Automated Trading
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Hello, dear readers. In this issue I would like to consider a simple system "Heads or Tails". It is not difficult to guess that a coin will be used as a signal, or rather its analogue - a pseudorandom number generator in the range from 0 to 32766. If an even number falls out, we consider that it is heads, if the odd - tails. We will buy on "tails" and sell on "heads". The rules of described system are very simple, and yet many traders at the very beginning of their way act in this practically "intuitive" way. What it usually leads to is known to everyone, and those who don't know can probably guess it. Therefore, let's not...
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The joint work of four different trading strategies on one account has approached its first significant milestone - six months. During this time the account balance curve has known the joy of ups and the bitterness of drawdowns. The whole range of the online testing may be conditionally divided into three parts, each of which consists of two months. The first two months brought a significant increase in the account - from $17,000 to $19,374. The next two months showed a harsh market day-to-day, which led to the squandering of all the capital earned. And only during the last two there was an improvement of the situation with a gradual movement to the zone of former highs. If we return to the analysis of the last four weeks of trade, then...
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Many trading strategies have rules that do not allow the opening of new trades if there is at least one trade without a set StopLoss level. Also often there are trading systems in which the opening of new transactions is impossible as long as there is at least one open transaction on which a stop order can receive a loss. I.e. while "stops" either are absent, or are in a negative zone on concrete, or on all trades in total. It is not difficult to estimate such a development (profit/loss value, which will be received in case trades are closed using StopLoss prices) in case the number of opened trades is relatively small. In case of large...
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In the 60th issue of ForTrader.org, we take a look at another simple trading system. Surely some people will reproach us that our experiments in the past have not taught us not to turn to unsophisticated trading tactics. To some extent they would be right, but we have chosen this symbol because it uses the Stohastic Oscillator indicator which is extremely popular with many traders. It would seem what else can be done with this symbol - the market has accepted or rejected everything possible, but this time we will not just determine the upward and downward movement on the chart.
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Often, during trading, the trader (especially a beginner) cannot properly control his actions, which leads to disastrous results. To avoid such situations, speculators use various money management rules. However, even an accurate plan for the risks, the number of simultaneously opened transactions, the amount of allowable loss, etc. does not give any guarantees, because the cherished "Sell" and "Buy" buttons are still available. In such a situation, the program scripts can help, they allow not to open unnecessary deals, not to allow critical losses and not to act rashly. As a rule, in this context, we are talking about full-fledged trading robots that trade and monitor their work themselves. By the way, this is...
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A very important human skill is the ability to maintain a balance in every aspect of life, to observe a certain golden mean. Any business on which exactly as much effort and time as it took to achieve the result was spent brings immeasurably more satisfaction, in comparison with a complete waste of all physical and moral spirit at the same results. The third day of the working week - Wednesday - can be called an obvious middle ground in respect to the exchange trade. The antagonists in this case are Monday and Friday. The trading activity on Monday can be called a gamble in terms of thinking-out, but no trades will be missed. Concluding deals on Friday is akin to running in the hope of...
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The online testing portfolio of experts is approaching its first significant date - six months. At this point, we are celebrating another milestone of five months. The last three months were not as enchanting for the aggregate system of Expert Advisors as the first two. This situation clearly fits into the framework of the theory about the difference between markets of different years. We mean that the nature of the market in 2009, from which the testing took two months, is different from the nature of the market in 2010, in which three full months have already fallen to the trading. To some extent, the change in the market character has caused such inarticulate trading at the beginning of the year. Let's see how the situation will change in the second quarter. And now let's move on to the analysis...
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In this issue we will explore a trading strategy based on a moving average and a time range. The strategy is told by a forum member with a nickname anatolyp, in his words, he uses this tactic every day in manual mode, but since the main part of trading falls at night, it does not always get the full profit. Let's see if we can automate it and confirm the expectations of the author. Basic rules of the trading strategy 1. Signal to buy: we open buy Monday through Friday from 00:30 to 1:15 if the price is below the 21-period moving average. Set the Oder 5 points below the current price. 2. Sell signal: open Monday through Friday at 00:30 and 1:15 if the price is below the 21-period moving average.
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The classic successful method of trading on speculative markets is considered to be trend trading. In the pre-computer era, when it was very difficult to collect a large amount of information on fast-moving periods, the trend direction was determined using daily and even weekly charts. Conservative traders still believe that the true trend is the trend developing on the "high" timeframes, and it is impossible to unequivocally challenge this statement. But time goes by its own way and the emergence of methods of fast data processing has affected the nature of market movements. Today the fixation of the daily trend says exactly nothing. We can catch a very edge of the movement and that in the best case. Basically, this tactic will condemn us to...
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The fourth month of testing for most of the strategies in the Expert portfolio marked the beginning of the recovery. Three of the four strategies have made a net profit. And only one strategy is still in the pit of drawdown, approaching the declared maximum loss. As a result, the cumulative profit registered by three experts could barely cover the losses incurred by one expert. The value of the total balance has increased by only $3 up to $17 690.13 as compared with the previous month. However, the trading account currently has four open deals with the total profit of $100.99. That is, there is a trend to improve the situation. As usual, let's analyze the trade of each Expert Advisor in...
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In this issue we will explore the strategy proposed by forum member Iho de Puta. The tactic is based on the price range of the daily candlesticks and the assumption that we have wide movements on Fridays due to the frequent market news releases on that day. The strategy is an improved version of One Night Standing by Joe Krutsinger. It applies price analysis and search for breakout levels based on the 9-day range, as well as moving averages to determine the global trend. In addition, the strategy involves placing orders exclusively on Fridays and according to fairly simple rules that can easily be used even manually. The basic rules of the strategy...
