Bliksem (Counter Trend EA)

KaMpeR:
Very basically the EA functions like this;

The EA opens trades against the trend, doubling the number of lots with every trade that it opens up to 9 trades.

So if you where trading 0.01 lot for your first entry, every 8 pips you would add another trade, double the size of the last one.

1st trade = 0.01

2nd trade = 0.02

3rd trade = 0.04

4th trade = 0.08

5th trade = 0.16

6th trade = 0.32

7th trade = 0.64

8th trade = 1.28

9th trade = 2.56

The logic here being that nothing goes in reverse for ever and when it does turn, you have enough lots in the last 2 or 3 trades to cover the entire "basket" of losses and make a profit.

(This is obviously not always true, so be aware that this can cost you money)

I have, unlike Farhad, MLS and others, resolved the major drawdown issue by not being as greedy and by being prepared to wait for my money and only trade positions with what I think is a +75% probability of success. Obviously then it also does not accumulate money as quickly either, but it has no where near the risk.

I originally designed this strategy for the H1 chart on the pair EUR/USD because of the obvious volatility of this pair. I later found that it also performed well on the following pairs, GBP/USD, GBP/JPY, EUR/JPY and CHF/JPY, so it would seem that anything JPY or GBP orientated is also OK. I continue to test on EUR/USD only however.

I ran it live on IBFX on a mini account last week, first lot 0.01, it did nicely, $499.00 has grown to $816.00 in that week, but I do not have the confidence yet to leave it to run unattaended.

This EA requires 4 charts with different time frames to function correctly, here is an explanation of the strategy.

I use a 3 EMA system for my calculation of trend on the M5, M30 and H4 charts.

On the H1 chart I use an Indicator called Spyker.

H1

In the Inputs tab, Change the Jimmy value to 1 and the Signal value to 377.

Leave the colours at the default settings.

When the White line is below the Yellow line, H1 signal is assumed to be Short.

When the White line is above the Yellow line, H1 signal is assumed to be Long.

M5, M30 and H4 Setup

1st EMA = Period 55, Shift = 0, MA Method = Exponential, Apply to High, Style = Green.

2nd EMA = Period 55, Shift = 0, MA Method = Exponential, Apply to Low, Style = Green.

3rd EMA = Period 13, Shift = 0, MA Method = Exponential, Apply to , Style = Red.

Assume the trend is Long when the Red line is above both the Green lines on all charts.

Assume the trend is Short when the Red line is below both the Green lines on all charts.

If the Red line is between the Green lines on any of the Charts M5, M30 or H4, do not trade!

Feel free to adjust these numbers to whatever makes you happy.

The EA will enter a long trade when the M5, M30 and H4 are showing Long, but the H1 is showing Short.

To explain in a little detail.

When the M5, M30 and H4 have the Red line above both the Green lines, assumption is that the trend is Long. I then watch for the H1 charts Spyker White line to pass down through the Yellow line.

When this happens I then start to Enter Long trades immediately, I do not wait for the candle to complete.

I generally then compound my long trades in increments of 6 pips. So for every 6 pips the trade drops lower, I open another long trade, double the value of the previous one.

I use this on a Mini account so my first trade has a value of 0.01 and I do not open more than 9 trades in any one "basket" of trades.

The opposite is true for short trades.

I hope that that helps you understand a little bit better what the EA is trying to accomplish and that we can get something of value going here?

The attached files are the latest as at the time of posting this thread.

ajk:
Like your ea...very interesting exit strategy by ts. I also prefer martingales playing only the reversals because signals in forex are always messed up. .. I have to checkout that spyker ...seems pretty cool...have a lot of uses for that! The only filter I could think up for this ea is a little longer stochastic like 6 4 6 that may help confirm a weakening trend. don't know yet. I don't consider myself a big trader because this stuff is a bieeech. so take anything I say with a grain of salt.!

EbenB:
Hi Kamper,

I like the names for your EA and indicator!

I hope it will "bliksem and "spyker" the market.

Good luck

ross:
Too many EA's not enough time!