Demark Lines EA
An expert advisor based on the Demark Lines indicator (attached).
Balance : 100k
Settings : default
Lots : 0.1 fixed
Timeframe : H4
Pairs attached : EN GCA UY AU XAU EA ACH NY CAY
Test duration : 17 days
Results : 0.45%
Open Trades : 0.70%
Maximal Drawdown : 3.74%
Profit factor : 1.03
try lotsizes like:
15
10
5
2
This is what the author used to produce his graph...
ES
Is there a way of improving this on par to the commercial ones? Some trader that followed and posted in the 1k-100k thread over at FF made their own EA and now manages accounts with it. Do a search for automan for info on that at FF and his blog site.
auto pips demark lines forexfactory mystic genie - Google Search
auto pips demark lines ea site:autopips.blogspot.com - Google Search
MysticGenie said that he was almost using only the Demark lines indicator.Originally Posted by FXGEN
Find me the exact rules and I will see what I can do. His posts are not very clear.
Trading forex risk disclaimer. Exclusive EAs in the Elite section.
Anyone find the rules on the Demark Trader EA? I read Mystic Genie's post as well and it is a bit confusing. :-|
Here is a little information that I found on Mystic Genie's strategy (FF):
Now the strategy in brief (Mystic Genie):
The strategy is very simple with some fine nuances which I'll not be able to explain fully as I also use my intuition a lot. I use simple trend following strategy based on 4H, daily & wkly TF (Pin Analysis as per James 16 thread)--- I use 1H TF for entries & exits---I also apply candlestick pattern, laguerre (see Imransait's thread) & Demark lines (Mouteki thread) for estimated target points---now I do not use any firm SLs---if the position goes a/g me (say by 100-150 pips in case of G/J), either I'll bail out & reverse (if the reverse trend is strong)or will simply hedge to try to come out b/e (minor retracements)---at the same time I keep an eye on wkly COT report (see cateful's thread) & equity markets (a big time for me as I am trading carry pairs) to assess market sentiment for that particular day---I avoid early US sessions (that's when i usually sustain my losses & market is also little undecided) & try to figure out next market direction from late US session onwards, e.g., if you see dow is closing strongly, you can be assured that asian markets will open strongly & G/J will move by atleast 50-100 pips from late US session onwards---I prefer to trade in late asian & early european sessions (besides being free from my work usually, i somehow can feel those markets better)---this is the time I'll try to increase my leverage to maximize my gains---I follow fib numbers to increase account size i.e., 1,2,3,5k----I decide on lot size as I risk b/w 15-30% on each position---I trade manually btw, no preset orders for me---i'll never forget the feeling of putting in 60 std lots in a mini account---lol
SL --
You can use 2 bar highs/lows in that particular TF, or 1.5 times the ATR of the particular TF---depends on your pain tolerance--lol
Last, but not the least, BEGINNERS, PLEASE DO NOT TRADE THIS WAY WITH YOUR HARD EARNED MONEY YOU CANNOT AFFORD TO LOSE, UNDERSTAND WHAT YOU ARE DOING & THE CONSEQUENCES (TRADE YOUR PLAN, PLAN YOUR TRADE).
<<>>
---well, my entries & exits are similarly based on the threads I mentioned above---nothing different---maybe I will exit little earlier as I have more lots than usual in play---one of the reasons most likely due to my style of trading, i.e., I trade on longer TFs, hence my SLs very wide like, say, 150 pips or more---and if my SL gets hit, the trend is most likely reversing---
on Rogers' query, I only take on longer TFs 1H & above---
On Euclid's query, good question---although I don't follow the equation closely---I start increasing my position size from 10% of my capital onwards as my winning percentage increases along with my confidence ultimately capping at 30% of the floating capital.
The red arrows my entry & exit points (i.e., down arrow= sell; check mark= exit; up arrow= buy)--- The blue arrow is put by the indicator when the trendline breaks, but be careful of fake break-outs as in this case when a pair is ranging---
Last edited by bnbb2004; 01-12-2009 at 19:38.
More info on system from Mystic Genie...
