Williama's Trading System

[maxcruiver]

lets see if I can take a crack at this flow chart...

1: at anytime take current price and make that the middle level0
2: create 3 buystop and 3 sellstop orders, lets say each is 1.0 lot
3: now if price goes up to level1 buystop and buystop gets triggered, now create 2 more buystop 1.0 lot each above the level1 buy order at level2 and level3 and create 3 sellstop orders 1 at each level1-level3 3.0 lots each and create 3.0 lots sellstop at level0

so far so good?

I think this isn't the actual way. From my observation of the williama_improve_all_margin EA so far, what i understand is it initially creates 3 levels pending orders of buy stops and 3 levels of sell stops, each 1 lot. When level#1 buy stop is triggered, it adds 1 more lot to the 3rd level of sell stop, no additional buy stop is created. When level#2 buy stop is triggered next, it adds 1 lot of pending sell stop to level 0, sellstop #1, and sellstop#2. Now level 0 has one lot of sell stop order, sell stop#1, #2, and #3 have 2 lots of pending order each.
Therefore the EA works a little differently from what Williama first mentioned. This is what confusing me...

 

[killerkhan]

yeah this is why i am trying to write the flow chart or progression of the lots etc of his strategy rather than see waht the EA is doing. I want to see the original strategy first layed out to see clearly what happens at each step so I can give that as a spec to a programmer to properly code it.

 

[maxcruiver]

Juz my opinion, we can see things like this...

TP/SL
1 unit
B3
1 unit
B2
1 unit
B1
1 unit
0
1 unit
S1
1 unit
S2
1 unit
S3
1 unit
TP/SL

As Williama said, the opposite side orders should add up more than the side where price is currently at. For example if the price is above level 0 now, the short side pending orders + running orders should be more than the long side.
From the beginning of the "trap", if price shoots up to trigger 1 lot each of the B1, B2 and B3 and touch the upside TP, we earn 6 units
( from B1 to TP=3 units, from B2 to TP=2 units, from B3 to TP=1 unit, 3+2+1=6 ).

But, if price triggers B1, and goes straight down to touch the short side TP, which is also SL for buy orders, we lose 5 units ( from B1 to downside SL=5 units ). If we do not add any additional pending orders to the short sell stops, meaning we only earn one net unit in this scenario because all sell stops are triggered with 1 lot each, therefore we take 6 units of profit from the shorts but lose 5 units from B1 long.
Is this making things to look a little clearer?

 

[autofx]

After some analysis, I see that I introduced some order placement bugs in my versions.

The very thing I was trying to optimize turns out to be very good in the williama_improved_all_margin version.

I tried to figure out how I screwed it up, but I couldn't!

Instead, I am making sure the next version I roll out is correct in how it adds orders.

___

I see the discussion on what the strategy is supposed to be, exactly.

Regardless of what the EA actually does, I believe the strategy is simple. We just want to make sure that the open trades and pending orders will take us into profit in case the market goes against our current open trades.

So if we have a group of open buys and sells that would profit if the market goes up (meaning we have more open buys than sells), we don't need to add more buy orders. But if we need to add sell orders to profit if the market goes down, we add however many sell orders would get us our profit goal if indeed the market turns down. The instant any buy order triggers and becomes an open buy is the instant we will have to add new sell orders. I think we probably all get that basic part of it.

I want to rest assured that no more orders are placed than needed.

 

[sam_ye2001]

I am not watching the demo, i am watching one of the live accounts.

Balance: $229k
Equity: $87k
Margin: $122k
Free Margin: $-34k
Margin Level: 74%
P/L: $-138k

now thats some serious trouble if you ask me.

Killer

whose live account is that? do you have the login and broker info that allow us to view it as well?

 

[killerkhan]

whose live account is that? do you have the login and broker info that allow us to view it as well?

sorry i was told not to give out this info to anyone, all I can say is that its one of those pooled $100k live accounts on the same FXPro broker.

 

[power]

live account wipeout 143K balance 146K equity 80K.be extremely carefull using this system it can wipe you out if you do not understand how to handle large drawdowns

 

[autofx]

In choppy markets, this is one kind of strategy that will be extremely bad.

I have dissected this thing pretty thoroughly, and I see that williama's strategy is a loser. The number of orders that can be generated is ridiculous.

In strong trends, this thing looks great, though.

williama says you need lots of money to trade this...well, you need more than that. You need a broker that will allow hundreds of orders and open trades on your account, because that's exactly what can happen, especially if you're trading six pairs.

 

[power]

you got it...........if the broker rejects pending orders and you are not aware of it and do not manage properly you will get wiped out..........you must fully understand how to manage this system, It can be a money naker but one slip up and its all gone

 

[power]

Plus you need high margin levels and there is no way that a live account will be able to build equity such as a demo account. As far as I know brokers cap the leverage once your equity reaches a certain amount and will reduce it down to 100 to 1. In order to keep that high leverage you must maintain balances below the threshold