Following on from Geoff's excellant thread http://www.forexfactory.com/showthread.php?t=231650 this gave me an idea for a quick scalp trade. I have noticed that many of the threads/EA's on FF normally suggest avoiding times when there is signifiacant news. I couldn't agree more however what sometimes gets missed is that you may open a position when there is no news however if that position is held open for sometime then your position is at risk to all sorts of events/news whilst it is still open. Therefore I have been looking for something that aims to take a couple of pips at a time perhaps 2 or 3 times a day on each currency. The compounding effect of this should result in significant profits over time.
Fearing being shot down in flames I would like to suggest the following which I have noticed when using the Geoff's EA.
Once the price closes on 1hr chart having crossed the SMA (setting = 10) there seems to be an opportunity to grab a couple of pips at least. I am thinking only 2 or 3 pips (20 or 30 for 5 digit), although you could close half at this amount and see how the rest plays out. It would appear that this cross over could happen 2 or 3 times a day. If we then combine this with Steve Hopwood's approach to multi pair trading EA's then this could add up to a fairly decent amount of pips each day. Even if we made 50 to 100 pips a week the compound effect of this over time would lead to significant profits. By only looking for a couple of pips at a time it hopefully means we aren't in the market for too long and therefore do not get exposed to sudden news events or movements against our position. I am useless at coding but have looked back over the charts and this does look like it could work. NOt sure about the SL although I have tried a couple of trades with a 15 pip SL not that it was needed.
Geoff, having floated this idea to you, I would appreciate if you could look at coding something when you have a moment. My thoughts at the moment with regards to inputs that may be needed would be
Fearing being shot down in flames I would like to suggest the following which I have noticed when using the Geoff's EA.
Once the price closes on 1hr chart having crossed the SMA (setting = 10) there seems to be an opportunity to grab a couple of pips at least. I am thinking only 2 or 3 pips (20 or 30 for 5 digit), although you could close half at this amount and see how the rest plays out. It would appear that this cross over could happen 2 or 3 times a day. If we then combine this with Steve Hopwood's approach to multi pair trading EA's then this could add up to a fairly decent amount of pips each day. Even if we made 50 to 100 pips a week the compound effect of this over time would lead to significant profits. By only looking for a couple of pips at a time it hopefully means we aren't in the market for too long and therefore do not get exposed to sudden news events or movements against our position. I am useless at coding but have looked back over the charts and this does look like it could work. NOt sure about the SL although I have tried a couple of trades with a 15 pip SL not that it was needed.
Geoff, having floated this idea to you, I would appreciate if you could look at coding something when you have a moment. My thoughts at the moment with regards to inputs that may be needed would be
- Lot size
- currencies being traded
- max spread or specific trading times to avoid high spreads for instance at night on GU
- TP in pips
- SL in pips
- Partial Close
- BE
- Jumping stop
These last three in my manual testing I have been using Steve's Multi Purpose Trade Management EA and so folks could use this instead as it is an incredibly powerful piece of kit.
Another option would be to have a minimum distance between the open and close (or maybe high and low) of the candle which crossed the SMA. I mention this as some of the charts I have looked at where the previous candle was very small may result in a loss. I am looking for a reasonably big change in price to suggest that the crossover of SMA has some momentum.
I appreciate anyone's thoughts on this.