Examples of other Forex strategies
Module 3 Double in a Day Forex strategies for Short Forex Trends
Successful strategies could come from hundreds of combinations of input settings. The 100% gain Double in a Day strategy mentioned in module 2 in an example of a 100% gain strategy. Below are other examples to give you a feel of other strategies. Hopefully these will give you an idea to create other strategies of your own. It is important to not only blindly use one strategy all the time but to design a strategy for every deal you intend entering. During the testing period many testers will be creating successful Forex strategies and trade examples. These will be published on another webpage and in the forum when available. These will give further examples a Forex strategies used.
A conservative single top-up strategy small target strategy
The previous strategy is an example of a Double in a Day strategy that creates a 100% gain. The next strategy we will look at is on the other end of the spectrum. We will be looking at targeting a small gain of 10% with only 1 top-up and a 40 pip trend expectation.
The input would look like this
The strategy generator would look like this
The key item to look for is the safety margin – in this case the initial safety margin is initially 16 pips and the top-up safety margin is 11.5 pips. Not bad for a 40 pip target. Remember the safety margin is the minimum level as the level stays fixed at the predetermined level and is not a following stop.
A double top-up approach with medium target strategy
Here we are looking at a 50% return on the account using a 60 pip trend and a double top-up.
The input would look something like this:
The strategy generator would be:
Again the trick with all Forex strategies is to make sure that the margin of safety is reasonable. In this case the initial margin of safety is 20 pips, the 1st top-up is 18.3 pips and the 2nd top-up is 22.1 pips. This looks very good and reasonable for a 60 pip trend.
Checklist and tips to find acceptable strategies
Use this checklist if you are being blocked by the Strategy Generator the whole time.
- Do not try to create strategies just before you are about to trade – create a number of them and save them in your set files well before you start trading. That way you can activate a strategy in seconds.
- When starting out try to use the standard strategies provided in module 3 and module 8 first before trying to reinvent the wheel.
- Be aware that there are strategies that will not work – that is the job of the Strategy Generator – to block strategies that are not feasible. Be realistic and use your Forex trading common sense. Don’t waste your time trying to squeeze blood out of a stone, or use 2 top-ups in a 15 pip trend for instance.
- Rather than creating a strategy from scratch use one of the many strategies already provided that is closest to the type of trend you have in mind. Then make small step adjustments to those strategies until they meet your personal needs.
- Use the Excel model downloadable from this page to test various settings – once you have found settings you like transfer them to the EA input. This model makes it much easier to experiment and learn.
More items to consider
- Balancing your stop levels (margin of safety in the Strategy Generator) is important – make sure that your stop levels (margin of safety) are reasonably balanced.
- Make sure that your stop levels (margins of safety) are realistic. Any stops or margins of safety less than 10 pips could increase your risk substantially.
- The size trend you are anticipating is the one of the most sensitive settings. Start with a trend that is 50% bigger than what you have in mind and refine it downwards from there. Don’t start with a small trend as it may not be feasible.
- The % of the account to be risked and gained are also important settings, so focus on getting a balance between the anticipated trend and % of the account risked and % gain targeted.
- Consider if a single top-up or a double top-up is appropriate. The shorter the trend the better you would be to use a single top-up.
- There is a setting for the minimum stop size you want to trade with. Adjust this setting if you are being blocked due to small stop sizes. Suggest an initial setting of 6 to 8 for this.
- Read the blocked messages – they actually tell you what the problem is – act on the error message provided.
An Excel Tool for helping you determine the setting for your strategies
Some of our testers have made comments about using the Strategy Generator. The refinement of trading strategies requires them to go backwards into input and then into the Strategy Generator many times. They find this clumsy.
We have designed an excel spread sheet model which will allow you to refine your trading strategy on one page before entering it into the EA. This will help you develop a feel of what input in most sensitive to changes in strategy. Increasing the target trend invariably increases the Margin of safety provided.
The Spread sheet can be downloaded here: Excel Strategy Model
Please note the sheets in model are protected to prevent accidental destruction of the underlying formulas. Only use the input cell provided. This model does not align with the EA 100% but is accurate enough to save you a lot of time when determining a strategy for your trades.
Watch this video to see how to use the Excel Model to create Double in a Day strategies
Future upgrades will come with pre-programmed Double in a Day Strategies. All you have to do is select the strategy you want to use from the Expert4 Advisor settings input area.
And you will be presented with preloaded strategies
Just highlight the strategy you want to use and click on open. The settings will automatically be loaded into your EA input
Please note that these strategies use a $500 account size – please change your setting to the account size you want to use.
The other default is the direction – the preset direction is SELL so change this if you need to.
The format of the set file names is: Target/goal as a %, risk as a %, trend size in pips, stop size in pips, Return on risk and direction. So you will be able to tell the strategy used from the name and select the one you would like to use.
Strategies should be copied to and stored in your MT4 installation files in the “Experts”
and then “presets” directory
You can then copy them into the presets directory.
Alternatively all future upgrades will contain these set files already installed so you may want to wait a day or 2.
Other Double in a Day pages
To access other Double in a Day pages use the menu options on the main menu