50 Pips A Day Forex

therookie · Thu, 11 Apr 2019 18:59:13 +0000

Hi guys! So I am pretty new to coding but I’m trying to learn. I have read about a very simple trading strategy with Forex which I have a hard time writing down in code as it doesn’t involve any indicators. The link to the strategy can be found here: https://forextradingstrategies4u.com/50-pips-a-day-forex-trading-strategy/. I assume it is a pretty easy code to write if you know what you are doing and I hope someone here could help me to code it for backtesting in ProBacktest. TRADING RULES OF THE 50 PIPS A DAY SYSTEM As soon as the 7 a.m. GMT candlestick closes, you have to place two opposite pending orders: a buy stop order 2 pips above the high and and sell stop order 2 pips below the low of the 7 am GMT candlestick. When price activates one of the pending orders, you cancel the other pending order that has not been activated. You must place a stop-loss order anywhere from 5-10 pips pips above the high/low of the 7 a.m. GMT candlestick after it closes(or has formed) to control your trading risk. If you notice that the 7 a.m. GMT candlestick is too short and that placing the stop loss will be too close to the entry price, then increase your stop loss distance to anywhere from 15-20 pips. Set your profit target to 50 pips Once you have entered the trade, let the market do its thing. If your trade reaches it profit target for the day then awesome! Repeat the same process tomorrow. If you trade has a floating profit or a floating loss, wait until the end of the day and exit your trade, regardless of if you have a profit or loss.

This topic has 20 replies, 3 voices, and was last updated 6 years ago by therookie.

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04/12/2019 at 1:19 PM #96261

Vonasi

See – I did say ‘Not really easy – but possible’ in my first reply and I wasn’t wrong. I learnt one or two things about ProOrder, MTF and trading on 1 second time frames along the way so it wasn’t all wasted effort.

Vonasi
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04/12/2019 at 6:37 PM #96296

therookie

Hmm…so I copied this code into ProBacktest. First it says that the variable x is not defined (there is an x in line 5). I simply removed this line (maybe it’s not even supposed to be there??). Anyway after I try to run the backtest I get an error, please see the attached picture.

therookie
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04/12/2019 at 10:56 PM #96316

Vonasi

Sorry I was optimizing the strategy and testing what difference various settings for shortcandle made (not a lot) and forgot to delete the /x when I posted the code. I have edited my last post and so if you now cut and paste the code it should work.

You must run the strategy on a 1 second chart. If not then that is the reason for the error message that you posted the image of.

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therookie

Vonasi
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04/13/2019 at 7:10 AM #96319

therookie

Great Vonasi! Thank you so much and I’m happy you got something out of this too.

I just had a question out of pure interest. How come you chose the second timeframe to be 1 second and lets say not 1 minute instead? Was it because high volatility would maybe then go both short and long during 1 minute?

The reason I am asking is because, even though I am sure the system will work live, there is not really a way to back test it like this right? A 1 second chart will show too little data to effectively backtest it right?

therookie
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04/13/2019 at 7:52 AM #96321

Vonasi

Yes I chose 1 second because that way as soon as a trade is opened the other order is cancelled as soon as possible. Yes you could stretch it out to other time frames but the slower the time frame the more risk that trades in both directions could be opened.

This is one of the current limitations of MTF codes – very little backtest data on fast time frames. I believe v11 will be better in this regard. To be honest most back tests are not very accurate as we have to use a fixed spread and in real life spread is not fixed and has not been exactly the same spread since the year dot.

The 1 hour version that I wrote does a pretty good job of simulating how the strategy would perform in a back test but live forward testing is always preferable to back testing. To do this just run the strategy live in your demo account on a 1 second time frame by clicking the ‘Automatic Trading’ tab in the programming window.

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04/13/2019 at 8:44 AM #96326

therookie

Yes will do! You’re awesome and thanks for the explanations and help.

therookie
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50 Pips A Day Forex

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