Sunday Bar Breakout

Sunday Bar Breakout

Postby Khalaad » Sun May 04, 2014 5:14 pm

The Weekly Opening Range Breakout EA is
dedicated to

Steve Hopwood

for his single-minded devotion
and selfless struggle

on behalf of the ordinary Forex trader.
Khalaad
 
Posts: 832
Joined: Tue Nov 15, 2011 12:54 pm
Location: Lahore, Pakistan

Sunday Bar Breakout

Postby Khalaad » Fri May 09, 2014 1:57 pm

SERIOUS WARNINGS

1. Most Forex traders lose all their money.
2. Using the EA posted here in trading Forex does not guarantee success.
3. Trading this robot could lead to serious financial loss.
4. Trading this robot without understanding its underlying trading strategies guarantees traders will lose their money.
5. This is not set-and-forget EAs; there is no such thing and anyone who tries to claim there is, is either stupid or lying.
6. At best, a trading robot is only 90% as good as the manual strategy it trades. At best. At worst, it can be much less effective.
7. To trade this robot effectively, you have to:
• fully understand how to use Expert Advisors, and the Empty4;and
• more importantly, cognise and apply appropriate money management.

THIS EA IS STILL A WORK IN PROGRESS; SPECIALLY ITS RISK AND TRADE MANAGEMENT PROTOCOLS. THEREFORE, IT IS EXTREMELY RISKY TO USE IT ON A REAL MONEY ACCOUNT.


Steve’s Once a week basket trading EA has given me the courage to try to automate an old favourite rule based discretionary method of Sunday bar breakout as the Weekly Opening Range Breakout EA (WORBOT).

The following are the salient features of WORBOT are posted by Squalou; the link is at the bottom of the post.

Here are my trading rules and guidelines

Once the Sunday Bar is complete:

1. place a Buy Stop 3 pipettes above the High of the Sunday Bar;
2. place a Sell Stop 3 pipettes below the Low of the Sunday Bar;
3. trade only 1 Buy and 1 Sell per pair per week;
4. will always have an exit stop in place for all open positions – either an InitialStop, or a BreakEvenStop;
5. will place a Breakeven Stop for open positions once profit is BreakEvenStopMult times Initial Risk;
6. place a breakeven stop to protect profitable positions ideally Tuesday close, but no later than
Wednesday close; and
7. close all open positions at WeeklyClose.

I honed the Sunday bar breakout method on OANDA CrapTrader4 daily charts. These charts run mid-night Eastern Time to mid-night Eastern Time, starting at 5pm Eastern Time on Sundays. The times described above are, therefore, Eastern Time.

In my archives of not-used EA’s was a London Breakout EA by Squalou which I thought could be modified to work as Sunday Bar Breakout. Therefore, I requested Squalou to please write this one as well. The first version is now ready.

Thank you, Sq. :good: :)

Khalid

------------------------------------------------

EDIT by Squalou:

Here is our "WORBOT" !
:party:

Newer versions will replace it when appropriate.
You will find detailed explanations of the robot and its inputs here:
http://www.stevehopwoodforex.com/phpBB3/viewtopic.php?f=5&t=3598&p=93577#p93577

Regards
Squalou
:xm:

------------------------------------------------
- Version 1.2.1: changed default MaxTrades limits to match Khalid's defaults (max 2 trades, max 1 BUY and 1 SELL);
- Version 1.2: (31 May 2014) fixed the visual issues (boxes not updating after the "FORMING" period).
New inputs are added to select separately the max number of BUY and SELL trades for a given session:
MaxBuyTradesAllowedPerSession and MaxSellTradesAllowedPerSession; these are still eventually limited by "MaxTradesAllowedPerSession".
I also added a small feature to record all ticks into a file: if you set the "TickFileNamePrefix" input to some "prefix", WORBOT will record all received ticks in a CSV file located in MQL4\files\TickData, named prefix_Symbol_DateOfStart.csv, and where each line has the format "Date Time;Bid;Ask;SpreadInPips"
------------------------------------------------
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Ars longa, vita brevis, occasio praeceps, experimentum periculosum, iudicium difficile.
Khalaad
 
Posts: 832
Joined: Tue Nov 15, 2011 12:54 pm
Location: Lahore, Pakistan

Sunday Bar Breakout

Postby Khalaad » Fri May 09, 2014 2:01 pm

The EA will allow the options of not trading the Sunday breakout in case the Sunday bar is either:

• too large; or
• too small.

This post will contain the average daily Sunday ranges basis OANDA data update once a month, or more frequently if need be.

Please find attached the Sunday bar ranges form Sunday 5 May 2013 to Sunday 4 May 2014 for the 28 pairs + XAGUSD and XAUUSD.

Khalid
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Ars longa, vita brevis, occasio praeceps, experimentum periculosum, iudicium difficile.
Khalaad
 
Posts: 832
Joined: Tue Nov 15, 2011 12:54 pm
Location: Lahore, Pakistan

Sunday Bar Breakout

Postby Khalaad » Fri May 09, 2014 2:03 pm

I believe trading is a very nuanced and personality-dependent activity. I have written enough on this topic elsewhere on the Forum, and need not repeat things here.

The Weekly Opening Range Breakout EA as posted is provided as framework, and I would like any member interested in this method to please follow what works best for then; and, if necessary, adapt the trading rules, the trading logic as it may best suit them.

Please feel free to post you thoughts and ideas here. However, please do not modify the EA without Squalou’s permission. This may, or may not, be a legal requirement; it is a moral compulsion. Moreover, in case you wish to advocate:

• adding to losing position;
• hedging a losing position;
• not using a stop loss; or
• any other thing which violates the respect of risk;

please be prepared for a no hold bar rejoinder from me.

