This is a tricky one, there are lots of things we could add, but there is no guarantee and you are right we would be going away from what this strategy was.
I am thinking there is nothing wrong with the original strategy which is what we are doing, but now we have an EA it is easier to test different elements, like finding which Fib levels give the best results as per Mitchell’s tests.
Perhaps with a little tweaking we can get a good EA out of this.
Just think of this if you use a broker such as Hot Forex even if you have a break even trade you would of make maybe 1 pip profit as you get back 60% of the spread in commission. Just a little thing like that makes break evens a small profit which is not too bad.
The only issue with the trailing stop loss is if we the Fibs are too close then the trailing stop loss may not not work too well.
I agree with wigglez, Im happy to blindly follow the fibs no matter what. They tried to incorporate a whole lot of different indicators, but that takes out of the element of what the method is suppose to be, chuck up a few pending orders a day, and leave it
Thats what I love, faffing around with indicators to see whether you should should up the pending order seems a little over the top for this method
Its interesting were talking about this, as at the moment just had yesterdays GBPUSD close at 23 pips profit and i have AUDUSD sitting at about 20 pips profit currently open.
Now considering all the screw ups i had in my setup as you guys might of seen i am still in profit, so if i had been doing things right from day one i believe i would of been in more profit than i am now.
This is a nice daily strategy that is perfect for me, i can set and check things before i go work, check it during lunch and then review things when i get home.
Mitchell before you start back testing i think we should wait for Babypipsjbentz next version of the EA, i know it has some minor changes but i think they are important. I doubt the EA will change much after that unless we spot some bug fixes.
I am quiet happy with how it works at the moment, i don’t mind having lots of breakevens and then the occasional huge wins, breakevens are better than losses.
Will be interesting to see how this strategy works over the next few weeks forward testing.
Funny you should mention it.
Version 10a now has settings for:
FibBreakEven_Pct (default 131.8)
Max_1_trade_per_day (default true)
Min_Wick_Size_prev_candle (default 10)
Use_Stoch_Filter (default false )(with stoch settings following it)
Use_RSI_Filter (default false) (same)
with more explanatory comments on left.
I rewrote the whole thing because the code was getting too jumbled. So, hopefully I did not make any new bugs, but letme know
Thanks Well your current v9a currently has a AUDUSD trade at +34 pips and a GBPUSD at - 23 pips, but these are open trades, so will be interesting to see how these go over the rest of the day.
Out of interest Mitchell when you get a chance could you backtest the new 131.8 fib settings and the old 110 ones just to see how performance goes if you don’t mind, it would be interesting to see which works out better on back testing.
Well so far i would of made about 120 pips with the current EA !!! Pity i was trading live that would of been an increase of 10% in my account !!
I am curious to see how using the 110 Fib and the 131.8 Fib lines compare on the backtest. I know its early days but it seems to work with the 110 levels.
But at least the EA looks like its working fine and my other EA was definetly screwing up Babypipsjentz EA !! How annoying but at least i know I have retired that one until i can get it fixed !
Really looks like we are coming close to being finished with developing this EA, i think all that is left is just to really solidly test it as much as possible on as many currency pairs as possible just to find any odd behaviour like what Mitchell pointed out wit the JPY pairs and just to see if little tweaks like the 131.8 Fib improves the EA’s profitability.
Mitchell when you do your testing and can you look for this please. I was thinking about what you were saying about the using the 131.8 Fib instead of 110 Fib for entry. What about if we used the 131.8 fib for when the market is quieter and the 110 Fib for when it is more active, so esentially December, January and the summer months would be using 131.8 (if you traded December / January).
Maybe this would help us avoid bad trades when it is quiet and allow us to get more profit? But i think this theory will be proved / disproved when you do all your back testing. Would be interesting to see if there is any periods of loss or gain which using differernt Fib levels at different times work. Or we could use something like a volume indicator so when the market is quiet we use the higher Fib level. But i would suggest using the volume from the weekly or monthly charts.
actually, the 131.8% is the same, not new. I just added a setting in case you wanted to try a different point for setting BreakEven. Its just where the trades moves to break even. Tne entry point is still 110%
If you want another input setting for “Entry Percent” it can be added.
Ah cool No i think what you have done is fine, i think we need to test the EA first before we make more changes.
I did have a few thoughts though. Now im not sure how often this will happen but baring in mind it is 21.10 on my chart (19.10 GMT), and two trades are about 100 pips in profit combined.
[B]Two things which im not sure is part of the original strategy or if we should be doing to protect profits:
[/B]
Friday evennings, should the EA close trades which are in profit just before the close of the market ? Maybe to help protect profits in the events of the usual jump or plunge in price from friday to sunday.
