This is a very simple scalping system which could be used for Binary trading, it uses only 2 indicators and could easily get you 10-30 pips several times a day depending on which TF you use. I need someone to turn it into an EA to backtest it to see how profitable it could be and to optimize it.
It uses BB and Parabolic SAR both with default settings, you go long when PSAR jumps outside the bottom BB and go short when the PSAR jumps outside the top BB, but no trade when PSAR moves gradually outside the BB just when it jumps(see pic)
Could someone please create an EA with MM as a risk percentage of the account balance and the following user options that will work with a 5 digit broker and down to .01 lots.
Default Parameters:
Magic Number 1234
trade size 1.00
MM T/F
MM percentage 2.5 (MM%= % of Available Margin to be used)Edited 1/2/14
Instead of using TP and SL automatically close all trades at the close of the candle after the entry candle, that way it could be backtested for binary and used for scalping in the regular FX market on higher timeframes.
This looks like a cool scalping strat. I would do some manual backtest ‘visual’ inspection - I did a few days worth on the 15 min charts -
I would add some stuff like - - The entry candle as you state it - Must touch the mid BB. (this will rule out some ‘wild’ moves) and some false entries.
Also there may be a way to stay out if the BB are moving sideways - - you’ll miss the initial move - -but also miss ALL the false entries while price is moving sideways - - a good tradeoff I think.
I like to keep it simple, the only other options that I think would help would be a trading day/time setting to turn it off during Asian session, holidays, Fridays after 12pm NY time and Sundays and a e-mail when a trade is made. I’ve done some visual on 15 and 30 min TF and the 30 min TF looks very good with default settings but visual isn’t always accurate due to being unable to account for the spread and spikes that could stop you out. The 30min or 1hr tf would yield great results with the default setting but no way to know the best settings without an EA to backtest.
I am also planning on using it as a binary signal which would produce over 80% success rate on the 15m TF with a 30 min option. I found an EA that copy’s all trades into a live binary account, so I if run it with the EA for this system every time this EA opens a trade the other EA would open a preset binary option. In binary .1pip in the money= up to 80% in less than 30 minutes depending on your broker. Out of 31 trades on the 15m tf from the 17th to the 27th only 3 would have been definite losers and 2 others would have been close, even if all 5 of those trades lost, that’s 26 winners out of 31 trades, a 83.87% win rate, or over $395 profit risking only $25 per trade or scale it up to whatever you are willing to risk per trade. All we need is a working EA, and money can be made.
I did a visual backtest on the Euro 15min tf to see how this system would do if used for binary trading over the entire month of December, which is arguably the worst month to trade. I did it for binary because it’s easy to determine whether a trade will be a winner or not by looking at the chart. The results are very good, there were 77 winners and only 15 losers, which is 77 winners out of 92 trades or 83.69% win rate and $1165 profit risking only $25 per trade with an 80% payout on winners. I think this is the perfect system for binary.
I did some more visual backtesting for December on several pairs for binary trading and the results are very promising.
GBP/USD- 54 wins and 27 losses
USD/JPY - 61 wins and 19 loses
AUD/USD- 52 wins and 16 losses
EUR/JPY - 62 wins and 23 losses
EUR/GBP - 63 wins and 20 loses
USD/CHF- 10 wins and 30 loses
Any of these pairs would have been profitable in December, I’d like to do extensive backtesting including standard FX but I don’t know how to program an EA any help is appreciated.
I have used the following programmer in the past, very reasonable rates and quick work, usually have the EA in hand in a couple days. Wise-EA MT4 Programming Service | Wix.com
As soon as the candle where the PSAR appears outside the BB forms the trade should be made, and the trade should close at the close of the candle after the entry candle, so on a 15 min TF the entire trade would last 30 minutes. There would have to be some kind of filter to prevent trades from being made when the PSAR gradually moves outside the BB and to prevent it from opening a trade before the previous trade closes or making multiple trades. This could be a very profitable scalper on higher TFs or great to generate signals for Binary trading. Here is a pic showing the trades that would have been made in the few days on the euro 15min. Obviously this example would only be used for Binary where .1 pip puts you in the money. The trades would be opened as soon as the candle with the line forms, the green lines are the winners and the red are the losers and for EA backtesting and scalping purposes the trades would be closed at the close of the next candle imitating a 30 min option.
Are you saying the trade enters at the open of the candle formed after the PSAR button jumps outside the BB?
Where would the SL be placed for non-binary system? For proper MM to be incorporated with % of account management, a SL would be necessary for the programmer to code this calculation.
If you can clarify the details of SL/TP etc I can run it by my programmer for a quote.
That’s true I wrote that before I thought of using a timed close, I’ll edit that. A stop loss shouldn’t be necessary if you used % of available margin for the MM calculation instead of % of balance to risk, just open the largest lot possible that that % of margin will allow .These signals usually occur just before or during a big fast move that’s why I would close it after 2 candles because in that time frame it catches either a major move or a small loss when used in the spot market, an optional trail could work if it’s added to successful trade at the close of the second candle instead of closing out the trade but that’s too unpredictable for me. Some of these trades go on for 4-6 candles and some will only get one or 2 candles before they retrace and there are a few during low volume trading that just fail. That’s why I like binary it’s a win/lose situation the number of pips don’t matter .1 pips in the money and you get paid. This is as close to a holy grail system that I’ve ever seen if it’s used with binary trades that are placed by an EA. I’m not sure about how well it would work with scalping but it will work perfectly in binary.
I’m not that familiar with trading binaries and the parameters involved with that. Using the maximum % of available margin for MM seems quite dangerous to me, it will also limit you to only running one trade at a time per account, so if you want to run this ea on multiple charts this wouldn’t work. Can you write out a clear algorithm of the logic for the system? I’ll send along to my programmer for a quote and if reasonable will consider developing.
No, not the entire margin, a user defined % of available margin when a trade is placed. So if you set it to 5% it should trade as many lots as possible with 5% of the current available margin, the only side effect would be as it opens multiple trades each additional trade that is opened would be smaller than the initial trade. The EA can be written as if the binary aspect didn’t exist, I found an EA that copies trades to a binary account, I just need a standard EA that will work as shown in the pic and when it makes a trade the other EA will copy it to my binary account.
