Monster Muncher Manual Trading Discussio: Praise SH (Monster Muncher Manual Trading Discussio)
This is a post dedicated to Monster Muncher EA, written by the famous Steve Hopwood and designed by me. Thanks Steve for the great work on this EA.
I personally don't like having bots on my account, so I only trade manually. I did some research on the backtest results and it worked great, but in practice as an automated trader some issues can arise. To be honest, I haven't done enough forward testing with it as a bot to provide any kind of comprehensive report.
My own interest lies solely in the manual trading aspect, so that's what I hope to cover here: how to manually trade MM for best results.
I've manually tested it forwarding and after some demo practice, it works really well on my live account.
=====================================================
Important : This EA counts based on your broker's GMT offset time. A broker with a GMT offset of +2 will give a different forecast than a broker running GMT.
I'm using IBFX, which counts based on GMT. Any other GMT broker would closely predict this.
I do not recommend using a non-GMT time proxy for this system. I only have experience with IBFX. Brokers with GMT offset times may significantly alter the results.
If you have a non-GMT time broker, the best advice is: get a demo from a GMT time broker and get signals from it.
IMPORTANT #2 : There is a bug in the EA that causes the chart to shift once an hour. You must refresh the template every hour, which will restore it to its original settings. Now this information is at the top and highlighted,
I'll ignore any further questions about it in the thread. I've written this 5 or 6 times in the thread itself, although it's already stated in the first post below. There is nothing I can do.
Last time: You must refresh the template every hour.
IMPORTANT #3: This is a developing strategy - I urge people to either demo trade or make penny trades when learning this strategy. It's common sense - use your money wisely. Nothing is certain in the Forex market
All trading involves an element of risk. This is about creating a system that builds favorable probabilities over time, not a holy grail. Any method requires time, study, and practice to be successful.
=========================================================================================================================
This is the basic fault of the system:
First I'll explain the lines. The center red line or average line is the heart of the system. The calculation method is as follows:
It calculates the average range of the first 6 bars of the week (point #1), then the average range of the last 6 bars of the week (point #2), then the average range of the third 6 bars of the week (point #3).
Then take the average of #1 and #2 and generate a fourth point #4. It takes the average of #2 and #3, producing a fifth point #5.
The red line is the straight line from point #4 through the center of point #5.
This will give you the average trajectory of the first 18 bars of the week. It updates automatically every week.
Therefore, after the start of the week it takes 4.5 hours to calculate the red line on the 15-minute chart, 9 hours to calculate the red line on the 30-minute chart, and 18 hours to calculate the red line on the 1-hour chart.
The top of the weekly ATR (blue line) is above the red line. The bottom of the weekly ATR (green line) is below the red line.
The yellow line that is very close to the red line is not used for signals and is only used to help observe price action around the red line. They are not required, but I find them helpful.
So, this system can give you four types of trades.
Buy #1: Price closes above the red line RSI which is oversold.
Buy #2: Price closes at or below the green RSI line which is oversold.
Sell #1: Price closes below the red line RSI which is overbought.
Sell #2: Price closes at or above the blue RSI line which is overbought.
The 1 hour chart is the most reliable trading chart in my experiments. 15 minutes allows you to make more trades, but may result in losses. I like to watch 15 minutes, 30 minutes and H1 to see if they give me consistent signals, but only take my actual signal from H1.
You don't have to watch all three TFs, it's up to you. You can trade directly on H1.
=======================================================
Charts, EAs and templates are posted below.
EA Go to your Broker>Experts.
Templates are located in your Broker > Templates.
Template #1 has been set up to disable live trading and alerts.
Template #2: Also disables life trading and alerts, but turns off user feedback and removes the ADR indicator. It's just a line with RSI, without any other kind of text. It looks cleaner.
Final note: If you trade on the 1-hour chart, you must refresh the template every hour; if you trade on the 30-minute chart, you must refresh the template every 1/2 hour; if you trade on the 15-minute chart, you must refresh the template every 15 minutes. It recalculates on every new bar it creates - just a bug - so to get it back to the original settings just refresh the template.
Also, obviously use common sense and practice in the demo before making any live trades. If you only downloaded the EA and not the template, make sure to uncheck Allow Live Trading. Other than that, enjoy!
====================================================
Types of setups to avoid in the next article.
====================================================
More information about this system as a robot and other Steve Hopwood creations can be found here:
http://www.forexfactory.com/showthread.php?t=243432
===================================================
renew:
8/7/10: Placed a corrected version of MM (mq4 file below, titled "breakoutv4") with the yellow line settings entered correctly. These settings are entered correctly on the published template, but not on the bot itself.
The "ATR Breakout Multiplier" setting should be 0.162. This keeps them some distance from the red line where price action plays a major role.
It also sets them at a certain distance, and if you draw a trendline between the lower yellow and green lines, and a trendline between the upper yellow and blue lines, you will get equal divisions into a total of 6 sections. Significant changes also occur near the 50% level between the yellow and green lines, and the yellow and blue lines. None of this changes the rules of the system, but it's good for observation and perhaps more to come in the future.
This new version also sets the magic # to 0 and trade comments to "none" to hide them from the broker.
=================================================================================
8/21/10: Improved Type 2 retracement trading method using Fibonacci. See post #120 . Important improvements not to be missed.
