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Strength Meter Scalping EA BETA

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  • Strength Meter Scalping EA BETA

    Well, I got a little ambitious this weekend and decided to write my first EA based on the Strength Meter. It was not as difficult as I thought it would be and I will be planning on writing some elaborate EA's in the coming months. At least it should be interesting. If you have read any of my posts, the Strength Meter (theoretically) provides a "big picture" look at a particular currencies strength in relation to all of its crosses.

    The concept of this EA is to buy into momentum that is statistically persistent. Meaning the EA will look to buy a strong currency against a weaker currency when the strong currency is moving through a level which would indicate sustained upward momentum. On the flip side the EA looks to sell a weak currency against a stronger currency when the weak currency is moving down through levels that would suggest sustained weakness.

    The EA uses multiple time frame analysis to determine short term and medium term strength/weakness. Since decisions are based on a 1 minute chart and profit target is (currently) 10 pips. there is no need at this point to consider longer term although I'm not ruling it out.

    Conceptually this EA looks to be the "casino", playing a slight edge on a large sample to (hopefully) provide a steady rising equity curve with minimal drawdowns. What I am looking to achieve is a minimum 70% win/loss using a fixed 1:2 profit loss ratio. Based on a 10 pip win versus a 20 pip loss, the EA would have a positive expectation of 1 pip per trade over 100 trades. This would be HFTS and will be running it on several pairs simultaneously and probably generate close 50+ trades per day. Each pair will have its own EA that will be fined tuned to that particular pairs 30 day trading pattern and will be re-evaluated as needed.

    Now that I have a feel for programming trade logic into MT4 I will also be writing an EA based on the the Dynamic ATR maybe next weekend. We'll see how things go with this one. 40-50 pips a day on "auto pilot" would be a beautiful thing....hehehehe...

    Happy Trading!

    Joe

    EA.jpg
    "The trend is your friend - until it bends at the end"

  • #2
    Really nice! Will you share the EA?
    The only people who get hurt on a roller coaster are the ones who jump off.

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    • #3
      Depends on how good it it ends up working...:
      "The trend is your friend - until it bends at the end"

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      • #4
        Hey Joe,

        Love the ambition! I'm very interested to see this project evolve.

        I have been reading up on your strength meter recently and I love the simplicity of it. Hopefully this can translate into a simple EA that makes you.. and hopefully us (via the worlds greatest trade copier) some nice automated pips!

        Phil

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        • #5
          Well it definitely needs some tweaking! Still learning some of the coding nuances of MQL. After running it for a couple days I either:

          1) Need to program all the "logic" I use to make manual trade decisions based on the Strength Meter...this will probably melt my CPU....lol.
          2) Simplify the logic so that it only takes the "creme de la creme" of set ups...this will spare my CPU but may bore the hell out of me waiting to get a signal...

          I'm pretty confident that I can write an EA with a positive expectation...of course how long the +EV will persist is anyones guess....;-)

          Once I get it tweaked I'll open a new MT4 demo and run it for a month and see where we wind up!
          "The trend is your friend - until it bends at the end"

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          • #6
            Yeah, MQL4 is a bit of a weird one alight. I dabbled once and gave up. This sort of thing should come easy to me as I did a degree in Computing Science. Sadly, instead of studying, I chose to drink and play rugby for 3 years. Bad combo for the brain cells!

            Anyway, Id go for option 2. keeping within the theme of LFT, its all about building up a portfolio of strategies. Id definitely be looking for quality signals over quantity to add to the mix with other strategies.

            Keep us posted on the demo forward tests.

            Phil

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            • #7
              Phil...never looked at it from that perspective (as far as using several high quality signals over a single signal) but is an excellent point...Option 2 it is! Also this will make writing the EA less complicated and free up time to maybe write a couple others..Thanks for your input!

              Joe
              "The trend is your friend - until it bends at the end"

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