Straddle strategy forex


straddle strategy forex

I began testing this system weeks ago and though it worked well for a time, overall it is not profitable. The system has its place and can certainly be modified to make it better if you'd like to take the time.

I'm placing details of the system straddle along with files for its use, i. MT4 templates and scripts, along with the spreadsheets I use for semi automated record keeping.

Hopefully you can glean some good ideas from the details here and come up with something consistently profitable. You also don't need to camp out in front of your computer watching charts all day.

Be advised, this system isn't for the week of heart as there can and will be some large draw downs. The system runs on a daily D1 chart and is forex on the average daily range of the past 10 days 10 day ADR. This number is calculated automatically in the chart template, scripts, and spreadsheets here, but can easily be done manually as an example. Start with yesterday's candle. Subtract the daily low from the daily high.

That is the 1 day range. Do the same for the next 9 prior days as well, then add all of the daily ranges together and divide by This is your 10 day ADR. First, round the 10 day ADR to the nearest For example, if the ADR isthis would round to If you're programming this and don't have a "round to the nearest x" function, you can simply divide strategy number by 25, then round that to the nearest whole number, then multiply by Take that number and divide by 2, then round that to the nearest 10 to make it a nice round number This is your "magic" number in pips.

To enter trades, you look at strategy close of the prior day's candle. This makes it nice for me, as here in Idaho the daily candle closes at 6: To continue this example, if yesterday's close was 1.

Notice, you don't add 60 to the price, you add 60 pips. When you place your Buy Stop, you also set your TP and SL point. These are calculated with the "magic" number as well. Add the number to the entry for TP and subtract it from the entry for SL again, in pips. In this example 1. This is the "straddle" of the system. The Sell stop is done the same way in reverse. Subtract the "magic" number from yesterday's close for entry. Here is a chart example which shows all of this graphically:.

Once a trade is opened, let it ride until it closes, even it it spans 1 or 2 more days. If neither pending order for a pair is opened for the day, they are canceled and re-entered or simply manually modified with the numbers for the next day. An important part of any system is money management. I break the "rules" that a lot of people set as far as the forex of my account that is risked on each trade, but I'm comfortable with this due to the tracked performance of this system.

You can alter this to fit your preferences as desired. In this system, you begin with a single lot. If your trade wins, the next day's trade is also one lot.

If you lose, then the strategy day will add one for a total of 2 lots. If this trade is won, the next day will subtract one lot and trade only 1. If it loses with 2 lots, the next day trades 3 lots.

In general, you shouldn't have more than 2 straight losing days. If so, you may want to try trading a different forex. Now that you know how the system works, you need to set up your chart to test it yourself. I personally trade 8 different pairs concurrently as this allows for some pairs to slump while others perform well.

The pairs I'm trading are: Place this file in the templates folder NOTE: Bring up the D1 chart for your selected pair. Right-click on the chart and move down to Template, then select "Straddle system.

Now, make sure that you allow live trading by EA. Click Tools then Options. On the Expert Advisors tab, make sure that "Allow live trading" is checked.

You also want to make sure that "Ask Manual Confirmation" is checked. This will bring up the trade window to allow you to change lot size, otherwise the trade will place automatically with the default 1 lot. You're now ready to practice trade. Straddle you don't see the window, click on View and select Navigator. Double click the buy script and a trade confirmation window will pop up.

All you need to do is adjust the lot size based on your prior day's trade win or loss. The script will default to 1 lot. I am working on an EA that will automatically cancel a pending trade if the opposite is opened, but for now you will want to manually close the pending buy order if the Sell Stop is hit and vice versa.

Repeat this for as many pairs as you choose to trade. I generally check in after dinner and before I go to bed to see if any trades have hit so I can cancel the opposite pending order. I check again in the morning before I go to work when I generally have some trades closed so I enter the results in my spreadsheet.

I do the same when I get home, then wait for the next daily candle to open and start again. Spreadsheets These spreadsheets have been the heart of this system for me.