Should we be closing open trades which are in profit say 10 mins before midnight when the EA would setup new trades for the next day ?
[B]Additional Settings:[/B]
I have been thinking, now don’t code this Babypipsjentz, i just want to see what people think. Now we know this EA works nicely running on multiple currency pairs. What if we added the following:
Variable so the EA trades multiple pairs from one chart
Max Trades
This would be useful if we are trading multiple currency pairs and so we can limit the number of active trades at any one time. The main reason for this is that we could run the backtests on multiple pairs at once, just to reduce the amount of time we spend backtesting.
[B]Trading:
[/B]I thought about the issues about trading the JPY pairs at the moment, perhaps this is not really a fault with the strategy but more to do with the Japanese market, just like Europe has made trading the EUR pairs a bit more manic. My point is perhaps the strategy is fine and when Japan and its economy settles down we could trade the JPY pairs safely. Perhaps this strategy works best with the most stables currencies and we should avoid pairs which have major issues.
But this is where us humans into effect and we have to decide what to trade and when not to trade, just like the Greece crisis we would probably not trade just to be safe, not because of the pairs but because of the chaos going on which might upset this strategy and cause more losses than wins.
Perhaps we are just over thinking this stategy and over complicating things by our previous thoughts of adding more filters or indicators (but i could be wrong here, please prove me wrong if i am).
[B]
Everything Else:[/B]
Babypipsjbentz if we open trades on a monday, and come tuesday the EA sets up new trades but the existing ones are open, will the EA move the SL for all open trades based on the days they are open, so the EA will use mondays Fib settings for mondays trades and tuesdays fib lines for tuesdays trades?
It would be simpler to just let the EA close open profitable trades just before midnight so the EA can proceed safely for the next day, what do you guys think is best ?
Pity i never traded live today !! I had a good feeling about the EA today, but i thought no don’t trade, your jumping the gun lol. Well will be interesting to see what happens next week.
What im going to do is leave your EA running 24/7 next week from the open of the market on sunday until market close next friday and i’ll post here all the trades i have.
Do you guys think we could adapt this strategy to work on the 4 hour chart or weekly chart?
Not that i want to put all my eggs in one basket, but the four chart could be good to get some quick pips and the weekly chart for some big moves !
Also as this is more a price action strategy do you think there could come a time when this strategy no longer works? I know this can happen to some of the more complex strategies, but as this is quite simple and really just price action, do you guys think it could be future proof ?
Well it was a good day for me. I only trade 4 pairs at the moment and walked away with 2.8%. I risk 1% per trade
What do you mean if it creates an entry for another day? The method has you hold your trades until the 400% fib is reached or it hits your sl.
I don’t like the large gap between the 200 - 300 and 300-400% fibs, i used the 2.618. I thnk i’m going to just throw one in the middle. so 250 and 350%
Oh what i meant was, as we know the EA opens new trades every day, so i was thinking perhaps we should close our profitable trades at the end of the day to help lock in profits and minimise risk?
Babypipsjbentz i had this error today on EURUSD, but the stops looked on the chart, pity as it would of hit the 400 Fib mark today !! Did anyone else have this happen to them ?
[B]2012.09.07 13:34:55 ZZ_Blizard_ZZ_V1.3 EURUSD,M5: ERROR: BUY OrderSend for EURUSD failed with error (130): invalid stops
[/B]
thats what the stops are for though, minimizing the risk. Seems like if you close a trade you would lose out
if you get out at close, then you have to wait for it to climb back to the 110 to enter. So you’d lose however many pips are between the close and high of the last day. provide it didn’t take out any stops on the way
With the max one trade per day rule, if we have a trade that was already open from a previous day will the EA open a new trade on the start of a new day?
I finished up with a little over 8% for the week, risking 2% per trade
and just for sandy, i closed my trades manually on the friday, before I went to bed
But yes, your idea would be really good, closing all open trades just before close on a friday, considering the market closes and starts a new candle over here at 7 am, me not having to wake up before that and close them all would be really nice hah
Lol that did make me chuckle, i had a feeling you would as your a sensible trader, me i left my demo account running, im not going to close off any trades, i’ll let the EA handle everything just to see what it does, will be interesting to see what happens over the weekend.
At the moment i have USDCAD at + 21.5 Pips and AUDUSD at + 82.3 Pips. Days like this really make me want to trade live, but my brain knows better. It is hard to resist when you see a trade at 82 pips profit !!
I think if i had been trading with my live account i would be roughly up about 10% for the week but this is trading on a 100 euro account using 0.01 micro lots.
very nice! :), I would of had an extra 4-5% if I hadn’t of close around 6-7 hours early :P, probably just an example of how nice it would be to have that auto closer
