Description of Price Action Engulfing Candles Strategy

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

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  • #4558
    66rus
    Spectator

    2.2 verison expired or not?

    #4559
    Lelik18
    Spectator

    @medicine wrote:

    2.2 verison expired or not?

    Till now no. In the settings you can see that it will not trade till January 15.

    EDIT: TODAY IT STOPPED WORKING. :(

    #4560
    Dominik
    Administrator

    Hi!

    Sorry guys, but I was on vacation for some time and I was trying not to work :)

    The latest version of Price Action EA (2.2) really has expired and the new one has not been published yet, but (please keep that in mind) I do not recommend trading until 15.01. On the basis of many analyzes and optimizations of many different Expert Advisors over many years, I can tell you that almost every system is less stable or completely unstable in the period from ~15 December to ~15 January (approximately, of course).

    @Luxyfer wrote:

    “Next parameter which filters out bad patterns in my strategy is “Highest_Candle_From_3″ and it defines if the sum of the real bodies of current (0) and previous (1) candle is higher than real body of 3rd candle.”

    If it is a buy trade, the above statement does it means that the sum of Closing price – Open price for both candle [0] and [1] must be greater than Open price-Close price of candle [2](aka 3rd candle)?

    Yes. I used a mental shortcut when I was writing about the sum of both candles [0+1]. Really, it’s difference between closing price of [0] and open price of [1] as you wrote (for BUY).

    In a few days I’ll publish the new version of PA EA.

    Regards!

    #4561
    3NFX
    Spectator

    Hi Dominik and everyone,

    First off Happy New Year to you and family! I have got a couple more questions to ask you. A few days ago I stumbled upon your youtube video demoing how is the hedging done for the price action EA(https://www.youtube.com/watch?v=va65wAA67GU&t=146s) this is the video I saw. From the video, I would like to clarify a few things and have a few questions as well that I will just list them down in sequence as the video progress ok?

    1) As per the video(time 0:15) there is a trigger for sell(indicated by the red down arrow correct me if I am wrong here) and the EA would set a sell stop certain pips away from the trigger depending on the setting correct?

    2) Once the EA set the sell stop, instead of putting a stop loss above the high of how many candle from look back as what I understood from the first strategy without the hedging choice, because you now prefer to use hedged orders, the EA would put a BUYSTOP at the original STOPLOSS, correct?

    3)The video then proceed to highlight two yellow lines with the movement of the mouse key circling them, one above the buy stop and one below the sell stop……now I cannot figure out what are these yellow lines for, can you explain them to me?

    4) The video then goes to show that the SELLSTOP order being filled (around 0:50)…..now I have a question here….what if the price did not go down but went up to fill the buy stop instead?

    5) From the video I can understand that you are trying to show how the hedging principle work. It will place a LOTSIZE of 0.01(of course this can be change by the user) for the MAIN trigger (first trade which is a SELL) and base on the parameter of LotMultiplier =2 under#HEDGING, the hedge trade(BUYSTOP) for the SELL trigger in the video would has its lotsize multiply by 2 which is 0.02 in the video. Subsequently the Hedge function in the EA would also put another SELLSTOP(at the same first SELLSTOP level with a lotsize double of the last order which is 0.04,correct me if I am wrong) if the price went above the BUYSTOP. It will continue to double the lotsize and place another Opposite stop whenever the price bounces above the initial buy and below the initial sell stop level correct?

