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[code] 81% Return - EA creation


darksorrow

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In this post the system i am posting is in it's purest form. I have tested using this method and got good results. And i believe with little modification in the rules a great automated system can be created.

 

I used the whole 2010 data to test it out. And the result in short is 1620 pips profit. Here i have uploaded the template and the excel sheet where i kept the trading records

 

http://www.multiupload.com/XY8WPSZW7A

 

Here is a screenshot on the chart and the pre determined entry and exit ( a few things are written in the chart so please read)

 

http://my.jetscreenshot.com/4962/m_20110201-xa5n-114kb.jpg

 

Here are the rules i followed when i tested this:

 

Entry:

- 1.34 to 1.36 is no trading zone. Above is sell region & below is buy sell region

- Enter at every 100th pip. This means if price is above 1.35 then (suppose 1.37) then do a sell. Now enter a sell on every 100th pip.

For example, Look at the chart. 1.4200 is the limit and above it you will not trade. So enter a short on 1.42 with 115 pips TP and 100 pips and again enter on a trade @ 1.41 with 115 pips TP and 100 pips SL.

- If price hits SL then another trade will start.

- The same is for buy orders (below 1.35 area)

- No double trading from any open point.

Now if you look at the excel file i gave, there you can see the number of profits and losses i have made in 2010.

 

Because the rules were so simple so they incurred more losses. But when it will be modified, the number of losses will decrease a lot. And i believe 4000 pips can be caught a year.

Edited by darksorrow
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Well what i wrote before was deleted because of a power failure. :( I also forgot the extra notes i have already wrote. But this post is supposed to contain modification so continuing .....

 

Have a look on the chart and see when it is more profitable

 

http://my.jetscreenshot.com/4962/m_20110201-lm0i-107kb.jpg

 

- You will notice a vertical line on the left of the chart. That is the beginning of 2010. After that price started to fall in other words trend has changed. Now if you see then you can see many profitable trades at the beginning of the and only a few losses compared to those wins. And then price fell below 1.36 which is a no trading zone.

 

- Now look again at the chart. You will see a rectangle at the middle. This is where a rule needs to be set:

 

Look back at previous 10 candles and see from where they have emerged, if needed then halt opening a trade.

 

This means if price is falling from above (price was above or touched 1.35) on previous 10 candles (daily TF) then the EA should not open any trade. The same goes for when price goes up from below. This way a FEW winning trades will not be taken but MANY loosing trades will also not be opened.

 

Another rule - When price reaches to the extreme points then they will open a trade ignoring the above rule.

Edited by darksorrow
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First of all my plan is that it will be a complete system so no further modification will be needed in future. So i am writing the options which should be present. A complete system in which we can modify every feature.

 

OK so here is the EA features i have in my mind. I mean the input properties:

 

Base Point: If we set 1.3500 as the value then it would be the mid point. I guess it is clear from my details above that what purpose does the Base point would serve.

 

Ignore 1: This would be 1.34 or 1.36 area where there would be no trades on reaching that point. We must be able to set the values manually.

 

Ignore 2: Same as Ignore 1.

 

Ignore 3: Same as above but reserved for later use. A value of 0 means these options are inactive.

 

Ignore 4: Same as above.

 

Extreme Top: The royal blue line you see on the chart above. That is the final point from where the EA will open a trade.

 

Extreme Bottom: The extreme bottom point from where the EA will open a trade.

 

Enter At: As i said earlier on every 100th level (e.g 1.39, 1.38, 1.37) EA will open a new trade. So if this is set to 100 then the difference of opening a new trade would be 100 pips and if it is set to 150 then EA would open another trade at 150 pips.

 

Take Profit: I guess i don't need to explain this. :p

 

Stop Loss: No need to explain

 

Trailing Stop: This option will also save a few losses. I forgot to mention in my previous posts.

 

Starting Capital: See the post below. We would be able to input the amount by ourselves. So the EA will calculate according to that. Value of 0 means this option is inactive.

 

Loosing trades: This is needed to calculate the lot size for money management. Value of 0 means this option is inactive.

 

Lot size: The calculation is given below that how it will the lot size. This should be done automatically right? The reason i am including it here is because if someone want to use lot size manually then they should be able to do it. Value of 0 means this option is using the money management and calculating according to that.

