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Sunday, April 12, 2009

Scalping EURGBP Pair

My Current Work on EURGBP using 5 spread
May be this pair is trader’s favors to scalp, especially after Automatic Trading Championship 2008 is over; where there are two EA take the second and third place trade this pair. An amazing result of both two EA can turn up 1000% their account at the end of championship.
After that all broker that use MT4 platform raise their spread for EURGBP pair. And since then almost All EA that trade this pair becomes a looser. In my opinion, while it’s still in high volatility, then we still can make money from this pair. If you have any EA that work on this pair at Asian Session, then do a back test from October 2008- till December 2008. You will find the positive result even at 5 spread. But of course you will get a worst result if you test it below 2008 year, where the EURGBP volatility is low. It can raise a question who likes to scalp in low volatility.
Spread Difference
This is may a funny idea that could help such EA to work under 5 spread. Rather to protect EA not to trade at 5 spread or more that possible not work anymore, we can give a delay for spread difference after our signal was triggered. For example if our EA has a 5 pips target, each time our signal is triggered, than we must wait the price move as much spread difference before executing an order. However this technique only easy on back test environment. But by doing this delay technique in back test, we can measure our signal performance. You will find a lot of winning trades that executed under normal spread, will miss in this new rule. And know running back test again. Now see how much winning trade are left.

int start(){
Double oldspread=3;
Double currentspread=5;
Double diffspread=currentspread-oldspread;
//sell on rsi overbought
If(rsilast < 70 && rsicurrent >=70 && !Waitingforsell) {
Waitingforsell=true;//global variabel
normalprice=bid; //global variabel
}
//cancel waiting if rsi get out from overbought threshold.
If(rsilast > 70 && rsicurrent <70 && Waitingforsell) {
Waitingforsell=false;
normalprice=0;
}
//Time to execute the trade
If(waitingforsell){
If(rsicurrent >=70 && bid >= normalprice+diffspread*point){
Tiket=OrderSend....
If(Tiket>0){
Waitingforsell=false;
Normalprice=0;
}
}
}

}

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Risk Warning

Please note that Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.