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I came across an interesting idea on another forum which uses a hedging system on the same pair to take advantage of ranging markets. I feel with the right settings and entry timing it could be quite profitable.
If any programmers out there feel that this system may have some merit I would appreciate your efforts in developing an EA that we could test and improve on.
They are developing an EA on the other forum but have not released the source code which makes it very difficult to make minor adjustments.
These rules are not exactly as the original idea as I feel a timed entry option rather than just entering as the EA is added to the chart.
This is how I see the system running.
User defined settings;
Lots = .01
Trailing active =30
Trailing stop =20
Order active =7:00
Order active = True
Loosing trade stop loss =15
Loosing trade trail =15
The rules:
The idea is that the EA will enter a buy and sell trade at a defined time, lets say for example 7:00.
It will then set the 20 pip trailing stops to activate when price has reached 30 pips.
When the winning trade hit’s the trailing stop the EA modify’s the loosing trades stop loss to 15 pips behind the price and activates the 15 pip trailing stop. This trade continues until it hits it stop loss or trailing stop.
On the example below +17 pips on the buy trade and +30 pips on the sell trade, total win of +47pips.
Lets say for arguments sake that after the winning buy trade the price turned and headed back up, and hit our sell trade stop loss, we would have 1 winning trade at +17 pips and a loosing trade at -32, so we end up with a - 15 pip loss. I feel that this is quite an acceptable loss for the potential gain.
( The example has not taken into account the spread just for ease of the example)
Feel free to add your comments and ideas and hopefully we can develop this idea into a profitable system.
I like trading with minimum risk...this's the idea to realize it ...We should to test your idea first before we move forward ....do you know someone who use this system ? How about the performance ?
Hi Prasxz, I have done a small amount of manual back testing with good results although it is quite time consuming. I think to really test its worth we will need to forward test at various settings, this is why an EA would be handy to accurately determine the optimal settings. I will manually forward test this week and post the results.
Hi Robp, I think that timing could be critical in optimizing this systems profitability. We really want to time our entry to take advantage of the high traffic periods such as the London open and US sessions, although until this is properly tested with various settings we won't know what the optimal entry times are. I am sure there is a number of excellent entry opportunities. Remember we are interested in ranging markets rather than trending and as the markets range about 70% of the time a system like this could prove to be highly profitable.
Hi Prasxz, I have done a small amount of manual back testing with good results although it is quite time consuming. I think to really test its worth we will need to forward test at various settings, this is why an EA would be handy to accurately determine the optimal settings. I will manually forward test this week and post the results.
That's right it is quite time consuming but there's no worry at all about the price movement coz we're in hedge right..OK I'll wait for the result in coming week...
Linear Mode