 

Standard Lot value: 1 = $1 & 0 = $10. When i calculated on the spread sheet then i considered $1 standard lot size. But if it is $10 standard lot size then it is necessary to divide the lot size by 10 or else the MM will be using 10 times more lot size then it is supposed to use. So it also needs to be considered.

There are still a few things i had in my mind but i forgot. I will update it again as soon as i remember.

Edited by darksorrow
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I provided the excel sheet earlier on my 2nd post. Here is a screenshot of it

 

http://my.jetscreenshot.com/4962/m_20110201-98lx-75kb.jpg

 

Check the money management part in the picture.

 

Balance - The amount that you will start when starting with the EA.

 

Trades - The number of trades which will get a MC. I have set it to 20 trades. So if 20 trades are lost consecutively then there will be no money left.

 

Lot - This is how i have calculated the lot size

 

Balance/(Trades x SL) = 1000/ (20*100)

 

So it will result in 0.50 lot per trade.

Edited by darksorrow
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Well here is everything all at once:

 

Trading rules:

 

1. EA will consider buy/sell according to these rules:

 

> Above base point sell area.

> Below base point buy area.

 

2. If price crosses the entry points from above/below extreme points then start trade.

 

3. EA must open a trade at every 100 pips. (e.g. 1.42, 1.41, 1.40)

 

4. There will be only one trade for one point level. If a trade is open at one point (like a sell is open @ 1.37) then the EA

 

will not open another trade if price touches that point again. It must wait for the trade to close before it starts another

 

trade from that point. (Note it will be when there is no open trade for that point and not hit TP).

 

5. EA would not enter a trade when:

 

> Price closed above/below the Base point in last 10 candles. Like, if price crossed 1.35 from the top, then the EA will

 

analyze the base point (1.35 in this case) and it sees there is a candle which have opening or closing from above 1.35 then

 

the EA will not start a trade when price reaches 1.33. It will wait for 10 candles to stay below 1.35 level. Check the

 

picture below for better representation

 

http://my.jetscreenshot.com/4962/m_20110203-48op-104kb.jpg

 

EA properties default setting:

 

Base Point: 1.3500

 

Ignore 1: 1.3400

 

Ignore 2: 1.3600

 

Ignore 3: 0

 

Ignore 4: 0

 

Extreme Top: 1.4200

 

Extreme Bottom: 1.2800

 

Entry At: 100

 

Take Profit: 115

 

Stop Loss: 100

 

Trailing Stop: 80

 

Starting Capital: 0

 

Loosing trades: 20

 

Lot size: 0

 

Standard Lot value: 1

 

.............................................

 

Well i know i have missed many things. And i hope others will ask questions so i will be able to sort them out.

Edited by darksorrow
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Ready for the questions? I can see the 1.35 midpoint with its upper and lower but when was that decided?

What I mean is I start today and my chart looks like yours but no marks. Are you working on the S/R from some time ago or do we put the markers on yeaterday's. In fact on the low mark of yours - make the blue a red?

 

Or do you want to address that later?

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When i was editing my 3rd post then there was a power failure and i lost all what i wrote. Have to write them again. :(

 

Ready for the questions? I can see the 1.35 midpoint with its upper and lower but when was that decided?

What I mean is I start today and my chart looks like yours but no marks. Are you working on the S/R from some time ago or do we put the markers on yeaterday's. In fact on the low mark of yours - make the blue a red?

 

Or do you want to address that later?

 

Always ready for questions ... they can identify if i am wrong somewhere. :D

 

About 1.35 - I decided that after analyzing the chart. If you shrink the candles then you will see that every year there is a good amount of time when price stays within that range.

 

http://my.jetscreenshot.com/4962/m_20110201-dsst-105kb.jpg

 

And about me, i have been with forex over one year but not a gifted trader. Also i am good at drawing SnR levels. (Not boasting LoL)

 

About the colors, I changed them for the better communication of the charts.

 

Royal Blue = Extreme points for opening a trade

Red = Midpoint and no trading zone

Gold = Buy points

Green = Sell points

 

I can do it for you...

 

I am programmer, but I started to make ea this month and so far some strategies are profitable, if you can send me all on a doc document would be better.

 

Hi hawk, Thanks for your help. Please give me some time to finish the writing then I will contact you instantly.

 

Thanks again

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