Steinitz HAS MTF **Theory & EA**

[andwigah]

what pairs are you trading coz i am demo trading manually and it's looks pretty good from where am sitting.

[Dave2]

The ten that Don trades.

[andwigah]

Originally Posted by Dave2

The ten that Don trades.

manually i can only go for the really volitile once and most are ok plus i added another filter just to be sure, I cant say anything bout the automated version, not used it yet.

[steinitz]

Its 5:57 AM and woke up with what I think is either a solution or "the" solution to the draw down issue! Let me give an example which best illustrates my idea.

Example:

1. EA is set for for default settings of 1/6
2. EA recognizes that the monthly trend is blue (long)
3. EA scans top/bottom to find the first counter trend at 1hr TF (alert TF)
4. EA drops down to 30m and waits to get in to trade (alert -1 TF)
5. EA enters trade when 30m turns from red to its first blue candle and goes long
6. Trade fails as 30m blue bars suddenly turn to red bars
7. Preset switch (adjustable) counts how many CLOSED bars (30m) needed to = true (to avoid hedge trade being activated prematurely)
8. Activate the hedge trade

HEDGE TRADE ACTIVATED

9. Hedge trade becomes the earlier "alert TF-1" (30m) as the new "high TF".
10. "Upper TF" function switched on
11. "Upper TF " uses new (high TF 30m) +1 as its value (1hr)
12. EA looks to make sure the high TF (30m) matches the upper TF (1hr).
13. EA scans top/bottom to find the first counter trend at 15m TF (alert TF)
14. EA drops down to 5m and waits to get in to trade (alert -1 TF)
15 EA continues this hedge trading as long as the "upper TF(s)" are valid

COMMENTARY

As long as the "upper TF" condition = true then we continue hedge trading. We could have many hedge trades or very little depending on how deep the draw down gets. This will be automatic for the EA since it looks at the "upper TF" condition.

CLOSING DOWN HEDGE TRADES

16. As soon as the "high TF" (30m) is no longer = true (color doesn't match "upper TF" 1hr) the last hedge trade is closed down instantly regardless of P/L.
17. The hedge trade may have a stop loss assigned to it but I am thinking in favor of color changes rather then static SL.

COMMENTARY

What I have described above should cure the draw down issues since the hedge trade will make as many trades available as long as the DD condition exists. If the DD doesn't last long the hedge trade will also be short lived.

Keep in mind that if the original trade stays in DD for an extended length we could make substantial profits as seen by 4.set. This could very easily take care of some of the losses or actually exceed the floating losses with a NET gain if the original trade bounces back and forth in a range.

The original trade could hypothetically trade in a range allowing the hedge trade to become a pip monkey and rack up 10-12 per trade.

If the original trade normalizes and returns to recover it's losses thats ok too as the hedge trade will finally close down with some small gain or loss and things get back to normal.

I am excited to give this to Robert to code in the new version. With this we can possibly get rid of the other requests to close down on Fridays or at certain floating +/- P/L values.

6:54 AM

EDIT: See changes in red

Don

[Dave2]

Sounds good Don, so to be clear could we in fact be scalping more trades in the DD until we resume the trend?

[sempoi]

Originally Posted by steinitz

Its 5:57 AM and woke up with what I think is either a solution or "the" solution to the draw down issue! Let me give an example which best illustrates my idea.

Example:

1. EA is set for for default settings of 1/6
2. EA recognizes that the monthly trend is blue (long)
3. EA scans top/bottom to find the first counter trend at 1hr TF (alert TF)
4. EA drops down to 30m and waits to get in to trade (alert -1 TF)
5. EA enters trade when 30m turns from red to its first blue candle and goes long
6. Trade fails as 30m blue bars suddenly turn to red bars
7. Preset switch (adjustable) counts how many CLOSED bars (30m) needed to = true (to avoid hedge trade being activated prematurely)
8. Activate the hedge trade

HEDGE TRADE ACTIVATED

9. Hedge trade becomes the earlier "alert TF-1" (30m) as the new "high TF".
10. "Upper TF" function switched on
11. "Upper TF " uses new (high TF 30m) +1 as its value (1hr)
12. EA looks to make sure the high TF (30m) matches the upper TF (1hr).
13. EA scans top/bottom to find the first counter trend at 15m TF (alert TF)
14. EA drops down to 5m and waits to get in to trade (alert -1 TF)
15 EA continues this hedge trading as long as the "upper TF(s)" are valid

COMMENTARY

As long as the "upper TF" condition = true then we continue hedge trading. We could have many hedge trades or very little depending on how deep the draw down gets. This will be automatic for the EA since it looks at the "upper TF" condition.

CLOSING DOWN HEDGE TRADES

16. As soon as the "high TF" (30m) is no longer = true (color doesn't match "upper TF" 1hr) the last hedge trade is closed down instantly regardless of P/L.
17. The hedge trade may have a stop loss assigned to it but I am thinking in favor of color changes rather then static SL.

COMMENTARY

What I have described above should cure the draw down issues since the hedge trade will make as many trades available as long as the DD condition exists. If the DD doesn't last long the hedge trade will also be short lived.

Keep in mind that if the original trade stays in DD for an extended length we could make substantial profits as seen by 4.set. This could very easily take care of some of the losses or actually exceed the floating losses with a NET gain if the original trade bounces back and forth in a range.

The original trade could hypothetically trade in a range allowing the hedge trade to become a pip monkey and rack up 10-12 per trade.

If the original trade normalizes and returns to recover it's losses thats ok too as the hedge trade will finally close down with some small gain or loss and things get back to normal.

I am excited to give this to Robert to code in the new version. With this we can possibly get rid of the other requests to close down on Fridays or at certain floating +/- P/L values.

6:54 AM

EDIT: See changes in red

Don

Din....Hope the new version come out soon.....please inform me as soon it's ready

[steinitz]

Originally Posted by Dave2

Sounds good Don, so to be clear could we in fact be scalping more trades in the DD until we resume the trend?

Yes that is the idea!

Don

[steinitz]

Originally Posted by sempoi

Din....Hope the new version come out soon.....please inform me as soon it's ready

Absolutely!

Don

[jgerousis]

Steintz

1. Don't you think that too much tweaking will only turn your EA into a curve fitted systems?

2. Do you have a clear set of rules to trade the system manually, and do you mind posting the system and rules and live resulsts (traded on live account) on my website? The forex strategy monitor?


Regards, Yanni
Welcome to My Fx Report - Live Forex Trading

The forex strategy Monitor!

[steinitz]

Originally Posted by jgerousis

Steintz

1. Don't you think that too much tweaking will only turn your EA into a curve fitted systems?

2. Do you have a clear set of rules to trade the system manually, and do you mind posting the system and rules and live resulsts (traded on live account) on my website? The forex strategy monitor?


Regards, Yanni
Welcome to My Fx Report - Live Forex Trading

The forex strategy Monitor!

No I don't believe that my system will be curve fitted if anything it will be optimized there is a big difference between the two. If you look at the beginning of this thread you'll see the rules for trading this method manually. Please send me an e-mail explaining what you are looking to do and I'll give it some thought and respond back to you.
Thank you very much

Don