Reply To: Description of Price Action Engulfing Candles Strategy

Forums Strategies and Expert Advisors Price Action Engulfing Candles EA Description of Price Action Engulfing Candles Strategy Reply To: Description of Price Action Engulfing Candles Strategy

#4563
Avatar3NFX
Spectator

@Dominik wrote:

Hi Luxyfer. Thanks!

1), 2) & 5) Correct.

3) Those yellow lines are breakeven-trigger levels (breakeven works only for orders that are not hedged).

4) It was a little “bug” in that first version of Price Action EA with hedging, because there shouldn’t be BUY STOP there. BUY STOP (twice bigger than first order) should be set only after triggering of the first order.

6) In this case, all orders were closed because profit set in parameters was achieved (profit + security buffer for hedging, which is also in the settings).

7) Algorithms are written so that when specified profit is reached all orders are being closed, regardless of which way price goes.

8) Once breakeven is activated, STOP order is deleted.

Hedging in version 2.2 was added mainly for testing. By the way, I added it at the request of one of the members of this forum.

In most cases, with a lot of open orders the sum of commissions (+ spread and swaps = transaction costs) grows a lot and price needs to go far away to get out with a profit. This is a significant problem in this case. I think that the new version of Price Action EA will be with hedging based on the summation instead of multiplication (eg. next orders: 0.1, 0.2, 0.3, 0.4, 0.5 etc… instead of 0.1, 0.2, 0.4, 0.8, 0.16 etc.). I will try to publish this new version today, but without set files, because I don’t have time to create them. I’m trying to adjust Price Action EA to higher timeframes now. Maybe even without pending orders or with them, but in very small distances from price. I don’t know if you know it, but last year there were 2 versions of Price Action EA on forum (Engulfing Candles and Moving Averages) and after I merged two projects into one, I totally neglected “Moving Averages” version, which worked very well on higher timeframes.

Regards!

Hi Hi Dominik, it’s me again :)

First off thank you for replying so soon for my questions and doubt…hope you don’t mind there is more I want to learn about this close if not perfect EA ;)

1) “3) Those yellow lines are breakeven-trigger levels (breakeven works only for orders that are not hedged).” Does this mean if the TRIGGER is a SELL trade, the breakeven function will only activated when the price crosses the yellow line that is below the sell stop, but will not trigger if the price crosses above the yellow line that is above the hedge order BUY STOP? If the price hit the sell stop and there is no more bug thus a buy stop(hedge) is placed (at original stop loss level), and the price goes up above buy stop the (hedge), and does not come down, once it reach a certain profit level(“7) Algorithms are written so that when specified profit is reached all orders are being closed, regardless of which way price goes.”), the EA would close as long as the profit amount set is hit correct?

2) From the above big question, can i simply the hedge function to be:
a) When trigger it will put a pending stop order, if the order is filled within the expiry timing, it will put a hedging stop order.
b) If the price fill more than one order (>1) it will have a trigger and minimum 1 hedge order depending how many time the price bounces between the two(entry & stop loss(hedge) price) then it will have two ending to those trade:
i) the price goes to the trigger direction, and when it passes the breakeven level (with profit buffer),the EA delete the newest hedge stop which it placed when the price crosses the trigger price, and the EA closes both the trigger and hedge trades when the price move against the trigger at the breakeven(with profit buffer)
ii) the price first fill the trigger trade, then decided to move against it and fill the hedge trade and continues in that direction, since the hedge trade lotsize is bigger, when it reaches a point where the hedge profit covers the trigger trade and with certain targeted profit amount hit, the EA will close both the trigger and hedge trade (without the breakeven function utilized)

3) My questions seems to get longer and longer >.<" Well i am at noob stage so please pardon me XD. Will the EA place another trigger trade when it still have not close all the trades(both trigger and hedge) opened from the first trigger
trade?

4) In the main post strategy, the stoploss and take profit level are set base on room to the left(closest history support and resistance level), base on those principle, a trade could have a very good risk reward ratio, but when the hedge function is in-cooperated, does it changes the original take profit level(base on history high/low) to a fix amount set by user after optimization of the EA?

5) Is the trigger pattern still the same since the last parameter for the 5min EURUSD.set update? The parameter of those candle condition to trigger a trade(two bulls two bears vice-versa) candle body size, high>than last two’s high vice-versa etc?

I will stop here cos i think i have too much to ask for one day XD

Best regards,