Around 90% Accurate Trades. Let's make the EA! - page 3

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zipfrog
110
zipfrog  

Wolfe,

I have been trading these gaps counter trend for quite a while now and agree they work pretty well. Long the audusd and audjpy tonight and up 64 pips so far.

Regards,

zipfrog

wolfe
1037
wolfe  
zipfrog:
Wolfe,

I have been trading these gaps counter trend for quite a while now and agree they work pretty well. Long the audusd and audjpy tonight and up 64 pips so far.

Regards,

zipfrog

Yeah, both those were nice gaps to trade. Looks like they will come out successful.

xx3xxx
1756
xx3xxx  

over this weekend , monday

GBPUSD is DOWN gap -- how should we trade it

better with some illustration --- I still don't quite get it

wolfe
1037
wolfe  
xx3xxx:
over this weekend , monday

GBPUSD is DOWN gap -- how should we trade it

better with some illustration --- I still don't quite get it

Since it gaped down, you would go long, hoping the gap will get filled.

Files:
gbpusdgap.gif 11 kb
xx3xxx
1756
xx3xxx  
wolfe:
Since it gaped down, you would go long, hoping the gap will get filled.

unlike the previous monday , the gap is not filled --- i.e. the gap is not close before it go down -- just straightly down to hell -- as GBP (no export currency)

but the other monday -- it is USDX got the gap

today is only GBPUSD got the gap, no other currency

wolfe
1037
wolfe  

GBPJPY gap filled nicely today!

Files:
fillgap.gif 38 kb
ahillsdale
91
ahillsdale  

Good to see traders making money!

wolfe:
GBPJPY gap filled nicely today!

Good to see you guys are taking advantage of all these sweet gaps as well!

As stated previously in this thread, 3.5x risk for reward is the max you should use for a stop, as my research shows. This will also give you the highest probability.

I've found the cross that has the largest gap tends to have a slightly higher probability than most of the others.

However, taking several gaps at once to diversify risk is also a great option.

If you have time to watch the trade work itself out, you may want to consider cost averaging as well. With a little imagination, you can pull montrous profits out of these, and make "a second payday" for yourself....at least about 30 weeks out of the year that is.

Cheers! And good trading!

ahillsdale
91
ahillsdale  

Expected % gain

clown:
This shows that in 2008 it only made 600 odd pips less deductions for spread, etc. So, maybe a profit of around 400 pips in the year. Is that good? It seems rather low to me.

clown,

The "net pips" you speak of have no relevance on profit. This is why: If you set out to risk 4% of your account size to make a 1% profit every time there's a gap...your account would grow by 1% on each profitable gap. This would be compounded, so at the end of the year, you'd have a very respectable net % gain on your account.

This is the magic of compounded gains, working in your favor, about 90+% of the time, all-in-all, risking 4 to make 1...which mathematically has a positive expectancy over time.

(As your account grows, you're trading more lots per trade.)

Hope this helps.

ahillsdale
91
ahillsdale  

Thanks!

wolfe:
I took a quick stab at an EA for this idea.

NO, I haven't tested it yet. Need to wait until Sunday at market close to attach the EA.

I coded the EA to check these 19 pairs:

EURUSD, USDJPY, GBPUSD, USDCHF, USDCAD, AUDUSD,

NZDUSD, EURGBP, EURJPY, EURCHF, GBPCHF, AUDJPY,

CHFJPY, EURCAD, EURAUD, AUDCAD, AUDNZD, NZDJPY,

& GBPJPY.

Most brokers have these pairs right? (I'm using IBFX)

Anyone can feel free to improve the code if necessary. Like I said, it hasn't been tested yet, so it may need some tweaking, especially in the TP & SL parameters.

Enjoy!

Wolfe,

Thanks for developing this!

Could you tell me a little about it's logic, and gap size parameters so I may better understand what it's looking for every Sunday evening?

Thank you.

pippincream
13
pippincream  

hey guys, new to this forum, look forward to checking this out.

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