Williama's Trading System

[Onyebuchim C. Obike]

Unfortunately this would work only if on some occasions, and on the other we would have big drawdown. And we can't "trap" the price like that.

I had a problem when placing take profit closer to each level. The lot size have to be quite bigger, since there's less pips of profit. And when the price retraced back without hitting this TP, the pending orde to be added had to be even bigger than before. And while the tp is more often hit, we're much likely to run out of free margin, and in the end the profit is not bigger :/

If only we could place take profit two or three pip away that would probably be ok, but I didn't know of a broker who allow such little stoplevel.

Welcome back Naufrage.

Yeah you're right about the little profit when TP is placed close to each other just that i took into consideration beating the brokers or market forces at all cost by placing TP close to each immediate level. I considered if we can get more of this profits (little or less) out of many runs it would be better than nothing or negatives. The disadvantages like you stated are also true and needs caution.

I think most brokers allow 4pips away TPs & SLs
A great solution to this would be:

1. To effectively work on the scalping fractional profit and never get to worry about price hitting TP due to gap from the order.

2. keep constant number of pending orders quite close and TP closely above or below them.

3. Try to add an indicator that would monitor trends and assist or guide order placement with the support and resistance idea.

I prefer option 1 to be the very viable for maximizing profit in this strategy bcos we would not bother where TP is placed.

Lastly the system really has a flaw of getting margin calls when market goes haywire against you thats why i suggested a narrow dynamic trapping cage bcos the wider the cage or trap the more room price has to hit up and down. I also advise considerable lot sizes and aggressive money management.

Anytime zone is acceptable bcos traders can adjust their local time. But i would suggest using timezones that accomodates London Open to US Close.

Please could you attach the revised EA that places TPs above or below each immediate level so that i can also make a review of the profit issue.

Anyway thanks for putting your time and your best in the programming

Wish ya the best.

 

[Naufrage]

Ok I've modified the EA so that it places tp just above each level (the closer it can), with the "dynamic cage" feature.
Can you tell me if it behaves like you wanted it to behave, and the errors that you may get?

View attachment Williama_improved.mq4

 

[tcmm]

If I understand correctly, you do place additional buy stops above the buy stop that was hit, but you do not double the lot size. Also, in this scenario, a sell stop may (optionally) be placed at level 0. And, if a buy level is hit, you place sell stops at all levels below. So if buy level 2 is hit, there will be 5 sell stops, all with double lots. L1,L0,S1,S2,S3.

Jack

do you keep doubling your lots all the time a level hits on the opposite side or just double them once because if you even start with .10 cents a pip and you hit levels lets say 10 times you can reach high lots like 15.00 a pip, so with a account of 5000.00 it will be hard to hold the margin. Can anyone explain? Thanks King Pipis

 

[Onyebuchim C. Obike]

Two Profit Strategy

Onyebuchim, regarding your idea of trapping price in a dynamic cage, isn't it what the EA already does with dynamic profit target? Let's say the profit target is 10 pips. When a buy or sell level is hit and the profit reaches 10 pips, all orders are closed and all pending orders deleted, and a new "trap" is placed according to the current price. Am i wrong?

Yes you're very correct.

But to be more explicit, there are two Two Take Profits i'm suggesting here.

No.1: The actual TP that is set along with the pending orders
No.2: Fractional or Scalping Take Profit. I'll explain this below:

Imagine we had a balance of 500 USD and the EA issued a buy pending order at 1.5000 and Take Profit at 1.5500.

Then we set a Fractional Take Profit Target value of 20 pips interval with an optional increment of 20 pips.

What this does is that as price hits the pending buy order and makes 20 pips move upwards, then 20 pips profit is taken and added to initial balance making it 520 USD. The Take Profit Target value is either incremented to 40 pips if it was selected or is set back to 20 pips again. if price continues to move upwards then more twenty pips would be taken and added to the initial balance. This would continue until price reaches the actual Take Profit of 1.5500 for a final close out.

The reason is that in most cases the brokers know about the Take Profits and through manipulations or whatever cause price might never get to the Take Profit cos its visible to the broker. But the Fractional Take Profit Target is known to a manipulating broker or unfavourable market condition.:unhappy:

But If we spot that price is going way down against the long position and we are sure that it is a sharp retracement due to spike or news, and we had grabbed some pips from the Fractional Take Profit, we either delete the order quickly and wait for price to hit a sell pending order and the whole cycle continues.

Or in the alternative we can have a trailing stop loss that follows the fractional take profit target each time price meets the 20 pips, to safeguard what we had scalped. Although not advisable bcos stop lossess are also visible to manipulations. but what else do we do.


Although when i tested the improved EA i didnt see much of the scalping technique or maybe it was not working.

Naufrage what do you think?

 

[Onyebuchim C. Obike]

EDIT (Correction):

The fractional take profit is known to the broker. sorry please
I just got the latest improved EA now and i'm about to test it. I'll let you know my findings.

Thanks

 

[Onyebuchim C. Obike]

EDIT: (correction)
Sorry guys i worte that in a hurry again.
I meant the Fractional Take Profit is NOT KNOWN to the broker. I had a lot i'm working on hence the hush errors in my typing. Sorry again

 

[Onyebuchim C. Obike]

Personal Advise on Lot Sizes

do you keep doubling your lots all the time a level hits on the opposite side or just double them once because if you even start with .10 cents a pip and you hit levels lets say 10 times you can reach high lots like 15.00 a pip, so with a account of 5000.00 it will be hard to hold the margin. Can anyone explain? Thanks King Pipis

yes you got the idea. but personally i really dont recommend doubling lots from opposite sides all the time especially if you're not sure of retracements in a trending manner. Bcos if price hits the opposite side and retrace without hitting your TP, imagine the drawdown. Now imagine it did this twice or thrice or many times?:err:

So you're right about it not been able to hold the margin. Remember Williama advised about using tight money management and not over trading your account with uncontollable lots. Well if price goes well on your side on increased lots imagine the profits but if it does not oh:

I'd advise use to use considerable lot sizes at opposite ends and dont get carried away with the profit potentials.

Wish you all the best.

 

[Egros]

Hi Onyebuchim C. Obike
Which broker will allow you to take 3 or 4 pips profit on a continuous basis.I think they will stop you after a while.

 

[Egros]

There seems to have many way to determine support/resistance lines. Can you tell me which formula do you use? Along with the timezone maybe.

Naufrage I use the attached indicator which I got from forex-tsd forum

 

[Naufrage]

Although when i tested the improved EA i didnt see much of the scalping technique or maybe it was not working.

Are you sure that you set "usepartialtakeprofit=true" and "usetakeprofit=true", and that the profit target is bigger than the first target?
I'm sure it's working for me.