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Is it possible

Discussion in 'Forex Trading Systems and Strategies' started by MattaMidus, Dec 8, 2009.

  1. MattaMidus

    MattaMidus Private

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    I was wondering anyone knew if it was possible to make an EA with a take profit of 1 and if so how to go about it.
     
  2. Pharaoh

    Pharaoh Colonel

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    Most brokers have a minimum distance to set your take profit. You could theoretically write an EA that manually closes 1 pip into profit. The drawbacks are large - any stoploss would need to be larger. Even a manual close after losing 1 pip would mean that you would lose at least 2 pips (assuming only a 1 pip spread - you risk 2 pips or more to try to make 1 pip). Your trades would be VERY quick, tempting brokers to accuse you of breaking trading rules (results in ALL profitable trades being deleted, and maybe the losing trades, maybe not).

    Combine all of that with the possibility of requotes or slippage and I can't picture there being much chance of coming out ahead.
     
  3. fxfrench

    fxfrench FXOpen AU Representative

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    You could try closing 1 pip orders rapidfire on an ECN account, however you would usually need more than 1 pip to cover the commission. The advantage though is that with ECN, there is no dealing desk to annoy with constant, short term scalping.
     
  4. MattaMidus

    MattaMidus Private

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    Well my brokerage puts me behind 2 pips from where I start a trade so a 1 pip take profit is actually a 3 pip take profit with 1 pip of actual profit. I set the slippage to 1 so im never to far behind even though it does eliminate alot of trading opportunities. Ive tried numerous ways to make a 1 pip stop loss but when I try to activate it in the MT4 terminal it has an error that Im guessing is related to my buy stop because when I change it the errors gone.

    Ill look into that ECN account.

    -Thanks
     
  5. Pharaoh

    Pharaoh Colonel

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    What stop loss are you using?

    If you can find a low spread (or low spread/low commission) broker that allows super-tight scalping, it sounds like you are trying to go for a very high win %. The danger is that those few losses will be bigger than the profits.

    I've seen some EAs that work with a very small TP and a very large SL. They can have a 95% success rate, but the 5% losses wipe out all the profit and more. Naturally, the advertising focuses on the high success rate.
     

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