit = 50 pips; TP level for regular trades.
c. extern double PlaceDistance = 300 pips; place pending orders this far away.
d. extern double DeleteDistance = 400 pips; delete pending orders this far away.
e. extern int PrimerStep = 30 pips; distance to next primers open rate.
f. extern double PrimerTakeProfit = 100 pips; TP level for primers.
g. extern double PrimerLockIn = 10 pips; trailing SL for primers in profit.
h. extern double Risk = 0.5; amount of AccountBalance() to risk in each trade, must be fitted to leverage in account (so first trades are 0.01 lots for 2.000$ balance).
i. extern double PrimerSplit = 3.00; used to calculate primer lot size.
j. extern double PrimerCleanupDistance = 100 pips; distance away from opening rate where pending primers should be deleted and CurrentPrimerSize should be reset to 0.
k. extern bool UsePrimers = true; override for those who want to do primers manually.
l. extern bool UseGreenlanderLots = false; escalate lot sizes according to manual system.
m. extern double DrawdownLimit = 0.06; level to trigger primers.
n. double ChannelTop = 999; open rate of lowest open long primer.
o. double ChannelBottom = 0; open rate of highest open short primer.
p. double CurrentLotSize = 0; calculated lot size for regular trades based on current AccountBalance().
q. double CurrentPrimerSize = 0; calculated lot size for primers.
Test if first trades exist – if not: open buy and sell at current rate, separated by spread.
Add pending trades for buy/sell every 50 pips (TakeProfit) for 300 pips (PlaceDistance) above/below current rate (separated by spread). Must be maintained.
Stop loss is 0, Take profit is 50 pips (TakeProfit).
Three alternatives for calculating lot size:
a. Lot size is calculated as % (Risk) of AccountBalance() with account leverage, rounded down to nearest lot.
b. Lot size can be manually frozen by overriding calculations (if Lots==0, calculate instead).
c. If UseGreenlanderLots == true, calculations are replaced with manual numbers.
Regular pending trades below current lot size levels (CurrentLotSize) is deleted and new trades added with the correct size.
Undersized open regular trades are extended to CurrentLotSize at ca. open rate level.
[B]Part 2 - Primers:[/B]
Calculate drawdown: if(((open units against trend – open units with trend)/10000)/AccountBalance())*100.
If drawdown >= 0.06 (DrawdownLimit) add primers with the trend (to maintain balance).
No primers are set automatically if UsePrimers==false.
Primer lot size = (open lots against trend – open lots with trend)/3 (PrimerSplit), rounded UP.
Primers are placed with the trend every 30 pips (PrimerStep).
Add comment “PRIMER” to all placed primers.
Stop loss 0, Take profit 100 pips (PrimerTakeProfit).
No regular trades are permitted “above opening rate of lowest open long primer” (ChannelTop) or “below opening rate of highest open short primer” (ChannelBottom).
When new primers are opened, the primers two steps below (if long) or above (if sell) have their Stop loss changed to open rate + 10 pips (PrimerLockIn), then +40, and +70 pips as new primers open. Repeated for all primers every 30 pips (PrimerStep). Must be maintained until rate turns, so that only two primers can be left open when rate turns.
As primers reach TP, ChannelTop/ChannelBottom is updated.
If primers are no longer larger than regular trade level (CurrentLotSize), they are considered regular trades and ignored by primer logic. ChannelTop/ChannelBottom is updated.
When rate has retraced 100 pips (PrimerCleanupDistance) away from ChannelTop/ChannelBottom, pending primers should be deleted and primer lot size reset (CurrentPrimerSize) so it can be recalculated (as regular trades are likely to have increased in size and thereby changing the balance by the time the rate return to test the border).
[B]Part 3 – Whistles and bells:[/B]
The calculate drawdown function should update labels on the chart window with
a. # open long units
b. # open short units
c. Difference between longs and shorts
d. Current drawdown level
e. ChannelTop
f. ChannelBottom
g. CurrentLotSize
If anyone sees something that is missing, please let me know.
As I understand the channel bot/top / primer zone its mostly a question of ‘whistles and bells’ - ie. being shown what makes up the ‘normal’ channel based on current equity etc.
OK, I changed DeleteDistance to 500 pips. The reason for his variable is that most accounts I’ve looked at has a maximum orders clause that include pending, some as low as 100. That might become a problem in an old channel.
PrimerCleanupDistance = 300 pips.
I can almost guarantee that someone will insist on using the lot growth as specified in the manual system. At the very least it will make for interesting tests.
This is just for the programmer to test wether regular buys/sells should be placed. Notice that those variables are not marked “extern” so the end user will not see them.
