I have been reading John Carter's book "Mastering the Trade" and in one chapter he talks about BBSqueeze (indicator attached); it is a very simple method and seems to be profitable. However unless you sit and watch an hourly chart you would probably miss the signals.
The method is: go long on blue histogram when you get the first green dot after a series of one or more red dots. short on red histogram.
So my question is how would you add an audible alert when the above criteria is met?
Has anybody tried to code an EA for this strategy?
Thanks in advance.
Are there any exit rules, Jim?
According to the book he exits on the first lower high following a peak; the squeeze usually preceeds a reasonable move so a trailing stop may be sufficient.
The indicator repaints, so you would really need to enter on a new bar for a confirmed signal. Otherwise it would be very easy to build an EA from it, although I would personally put the indicator code into the EA rather than use iCustom as the indicator code seems quite sluggish.
When you refer to a peak, I presume you are talking about peaks on the histogram which paints a different colour after a high or low?
The peak is actually a peak in price, so a trailing stop would probably be appropriate.
This seems to be a reliable method of entering trades - is this something you could code?
It's very easy to do, Jim, but it's finding the time that's the headache just now. The coding bit is simple, it's the testing that takes time.
As I said previously, I'd forget about using iCustom to return values for the 6 buffers. You just need to use the existing indi code (simple cut'n'paste of the right bits) within the EA to return values for bbs and d for the last two shifts.
This will make operation a lot smoother than if you use iCustom.
Then just use some if/and rules for your OrderSend() function and you're nearly there. All that remains is how to handle SLs and TPs and they tend to be well documented here.
To be honest, I'm not convinced on the theory of closing after a price peak and I suspect there are more profitable ways of exiting. If you run it on a H1 chart, you'd need to wait 1 hour after the peak formed before you even knew that it was a peak.
If you're stuck, send me a PM and I'll give you a hand with anything you're unsure of.