Trapping System: Way to Fully-Automated
Hello fellow traders!
This is my first time writing a new thread. Wanted to share a trading method that at least makes me happy now that the method works (at least in a demo account)
I am testing my method on a demo account (it has been running for at least 3 months - fully automated trading) and on a real account (it has been running for more than two weeks - also fully automated trading).
Introduction <br> I am in a state of depression because the trading method I have been learning for so long (8 years) has never worked! Mainly because I wasn't focused (completely doing my main job during the day). Well, it's not completely ineffective, but it's not consistent. A few times it worked and gave me a profit, but most of the time it didn't work and gave me a huge loss. I failed at every strategy and approach, you name it, I failed at it. Technical analysis, psychological analysis of news, Ichimoku balance, bla..bla..bla...bla...bla...methods, all failed. It's not that the methods are completely wrong, it's just that I never had the time to learn deeply about each method.
During that time, I found this old method, a PDF file, in my storage disk for a long time, but I never read it or even tested it because I was too afraid of losing it again and again. At a certain point I never found any method that worked well for me and then I started looking at and reading about the method and implementing it into automation software. 8 years is a very long time and I realized this method could work just because I looked at the chart so many times at different times.
The method was created in Indonesian and written by someone (don't know his/her name), "by www.bursainvesta.com". At least that's what it says on the last page. Who created this method? I don't know, but apparently this method is commonly used by some traders. Thank you so much to the person who wrote this article for me! It's profitable! (at least for me)
Trapping <br> Since the method is written in Indonesian, I will try to translate it into English with some explanation in brackets and italics to illustrate the meaning.
The steps are as follows:
1. Prepare to trade <br> Be ready to trade when the time points to 10:00 AM GMT ( 17:00 Jakarta, Indonesia ) or 11:00 AM GMT ( 18:00 Jakarta, Indonesia ) because the range of HIGH (highest price of the day) and LOW (lowest price of the day) is stable at this time and the system can be implemented.
2. Conditions <br> If at that time, the range running price between ( honestly, I don't know what the running price means, but I guess it's the last price, the middle price between the bid and the ask price ) to the high price is more than 10 cents , and the range running price between the low price is more than 10 cents, the range between the high price and the low price is under 70 cents (under 60 cents is better) , then place 2 orders.
The order is Buy Stop and the price offered is High Price .
The order is a sell stop and the price offered is the low price .
Both apply an exit target (take profit) of 10 pips ( or you can use 20 pips ) and apply a stop loss of 30 pips ( or 50 pips depending on market conditions) ( obviously the author did not explain what market conditions might change the stop loss point ).
Note: Later I learned that this technique (opening 2 opposite positions at the same time) is called hedging .
Note: For GBP/USD, the high to low measurement range can be 90 cents ( instead of 70 cents ) and you can use take profit at 20 cents and stop loss at 40 cents . This is because this currency pair is the most volatile.
Why use this technology? Because when the New York market opens, we can capture the rise or fall of the US dollar. But if the difference between the high price and the low price exceeds 70 points , please be careful because the price may not be able to touch the high and low price, as well as the profit we planned.
You may want to check your open orders before 05:00 PM GMT ( 24:00 Jakarta, Indonesia time ) (well, more or less). Because sometimes some fundamental news may occur within this time frame.
If you find that prices are flat, or there is no major news for the day, do not open a new order . Because it will cost you money.
3. Close
If one of the positions or orders is active ( this person writes for users who use AGEA broker and Streamster client, which has order status. Another way of saying "order is active" is "BUY_STOP or SELL_STOP order has been changed to BUY or SELL ), immediately cancel the other orders . For example, if the BUY order is active and moving, cancel the SELL_STOP order, otherwise.
If neither order changes to an active order before 09:00 PM GMT ( 04:00 Jakarta, Indonesia time ), then you cancel both and start trading again for the next day.
Return on Investment/ROI ( This guy is very descriptive by giving ROI calculations )
If you make 1 10 point transaction per day, then in 1 week you will earn = 1 x 10 points x 5 days = 50 points in return, or
50 points x 4 weeks = 200 points per month!
