100% Price Action no Indicators

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I want us to look into this trading system, build on it and write an EA that will trade any pair using this system. It does not require any indicator to make its decision, it is 100% price dependent. I have back tested this system using 1 min time frame to get the feel of the price action and it works pretty well but we need an EA to get a better feel.

Conditions for Expert Advisor using MQL for MT4:

For these conditions we are considering the pair EUR/JPY with a spread of 4pips.

More details are provided in parenthesis.

Always open a short and long position at the current price (Hedging) with a 14pips stop loss. (Open two positions based on the fact that you cannot predict the direction of the trend)

If only one of the stop loss is triggered, then

Move the stop loss of the other position to the current price. (This closes out one position and allows the other to continue in its direction otherwise closes out both positions with a loss of just both spreads of –8pips. In a range market the process continues until it starts to trend in a direction.) ·

And activate a 15pips-trailing stop. (This locks up profit as long as that direction is maintained)

Open a new hedged position at the current price “If and only If” both stop loss of the previously hedged position has been triggered. (If only one stop loss is triggered, the trailing stop locks up profit until the final stop loss is triggered to exit trade… a newly hedged position is automatically opened at that pric

The lot size must be a derivative of a margin, which is 25% of the net profit balance at that time. For instance If you have a $2000 balance in your standard account at the time the first hedged position is opened, a 0.5 lot (i.e. 500 margin) will be used continuously until you result in a net profit balance. The next lots size will be calculated based on the current net profit balance.

A spread monitor should be configured so that it does not open positions during major announcements i.e. when spread is greater 5pips.

EDITED

Based on more thoughts, I have to make a little adjustment to the sytem:
The Hedged position should both be opened with the 15pips-trailing stop at the initial start. If only one stop loss is triggered, then the trailing stop the of the other position locks profit untill the last stop loss is triggered and the process continues.

If both stop loss is triggered, it leaves us with -28pips loss.

I will really appreciate it if we can treat development of this system with a lot of patience and optimism because my God mind tells me that we are going to hit something cause we are not too far from the target. If we have to use an indicator to make a better entry then we may have to.... but we have to develop this concept with th right mind set.

Hope to get contributors here.

 

There is a type of price action they use and call market profile.

It almost uses the volumes and bids and asks to give a directional indicator and can be fairly accurate its what traders in the pits use with no charts or indicators.However, this rarely works on otc fx pairs it works on exchange traded futures because there is no way to get real volume data from fx pairs unless your working in a bank.

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