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Thread: Volume Based Trading

  1. #1
    Administrator Jim's Avatar
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    Volume Based Trading

    Here's a new MT4 EA copied with permission from a thread over on LinkedIn entitled "The Pros and Cons of MetaTrader"

    The following specification was produced by Boris Anderer:

    Well here is a little but also known "secret": It is a simple scalping strategy which is working pretty well if implemented properly with an ECN broker:


    If a candle has a larger body (preferred >50%) and a smaller volume than the previous candle and is of the same type as the previous candle, then reverse buy or sell with a tight stoploss and take profit.


    * Time frame is no real issue here but I recommend hourly charts because the counter movement must compensate the spread.


    * There should be 4 bars in a row with the same color before checking the volume bars


    * MT tick volume bars are fine within FX charts because FX is not showing any real market volume. FX could be e.g. EURUSD or USDJPY


    * Fractals indi should be added for a better SL or TP setting.


    * 1h timeframe is not really necessary. You could take a 15m chart as well if you select trades where TP fractal resistance is larger than the spread.
    The code was implemented by Nima Shahbazi, and here it is:

    VolumeBased.zip

    Discuss!
    Reality is merely an illusion, albeit a very persistent one - Albert Einstein

  2. #2
    Junior Member
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    Hello everyone. Here are the results of my first MT4 back-test with the EA you linked. My first impressions are rather good but then again I'm pretty rusty having not done this for a while! I just threw some rather arbitrary dates in there so maybe you have some better ideas for which perimeters I should test. Thanks in advance.

    Settings.jpg

    Report.jpg

  3. #3
    Administrator Jim's Avatar
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    Hi Baguette,

    You're quick off the mark! Thanks very much for doing some backtesting and then posting your results.

    It certainly looks promising, but we need a bit more information in order to try and duplicate your results. What parameter settings did you use? The defaults, or have you already done some optimisation?

    Since the original specification mentions a "fractals indi" I've made our own homebrew Fractal/Pivot indicator available over in the MT4 indicators section. I don't personally much care for the vast majority of MetaTrader indicators, but I do place some credence in the idea of support and resistance, so this indicator is one of the few that I do turn to from time to time.
    Reality is merely an illusion, albeit a very persistent one - Albert Einstein

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