A 5minute Inside Bar System - MT4/MT5 Resources

This is a little system I want to share. This is something I came up with recently, I don't have any live trading results and have only done some very small manual backtesting.

This is a work in progress.


Chart settings:

1. Open the EUR/USD 5-minute bar chart.
2. Place a vertical line at 6 am GMT and 19:00 GMT. My broker's time is GMT+1, so I placed lines on the chart at 7:00 and 20:00.
3. Wait for the inside line to form.
3a. Only trade between the times listed in step 2 above.

Long entry:

4. If the inside bar is bullish, place a pending buy order 0.5 pips above the high.
5. Set Take Profit to 3 pips and Stop Loss to the lowest point of the inner bar.
6. The trading risk does not exceed 1% of the account balance.
7. The transaction must be triggered within 2 bars after the included bar, otherwise the pending order will be cancelled.

Short entry:

8. Reversal Above - If the inside bar is bearish, place a pending sell order 0.5 pips below the low.
9. Set Take Profit to 3 pips and Stop Loss to the high of the inside bar.

EA Creative.

Since the screen time is quite long, it would be great to have an EA to trade this setup. Custom input:

1. Set start and end time
   
2. Fund management function on/off. If closed, enter lot size manually
   
3. Maximum equity gain/loss %cutoff (the EA is closed when the total equity gain or loss set for the day is reached).
   
4. The stop loss is equal to the inside bar's range or 9 pips, whichever is smaller. This is to cope with gaps/peaks during news periods and limit the resulting losses to 3%.

renew:

It has just been confirmed that going to market is actually GMT +2, so I am considering trading between 5am GMT and 18:00 GMT, which corresponds to 07:00-20:00 on my chart.

Ananthhh's v1.2 EA link: http://www.forexfactory.com/showthre...38#post5702438 (May 27, 2012)

The link to the v1.3 EA on May 30, 2012 can be found here: http://www.forexfactory.com/showthre...13#post5712813


If the inner bar has the same open and close prices, the pending order will be placed in the direction of the previous bar's close price.

Please note that development EAs should not be traded on live accounts. This is a work in progress and there are various bugs that need to be fixed. Trading with EA on a real account is at your own risk.