Request for automation of simple and apparently VERY profitable fibonacci TZ strategy

Strategy is to extend the fibonacci time zone tool between the most recent highs/lows and get the EA to open a trade at the beginning of the candle at line 2 for short when connecting highs or its end for long when connecting lows.

 

During its operation the EA should constantly check for the formation of new highs/lows and if a new one forms recalculate the entry point based on the most recent ones discarding the old entry point. (obviously it shouldn't recalculate if the new high/low is roughly at the same level as the entry point- meaning it just formed for comparatively few pips)

 

It should also not act on an opposite signal for entry or TP if it's on the same level as the previous (opposite) one. (would be nice if it could refer to the distance of the previous move and calculate the % from that move that exists between the current 2 signals- the one that was already acted upon and the candidate TP/new entry point) In this case (no movement) it should use the following one at line 3.

 

TP for longs (connecting lows) is at the next line after entry point resulting from connecting most recent highs and reverse for shorts. Of course just as in the case of entry points, the EA should recalculate TP if new highs/lows form.

 

Should the same candle be marked for both long and short, the most recent signal is to be followed.

 

This way TP for longs marks the entry point for shorts and vice versa, the EA trading continuously, possibly by the looks of it with all trades in profit.

 

Anybody willing to make an EA out of this ? Looks remarkably accurate on higher TFs. All the EA has to do is count the number of candles given by a zigzag indicator for ex. and project it or its double (for line 3) into the future.

Edited November 24, 2010 by SpacyTrader

I can code the EA, but we will first need to decide on the best method to determine the highs/lows. We have fractals, MTF fractals, etc. Also, we will need some sample screen shots to make sure we are on the same page. PM me if you wish. Thx.

PM sent. Adding it here too.

 

I looked at fractals. Looks like overtrading but seems to work.

 

So the pics you requested. First one:

 

http://img33.imageshack.us/img33/8214/89663256.th.jpg

 

Here we're looking for a long connecting lows.

 

Next pic:

 

http://img522.imageshack.us/img522/3029/99811776.th.jpg

 

Here it would tell us to go short. As you can see not the brightest idea. That's where checking the movement between the 2 signals as a percentage of previous move would come in handy and also check for proximity. Especially necessary with your overtrade fractals and charts like EURUSD where every other signal is like that. In this case TP and entry in the opposite direction would be deferred to line 3 (see pic 1). That was right on the money wasn't it ?

 

So for a long you'd check that the entry point is right next to a high and is lower than the previous high with the distance in pips between that high and the candidate entry point being a substantial percentage of the previous distance between that previous high and the previous low.

Edited November 24, 2010 by SpacyTrader