10 pips at a time? Comments

[wundered]

Below is a fairly crude diagram of an idea I've been playing with today after looking across some of TRO's (therumpledone)ideas, and I was wondering if anyone would know how easy/difficult it would be to code an expert advisor to backtest this, and possibly to automate it as a system?

Rather than using any specific time frame the buy sell orders are placed whenever the price has moved 10 pips, if a stop loss (set to 10) is hit, an order is placed in the direction of the price action again. If the take profit (also 10) is hit, another order is placed in the same direction.

I am fairly new to forex trading, so: if the idea is REALLY stupid, I'd really appreciate an explanation as to why.

From a rough look:

ON EUR/USD

20/01/10 0800GMT- 0836GMT 120 pips

19/01/10 2000GMT - 20/01/10 0800GMT 60 pips

19/01/10 0800GMT - 19/01/10 2000GMT 210 pips

However, 18/01/10 0800GMT - 19/01/10 0800GMT lost 110 pips.

Any comments would be greatly appreciated

[beckhamis619]

I'm not certain how many ideas he has, but I've written some code for his Green Rat Reversal and Red Rat Reversal techniques some time back and they didn't work in the long run.

His arbitrary distance of 20 pips away from daily high / low didn't work well on volatile pairs e.g. GBP/JPY.

If you check around in various forums, some others have tried converting his ideas into EAs and they weren't convinced of their profitability either.

[Linuxser]

wundered:
Below is a fairly crude diagram of an idea I've been playing with today after looking across some of TRO's (therumpledone)ideas, and I was wondering if anyone would know how easy/difficult it would be to code an expert advisor to backtest this, and possibly to automate it as a system?

Rather than using any specific time frame the buy sell orders are placed whenever the price has moved 10 pips, if a stop loss (set to 10) is hit, an order is placed in the direction of the price action again. If the take profit (also 10) is hit, another order is placed in the same direction.

I am fairly new to forex trading, so: if the idea is REALLY stupid, I'd really appreciate an explanation as to why.

From a rough look:

ON EUR/USD

20/01/10 0800GMT- 0836GMT 120 pips

19/01/10 2000GMT - 20/01/10 0800GMT 60 pips

19/01/10 0800GMT - 19/01/10 2000GMT 210 pips

However, 18/01/10 0800GMT - 19/01/10 0800GMT lost 110 pips.

Any comments would be greatly appreciated

Hello,

If you're doing your first steps on trading forget these strategies. Is the fast way to ruin you quickly.

First, my advice is to learn about money management, then about martingales and why always shall fail.

Martingales section Martingale/Average Cost and Hedging - Forex-TSD with a lot of info inside.

[kugan]

beckham.is.619:
I'm not certain how many ideas he has, but I've written some code for his Green Rat Reversal and Red Rat Reversal techniques some time back and they didn't work in the long run.

His arbitrary distance of 20 pips away from daily high / low didn't work well on volatile pairs e.g. GBP/JPY.

If you check around in various forums, some others have tried converting his ideas into EAs and they weren't convinced of their profitability either.

This isn't one of his systems, although I did get onto thinking about it after reading through his ideas in his DRAIN THE BANKS forums on kreslik.com, it's an interesting strategy. Would you be able to code an e.a for this? Have a look for yourself on EURUSD.

[DennisTM]

I would consider shelving the TP part if I were you. If the TP is hit, just stay in and see if it goes further. Your way, if you get a 100 pip run you'd have made 10 trades, for 10x spread cost. Just leave the trade in until it turns (use a trailing reversal point) and the same trade would cost you only 1x spread. If it doesn't keep running, it's the same as you are suggesting, so there's no downside to letting the profits run.

I'm working on a similar idea myself, but not limited to 10 pips or other set amount. Larger would probably be better I think, but I havent' done research on it so....