==================================================================================
8/24/10: Type 1 redline transactions refined. Thanks to Ian for his help with this. See post #138.
===================================================================
I personally don't like having bots on my account, so I only trade manually. I did some research on the backtest results and it worked great, but in practice as an automated trader some issues can arise. To be honest, I haven't done enough forward testing with it as a bot to provide any kind of comprehensive report.
My own interest lies solely in the manual trading aspect, so that's what I hope to cover here: how to manually trade MM for best results.
I've manually tested it forwarding and after some demo practice, it works really well on my live account.
=====================================================
Important : This EA counts based on your broker's GMT offset time. A broker with a GMT offset of +2 will give a different forecast than a broker running GMT.
I'm using IBFX, which counts based on GMT. Any other GMT broker would closely predict this.
I do not recommend using a non-GMT time proxy for this system. I only have experience with IBFX. Brokers with GMT offset times may significantly alter the results.
If you have a non-GMT time broker, the best advice is: get a demo from a GMT time broker and get signals from it.
IMPORTANT #2 : There is a bug in the EA that causes the chart to shift once an hour. You must refresh the template every hour, which will restore it to its original settings. Now this information is at the top and highlighted,
I'll ignore any further questions about it in the thread. I've written this 5 or 6 times in the thread itself, although it's already stated in the first post below. There is nothing I can do.
Last time: You must refresh the template every hour.
IMPORTANT #3: This is a developing strategy - I urge people to either demo trade or make penny trades when learning this strategy. It's common sense - use your money wisely. Nothing is certain in the Forex market
All trading involves an element of risk. This is about creating a system that builds favorable probabilities over time, not a holy grail. Any method requires time, study, and practice to be successful.
=========================================================================================================================
This is the basic fault of the system:
First I'll explain the lines. The center red line or average line is the heart of the system. The calculation method is as follows:
It calculates the average range of the first 6 bars of the week (point #1), then the average range of the last 6 bars of the week (point #2), then the average range of the third 6 bars of the week (point #3).
Then take the average of #1 and #2 and generate a fourth point #4. It takes the average of #2 and #3, producing a fifth point #5.
The red line is the straight line from point #4 through the center of point #5.
This will give you the average trajectory of the first 18 bars of the week. It updates automatically every week.
Therefore, after the start of the week it takes 4.5 hours to calculate the red line on the 15-minute chart, 9 hours to calculate the red line on the 30-minute chart, and 18 hours to calculate the red line on the 1-hour chart.
The top of the weekly ATR (blue line) is above the red line. The bottom of the weekly ATR (green line) is below the red line.
The yellow line that is very close to the red line is not used for signals and is only used to help observe price action around the red line. They are not required, but I find them helpful.
So, this system can give you four types of trades.
Buy #1: Price closes above the red line RSI which is oversold.
Buy #2: Price closes at or below the green RSI line which is oversold.
Sell #1: Price closes below the red line RSI which is overbought.
Sell #2: Price closes at or above the blue RSI line which is overbought.
The 1 hour chart is the most reliable trading chart in my experiments. 15 minutes allows you to make more trades, but may result in losses. I like to watch 15 minutes, 30 minutes and H1 to see if they give me consistent signals, but only take my actual signal from H1.
You don't have to watch all three TFs, it's up to you. You can trade directly on H1.
=======================================================
Charts, EAs and templates are posted below.
EA Go to your Broker>Experts.
Templates are located in your Broker > Templates.
Template #1 has been set up to disable live trading and alerts.
Template #2: Also disables life trading and alerts, but turns off user feedback and removes the ADR indicator. It's just a line with RSI, without any other kind of text. It looks cleaner.
Final note: If you trade on the 1-hour chart, you must refresh the template every hour; if you trade on the 30-minute chart, you must refresh the template every 1/2 hour; if you trade on the 15-minute chart, you must refresh the template every 15 minutes. It recalculates on every new bar it creates - just a bug - so to get it back to the original settings just refresh the template.
Also, obviously use common sense and practice in the demo before making any live trades. If you only downloaded the EA and not the template, make sure to uncheck Allow Live Trading. Other than that, enjoy!
====================================================
Types of setups to avoid in the next article.
====================================================
More information about this system as a robot and other Steve Hopwood creations can be found here:
http://www.forexfactory.com/showthread.php?t=243432
===================================================
renew:
8/7/10: Placed a corrected version of MM (mq4 file below, titled "breakoutv4") with the yellow line settings entered correctly. These settings are entered correctly on the published template, but not on the bot itself.
The "ATR Breakout Multiplier" setting should be 0.162. This keeps them some distance from the red line where price action plays a major role.
It also sets them at a certain distance, and if you draw a trendline between the lower yellow and green lines, and a trendline between the upper yellow and blue lines, you will get equal divisions into a total of 6 sections. Significant changes also occur near the 50% level between the yellow and green lines, and the yellow and blue lines. None of this changes the rules of the system, but it's good for observation and perhaps more to come in the future.
This new version also sets the magic # to 0 and trade comments to "none" to hide them from the broker.
=================================================================================
8/21/10: Improved Type 2 retracement trading method using Fibonacci. See post #120 . Important improvements not to be missed.
==================================================================================
8/24/10: Type 1 redline transactions refined. Thanks to Ian for his help with this. See post #138.
===================================================================
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