Eaty System V 2

[eaty]

Hi,

This is my version 2 of Eaty system. They are my idea if Eaty system will develops into EA that I thought of long ago.

So here you go. There are slight changes in the system and some new improvement.

Time frame: H4
Pair: GBPJPY (for the moment I focus on this pair 1st)
Indicator: RSI (3), RSI (4), MACD (3, 13, 1), 4SMA (Median Price (HL/2))

Why there are so many changes in Eaty system version 2? This is because without EA we only log in once every 4 hour. Let say you in profit but never set Breakeven (BE). At the close of 4 hour (The time you log in to check your trade) you might in losing position. Eaty version 2 is release because thank to xux99 for the interest to develop it into EA. With EA, Eaty V2 can grab better profit and reduce the losing trade. All these changes are for improvement.

Buy Enter:
a.   RSI (3) and RSI (4) to cross above 50.
b.   MACD (3, 13, 1) has to be in green color.
c.   After 3 signal confirmed, the next bar start we put 3 pending buy orders.
3 pending trade:
1.   Entry = High + 16pips + Spread, TP = 50, SL (Pls read Stop Loss written below.)
2.   Entry = High + 16pips + Spread, TP = 100, SL (Pls read Stop Loss written below.)
3.   Entry = High + 16pips + Spread, TP = freely until the SL hit, SL (Pls read Stop Loss written below.)
 
Sell Enter:
d.   RSI (3) and RSI (4) to cross below 50.
e.   MACD (3, 13, 1) has to be in red color.
f.   After 3 signal confirmed, the next bar start we put 3 pending sell orders.
3 pending trade:
4.   Entry = Low- 16pips - Spread, TP = 50, SL (Pls read Stop Loss written below.)
5.   Entry = Low - 16pips - Spread, TP = 100, SL (Pls read Stop Loss written below.)
6.   Entry = Low - 16pips - Spread, TP = freely until the SL hit, SL (Pls read Stop Loss written below.)

I got a typo here, sorry. Changes are in red

30 > MACD > -30 don’t  trade.
Use GMT+1 for better result. Currently i using Alpari for charting platform cos it use GMT+1.

Why there is a 16pips added? Base on my backtesting I found out that 16pips away is the best.
Why 30 > MACD > -30 don’t take trade? This is because with this setting not to trade can save you from draining you account. This is all base on my study.

Stop Loss (SL):
There are 5 case of SL:
Case1: Set at the opposite entry.
Case2: If trade achieves > 125 pips profit, set our SL to 30 pips.
Case3:
g. RSI (3) form a new low above 50 for buy.
h. RSI (3) form a new high below 50 for sell.
Case4:
i. RSI (3) move below 50 for buy.
j. RSI (3) move above 50 for sell.
Case5:
k. Close below MA for buy.
l. Close above MA for sell.

Case6: If trade start without any cases applies, set at recent high or low.

How we apply all these SL method? Either one appear 1st we will apply it 1st.

Detail explanation with picture shown below. New example is added for each case for better understanding.

Eaty V2 Template http://www.forexfactory.com/attachment.php?attachmentid=267762&d=1246521780
Pj-over RSI.mq4 (This indicator is for easy view on RSI cross only.) http://www.forexfactory.com/attachment.php?attachmentid=267763&d=1246521780
MACD colour.mq4 http://www.forexfactory.com/attachment.php?attachmentid=252797&d=1243555462
p4L candle time.mq4 http://www.forexfactory.com/attachment.php?attachmentid=252798&d=1243555479
RSI.mq4http://www.forexfactory.com/attachment.php?attachmentid=252799&d=1243555479

[eaty]

Case1: Set at the opposite entry.