Well, if you trade $500, this means you will get a return of = 200 pips x $0.25 = $50 profit per month, which means 10% per month or 120% per year.
The same method, which I implemented and modified slightly, worked great and gave me a pretty good profit in 1.5 months (about 30% profit if you push it high). Some of them are not working and missing, maybe because some parameters are wrong. Below are the screenshots I returned using AGEA and Streamster software on a demo account.
Since I've moved this into automation software, the benefits of this are:
1. Not dependent on current market conditions <br> Whether you're buying or selling, it doesn't matter. Just put it out there and watch. I don't need to go around pulling strings and counting this and that.
2. Even, I don’t need to see <br> This software will work for you. New orders, closed orders, checking conditions... just grab a coffee somewhere and make a profit.
3. Avoid losses?
Losses are inevitable, but holidays are the most dangerous and should be avoided. Also write a condition to avoid holidays.
I will also tell you the disadvantages of this system:
1. Turning sideways is my enemy <br> Yes, since the holidays always lead to sideways trading, this is my enemy. I've noticed that at certain points in time, certain currency pairs, even if it's not a holiday, rarely move sideways. But that's just the pepper in your meal, it's good to have and understand dynamic markets.
I hope you are interested in this simple trading method, if you can't find a good method (or it's too confusing to understand other methods), you can try this. Or modify this method and create your own formula! Or you could try another pair at a different start time!
You can share or give your thoughts on this method, or if you have implemented it, you can post your results here. Or you may have a different formula than I do.
This can be the time you start the method, your take profit, your stop loss, any concerns or modifications to your method's formula.
Updated November 9, 2014 :
I have uploaded the EA for this strategy, which I named MorningStrike (don't know what the best name would be). Please note that this EA setup is "attached" to Forex, not to commodities or futures. Please note that since the software does not recognize holidays, please identify the holidays yourself. Stop this EA when the relevant market is running on holidays to avoid losses.
Here are the setup instructions :
Initial Hi Order ID and Initial Low Order ID > No need to set it to any number. Remain at 0 (zero).
Initial interval timer (milliseconds) > Initial timer is running. Keep the default number.
Price Threshold (Points) > is the threshold (in pips/points) between the last price (midway between ask and bid) and the highest or lowest price of the day.
Open Price Threshold (Points) > is the threshold between the highest and lowest price of the day (in points/points).
Maximum loss (points) > Maximum loss (stop loss)
Maximum Profit (points) > Maximum Profit (Exit Target)
Maximum quantity (depends on broker) > Broker's maximum quantity (1 quantity = 0.01 lot). If the batch is close to the maximum allowed batch, this setting will limit the dynamic batch setting below. For AGEA broker, the maximum lot size in MT4 is 20 lots (so set to 2000).
Quantity based orders (dynamic batching by balance) > Tag, whether to order based on quantity. If true , order batches will be based on fixed quantities (set below). If false , order batches will be based on quantity increments .
Quantity (Micro Lot) > Quantity (if set to Order based on quantity is true , this setting is used for the lot size/quantity when creating a new order. The value is always fixed.
Balance increment (%) > Quantity increment is the setting of how many lots/quantities to get when dynamically creating a new order (expressed in percentage %). Example: Your balance is $5000, then if your quantity increment is set to 1 (equal to 1%), your quantity is 50 . The system will create orders for 0.50 lots. If the calculated quantity exceeds the maximum quantity, the maximum quantity is used.
Start Strategy Execution Time (local time) > Strategy will start at. This will be your local time, please check the local zone settings on your computer. The default setting is 18:00:00 Singapore time.
Stop policy execution time (local time) > The policy will stop at. This will also be your local time. The default setting is 05:00:00 Singapore time.
Suffix text to add to the order comment > You can leave this field blank.
Disclaimer :
The software on this page (RDZ.MT4.MORNINGSTRIKEORISTRATEGY.EX4) is provided "as is" and may only be used to automate trading in the MetaTrader client software. Because the software is free software, the software contributors (thread starters) never provide any warranty and therefore they are not liable for any direct, indirect, incidental, special, exemplary, or consequential damages or errors, including, but not limited to, loss of use, data, or profits. Please test it first and use it at your own risk.