I have very deliberately not included Martingale in the list above. In my opinion, Martingale belongs to the gambling hall, not the trading arena. Therefore, any post promoting, or supporting, Martingale will be deleted without further warning.

Please find attached WD Gann Twenty-eight Valuable Rules, my first lesson in money and trade management; a lesson which to my lasting regret I took many years to understand and implement.

Khalid
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Ars longa, vita brevis, occasio praeceps, experimentum periculosum, iudicium difficile.
Khalaad
 
Posts: 832
Joined: Tue Nov 15, 2011 12:54 pm
Location: Lahore, Pakistan

Sunday Bar Breakout

Postby Khalaad » Fri May 09, 2014 2:05 pm

An independent endorsement of our Steve

Steve Hopwood – the “Mr Nice” of forex
THERE IS SUCH A THING AS A FREE LUNCH IN FOREX, (IF STEVE HOPWOOD IS BUYING)…

http://www.professionalwreckhead.com/?page_id=214
Khalaad
 
Posts: 832
Joined: Tue Nov 15, 2011 12:54 pm
Location: Lahore, Pakistan

Sunday Bar Breakout

Postby Khalaad » Fri May 09, 2014 2:08 pm

Originally posted Tuesday, 06 May 2014 at 12:06 am, and updated today 8:13pm.

I have no idea if Sunday Bar Breakout should be traded if a major money centre is closed Monday. Today is UK May Day holiday, and more than twelve hours into Monday and as the CME currency futures entre the last few minutes of trading, 9 out of 28 Forex pairs have Monday bars inside the Sunday bars!

Anyway, basis normal spreads, the risk of mechanically trading the Sunday Bar Breakout this week is US $ 221 if one were to position size 1000 units (0.01 lot) for each of the 28 pairs, and all 56 trades end up taking a loss.

US $ 221 is 4.42% of a 5K account, 2.21% of a 10K account. Therefore, I would be comfortable trading this lot size with an account larger than 5K. Not that 4.4% portfolio heat is too much; but one should trade other methods as well. I think, at any given time one should trade three different methods / strategies / systems.

I placed 56 paper trade orders Monday. Here are the results, purely based on the mechanical trading rules (since revised) posted Sunday May 04, 2014 5:14 pm

The results are attached; nothing to write home about. But these followed very basic level trading procedures, without proper expectations, risk and / or trade management:

• a number of quite significant gains were not booked simply because the rules as written made no provision for this; and
• many a profit turned to loss because of inadequate breakeven stop rule.

For instance, only 3 pairs out of the 11 which suffered both long and short trade losses would have met the fate by application of revised breakeven stop rule and guideline!

Yet the exercise did provide valuable insights to enable development of rules for trading this method in a mechanical way; and most of the lessons learnt are now being incorporated in the EA.

Khalid
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Ars longa, vita brevis, occasio praeceps, experimentum periculosum, iudicium difficile.
Khalaad
 
Posts: 832
Joined: Tue Nov 15, 2011 12:54 pm
Location: Lahore, Pakistan

Sunday Bar Breakout

Postby Khalaad » Fri May 09, 2014 8:22 pm

Until the EA is posted, I have said all I wanted to say. And take a break with the following thoughts:

If you want to build a ship, don't assign people tasks and work, but rather teach them to long for the endless immensity of the sea.

Antoine de Saint-Exupéry

One sure sign that you lack confidence in seeking the advice of others.

If you listen to anyone else's opinion, no matter how skillful or smart a trader might be, I guarantee it is going to end badly.

It is truly amazing how the market will not let traders get away with even a momentary lapse of discipline.

The Little Book of Market Wizards

Squalou will post the EA, and unlock the thread. :)

Khalid
Ars longa, vita brevis, occasio praeceps, experimentum periculosum, iudicium difficile.
Khalaad
 
Posts: 832
Joined: Tue Nov 15, 2011 12:54 pm
Location: Lahore, Pakistan

Sunday Bar Breakout

Postby Khalaad » Sun May 11, 2014 10:06 am

Post 3 updated with one year OANDA Sunday bar ranges.

Hopefully, Squalou will be able to post the EA before the markets open for the week in about 11 hours time. He is actually making the first version more inclusive than I thought possible, and this is lot of work.

:D

Khalid
Ars longa, vita brevis, occasio praeceps, experimentum periculosum, iudicium difficile.
Khalaad
 
Posts: 832
Joined: Tue Nov 15, 2011 12:54 pm
Location: Lahore, Pakistan

Sunday Bar Breakout

Postby Khalaad » Mon May 12, 2014 12:32 am

Apologies that the EA is not posted before the markets opened for the week.

The EA is not completely finished, and Squalou wants to improve some money management features.

I am quite happy :D with the progress; because fortune favours the properly prepared. And, though it is important to meet the time targets, it is more important to fulfill the quality standards – the real target being presenting a positive expectancy auto-trader to facilitate members make money.

Khalid
Ars longa, vita brevis, occasio praeceps, experimentum periculosum, iudicium difficile.
Khalaad
 
Posts: 832
Joined: Tue Nov 15, 2011 12:54 pm
Location: Lahore, Pakistan

Sunday Bar Breakout

Postby Khalaad » Mon May 12, 2014 6:47 am

Herewith this weeks orders placed manually via real-money OANDA fxTrade account. As I do think I can monitor 56 full-sized orders (28 pairs x 2 initial orders) without the help of an EA, all these orders are for 1 unit, or 0.00001 lot, only.

Khalid
You do not have the required permissions to view the files attached to this post.
Ars longa, vita brevis, occasio praeceps, experimentum periculosum, iudicium difficile.
Khalaad
 
Posts: 832
Joined: Tue Nov 15, 2011 12:54 pm
Location: Lahore, Pakistan

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