The Lots variable will freeze lot increases, either at 5.0 or sooner if you want to take out some money. If Lot == 0 our regular lot increases will continue as per your defined Risk and AccountBalance. I believe UseGreenlanderLots should be included, but I wouldn’t personally try it live either
These are internal variables that a programmer will need to have access to. As P1 closes in TP, the variable will be updated, and the top/bottom would then become the opening rate of P2 etc. Regular trades will then be automatically placed in the newly opened rate area and the channel “expanded”. It’s not meant to force a top/bottom to the channel, just halt/start regular trades depending on open primers, so think of it as “the current top/bottom of regular trades, waiting to be expanded though the use of primers”. (See post #375).
Kent: I just noticed I missed one of your questions. Primer trailing SL is 50 pips. PrimerLockIn = 10 pips refers to how far above open rate to place the SL. It’s added to PrimerStep = 30 pips for the second placement.
At 1.5000 P1 opens
At 1.5030 P2 opens
At 1.5060 P3 opens, and P1 SL is set to 1.5010 (open rate +10 pips is 50 pips below P3)
At 1.5090 P4 opens, and P1+P2 SL are set to 1.5040 (open rate +10 +30 for P1, +10 for P2 is 50 pips below P4).
At 1.5100 P1 closes in TP, and ChannelTop is set to 1.5030 (open rate for P2).
At 1.5120 P5 opens, and P2+P3 SL are set to 1.5070.
At 1.5130 P2 closes in TP, and ChannelTop is set to 1.5060 (open rate for P3).
Etc.
And when ChannelTop changes to 1.5060, there’s room for a new long/short regular combo at 1.5050/4.
According to your system above we would end up with carrying 2 primers against the trend if it turns between 1.5030 and 1.5060 would we not?According to your system above we would end up with carrying 2 primers against the trend if it turns between 1.5030 and 1.5060 would we not?
To avoid this we could haveTo avoid this we could have
At 1.5030 P1 SL is set to 1.5000t 1.5030 P1 SL is set to 1.5000
At 1.5060 P1 SL is set to 1.5010 (as per your own description above…)t 1.5060 P1 SL is set to 1.5010 (as per your own description above…)
Yes, but leaving two primers open is what WebZone says is correct. The 0.06 level is calculated to endure two primers in either end of the channel, and I also have a sneaking suspicion that the problems we’ve had with close outs is due to sudden increases in needed margin when primers close too soon.
My theory is (not proven yet, but still): You don’t pay margin (collateral) for both long and short orders. Depending on your brokers settings, the margin cost for placing a long and a short that balances each other is either 0$ or 50% of “normal” cost for each order. If you have 20.000 units long and 16.000 units short, you only need to cover the margin for 4.000 units long in the best case scenario. BUT, if you close a primer with 8.000 units short, you will immediatly be called to put up margin for 12.000 units long instead of 4.000. I think that’s why we’re stopped out, but once again, I do not know this for sure, so let’s just call it a hypothesis instead.
I don’t want to confuse our current goal of getting a functional EA for Greenland, but I hope people are interested in working on another EA after that one for the so-called ‘eternal channel’ / elevator system that is endorsed by Michael, and which is described as a ‘one way’-greenland system.
The idea is that you will be able to take out money whenever channel top is reached, as one is only trading buy-orders.
Some copy-paste from Bigbrys profile that explain the basics:
Welcome to my profile. I trade the Hourglass system,AKA Greenland. I use the elevator system and also Slingshots. So a oneway Hourglass trading. We buy on dips and trade retracements and upwards moves.This is an eternal Hourglass.Unlike the regular Greenland you can take out profits frequently if you wish,each time we reach the top of the range.As we trade in 1 direction you won´t have copy problems as there´s no opposite trades. Minimum copy amout is now 40 USD. Have a safe journey.
BigBry: Hi all, Just to get the basics set . This hourglass is starting with a capital 65% higher than the system called Greenland , but we do also start with double the initial volume per trade, due to the low level the cable is at just now. The first 20 steps we trade at this volume 2 out of 3 positions. Meaning if the rate drop 3 entry points we go double on the third. After level ( step) 20 we double every second position and after level 56 we double ALL trades. The hourglass will maybe be a little slower in growth than the Greenland, but it has no end. So consider this your retirement plan as our only limit is the 20.000 USD x100 which is the max. here in eToro. Every time the hourglass will hit the top of the range you can take out profits, just remember always to leave the minimum required, which always will be updated in my BIO. Apart from that I wish all a safe journey and thank you for the confidence in this system.
husar2003: how many PIPS are between two steps/positions. Will it be 30 PIPS ? What are “entry points”. This can’t be 3 PIPS. Ist ist 3 times 30 = 90 PIPS ?
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BigBry: The distance between the positions now was because of the retracements levels of the current stage, but they will change depending on the market and retracement levels. “entry point” is where you enter a position. If I open a position at lets say 1.5300 then 1.5300 is my “entry point” . It is important to figure out the correct entry points, to make the most out of your positions, so you don´t waste too many pips on a trade
Should be pretty straightforward to code. Would like to see a backtest of the system, as well as an estimate on how much is needed to run a channel. I wonder how equity will be able to sustain movements when you only add to your equity in one direction, but I hope this can be examined through an EA.