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As one of the amazing abilities of man we can distinguish the ability to see the inner beauty of another person behind the external unsightliness or even ugliness. In such cases, we speak of "beauty of the soul. This ability is inherent not in all people, but nevertheless it finds its manifestation in life everywhere. I think many people know the feeling that makes them take home a scruffy, unsightly kitten, which passersby drove away from the doorway all day long, and it still clung to people, blindly continuing to believe in their kindness. Such persistence in the preservation of good feelings in adverse circumstances draws attention, attracts the eye and forces a reciprocal step. The Ugly Duckling Strange as it may seem, such...
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The third month of testing the Expert Advisor portfolio brought the drawdown I advertised for so long. Moreover, the drawdown affected all strategies simultaneously. As if someone up there switched the market mode... But let's not look for the culprits in this situation. This is just the way the situation has developed, especially since this was originally planned with the initial deposit of $17 000. In addition, if you look at the current value of the balance, we see the figure $ 17 687.62. That is, trading is still profitable, though with lower efficiency. Following the tradition of previous monthly reviews, let us look at the results of each strategy separately. This will help us to understand which strategy...
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In the 57th issue we will continue to implement the Expert Advisor on a Bollinger's envelope breakout, which was kindly offered to us by the forum member with the nickname Godlike. I will briefly remind you of the tactics and the previous experiment. So, we had the following trading rules (see Fig. 1): 1. Buy 1 - a breakout and closing of the candle above the upper line of the Bollinger envelope on the hour chart. At the same time, the price must be above the middle line on the daily chart. 2. Buy 2 - when the price breaks through the envelope downwards and comes back to the channel. 3. Sale 1 - breaking and closing of the candle below the bottom line of the Bollinger envelope on the hourly chart...
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In this issue we will explore a strategy based on the Bollinger envelope breakout, which was suggested to us by forum member Godlike. The strategy uses the indicator of the same name and the average line. The search for the signal on the envelope breakout is performed on the hourly chart, we look for the confirmation by the SMA on the daily timeframe. The basic rules of the strategy we will divide into 6 parts. We should immediately note that in addition to the buy and sell signals, we will also provide for Stop Loss and Take Profit levels, which will protect us from the sharp market fluctuations. I also remind you that all our EAs work after the candle closes. So, 1. Buy 1 - breakout and closing of the candle above the upper limit...
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Many traders are well aware of the Martingale tactic - increasing the volume of the transaction after each loss. This tactics is guaranteed to win, but as always has one "but". To fully guarantee a profit it is necessary to have an infinitely large amount of money. Therein lies the main contradiction. Why try to increase the capital if its size is already infinite? Nevertheless the use of the Martingale tactic has the right to life on a local scale. For example, such a modification of the tactic as an addition to a losing position. In this case the accent is made on improvement (decrease for long trades and increase for short ones) of the average opening price of an aggregate transaction. As a consequence, in order to get the planned...
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Nowadays there are so many ways to determine a person's tastes and preferences even before an intimate conversation with him. Their clothes, manner of behavior in society, and even the ring-tone of their cell phones can tell us that. A chance to fantasize about the preferences of a man we have never seen is presented today. No fragments of clothing or the smell of deodorant will be used for this. It turned out to be a little simpler and, at the same time, more exotic. All we have is a pseudonym on the forum (renoshnik), a first and last name (Yuri Voloshin) and the name of the expert - Agent_Fx_v07. It's hard to judge the coincidence of the name and version number, but the associative row is built like this: Agent 007,...
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The second month of testing the Expert Advisor portfolio has come to an end. As is customary, we will conduct a detailed analysis of each strategy separately and see what it led to in terms of the overall result. The analysis of each Expert Advisor is necessary for the timely exclusion from the portfolio of those that bring more losses than planned. Portfolio analysis procedure Let us briefly remind you how the trades of each strategy are selected. This procedure is done using the HistoryToFile script (described in the 55th issue of the magazine). Since currently all strategies are based on different currency pairs, the sorting can be done without considering the Magic Number of deals. For now it is enough to distinguish one...
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In the process of trading any experienced trader does not limit himself to one strategy, always using at least two or three of his arsenal. If we add here the fact that in addition to various strategies a lot of instruments are used, then as a result the account history turns into a mess of various closed positions and pending orders cancelled. It is sometimes very difficult to make sense of the mess, to say nothing of the analysis of each strategy or one of the strategies within one symbol. There is, as always, a way out. There is nothing that prevents you from parsing the account history for different instruments. And if the trading was performed by means of Expert Advisors, which provide them with the magic number (MagicNumber) in order to identify the orders, the...
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С давних пор, еще когда я был ребенком, меня вечно интересовал вопрос – как люди из абсолютно одинаковых арбузов, лежащих вповалку на прилавке, выбирают тот единственный, который впоследствии и покупают? Вопрос, казалось бы, риторический, но, как ни странно, покупатель арбуза всегда сможет найти тысячу причин, объясняющих его выбор. Пусть эти причины будут совершенно неочевидны для стороннего наблюдателя, но они реально существуют. Точно также и с советниками, которые выбираются для «анализа крови». На первый взгляд читателю трудно определить, чем же так зацепил меня тот или иной программный код, что я решил вынести его на общее обозрение. Но и сегодня причина…
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