elvee4eva Posted October 24, 2010 Report Share Posted October 24, 2010 (edited) Hi I have come up with an idea that will end our search for a profitable EA. If this system is coded into an EA, This will definitely Be the elusive holy grail. This EA must combine the most Profitable Concepts in Forex Trading. This EA must have the following characteristics. 1. Multi Time Frame Trending Analysis 5mins 1hr and 4hrs 2. Trend Following. 3. Small or Smart Take Profit Targets of 10 - 30 pips ( Based on Position of the nearest Pivots Support and Resistance and Envelopes) 4. Range Trading : Pull Back Trading on the 5 mins Chart (scale In) 5. Smart Hedging (For the purpose Equity Recovery) 6. Smart Reversals. 7. Breakout Trading 8. Smart Stop Losses ( Only to be used during equity recovery) 9. Gradual Closure of losing positions ( Based on condition of 1hr MACD and 1hr Stochastics) 10. Trailing Stop to Secure over all profit. 11. Gradual removal of Risk from a trade. 12. Hidden Take Profit and Stop loss levels. 13. High Win Rate Important Indicators 1. Auto Pivot Support and Resistance with Mid Levels. 2. Envelopes 3. All MACD 4. All Stochastic 5. Trend Channel ( on 1hr Time Frame) 6. 21 EMA 7. 233 EMA 8. Non Lag MA 9. Stochastic RSI Oscillator 10. Channel - drawn on the 1hr time frame 11. FDM Trend Power hxxp://www.4shared.com/file/nAw4_a2j/Ultimate_Forex_EA.html My Trading Insights 1.The Best EAs are Trend Following EAs. 2.Price spends 80% of the time in Ranges and 20% of the time in trends 3.Price Pulls back more time than it actually trends.Causing pull backs is how the brokers make their money. This is also how Martingale EAs trade. 4.Trending EAs make money during Trends, Spikes and Breakouts but lose it during Ranges. 5. Ranging or Martingale EAs Make lots of money during Ranges but blow accounts during Trends. 6. Best type of market analysis is MTF i.e. Multi Time Frame Analysis. 7. Placing a stoploss is giving your broker a chance to hunt you and make easy money. 8. Placing a Hegde trade is smart way to recover from draw down. 9. A smart trader knows that it is almost impossible to get the first entry right, so he opens his first order with the smallest lot size possible, knowing that price will always pull back to give him a much better price to open another other in the same direction as the previous order. This way, he keeps his risk low and greatly increases his chances of a profitable outcome. I learnt this from watching martingale EAs trade. Trading Set Up 1. Open a 5 mins chart of EUR/USD or GBP/USD and select the Ultimate EA Template. 2. Move the chart to the 1hr time frame and draw a channel. Move the chart back to 5 mins Note: A. 1hr = Main Trend B. 4hr = Future Trend C. 5 mins = Trigger Chart for Normal, Breakout and Pull Back Trading. Scale in on every 13 Pips Pull Back on the 5mins stochatics, Stoch-RSI and MACD 3,6,3. While making sure that all trade positions are opened in the direction of the 1hr time frame as shown by the 1hr Stochastic 6,3,3 and 1hr MACD 8,16,7. 3. Analyse The Market. Open a Buy Order if: A. Ihr MACD is above Zero line and angling up B. 1hr Stochastic is above 20 and angling up C. 5 mins Stochastic is above 20 and angling up D. StochRSI Oscillator is angling up E. Price is atleast 15 pips below the nearest pivot level or envelope or channel line. F. FDM trend power arrows on the 1hr and 4hr are pointing up. vice Versa for a Sell. Trade Management. 1. We open 1st Buy with 0.1 at 1.2100 and take profit 1.2115 2. Price starts playing tricks as usual and immediately pull back to 1.2087 (i.e 13 pips away), we quickly open a 2nd Buy with 0.1 3. if price returns to 1.2100, and we make 10 or 11 pips, we quickly close the 2nd Buy and continue to monitor the market. 4. if price pulls back again to 1.2087, we open another Buy with 0.1 just as we did before and repeat the process. 5. if price pulls back to 1.2074, we open 3rd buy with 0.1 6. if price recovers to 1.2074, we close the 3rd buy at 10 pip profit and continue to monitor the market. By quickly taking our profits at 10 pips, we are gradually reducing our overall risk while still increasing our equity. This will help us avoid huge draw down if things go wrong, and this is what martingale EAs never do. This because their programming is not flexible enough. 7. if price continues to go against us after opening a 3rd buy and risking 0.3 we will look to see if the 1hr MACD and 1hr Stochastic still support the trade. If they still support the trade then we wait for the market to return in or favour. 8. If the 1hr MACD and Stochastics are now changing direction and price have broken through the trend line, We quicky place a Sell Hegde of 0.4lots and go into Equity Recovery Mode. Equity Recovery Mode. The Objective of Equity Recovery is to get out a bad trade with all our money plus a tiny overall net profit. Once we place the Hedge of 0.4, if the market continues to sell, we will be closing the buy orders 10 pips away from each other until we have closed all of the buy orders. Once our eqiuty recovers to what it used to be before the bad trade occured, we close all open orders and Continue with our normal trading method. Note that once th 1hr MACD and 1hr stochastic Channges to a new direction, prices usually moves at least 40 pips and this is enough for you to recover your equity. If price reverts back to Up, immediately after you open the sell hedge with 0.4, simply place a new buy trade of 0.2 and begin to close off the sell hegde 0.1 evey 10 pips up until you have recovered your eqity , then immediately close all open trades. Final note: Use 0.01 for every $100 and 0.1 for every $1000. For easy trade management, trade only one pair at a time. You can make at least 15% of your overall equity every trading day with this wonderful method. Now here you have it It is now time for a good programmer to code this for us into an EA so that we can really begin to enjoy Forex trading Elvis Edited October 24, 2010 by elvee4eva halcyonn, mcgene4x and fxshare 3 Quote Link to comment Share on other sites More sharing options...
halcyonn Posted October 24, 2010 Report Share Posted October 24, 2010 (edited) thanx for the comprehensive thoughts...it would be quite a task whoever takes it up! hopefully it would not be a paralysis by analysis ea but an actively trading,profitable one! Edited October 24, 2010 by halcyonn Quote Link to comment Share on other sites More sharing options...
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