More info, this time from Michael himself:
viking1961: Hi, everything will be explained about the hour-glass as we go along. It is actually 30 pips, with a 26 pips tp tatget. But it will be changed according to retracement levels, so its a bitmore complicated then the basic “greenland”, as there´s needed more technicals and trends. So T´the best advise is to copy it in demo for a while while the system is being exlained. It haven´t got a basic explanation as the Greenland has got. The best way of learning the system it to follow how it goes and also the exlanations going along with it.
Frawan, that is the exit strategy for the channel, so its still interesting If you want to close a Channel (or narrow the range of the Channel)… But please, lets keep focus on building the Channel first…
Once The Channel is build you Can take money Out All the time, and not only at the top of the range…
And If you only Trade the exit strategy and keep taking money Out, you dont have any groth, and cant increase the lot size…
The only reason for making The exit strategy run in The eternal Channel, is because of etoros crappy copy system that cant copy The normal Channel very Well
Dennis - Well done!! The specs are well defined. I have been preparing the EA almost exactly as your specs when you posted it. The channeltop and channelbottom will be automatically varying depending on the drawdown.
There are a few doubts I have, which I will ask after I publish the new version of the EA which will be almost similar (95%) to your specs. I am at troubleshooting stage now and expect to release it today or tomorrow.
I have a question for you. Have you made any tests on the following:
Scenario: I have Primer 1+2+3+4 open. SL-s adjusted according to plan. However, price retraces back and P1+P2 close at SL. We have open P3 and P4. This decreases our balance for sure. What happens if price comes back again to primer zone where I open P5 and P6…then it retraces back…so my balance reduces again…
So the question is that if Primers close without reaching the TP then I can only open a limited number of Primers, since my account balance is decreasing due to primers not reaching their SL.
Stop Loss is only set for primers after they are well in profit. A long primer opened at 1.5000 would, if the rate reaches 1.5060, have it’s SL set to 1.5010, that is 10 pips in profit. So there is no decrease of your account balance, but this does guarantee that only two open primers can be left behind on a rate turn.
Hi, thanks…but I calculated and here is the proove of balance decrease:
P1 opened at 1.5000 - for 100 usd
P2 opened at 1.5030 - for 100 usd
P3 opened at 1.5060 - for 100 usd + SL of P1 is moved +10 pip to 1.5010
P4 opened at 1.5090 - for 100 usd + SL of P1+P2 is moved to +40 and +10 to 1.5060
Now price retraces back to 1.4980 - you invested 400 usd - and will make profits only 50 pips due to SL-profits. So this decreases balance for sure!
And lets assume that price suddenly returns to 1.5090 and continues its move upwards…so you open P5.
P5 opened at 1.5120 - for 100 usd - this time you do not move SL of P4.
P6 opened at 1.5150 - for 100 usd + SL of P4 is moved +10 pip to 1.5100
P7 opened at 1.5180 - for 100 usd + SL of P4+P5 is moved to +40 and +10 to 1.5030
and now price retraces again - so that it will not reach TP - and you only get again 50 pips from stop loss profits.
This time your balance decreases again…
I know that it is really annoying but theoritically it can happen. Or proove me if I’m wrong!?
You seem to be mixing up account balance and something else, maybe equity. If you have a 3.000$ balance and two primers of let’s say 0.05 size hit stop loss at +10 and +50 pips, then you have a new balance of 3.030$. That’s not a decrease, that’s an increase… You will have two more open primers that will decrease equity, but those are hedged by your regular trades in the opposite direction. And as for “the balance” between longs and short, primers aren’t supposed to completely balance it out, then you couldn’t extend your channel.
Dennis is right, you are increasing your account balance if the primers hit SL, but your equity will go a little more down when the rate goes up again after hitting those SL, because of the continued drawdown from the oposite open trades…
that is why we start with the primers already when we have a 0.06% drawdown, this should give us enough free $, so that it does not matter if we hit green SL some times, and need to re-start the primer chain with the primers still open
Just a little point of clarification. When you say “re-start the primer chain”, what do you mean? If primers that opened at 1.5000 and 1.5030 are both taken out with SL at 1.5040, we will still have primers from 1.5060+1.5090 open, but there won’t be new primers added from 1.5000-1.5060 regardless off the retracements. 1.5060 will now be ChannelTop, so regular trades will take up that space as the documentation stands right now.
WebZone: Could you explain a little of how primers are calculated and why leverage makes a difference?
I have two demo accounts I’ve been running for several weeks now, with x25 and x200. They’re on different brokers so there might be other differences, but in general the x200 account have a significantly lower margin, and equally higher equity, free margin and margin level. None of them have primers (it’s version 0.4) and the cable has been ranging within 400 pips, but right now, higher leverage sure do look better.
