FREE FOREX STRATEGIES

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!

Edward Revy,
http://forex-strategies-revealed.com/

Copyright © Forex Strategies Revealed

Hi Edward,

Thanks for your reply. I've been working on several strategies these days, I will post a few EA's next week.

Best regards,

Nathan

Hi Nathan,

It would be great if you could post the EAs and challenge the traders.
(I'm not able to code indicators and EAs for MT4, so there isn't much I can help with, unfortunately).

Strategy comments like these aren't easy to find and follow for regular users, so I think the best way would be to create a topic at our Forum here:
http://forums.forex-strategies-revealed.com/
where you can work on EAs and have other developers contribute to it as well.

Best regards,
Edward

Hi,

Please find below an EA and a report based on 5 years of backtesting (FXDD data).
This is not about the EA posted, but about Stuart's strategy of the previous post (which is closed, so i'm here).
It uses the 72 las hours to determine the average daily range. But you can play with the parameters.

Strategy_Tester_System_SOS_H1.pdf
System_SOS_H1_1.mq4

I tried to filter trades with SMA 200 or with stochastics (commented in the code), but it did not improve the results.

As you can see, the strategy is neutral for 3 years, then there is a drawdown and finally a long profitable growth.
The interesting point is that if you plot a std deviation curve, you'll see that neutrality goes with limited volatility (low std dev.) And vice versa.

My guess is that we could improve the strategy by moving the IN and OUT and SL and TP points according to volatility. I'm quite new to all this and I'm not sure how to do it. Any id is welcome, i'll try it out and update the EA.

Note to Edward: I have tried several strategies of your site with EAs. I didn't really work well, but it's not necessarily due to thestrategies (me, coding erros, money mgmt,etc.) Many posts are closed and I'd like to post a couple of EAs to challenge the community. How and where should I do it??

Thanks a lot to Edward and all contributors for this great website.

Nathan

Hi Steve - RealIncome
Did you ever code an EA to test this strategy.
Ron

The problem with this EA is that it needs a little more programming.

I have one that does a similar thing in the morning, it has been tested on most currency pairs and has sensible comments so settings can be changed.

Test results were varied for different currencies, they showed (Yes, no need to tell it what day it is) that most would lose money, or were indifferent, however a few achieved good results.

I am thinking of taking some of the coding from this one and the one I have and making an improved version using the ideals generated by both, to create an automated trading EA that uses this ones rules, added to the one I have that works properly.

I will then do some backtesting and if there are any good results will post a link to them here.

I will then trade live and if that works out ok will post a link to those.

It should be interesting to say the least.

I have bought and tested LOTS of these, nearly 99% were FAILURES in testing, the other 1% were quite amazing during testing, but failed in live account, not being able to move or close trades properly themselves.

Steve.
Realincome.

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.

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?

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

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

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

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

explain more on this strategy

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


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