Emas Cross 21 – 200 with Trailing Stop
A new version of the successful expert advisor that uses the signal of 21 and 200 EMA cross as an entry is here. I was thinking in the following, this cross between the 21 ema and the 200 ema is sometimes the beginning of a trend, not always but sometimes after the cross the market keep trading strongly into that direction. With the single EA 5 we were just trying to get 30 pips or loss 20 if the trades go wrong, this time i want a little more.
Trading just the cross is trading mostly in the extremes of the market, when the markets are actually reversing, this is pretty dangerous as we know it is easier to keep with the trend than to find a reverse of it.
What we will try to do is to get some more juice of the recent formed trend if the market let us, it will be a good idea to add a trailing stop after certain levels are reached instead of just get out with those 30 pips.
This new robot gets in the market short or long when the 21 ema and the 200 ema are crossing, the order is sent with a 20 pips of SL and a 100 pips of TP, yes, 100 pips.
Is the market go against our trade the 20 pips SL will be executed, that is the worst case scenario of the trade, same as EA5.
If the market go with our trade until a 20 pips of earnings there is when the trailing start to work. the trailing start to work when the current stop loss price (-20) and the the current market price is at +20, a 40 pips of difference between the current stop loss and the market.
When this difference is present the SL start to trail with every tick in the direction of the trade, it will trade free when the trade is earning 40 pips and it will start to lock profits after that.
The TP will be hitted only if we are earning 100 pips, in all the other cases the SL will be in charge of getting us out the trade.
Check how the robot did in the strategy tester for year 2010:
Emas Cross 21 – 200 with Trailing Stop
It is the most profitable robot until now but not by to much. You see, there is new risk involved here, when the trade is earning 30 pips the EA5 will get our asses out while at the same moment of this happening the new robot will have a SL at -10. The market can get to +30 level, reverse back 40 pips and end with -10, while EA 5 will ended at +30 in the same situation. this is why there are differences, at april for example EA5 ended positive while this new version ended negative.
Lets continue working on this and see if we an overcame this situation but for now this is the most profitable EA developed.
Tags: automated trading, trailing stop
