Secure 10 pips a day

[spence]

hi @ all

I have an idea for a trading system without using any indicator.

the idea came by reading some grid-system-threads

it isn't always profitable but i thing about 85%

so let me explain:

sooner or later the market trends, right?

so if we open 10 positions, 5 short and 5 long

5.long TP 25 pip 1.0 lot

4.long TP 20 pip 0.8 lot

3.long TP 15 pip 0.6 lot

2.long TP 10 pip 0.4 lot

1.long TP 5 pip 0.2 lot

__________________________

spread

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START

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spread

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1.short TP 5 pip 0.2 lot

2.short TP 10 pip 0.4 lot

3.short TP 15 pip 0.6 lot

4.short TP 20 pip 0.8 lot

5.short TP 25 pip 1.0 lot

assumed the market goes up:

the 1. long pos. is TP --> +10$ , then we close the 5. short pos. --> -50$

the 2. long pos. is TP --> +40$ , then we close the 4. short pos. --> -80$

the 3. long pos. is TP --> +90$ , then we close the 3. short pos. --> -90$

the 4. long pos. is TP --> +160$ , then we close the 2. short pos. --> -80$

the 5. long pos. is TP --> +250$ , then we close the 1. short pos. --> -50$

we have a total profit of 200$, right?

of cause the same works in the other direction,too

so where is the problem?

the worst case we could have is if the market turns the direction around the 3. pos. then we would have -160$

but we only need a move of 25pip to get our 200$

so the next argument would be the spread:

if i calculate right with 3pip it would be -90$, right?

so there will be still 110$ profit

and in the worst case - 250$, right?

hmm, now we have more loss then profit, but remember - we only

need a move of 25 pip so i think we could win more then 85% of the positions.

i think 10 pip a day should be possible

questions and suggestions are welcome

i think we could make a profitable EA out of this together

maybe include some indi , change the TP , test the major pairs, trade on news/opens or something else ........

so please suggest this idea

[spence]

the same with 3 pip progressive rate

if we use only 3 pip progressive rate we need only a 15 pip move

and still have 30$ after the 3pip - spread

5.long TP 15 pip 1.0 lot

4.long TP 12 pip 0.8 lot

3.long TP 9 pip 0.6 lot

2.long TP 6 pip 0.4 lot

1.long TP 3 pip 0.2 lot

__________________________

spread

__________________________

START

__________________________

spread

__________________________

1.short TP 3 pip 0.2 lot

2.short TP 6 pip 0.4 lot

3.short TP 9 pip 0.6 lot

4.short TP 12 pip 0.8 lot

5.short TP 15 pip 1.0 lot

assumed the market goes up:

the 1. long pos. is TP --> +6$ , then we close the 5. short pos. --> -30$

the 2. long pos. is TP --> +24$ , then we close the 4. short pos. --> -48$

the 3. long pos. is TP --> +54$ , then we close the 3. short pos. --> -54$

the 4. long pos. is TP --> +96$ , then we close the 2. short pos. --> -48$

the 5. long pos. is TP --> +150$ , then we close the 1. short pos. --> -30$

120$ - 90$ spread = 30$ profit

[Chrisstoff]

Well, the idea is good.

But there are some issues that should be counted in:

Stop Level: the distance in points the TakeProfit or StopLoss, etc. should differ from the market price. The value of Stop Level is varying depending on the broker; e.g. IB FX applies 5 pips, North Finance 10 pips. So, your first grid is doable with IB FX but the second is not.

News Trading: Your idea could be used nicely with news trading if the brokers filled the orders in real time (I'm speaking about live trading not demo), without any lag, requoting and spread increase. (I have still been looking for a broker that does it during big news releasing time.)

So, I think your frist grid can be viable in a trend when the movement is at least 20 pips without any intermediate whipsaw. Consequently the method would need good indicators that forcast that kind of movement in due time.

[spence]

chrisstoff:
Well, the idea is good.

But there are some issues that should be counted in:

Stop Level: the distance in points the TakeProfit or StopLoss, etc. should differ from the market price. The value of Stop Level is varying depending on the broker; e.g. IB FX applies 5 pips, North Finance 10 pips. So, your first grid is doable with IB FX but the second is not.

News Trading: Your idea could be used nicely with news trading if the brokers filled the orders in real time (I'm speaking about live trading not demo), without any lag, requoting and spread increase. (I have still been looking for a broker that does it during big news releasing time.)

So, I think your frist grid can be viable in a trend when the movement is at least 20 pips without any intermediate whipsaw. Consequently the method would need good indicators that forcast that kind of movement in due time.

i don't think that there is a problem with TP and SL because you can code it as small as you want

ex.:

if currentprice is .... -> orderclose

(i'v already did) so you only need the movement of 25 pips or 15 with 3 pip progressive rate

maybe we can use a progressive rate of 10 or 15 to go around the little price reversals

thanks for suggestion

[omelette]

Hi. Correct me if I'm wrong but you're opening 30 minilots Long and 30 minilots Short simultaneously (60 minilots or 6 standard lots in total) and then depending on which way price goes, phasing out of the losing side while profiting from the winning side - is this correct? If so, and assuming GDPUSD and a 4 point spread, you are instantly down $80 when you open the orders which you do not seem to be including in your calculations. Am I wrong?

[spence]

omelette:
Hi. Correct me if I'm wrong but you're opening 30 minilots Long and 30 minilots Short simultaneously (60 minilots or 6 standard lots in total) and then depending on which way price goes, phasing out of the losing side while profiting from the winning side - is this correct?

it's correct

If so, and assuming GDPUSD and a 4 point spread, you are instantly down $80 when you open the orders which you do not seem to be including in your calculations. Am I wrong?

I'f already did, but i did it with 3pips

------>

so the next argument would be the spread:

if i calculate right with 3pip it would be -90$, right?

so there will be still 110$ profit

and in the worst case - 250$, right?

with 4 pips it would be -120$

with 2 pips it would be only -60$

[greatlakes]

I tried testing this on demo. Problem is getting all the orders in manually. The buy/sell stops are hit before all my orders are in. Making it useless. Really needs an ea.

[remcous]

[spence]

[remcous]

very good, thank !

my suggestion/question : verify equity before open order of 6 lots...

[spence]

EA is ready

the EA v1 is ready to test

first try the standard settings to see how it's work

timeframe doesn't matter because there's no indicator

i'd only tryed EUR/USD, try others if you want to

then experiment with "step" and may be with "pos"

it's explained inside the code

v1 is only open all positions and close them with the rules in the first thread, then open again and again ...

maybe include a timefilter, trade on news or something else to make it profitable

please try and suggest

questions are welcome

THANKS