This is my first time writing a new thread. Wanted to share a trading method that at least makes me happy now that the method works (at least in a demo account)
I am testing my method on a demo account (it has been running for at least 3 months - fully automated trading) and on a real account (it has been running for more than two weeks - also fully automated trading).
Introduction <br> I am in a state of depression because the trading method I have been learning for so long (8 years) has never worked! Mainly because I wasn't focused (completely doing my main job during the day). Well, it's not completely ineffective, but it's not consistent. A few times it worked and gave me a profit, but most of the time it didn't work and gave me a huge loss. I failed at every strategy and approach, you name it, I failed at it. Technical analysis, psychological analysis of news, Ichimoku balance, bla..bla..bla...bla...bla...methods, all failed. It's not that the methods are completely wrong, it's just that I never had the time to learn deeply about each method.
During that time, I found this old method, a PDF file, in my storage disk for a long time, but I never read it or even tested it because I was too afraid of losing it again and again. At a certain point I never found any method that worked well for me and then I started looking at and reading about the method and implementing it into automation software. 8 years is a very long time and I realized this method could work just because I looked at the chart so many times at different times.
The method was created in Indonesian and written by someone (don't know his/her name), "by www.bursainvesta.com". At least that's what it says on the last page. Who created this method? I don't know, but apparently this method is commonly used by some traders. Thank you so much to the person who wrote this article for me! It's profitable! (at least for me)
Trapping <br> Since the method is written in Indonesian, I will try to translate it into English with some explanation in brackets and italics to illustrate the meaning.
** *** **
In this tip, we will use the currency pairs EUR/USD, GBP/USD, USD/CHF as examples.The steps are as follows:
1. Prepare to trade <br> Be ready to trade when the time points to 10:00 AM GMT ( 17:00 Jakarta, Indonesia ) or 11:00 AM GMT ( 18:00 Jakarta, Indonesia ) because the range of HIGH (highest price of the day) and LOW (lowest price of the day) is stable at this time and the system can be implemented.
2. Conditions <br> If at that time, the range running price between ( honestly, I don't know what the running price means, but I guess it's the last price, the middle price between the bid and the ask price ) to the high price is more than 10 cents , and the range running price between the low price is more than 10 cents, the range between the high price and the low price is under 70 cents (under 60 cents is better) , then place 2 orders.
The order is Buy Stop and the price offered is High Price .
The order is a sell stop and the price offered is the low price .
Both apply an exit target (take profit) of 10 pips ( or you can use 20 pips ) and apply a stop loss of 30 pips ( or 50 pips depending on market conditions) ( obviously the author did not explain what market conditions might change the stop loss point ).
Note: Later I learned that this technique (opening 2 opposite positions at the same time) is called hedging .
Note: For GBP/USD, the high to low measurement range can be 90 cents ( instead of 70 cents ) and you can use take profit at 20 cents and stop loss at 40 cents . This is because this currency pair is the most volatile.
Why use this technology? Because when the New York market opens, we can capture the rise or fall of the US dollar. But if the difference between the high price and the low price exceeds 70 points , please be careful because the price may not be able to touch the high and low price, as well as the profit we planned.
You may want to check your open orders before 05:00 PM GMT ( 24:00 Jakarta, Indonesia time ) (well, more or less). Because sometimes some fundamental news may occur within this time frame.
If you find that prices are flat, or there is no major news for the day, do not open a new order . Because it will cost you money.
3. Close
If one of the positions or orders is active ( this person writes for users who use AGEA broker and Streamster client, which has order status. Another way of saying "order is active" is "BUY_STOP or SELL_STOP order has been changed to BUY or SELL ), immediately cancel the other orders . For example, if the BUY order is active and moving, cancel the SELL_STOP order, otherwise.
If neither order changes to an active order before 09:00 PM GMT ( 04:00 Jakarta, Indonesia time ), then you cancel both and start trading again for the next day.
Return on Investment/ROI ( This guy is very descriptive by giving ROI calculations )
If you make 1 10 point transaction per day, then in 1 week you will earn = 1 x 10 points x 5 days = 50 points in return, or
50 points x 4 weeks = 200 points per month!
