MT4- Level stop reversal EA
Well, today is your lucky day! I just happened to finish an EA for this indicator over the weekend.
The version of LevelStop-Reverse you posted is actually old and had problems. The version I've attached here is the latest I could find.
The EA is also attached. I've only tested it on EURUSD on H1 timeframe. It is profitable *but* not very good. The nice thing about it is it does have positive expectancy, therefore it should be possible to improve it with the addition of trend filtering or time filtering.
You know the drill. Copy the EA to the "experts" folder. Copy the indicator to the "experts\indicators" folder. Restart MetaTrader.
I also attached the backtest results in the zip file.
Here is a copy/paste from the comment section of my EA:
"This is an EA that uses the LevelStop-Reverse indicator written by Bruce Hellstrom.
It implements the strictest interpretation of the Level Stop-Reverse system rules as specified
by the original VT Systems scripts. The original VT Systems settings have been captured as
defaults in this EA (ATR Period and ATR Smoothing are 14 and ATR Multiplier is 2.824.
This strict interpretation means that the EA only opens a trade when the trailing stop flips over
to the other side of price. The trailing stop on the currently forming bar may flip back and forth
in real time, but this is ignored. The EA only opens the trade on the open of the bar after the
"flipping over" bar closes. Obviously this could be improved upon, but my goal was to implement
what is best documented.
The boolean parameter DumbTradeRules is meant to trade according to this strict interpretation. Currently
only the DumbTradeRules=true is implemented. A future version will introduce an improved interpretation
with filtering to improve the system's performance.
This EA appears to have positive expectancy on EURUSD H1 with the default settings."
EA Needs Version Change To Match v2.0 Indicator
Well, today is your lucky day! I just happened to finish an EA for this indicator over the weekend.
The boolean parameter DumbTradeRules is meant to trade according to this strict interpretation. Currently only the DumbTradeRules=true is implemented. A future version will introduce an improved interpretation
with filtering to improve the system's performance.
This EA appears to have positive expectancy on EURUSD H1 with the default settings."Hi Steve,
I ran the EA and got an error message "//Cannot open file 'C:\Program Files\FXDD - Demo5\experts\indicators\LevelStop-Reverse.ex4' on the EURUSD,H1
I looked inside the code and it's looking for the older indicator. The EA needs to be changed to match the newer version indicator
Replace the indicator name:
LevelStop-Reverse.mq4
With
LevelStop-Reverse2.0.mq4
Recompile and it works fine (I did not test any settings yet).
Thanks for sharing!
Robert
Haha, sorry about that. It's easier to rename the indicator instead of changing the code in the EA though.
This level stop reverse thingie has been in the back of my mind for years, since I first saw it on the VTSystems web site years ago. I was very much a noob then and it was the first automated system I'd seen that had positive expectancy. So for me it's a fun exploration.
Thanks bud for your help. It does look to be over all profitable. I think the trick is to take advantage of the trend. there is always going to be drawdown. The focus needs to be given to the trend. My recommendation is to add lots to during the trend to maximize profits. The good thing about the indicator is that it will get you out of a losing trade without massive loss. So if the system is overall profitable, then we can care less of the wipsaws. Wipsaw is prelude to profit. One way I provided the chart and circled when a lot should be added. Notice when the line goes moves down its because of a price break. We sould take advantage of the price movement. Then sell when we get the reversal signal. If this can be coded that would be awesome. This ATR indicator is awesome since I am a trend follower and nothing else.
Notice the wipsaw taken before the true trend. Notice how much more we would have made if we added lots to the trend. It would not have mattered what we would have lost before hand because we would be in profit. This is what trned following is all about.
EA version 1.2
I added a time filter to the EA. New trades are only initiated when the specified time window is active. I defaulted this to 1000 - 1800 GMT.
This time filter improves the EA's performance and really smooths out the equity curve. The success rate increased from 39.67% to 43.17%. The average winner and average loser went from 1.18 and .63 to 1.34 and .59 respectively. The total return increased from $41.97 to $65.42.
It's clear that a time filter reduced the number of "bad" trades and whipsaws.
I tried to save the backtest report but for some reason MetaTrader wouldn't cooperate.
Hey veritech6,
Do you have any suggestions for rules on how much to add and when?
If we add according to a pyramid scheme, we'd initially open with say 1 lot, then progressively add smaller amounts using some kind of ratio. For instance using a ratio of 0.7 it'd be 1, 0.7, 0.49, 0.34, 0.24, etc.
Since the stop/reverse distance is calculated by a multiple of ATR, it would make sense to add at an interval based on ATR as well.
I'm just throwing around ideas here.
One thing I'd like to avoid is scaling or martingaling. I agree that adding to a winning position (reverse scaling) is the way to go with this.
Cool. I will also use this EA as well as trade the indicator manually so i can add lots to any trend that develops. A great book to read is Trend Following by Micahel Covel for reference of trend following. 
Revised Indicator Name In EA
EA though. This level stop reverse thingie has been in the back of my mind for years, since I first saw it on the VTSystems web site years ago. I was very much a noob then and it was the first automated system I'd seen that had positive expectancy. So for me it's a fun exploration.
Hi Steve,
No apologies needed...the sharing is appreciated...and the "fun exploration" part is why I do this as well!
Regarding renaming the indicator... I would assume the "v2.0" has an improvement over the previous version, and other people may be using the original for other uses, so I would suggest leaving the indicator the same v2.0 name to prevent future confusion...and this also eliminates the extra instructions to rename something to make it work as well.
To help fix this....I went ahead and changed the indicator name in the EA to v2.0 and saved the EA with the name TEMP (no confusing version change). You can test it to make sure it's ok, then rename it back to the original name, edit your post and replace the first EA with this revised version so it stays connected with your message along with the v2.0 indicator you provided. This keeps it all nicely together in one post with a good message.
That way people reading the posts later won't have to go back and forth to find the most recent version or be confused about renaming something.
...And then I can delete this post so people don't spend precious time reading about a correction that has already been corrected...lol!
Again, thanks for sharing...and it looks like people are already having fun with it!
Robert
Hi Steve,
No apologies needed...the sharing is appreciated...and the "fun exploration" part is why I do this as well!
Regarding renaming the indicator... I would assume the "v2.0" has an improvement over the previous version, and other people may be using the original for other uses, so I would suggest leaving the indicator the same v2.0 name to prevent future confusion...and this also eliminates the extra instructions to rename something to make it work as well.
To help fix this....I went ahead and changed the indicator name in the EA to v2.0 and saved the EA with the name TEMP (no confusing version change). You can test it to make sure it's ok, then rename it back to the original name, edit your post and replace the first EA with this revised version so it stays connected with your message along with the v2.0 indicator you provided. This keeps it all nicely together in one post with a good message.
That way people reading the posts later won't have to go back and forth to find the most recent version or be confused about renaming something.
...And then I can delete this post so people don't spend precious time reading about a correction that has already been corrected...lol!
Again, thanks for sharing...and it looks like people are already having fun with it!
RobertHi cosmic,
Is this the EA with the added time filter?
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Hello fellow traders.
Is there an EA for this particular indicator? Or can someone create one that would be awesome. Buy and sell for is respective arrows.
Thanks.