Feels great learned lot but i wanna ask that is automated trading is good than manual trading? I think both have potential http: Thanks for your suggestion.. Both are challenging, and both can be profitable. Take a look http: Do you know why this is? Hi Tony, There might be different reasons. When back testing with Metatrader you need to look at the currency spread you are using.
For this test I used 20, that is 2. The other aspect is the data set you are using. In my case the data was obtained from Alpari UK via a direct request to the broker, and not a download from MetaTrader historical center.
Thanks for dropping by. The difference between method 1 and 2 isn't only frame? Don't you just have to change these parameters? Also, do you still plan to code it? Hi Geoffrey, There is another vital difference which complicates it.
And it is that, if you have a winning trade then you don't take the next signal. Plus a couple other minor details. I still plan to code it but I have so much going on between family, work plus other projects that I dont know when I'lll get my hands on it.
Hi Henrik, Could you please explain to me how "if you have a winning trade then you don't take the next signal" would play out? If that's the case, what is the process of opening a new trade if the last one resulted positive?
Hey Victor, Note that the rule you mention is related to the Method 1, which is not the one published here. Method 1 is much harder to program and I have been working on it for months in the middle of my time constraints. But, to your question, if the last trade was positive gains the next one is not taken.
You only trade after a loser. This guide is very comprehensive with exquisite details. Al your answers are here http: The thing that I don't understand is: Why would a following trade not being taken? So according to the original system, if you win 1 trade, how much time would you need to wait to take another one, a complete year? Or what would be the new "trigger"?
As I suppose it's not the case to completely stop trading indefinitely after just one winning closed position. It would be totally absurd, don't you think? Thank you very much for your kind help and support!
You take a trade, if you lose, you will trade the next one, if you lose you will take the next one. If you ever win, then on the next entry signal you skip it but simulate what would have happened with that trade.
If this skipped trade would have resulted in a losing trade then you will take the next signal. In other words you will only trade a signal when the previous one was a loser whether you traded it or skipped it is irrelevant if the precious trade was a loser traded or skipped then you will take the next signal.
The rule is in place because long term trend followers tend to have many losses. AND particularly with shorter term break outs 20 days the fake outs happen even more frequently. That's why the longer term break out 55 days is always taken as it leads to fewer fake outs. How long without trading? Not sure, we would have to run the numbers and IT will vary depending on instrument but for sure much less than a year.
Thank you very much again Henry Everything is clearer now! Hello Lazy Trader, good day. I'm interested in this EA. I almost finish coding it, but I'm having trouble moving the Stop Loss. Is the file format in. Best regards and thank you, Gerardo. Hi Gerardo, The package is sold with the ex4 file only as most ppl wouldn't know what to do with an mq4 anyways. But I can send you the mq4 on a separate email.
Hello Henrik, I have a few more questions before buying this EA: With which currency pairs does this EA works best?
Was this return with only one currency pair? Have you had any profit with it this year? Hi Henrik, I'd like to ask similar questions to Gerardo above. If not, could you please explain why? Depends on how well the currency pairs trend. For example I haven't obtained good results on JPY pairs as they tend to move more erratically. It does work on commodities. However, take into account that this implementation in particular is for the Metatrader platform, where most of the time you only find currency pairs 3 What about indices?
Should work on indexes too, due to the visible trends that are formed. However, I must say I haven't tested them myself. Not as of today. I'm working on adding that and also Ninja Trader but nothing so far.
Thanks for leaving this comment. The information provided on this site is for education purposes only. The author is not a registered financial adviser and the ideas discussed on the site are just trading analysis and not recommendations.
Lazy Trading LLC doesn't endorse any of the comments that might appear on the discussion threads. There is no guarantee for those comments to be accurate. Remember not to risk money that you cannot afford to lose. The legendary story of the Turtle Trades. Pretty intriguing isn't it? If you don't know about the Turtles and the story behind them, you can read here.
My question always was, are the mechanical systems that they used still valid today? Are those systems still profitable? Are they applicable to Forex?
The Turtles traded several markets with 2 systems System 1 and System 2. These systems didn't have any discretionary rule. Everything, from entries to exits, position sizing to money management, everything was clearly established to the very last detail.
This document is the most comprehensive guide I have seen about the Turtle Trading Methods and I used all that information to automate System 2 in Metatrader. I automated System 2 first as it is simpler to program. My plan is to eventually do the same thing with System 1. The Rules The system uses the daily timeframe and the rules are surprisingly simple.
These are the rules for entering Long positions: Buy when the current price is higher that any other high in the previous 55 days. When the volatility is higher the Stop Loss will be set farther away and viceversa. The ATR used is evaluated over 20 days. Don't put any Target Profit on the orders. The goal is to let them run as far as possible in your favor. So, if you have a farther away Stop Loss, the positions size will be smaller, and viceversa.
Once inside the trade, if price moves in your favor by half the ATR, then add another long trade. And you do this until you have a maximum of 4 open trades in the same direction. Every time a trade is entered, move up the Stop Loss of the existing trades, to the same price of the Stop Loss calculated for the new trade just entered. Exit all the trades when the current price is the lowest price of the last 20 days This may happen at a profit or a loss.
Or exit when Stop Loss is hit. For short positions the rules are the same but the other way around. You enter when the price is the lowest it has ever been in the last 55 bars and you exit when price is the highest price seen in the last 20 bars.More...