Well, if you trade $500, this means you will get a return of = 200 pips x $0.25 = $50 profit per month, which means 10% per month or 120% per year.
** *** **
The same method, which I implemented and modified slightly, worked great and gave me a pretty good profit in 1.5 months (about 30% profit if you push it high). Some of them are not working and missing, maybe because some parameters are wrong. Below are the screenshots I returned using AGEA and Streamster software on a demo account.
Since I've moved this into automation software, the benefits of this are:
1. Not dependent on current market conditions <br> Whether you're buying or selling, it doesn't matter. Just put it out there and watch. I don't need to go around pulling strings and counting this and that.
2. Even, I don’t need to see <br> This software will work for you. New orders, closed orders, checking conditions... just grab a coffee somewhere and make a profit.
3. Avoid losses?
Losses are inevitable, but holidays are the most dangerous and should be avoided. Also write a condition to avoid holidays.
I will also tell you the disadvantages of this system:
1. Turning sideways is my enemy <br> Yes, since the holidays always lead to sideways trading, this is my enemy. I've noticed that at certain points in time, certain currency pairs, even if it's not a holiday, rarely move sideways. But that's just the pepper in your meal, it's good to have and understand dynamic markets.
I hope you are interested in this simple trading method, if you can't find a good method (or it's too confusing to understand other methods), you can try this. Or modify this method and create your own formula! Or you could try another pair at a different start time!
You can share or give your thoughts on this method, or if you have implemented it, you can post your results here. Or you may have a different formula than I do.
This can be the time you start the method, your take profit, your stop loss, any concerns or modifications to your method's formula.
Updated November 9, 2014 :
I have uploaded the EA for this strategy, which I named MorningStrike (don't know what the best name would be). Please note that this EA setup is "attached" to Forex, not to commodities or futures. Please note that since the software does not recognize holidays, please identify the holidays yourself. Stop this EA when the relevant market is running on holidays to avoid losses.
Here are the setup instructions :
Initial Hi Order ID and Initial Low Order ID > No need to set it to any number. Remain at 0 (zero).
Initial interval timer (milliseconds) > Initial timer is running. Keep the default number.
Price Threshold (Points) > is the threshold (in pips/points) between the last price (midway between ask and bid) and the highest or lowest price of the day.
Open Price Threshold (Points) > is the threshold between the highest and lowest price of the day (in points/points).
Maximum loss (points) > Maximum loss (stop loss)
Maximum Profit (points) > Maximum Profit (Exit Target)
Maximum quantity (depends on broker) > Broker's maximum quantity (1 quantity = 0.01 lot). If the batch is close to the maximum allowed batch, this setting will limit the dynamic batch setting below. For AGEA broker, the maximum lot size in MT4 is 20 lots (so set to 2000).
Quantity based orders (dynamic batching by balance) > Tag, whether to order based on quantity. If true , order batches will be based on fixed quantities (set below). If false , order batches will be based on quantity increments .
Quantity (Micro Lot) > Quantity (if set to Order based on quantity is true , this setting is used for the lot size/quantity when creating a new order. The value is always fixed.
Balance increment (%) > Quantity increment is the setting of how many lots/quantities to get when dynamically creating a new order (expressed in percentage %). Example: Your balance is $5000, then if your quantity increment is set to 1 (equal to 1%), your quantity is 50 . The system will create orders for 0.50 lots. If the calculated quantity exceeds the maximum quantity, the maximum quantity is used.
Start Strategy Execution Time (local time) > Strategy will start at. This will be your local time, please check the local zone settings on your computer. The default setting is 18:00:00 Singapore time.
Stop policy execution time (local time) > The policy will stop at. This will also be your local time. The default setting is 05:00:00 Singapore time.
Suffix text to add to the order comment > You can leave this field blank.
Disclaimer :
The software on this page (RDZ.MT4.MORNINGSTRIKEORISTRATEGY.EX4) is provided "as is" and may only be used to automate trading in the MetaTrader client software. Because the software is free software, the software contributors (thread starters) never provide any warranty and therefore they are not liable for any direct, indirect, incidental, special, exemplary, or consequential damages or errors, including, but not limited to, loss of use, data, or profits. Please test it first and use it at your own risk.
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