In this case I will explain sell order just ignore the buy order at High1. RSI removed for easy view on the picture.
Sell Entry:
d. RSI(3) & RSI(4) cross below 50.
e. MACD(3,13,1) in red.
f. Confirm a sell. So we set 3 pending order.
Sell Entry = Low1 - 16pips - Spread
= 160.871 – 16pips – spread
= 160.711 - spread
SL = High1 +16pips + spread
= 162.215 + 16pips + spread
= 162.375 + spread
i. Sell = 160.711 + spread, TP = 50pips, SL = 162.375 + spread
ii. Sell = 160.711 + spread, TP = 100pips, SL = 162.375 + spread
iii. Sell = 160.711 + spread, TP = free, SL = 162.375 + spread



Case2: If the H4 bar achieves > 125 pips profit, set our SL to 30 pips.

In this case I will explain sell order. RSI removed for easy view on the picture.
Buy Entry:
d. RSI(3) & RSI(4) cross above 50.
e. MACD(3,13,1) in Green.
f. Confirm a buy. So we set 3 pending order.
Buy Entry = High2 + 16pips + Spread
= 158.932 + 16pips + spread
= 159.092 + spread
SL (When Price hit 160.182 where our profit > 125pips) = Buy entry + 30pips
= 159.092 + spread + 30pips
= 159.392 + spread



Case3:
g. RSI (3) form a new low above 50 for buy.
h. RSI (3) form a new high below 50 for sell



This SL abit tricky but once you master it, it should be easy. So let look at the small picture I magnified. Blue line is RSI(3).

RSI1 = 67.29000
RSI2 = 53.1513
RSI3 = 57.0101

Our rule said for buy, SL when RSI (3) form a new low above 50. So from the figure I had shown you that I collected from the chart. We know that RSI 2 is a new low above 50. So let look at the price for RSI 2 and RSI 3. Which bar have the lowest low will be our SL point. Don’t forget to – 16pips – spread for our new SL.

So now our SL had set at Low3. We maintain this SL at Low3 until Low4 appears. Look at Low4 RSI(3). It forms another new low. Our new SL will be set at Low4.

From the picture we can see that my SL moving up from Low3 -> Low4 -> Low5 -> Low6 -> Low 7 … If it keep going we continue move our SL until the contract is close.

Case4:
i. RSI (3) move below 50 for buy.
j. RSI (3) move above 50 for sell.




In this picture it show Case4 i. This is not a prefect example but it should explain my rule.

Our buy entry is at High5. Case4 i. applies during Low8. RSI(3) cross below 50 (look at the blue line). So we set our SL at the Low of low8.

Case5:
k. Close below MA for buy.
l. Close above MA for sell.




This is a new SL added. Our buy entry is at High6. All data at RSI, MACD are deleted to avoid confusion.

This is a buy order example. Case5 k, apply at Low9. Close of low9 below MA. So we will take the low point of Low9 as our new SL. Don’t forgets to – 16pips – spread for our new SL as well. 

Case6: If trade start without any cases applies, set at recent high or low.



This SL is added to prevent worst case scenery. It is a typical SL. If all our SL rules don’t apply we set the SL at the recent high (for sell) or low (for buy).

In our example, Low10 is our sell entry and High7 is our recent high. So High7 is our SL.

[eaty]

All our SL rules are discussed. Hope you can understand it. Coming up is some rules for EA. With all these setting and rules apply in EA. We can gain profit and protect our money from draining.

E1. Once our trade in profit of 40pips, BE+1.
For example: 
3 trade open and in profit of 40pips. 3 trade SL will need to set at BE+1. Even none of the trade is taken profit. This is because we wan to lock our trade from being a losing trade.

E2. Reenter whenever the market price hit our original point after E1.
For example:
3 trade open and in profit of 40pips. We set our SL at BE+1. Market go against us and hit our BE+1. We earn 3 pips…HAHA. We still in profit.

If the market continues go against us and hit our original point. (Original point is the place sell/buy entry without adding ±16 pips ± spread. We reenter the market.

•   Reenter only applicable for 2 4H bar range. (Start from the bar when E1 apply and hit the original point.This 4H bar consider the 1st bar.)
•   Reenter only applicable when no new signal appear. Once new buy/sell order appear, we will use the update new signal.

