Advanced system #14-a (Automated Simple Trading with Daily Range)
Submitted by User on June 15, 2009 - 15:51.
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.
Happy Forex trading!