    6) At 01:58, it shows all the trades are being close. Can you explain the rules for closing the trade? From my understanding all the SELL trades including those extra SELLs opened because the BUYSTOP level set by the hedge function was filled, were on trailing stop, once they are stop out by the trailing stop, the EA would close those hedging trade(BUYSTOPS trades opened during the Main SELL trigger trade)

    7) What would happen in case the price trigger the MAIN SELLSTOP, and after that a few more BUY&SELL Stops set up the hedge but the price do not go down but up instead? Is the trailing stop function the same for the hedging trades as well? What I am saying is in the event of the price goes up above certain level and trigger the trailing stop for all the buy trades, once all the buy trades are stop out by trailing stop, the EA would also close all those SELL trades as well? I can now more or less understand how this hedging protect your equity after asking so many question :)

    8) At 2:45, there is another trigger for sell again, but this time the price did not goes back up to fill the BUYSTOP set by the hedge function but goes straight down to trigger the trailing stop function… once the trailing stop function is activated, the EA would delete the hedge trade(BUYSTOP orders) and focus on the trailing stop until either reach the take profit level or stop out by the trailing stop correct? Can you confirm this is the same for the first SELL trigger that when the price moves down and trigger the trailing stop, the EA would delete the BUYSTOP up there? Because the video shows all SELL trades go straight to stop out by trailing stop and does not scroll up to show that the last BUYSTOP was deleted when the trailing stop for the SELL trades kick in :)

    That’s all I have so far about the hedging video, hope you are able to find the time to enlighten me here or any experts in this forum ;) thanks in advance!!!

    #4562
    Dominik
    Administrator

    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!

    #4563
    3NFX
    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,

    #4564
    mikegrand007
    Spectator

    Hi Dominic,
    Any news on a new version or is it possible to release 2.2 again with a new expiry? I am keen to start in 2017 as the 15th January has gone now :)

    Cheers
    Tim

    #4565
    66rus
    Spectator

    Hı dominic
    When new version of robot will be relased?
    Thanks…

    #4566
    Dominik
    Administrator

    Hi!

    nuganics,medicine: Today it will be published.

    Sorry, Luxyfer, but there will be no Hedging anymore in new version of Price Action EA, because it is too risky to use. As I already wrote, it was more of a function implemented just for tests than to trade live. Benefits of using hedging in this strategy are disproportionate to the risk that you take. Sooner or later, hedging would surely blow up your account. Hedging can work only when trend is very strong and price goes in one direction. In our strategy we try to predict the trend with modified engulfing pattern and some other techniques, so if price returns (just after our forecast) it’s better to close opened order on SL (and forget about it) than open another order, because it’s highly probable that we are in the phase of market consolidation (ranging market) where forces of bulls and bears are at similar levels, so there is no point taking risk.

    Regards!

    #4567
    Dominik
    Administrator

    OK. As I promised, I’m publishing right now new version of Price Action EA with number 2.3.

    I made a lot of improvements and optimizations in the code.
    I added new algorithm which checks opening/closing/modifying orders for possible errors.
    All errors are now printed in Journal or Expert tab and on the screen in Comment field (below symbol name).
    I completely deleted Hedging (explanation of that is in previous post).

    I encourage everyone to optimize it, test it and share the best results.

    Good luck!

    Version 2.3 will run until the end of March 2017.

    #4568
    TomaszKom
    Spectator

    Thank you Dominik !
    You are doing excellent jobs !
    Will the previous .set file (using it live on USDCAD) be still relevant for this new version ?
    Kind Regards

    #4569
    Lelik18
    Spectator

    Thank you!!!!
    :D :D :D

    #4570
    66rus
    Spectator

    Hello again. May I ask you which setting should be use for new verison..Default or not?

    #4571
    Dominik
    Administrator

    @Caramba wrote:

    Thank you Dominik !
    You are doing excellent jobs !
    Will the previous .set file (using it live on USDCAD) be still relevant for this new version ?
    Kind Regards

    Thanks :) Previous .set file should work exactly the same with new version.

    @medicine wrote:

    Hello again. May I ask you which setting should be use for new verison..Default or not?

    All old settings for previous versions (2.x) should work. Please run some backtests to check settings before you start to trading live.
    Regards!

    #4572
    UppetFx
    Spectator

    Thanks again! I wish you and all an amazing 2017! :D :D :D

Viewing 15 posts - 46 through 60 (of 87 total)
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