I've been toying with the concept of volatility breakouts ever since reading about Larry Williams' success quite some years ago and a very interesting article by Linda Bradford Ratchke.
I've always been a discretionary trader and avoided EAs but I feel perhaps it's time to try something new.
Here's my idea for a simple volatility breakout and I'd like productive, constructive input from others. If anyone is able to code an EA that would be great!
General Idea: to take a chunk out of intraday trends.
Timeframe: 15 minute charts,
Currency: EUR/USD
Go Long at the open of the next bar if:
- the current bar closes at least 5 pips above the previous bar's high, and
- the current bar closes above the high of the previous 5 bars, and
- the current bar's close is higher than the high 12 bars ago.
Take Profit = 15 pips, Stop Loss =15 pips. Only have 1 trade open at a time.
Reverse above entry criteria for shorts.
Money Management is discretionary. It would be nice if an EA had an input for account type (standard, mini) and lot size or even % of account balance to be risked on each trade.
Possible tweaking could include limiting the session or time of day to look for trades.
If this method does show some potential, I'd like to try and keep the general idea uncluttered from indicators.
I've always been a discretionary trader and avoided EAs but I feel perhaps it's time to try something new.
Here's my idea for a simple volatility breakout and I'd like productive, constructive input from others. If anyone is able to code an EA that would be great!
General Idea: to take a chunk out of intraday trends.
Timeframe: 15 minute charts,
Currency: EUR/USD
Go Long at the open of the next bar if:
- the current bar closes at least 5 pips above the previous bar's high, and
- the current bar closes above the high of the previous 5 bars, and
- the current bar's close is higher than the high 12 bars ago.
Take Profit = 15 pips, Stop Loss =15 pips. Only have 1 trade open at a time.
Reverse above entry criteria for shorts.
Money Management is discretionary. It would be nice if an EA had an input for account type (standard, mini) and lot size or even % of account balance to be risked on each trade.
Possible tweaking could include limiting the session or time of day to look for trades.
If this method does show some potential, I'd like to try and keep the general idea uncluttered from indicators.