Trading System Synopsis Example

This is an example of a trading strategy synosis

Project Parameters

 I. Timeframe

  1. Place orders on all timeframes, regardless of the chart it was placed on.
  2. Expert Advisor can place orders on all timeframes simultaneously.
  3. Expert Advisor will only open one order at a time, per timeframe.
  4. Total possible orders at once : 7 (M1, M5, M15, M30, H1, H4, D1)

 II. Money Management

  1. Increase our lot-size as we win and decrease our lot-size as we lose.
  2. Lot Size is independent in each timeframe.
    Because we are running on multiple timeframes, the money management should be different for each timeframe.
    Example:
    1. M15 wins 4 times, and increases lot size from .01 to .06.
    2. M1’s lot size is still .01. Only M15 orders will have .05 lot size.
    3. M1 wins 10 times, and increases lot size to .11.
    4. Now, their lot sizes are M15 = .05, and M1 = .11. The other timeframes (M5, M30, H1, H4, D1) will still be .01.

    We will have 7 “separate” variables which hold the lot size for each time frame.

 III. Comments

  1. Each order should have a detailed comment log in this format:
    M15 EURUSD MA-Cross LotSize Down
  2. The format for these comments are:
    1. Timeframe
    2. Pair
    3. Method of Indicator
    4. Lot Size
    5. Did lot size move down or up since last trade?

Indicators

  1. Short Simple Moving Average: 50
  2. Long Simple Moving Average: 100
  3. Super Long Simple Moving Average: 200

Variables

  1. PipDistance: How far “off the line” (SMA) in pips it is okay to place an order.
    • If this value is set to “0”, the program can place a trade at any distance.
    • This value helps the program place trades only when it is close to the average, to prevent whipsaws.
  2. LotStarting: Lot size to start at.
  3. LotStep: Increment size for the money management.
  4. OrderTypes: This variable is used to restrict orders to buy, sell, or both.
    • Values: Buy; Sell; All.
    • If “All”, place any order. If “Sell”, place only sells. If “Buy”, place only buys.
    • This function is used to restrict certain pairs that are in a long-term trend in a single direction (i.e., currently you would only short positions with USD)
  5. Use_M1: Used to turn on/off the orders for a specific timeframe.
  6. Use_M5: Default is ALL ON.
  7. Use_M15: (etc., etc.)
  8. StopLoss: Initial stoploss for all trades.
  9. TrailingStop: Distance of the trailing stop

When to Buy

 I. Indicators:

  1. Moving Average Cross criteria:
    • Short MA is above the Long MA.
    • Price is above the Super Long MA & Long MA.
    • Price is within XXX pips of the Short MA.
      This will prevent buying off the line (SMA) and risking a retracement.

     II. Stoploss:

    1. Trailing stop-loss is set to the Long MA.

     III. Re-Buy if:

    1. Short MA is above the Long MA.
    2. Price is above the Super Long MA.
    3. Price has returned above the Long MA inner edge

    When to Sell

     I. Indicators:

    1. Moving Average Cross criteria:
      • Short MA is below the Long MA.
      • Price is below the Super Long MA & Long MA.
      • Price is within XXX pips of the short MA.
        This will prevent buying off the line (SMA) and risking a retracement.

       II. Stoploss:

      1. Trailing stop-loss is set to the Long MA.

       III. Re-Sell if:

      1. Short MA is below the Long MA.
      2. Price is below the Super Long MA.
      3. Price has returned below the Long MA