Some times better be lucky than smart. I had put here two pending orders. On for short, which was my intended direction, and a counter trade long just in case I was wrong. Well I was wrong but even better my short order didn't trigger at all. Instead my buy order triggered and flied to my TP.
EURJPY. After the big move yesterday it halted at the resistance @108.000 and then printed a new bar breaking the higher DC line. I entered long to follow the trend but unfortunately it failed. Well, losses happen. I also entered a counter trade so I can get my refund. Unfortunately the range is so tight that the pair is not moving anywhere and I am sitting on a second loss right now. On the other hand I am glad that this happened and I hope it will happen some more in the future so I can see how my theory stands.
I made an expert advisor that buys on two consecutive bars after a red bar and sells after two red bars following a green bar. The positions are trailed with a 60 pips trailing stop which is the trade close criteria. The EA is attached to all the pairs that I am following. That's it. No discretion involved. I expect some loses on ranging markets but I hope gains will be big enough to pay for the loses. This EA is running on a separate demo account and has nothing to do with my current account which I will continue to trade manually. Tomorrow I will add that account to myfxbook also.
I am attaching a chart of the kind that I expect to cause me some trouble.
This trade came to an end. Despite my trailing stop I didn't have much more gain than if I had taken my profits in my intended level. It did go higher and I gave back 60 pips. Exit @82.878. Profit +130 pips.
USDCAD is playing around the 1.0000 level. It seems that in the 0.98 it bounced back and is trying to creep up back to parity. Now that I look it again it doesn't look like a good solid place to have found resistance. Not much confluence of facts. On the other side on the 30 min charts there was a 2B pattern so that looks encouraging.
And of course the counter trade pending
TP @0.98440 where the resistance is.
Unfortunately this pair consolidated today. No strong move and watching the Renko chart now is like I was watching it this morning. I am going to sit and wait. After a consolidation comes the trend.
BTW, that Expert Advisor I made yesterday, doesn't seem to work, or the market didn't revers anything today. I didn't have much time to investigate what's wrong with it. I hope I can find some time in the next days.
i would suggest you just trade the euro or pound future,6e or 6b,also dont worry about makeing a autotrader just do it yourself,also wait for your candle to open above your ma for a long or under it for a short and take those swings off your chart you can see where your ladt swing was it is just cluttering your chart,alsp i would try a renko 4 or 6 or 8 range instead of a pip chart.your method can be traded with some minor mods and some pratice. oh yeah dont try to reverse your trades it wont work...sharky
KILLING THE MARKETS DAILY
The following 2 users say Thank You to sharky for this post:
This trade failed and failed miserably. That is the bad news. The good news is that there are useful lessons to be extracted from this failure.
1. I was overoptimistic with this trade. The trend on the daily is up in this pair so how I was expecting to go that far on the short side? Also there was a clearly defined resistance @107.75. There is where I should have put my TP.
2. All positions should be trailed with a stop of 60 pips. 2 bars back.
The funny thing is that as I write these lines the price is bouncing down from my SL
Loss -55 pips
Thanks for you comments sharky. I am trying the Expert Advisor for educational purposes mostly. Unfortunately renko can't be backtested with metatrader so I hope I can get some good conclusions from the expert advisor. As for the swings I think I have some usefoul idea how to use them. I am trying to apply 3 different setups on trading the renko. Yeah it probably clutters my chart too much but I hope with enough training my eye will be able to see through the clutter. What is renko with range?
GBPCHF. Deep loss in this trade. Not sure what exactly has happened. I entered short on this trade trying to take advantage of new DC breakout. I entered a trailing stop of 60 pips (or 600 as my broker calls them) and left my merry way. I didn't enter a TP and I didn't enter the counter trade. When returned back home I found my position deep in -145 pips loss and totally unprotected. No stop loss at all. As it seems only a trailing stop is not enough. A initial precise stop is also needed.