They allow accurate record keeping and the ability to quickly and easily see how the system is performing overall, as well as daily and weekly performance of individual pairs.

I've written them to automatically calculate and enter the lot size for strategy day based on the prior day, as well as calculate the magic number, entry and exit points.

You may download them to use and I will give detailed instructions below. It gets pasted into each day before placing trades for that day and will auto-fill many of the cells based on the prior day.

It includes a VB script that should install with it, but here is the code in case it doesn't. The script enables a page to access a cell value from a previous page regardless of which page is implementing it. To "install" it in Excel, click on Tools then scroll down to Macro and select Visual Basic Editor. Now, at the top, click Insert then select Module. Paste the straddle code into the workspace, then click Debug and then Compile VBAProject. Now save and click File then Close and Return to Excel.

Function PrevSheet rCell As Range Application. The totals will calculate based on the weekly entries, but you have to manually add and enter the totals for the week.

This could be automated, but since the weekly spans 3 months, the cells won't be consistent each month. It just seemed easier to manually enter the weekly totals. You can change this in the formulas for the related cells if your initial balance is different, or when starting a new sheet. This also provides an easy to see synopsis of how many lots you will be trading each day. You can also use this sheet independently and save it separately for each day if you'd rather.

This is how I started out. Something I should mention about my trading, and this is all based on times here in Idaho GMT The market closes for the week at 2: It opens on Sunday at 4: I've decided to combine Friday and Sunday into one day. If a trade hasn't hit either the buy or sell stop by 2: If an open trade looks to be going the right direction O. If I think the opening will gap against me, I may close it on Friday just before 2: That's the only "gambling" issue with this system, though it can easily be completely eliminated if you choose.

Really, I've only had 4 trades ever not close by Friday afternoon. Two gapped open and hit TP, one hit SL, and the other is open as of this writing. Whatever you choose to do in this regard, the numbers for Monday's entries come from Sunday's close, not Friday's.

I do the month and year as "October If you've got a prior month saved, you can copy and paste the weekly performance into this one. The third sheet tab at the bottom will say "Sheet3.

I use the date as " On future pages, if the formula populates the lot size, it will put the number in both the Buy and Sell cells. Simply delete the one that is canceled when the other hits. Also, any blank Lots cell will equal 1 lot when the formulas do the entering.

When the new candle opens, enter the prior day close and ADR from the chart into the spreadsheet. When a trade hits, enter the number of lots for that trade or delete the number from the opposite cell and the entry type will change to bold while the opposite will change to strikethrough text. This is due to the formula initially being so long it covers the cell you want to click for price Now just wait for the trade to close.

The close price turns red for a loss and green for a win and the pips won or lost auto fills. The comments column will say "Carry over from yesterday" if a trade opened the prior day but didn't close that day. You may also enter your own comments here if desired. At the end of each day, enter the number of pips won or lost into the Daily sheet. The cell directly next to the currency symbol is the number of lots traded that day, the pips won or lost is entered below that. You can enter the lots for the straddle day as soon as you win or lose for the current straddle.

By the end of the day all of the lots cells should be filled for strategy next day, enabling you to easily see how many you will trade for forex pair. Make sure you save your workbook after any time you enter numbers into it. This will auto fill all relevant cells and get you set to trade for that day.

At the end of the week, add up the total pips and dollars for each day that forex and enter them into the Weekly sheet. The totals will auto fill and your Grand totals and performance percentage will auto calculate, again red for negative, green for positive. I hope this helps you test this system and brings you some profit. Nothing is implied nor guaranteed here. Feel free to make any modifications you're comfortable with and e-mail me if you have any questions.

Update on - I finished the EA for this system and it seems to work perfectly.

Advanced Forex Straddle Trading Strategies - MT4 Trade Panel

Advanced Forex Straddle Trading Strategies - MT4 Trade Panel straddle strategy forex

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