E3. Once trades in profit and SL are set at profit, we can add in new trades.




Blue = Buy entry + 16pips + spread + 50pips =160.173
Yellow = Buy entry + 16pips + spread = 159.673
Red = Buy entry = 159.513
* Pic with the green circle is 4H and the other 2 Pic are 1 min chart.

From the picture shown we can know that High8, 3 trades were open and hit 50pips. So trade 1 is close, trade 2 and trade 3 SL are set to BE+1.

Market price move against us and hit our BE+1. So we wait for reenter. Market price move and hit our red line (Our original point). We reenter the market by setting up 3 pending trades and wait for the market price to go up again. If it doesn’t go up by 2 4H bar, which is the 3rd 4H bar. We cancel all trades.

[xux99]

Thank you for the detailed description. It will take about one week to code the EA. I have one question only. Why do you add spread to short pending orders and to the stop loss for long orders? Shouldn't these levels be calculated based on the bid?

[eaty]

Thank you for the detailed description. It will take about one week to code the EA. I have one question only. Why do you add spread to short pending orders and to the stop loss for long orders? Shouldn't these levels be calculated based on the bid?

I add this because the previous platform (marketiva) i use they will have spread on both side. Which 4 pips for long, 3 pips for short. So when i close the contract overall is 7 pips. Currently i using fxopen, they only charge on long. So i am still confuse on this.

I think you point is correct. There are no need to add spread on the short pending order and the stop loss for long order. Sorry for the confusion.

[showbaba]

Some test ETC
 
i still want to beg xux for time filter (what time of the day to trade)

[eaty]

Some test ETC
 
i still want to beg xux for time filter (what time of the day to trade)

I just notice that you attach the result. Notice that you use D1 for tf. Hmm, had you try with H4?

For UJ don't use TP1 =50,TP2 = 100. Use lower as they are not as volatile as GJ. Try use TP1 = 15, TP2= 30. I believe it will be more save.  

Another thing is that you modify you StopLossDistance=100? i believe this feature is the same with PendingOrderDistance. It is not for SL. It is the extra resistance i add in.

[eaty]

This is my strategic tester result. The only setting i change is tf D1, MACD 0.3 and Leverage percent to 10.

I set the date from 1st Jul til 10 Jul 09 but the EA only run till 1 entry and error. What i had done wrong?

Pls help me.

[showbaba]

ok i will do some more test and i will also put u through later kinda busy now

[eaty]

Hi here is the flow chart of the system. Hope i did it correctly. Hope it can help to understand it more and speed up your programming.

[xux99]

Hi Eaty, the new version will be ready by the end of this week. When Profit>125 the stop loss is set 30 pips below entry price for a long order or breakeven+30 pips? The rule E3 that we add additional trades is still valid?

[eaty]

Hi Eaty, the new version will be ready by the end of this week. When Profit>125 the stop loss is set 30 pips below entry price for a long order or breakeven+30 pips? The rule E3 that we add additional trades is still valid?

Ty for the update.

Is breakeven + 30pips.

yeah still valid.

Just to make thing clear. Add in new trade mean that, the previous buy trade SL is in profit. New buy signal occur. Or the other way round. Pic below show the sell order addition trade.

[eaty]

Recently i improve my trading skill by using Tread Lines.

By adding this skill i able to :
a. Know where the price will end. (Best for TP)
b. Know whether this is a good entry.
c. Know the trend of the current market.
d. Filter some lousy entry.

How to draw a TL?
My recommendation is minimum connect 3 area. Show below.

As can see the round blue show that 3 area of resistance. Base on this single TL we able to filter, get out at the best point and going in the correct trend.

If you can master the TL, ur trading skill is higher one level. TL is another big topic to understand so u should pay attention on it. It can save ur acc from being burn and help u to see the future of the market. It is like a crystal ball for us fx trader.

I just show a small bite of the power of TL. Knowing TL is 1 thing how to apply it is another thing.

Hope it help.