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Monday, October 29, 2007

"Daniella" System

Basically the idea is :
I Use Moving average of Oscilator (OsMA ), Force, Parabolic SAR, at 1H EURUSD ONLY. The values are :
1/ Moving average of Oscilator - Slow MA=35, FAST MA=12, MACD SMA=9
2/ FORCE - 160, Simple, Close
3/ SAR - SarStep=0.01 SarMax=0.2

Target Profit is set to 300 pips, Trailing Stop = 75 pips!

BUY when OsMA is crossing upwards the 0.001 value if FORCE > 0 and SAR value < Current Price and the last 5 bars (hours) move was less then 100 pips !
SELL - vice versa.

CLOSE LONG - If SAR Value > Current price and Force <0
CLSOE SHORT - vice versa!

When Closing Long - if Force < 0 opens short position with twice the size of the previous position!
When Closing Short - vice versa!

Awlays I use not more than 5% of the equity to open position.
(5% is the current defaut value), so in certain cases I will be exposed with a maximum 10% of my account ( the rule where I open poition oposit to the previously closed with twice the size)

I use Trailing stop = 75 pips on a specific way. When the price goes in my direction with 75 pips I move the stop loss with 75/2 = 37 pips from the opened level and so on until the position is closed by the a.m. rules or the profit target is hit...

That is it - pretty simple!
The code for MetaTrader
Ivan_ma
1.Enter Long:

If today ATR (2) more then yesterday and yesterday ATR (2) is less then the one 2 days ago, and today's close higher then open, then enter tomorrow on stop at the high of today's bar.

2.Enter Short:

If today ATR (2) more then yesterday and yesterday ATR (2) is less then the one 2 days ago, and today's close lower then open, then enter tomorrow on stop at the low of today's bar.

3.Stop loss:

Low ( for long ), or High ( for short ) of today's bar

3. Exit

Exit trade either by stop loss, reverse sygnal, or on the first profitable close.

That's it nothing more. Really simple and really effective.

For example scinse jan. 1 of 2004 on EUR/USD it prodused 7 trades ( 3 long, 4 short ) , all are winners for the total of +754 pips.

The system is based on the fact that each time after volatility "shrinks" , it allways expends to some extend and we are able to catch those "expantion" moves.

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