Forex Engulfing Strategy

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04/28/2017 at 1:39 PM #33873 quote

GraHal
Participant

Master

Yes Maz maybe I need my own Thread on this … I piggybacked onto Stantons / this Thread as it is same / similar basis.

I have started my own Thread for Algo based on this structure in the past a few times, but I am not good a coding and was reliant on others and the Threads died.

See attached all 3 Trades are losing now and price is edging below 23.6% retracement … may go on to a 50 or 61.8% then bang stop losses triggered and another 3 losers.

Doubly annoying thing is there is a stop loss for one of the trades sitting just above the 61.8% retrace so the trade will exit and then almost certainly go back up again after hitting the 61.8 zone a few times.

And this after 2 obvious ranges followed by breakouts … see attached.

GraHal

Structure2.jpg

04/28/2017 at 2:00 PM #33878 quote

GraHal
Participant

Master

I may be in luck and it will be scenario attached … with the different 0% and 100% levels … looks like it may due to support / 2 price rejections at 61.8%

Structure3.jpg Structure3-1.jpg

04/28/2017 at 5:29 PM #33898 quote

GraHal
Participant

Master

Looks like attached may be the 61.8 level it is respecting on the 15 min Chart … higher TF Elliott Waves override lower TF waves.

I also did a manual trade Long to get back the loss on the Algo which was stopped out earlier this afternoon.

GraHal

Structure4.jpg

05/01/2017 at 8:00 PM #34200 quote

StantonR
Participant

Senior

Hi Grahal

I am facing similar problems with some of my other strategies.

I am looking to check the length of the bar to see if its greater than 20 points. This signifies there is a big break out and possible a follow on.

So if the bar is above 20 points in length I dont go in on next bar then wait 2 or 3 bars later to enter.

how does that sound.

05/02/2017 at 9:52 AM #34215 quote

GraHal
Participant

Master

Hi Stanton

Let me know how it works?

Alternative thoughts … wait up to 10 bars all in same direction of and including the ‘> 20 point bar’ and including any bars before the ‘> 20 point bar’ … that way the short term trend should be ready for a retrace??

05/09/2017 at 9:49 AM #34897 quote
victormork
Participant

Veteran
Hi Stanton,

I’ve put together an Engulfing strategy on EURUSD 4H (Long only). It’s not based on yours but maybe it can help you to bring some new ideas.
```
// EURUSD 4H
//SPREAD 2 pips
//victormork @ prorealcode.com

// ===========Engulfing trading============= \
// ====================================== \
// :: System Parameters ----------------- //
DEFPARAM CumulateOrders = False
DEFPARAM Preloadbars = 200

// ====================================== \
// :: Optimizations ----------------------//

atr = averagetruerange[20](close)
profitATRmultiple = 1
sl = 50

tradingtime = currenttime > 080000 and currenttime < 220000

//tried but no positiv effect on result
//malong = average[20] //20
//mashort = average[70] // 7

//strength = rsi[14](close)
//rsilonglevel = 50
//rsishortlevel = 30

// ====================================== \
// :: Indicator logic---------------------//

//  :: Engulfing setup ================= \

body=close-open

abody=abs(body)

if range>0 then
ratio=abody/range
else
ratio=0
endif

bodytop=max(open, close)

bodybottom=min(open, close)

longcandle= (ratio>0.01) // 0.001


// ====================================== \
// :: Bullish Engulfing signal------------//

b1 = (body[1]<0)
b2 = (body>0)
b3 = (bodybottom<bodybottom[1])
b4 = (bodytop>bodytop[1])
b5 = longcandle

b10 = b1 and b2 and b3 and b4 and b5


// ====================================== \
// :: Execution Long ---------------------//

if  b10 and tradingtime then
Buy 1 contract at market

endif

// ====================================== \
// :: Bearish signal--------------------- //

//s1 = (body[1]>0)
//s2 = (body<0)
//s3 = (bodybottom<bodybottom[1])
//s4 = (bodytop>bodytop[1])
//s5 = longcandle
//s6 = strength > rsishortlevel

//s10 = s1 and s2 and s3 and s4 and s5 and s6

// ====================================== \
// :: Execution Short --------------------//

//if  s10 and tradingtime then
//sellshort 1 contract at market
//endif

// ====================================== \
// :: Stop and target-------------------- //

set target pprofit (atr * profitATRmultiple)/pointsize
set stop ploss sl
```
Skärmavbild-2017-05-09-kl.-10.48.50.png
05/09/2017 at 8:11 PM #34985 quote

StantonR
Participant

Senior

Hi Victor

Thanks for this.

I see that it is only looking for the engulfing setup and time in order to enter the trade.
What I am looking for is one more confluence to ensure a higher probability of a reversal.
Ie Trend lines or Pivot points.

05/10/2017 at 9:33 AM #35011 quote

victormork
Participant

Veteran

Hi Stanton,

Yes I saw that you tried to find an additional criteria and I’ve tried too but so far without success. I’ll let you know if I find something.
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