I am going to post excerpts of some of the private replies I sent to my fellow traders in last few wks to explain my system---hope this will answer many of your queries:
"I use Keltner-channels for possible entries & exits. You know that the upper & lower bands are std deviations from the middle band (10 MA). So on a longer TF, during ranging period usually PA will be limited within these bands ( you buy at lower band & sell @ upper band---when the market is trending, then, you sell when price goes below lower band & buy above upper band the middle line (10 MA) being your SL in this case---ofcourse I take into consideration other factors, but K-channel helps me orient to the current PA---"
"COT report shows positions till last Tuesday, but trading still goes on till friday---I will give an example from this wk's COT report---we see that overall JPY longs are increasing & we saw the JPY appreciating almost till Friday except for the late plunge---so by now, JPY long positions even higher than what's shown in last tuesday (ofcourse, OI may have decreased too--which I'm eliminating for simplicity sake) & notice how commercials are gradually increasing their shorts---now, we also saw a late surge in US equity markets in Friday signifying some return of risk appetite due to overcorrection since last 2 wks ( a retracement is due before another plunge---bear trap, unless Fed decides otherwise)---so, the whole picture suggests the probability of JPY weakening if the current sentiment from Friday close prevails till the disclose of any new information from US housing front.
Also, compare w/ this the Aud positions, gold & lifting of political clout post election suggesting possibility of further aud strength atleast till early next wk (a good play will be Aud/Jpy)---in fact, I won't be surprised if there is a gap up on sunday opening in all aud pairs--"
[Above example from 11/20/07 COT Report]
"I use TA to perfect my entries & exits, while fundamentals help me to see the market direction---I'll take a position when TA agrees w/ fundamentals---I think, Laguerre alone is sufficient if you are trading on longer TFs, as I have wider SLs (taking into account S & R lines) to weed out the market noise---if my SL is hit, most likely the trend is reversing & I take a reverse position to recoup my losses---"
"Regarding SL, you cannot change the ATR setting, unless you have a customized one---Otherwise, just put the indicator in the chart window & see the value for that particular TF & multiply by 1.5 (say in GBP/Jpy H4 TF ATR is 80 pips, then your SL 120 pips)---
Well, as I said, the more you risk the more you may gain, but at the same you may lose as well--to be frank I risk 5-10% per position & usually I trade only one pair at a time---initially I will only aim for 40-60 pips so that I get 5-10% back if the trade goes in my favor & I'll have 2-5 trades in a day if the set up is right (I need to win 60% of the time to stay +ve)---as the account grows, you may become more discretional, provided you don't lose your head---lol"
TA--Technical Analysis
ATR--Average true range of a currency pair
<<>>
---you will have lots of fake outs when market is ranging---longer the TF lesser the fake outs---that's where comes the discretionary part of this system, which cannot be codified in a system!
you will be able to weed out some of the fake outs by observing closely candlestick pattern (i.e., if you see a reversal pattern---avoid going long or short in the direction of break, etc. ...)
MG Trade Example - G/J Sell
I already explained my method & I attached once screenshot as well few posts ago---I use same laguerre setting on longer TFs (i.e., 0.85, 0.15), only for further confirmation along other indicators as said before---
one more screenshot attached of today's trade (G/J Sell @ 226.67 closed @ 225.31---+ 136)
GL/GT
Another MG Trade Example -
Thanks a lot for all the enthusiasm---I'll post charts whenever I find time to do that---Here is one for Gbp/Cad I was in: Gbp/Cad B 2.0650 closed @ 2.0850 (+200)
See the PA bounced from the lower band of K-channel & also hrly support, as this pair is on a strong upmove---
And another MG Trade Example -
This is another interesting trade I took on Gbp/Nzd---
Gbp/Nzd: S 2.7520 closed @ 2.6880 (+640)
Notice, PA failed to break thru 2.76+ atleast 3 times---hence a safe trade w/ small SL (compared to this pair's ATR!)---The fall stopped @ 2.6731 for now which is again a good support line for this pair---In fact, this pair is range trading within this band for quite some time now---Hence, a reverse trade also is a good trade w/ relatively small SL---
Happy trading,
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