FREE FOREX STRATEGIES
Forex brokers comparison

Advanced system #14-a (Automated Simple Trading with Daily Range)

This is an approach to automate the SOS (Strategy of Stuart) in "Advanced Strategy - Simple Trading with Daily Range" found here http://forex-strategies-revealed.com/simple/simple-trading-with-daily-ra...

My understanding of Stuart's strategy is:

1. Use an indicator (attached) to determine the 10 day Average Daily Range (ADR) for popular pairs.

2. Just prior to the beginning of the London open, enter both long and short trades (a straddle) to trigger if the price moves 25% of the ADR from the current price (at time of London opening).

3. On both trades - take profit (PT) at a further 25% of ADR move in the favourable direction. Stop loss (SL) at 25% less 10 points in the wrong direction

4. Once one trade triggers cancel the other (OCO).

Some testing by others suggest the following pairs may work well with this strategy EURUSD, GBPJPY, USDJPY, EURJPY, NZDUSD, AUDUSD.

The attached EA allows you to do all of this automatically if you are continuously running it. For example, on a VPS. Other features include the ability to move the SL to breakeven point after a set number of points in profit, set a trailing stop.

The advantages of the EA are you can set up the trades anytime each day so it is semi-automatic (need to change the date and check the ADR each day). No need to sit and watch the screen all day. No difficult calculations as the settings are entered in pips not prices.

The disadvantage with any EA is it needs to be running all the time.

I found the EA trawling through the net. I did not write it and don't pretend to own it or support it. If you open the EA in MT4 Metaquotes Language Editor (F4) you can see instructions embedded as comments in the code.

It would be good to experiment with different setting and work out what works best and share the successes and failures here.

Straddle_EA_4.mq4
ADR_3.ex4

Drew

Happy Forex trading!

Nice to have a different thread here about the EA.
Some explanations that I found in some other forum:
CTCBN = number of candles to check before starting point (the point that we take as a close of previous day) for determining highs/lows; when it is 0 it checks only the current candle
SecBPO = seconds before starting point which EA will place pending orders
SecBMO = seconds before starting point which EA will stop modifying orders
STWAN = seconds to wait after starting point to delete all pending orders
OCO = one cancel the other, will cancel the other pending order if one of them is hit
BEPips = pips in profit which EA will move SL to breakeven+1

Indrek

explain more on this strategy

Please, read through the #14 thread. Everything is there already.
Indrek

Hello Indrek!

I downloaded this EA but it keep giving me the error message that its been deactivated cos its not day of expected news. What am i doing wrong?

Chuks

It works on the basis of date and time that you yourself have fixed in the settings. If you want to use it for backtesting then you can do it only one day at a time. In real trading you just adjust the settings every morning. And you have to adjust settings anyway as you probably want to change the entry, SL and TP level according to the changes in ADR or ATR or whatever you use.

Indrek

Which timeframe should be used? Does it makes any difference,M1 and Daily has been suggested.Still good results?

Hi Indrek,
do you use the EA or do you set entry, SL and TP manually? As Drew mentioned earlier, the CTCBN setting does not seem to work exactly as one would like it. Let's say starting point is 8:00 (London Open), right at this time the EA can calculate the ADR of the previous 24 hours, the hourly bar closes at 8:00. How can any trades or pending orders be placed seconds before that time, without having correct high/lows and SL and TP respectively? What is a proper setting for STWAN?

Sorry, friends, I do not use this system any more and I have never used any EA for my trading. I just put up the data about EAs settings that I found somewhere in the internet.

Top Rated Free Forex Indicator...