## FXCM Stochastic 4 in 1 Modification

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### FXCM Stochastic 4 in 1 Modification

I use the current automated 4 in 1 Stochastic strategy from FXCM. However there are two modifications I feel this strategy requires.

1. A simple Margin Care addition to the parameters. Dont think this needs any explanation.

2. The second is a little bit more elaborate at im not even sure if its possible in LUA or i may have to look to PYTHON down the line, but here it is anyway...

I need the ability to open multiple positions across multiple time frames on a single currency pair in both long and short positions. The problem is I have optimised strategies on the 2,3,4,6,8 hr time frames. If all the stochastics are above the overbought level and the 2h creates a signal it will open the position. Howere the next signal on the 3,4,6 time frame will not trigger in the next hour/s because there is already a position open for that pair in that direction or any direction for that matter.

As a result I have to manually open these positions. When these posistions have to be opened by me I loose the ability to take advantage of Close and Reverse on opposite signal. It is likely the 2h will hit target by the time the 8h signal comes around so it will open the 8hr signal. However becasuse by this point the 2hr might be about to signal in the opposite direction i have found the 8hr will open, only to be closed several hours later by the 2hr triggering the Close and Reverse trading rule. As a result I will have to take the losses on the 8hour if it has any or minimal profits. The idea i have is a simple "Isolate Rule" box of sorts that trades the strategy independant of any other strategies currently active.

I am aware deselecting Close and Reverse might solve part of my problem however it is best to leave it in the strategy for the purpose of optimization and just general good practice.

The use of an isolate button would mean that both long and short positions could be held on a single pair.

Any questions or thoughts would me much appreciated. As This strategy is currently a PAID one in the app store I am not sure if this modification would qualify for free to the community but if it does all the better. Otherwise I would be happy to pay.

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Joined: Sun Aug 25, 2019 10:34 am

### Re: FXCM Stochastic 4 in 1 Modification

Apprentice
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### Re: FXCM Stochastic 4 in 1 Modification

Not sure what you mean by link but i have attached a pic of an example of the problem in action. Note on the 2,3,4 hr charts the condition for the signal is when k crosses d while both are in the overbought zone. On the 8hr the condition is when D crosses upper stochastic. In this example the 2hr has triggered and opened a position but the higher timeframes required manual input by me. Screenshot of indicators taken at 108pm AEST. If you want to reference against price action.

signal charts

I have also attached a screenshot of the Parameter setup screen. full strategy logic explanation at the bottom.
param

Link to app in the app strore. https://www.fxcmapps.com/apps/4-1-stochastic-strategy/

Posts: 20
Joined: Sun Aug 25, 2019 10:34 am

### Re: FXCM Stochastic 4 in 1 Modification

Have something similar on the fxcodebase.
viewtopic.php?f=31&t=2533

Apprentice
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Posts: 25304
Joined: Thu Dec 31, 2009 11:59 am
Location: Zagreb, Croatia

### Re: FXCM Stochastic 4 in 1 Modification

Thanks mate will definetly test it on a demo account and see how it goes. Do you know if this strategy will open mulitple positions on the same pair if one already exists? This is the main functional problem I had with the stochatic 4 in 1 strategy.

Posts: 20
Joined: Sun Aug 25, 2019 10:34 am

### Re: FXCM Stochastic 4 in 1 Modification

Use "Max Number Of Open Position In Any Direction" and "Max Number Of Position In One Direction" options.

Apprentice
FXCodeBase: Confirmed User

Posts: 25304
Joined: Thu Dec 31, 2009 11:59 am
Location: Zagreb, Croatia

### Re: FXCM Stochastic 4 in 1 Modification

Brilliant, I just wish i found this months ago.lol, ahhhhhhh something said by every trader.

Posts: 20
Joined: Sun Aug 25, 2019 10:34 am

### Re: FXCM Stochastic 4 in 1 Modification

Hey I have been using the stochastic strategy recommened earlier in the thread, this one >>> viewtopic.php?f=31&t=2533 and was wondering if the FXCODEBASE team or someone else if they are keen to make a modification.

1: Margin Care so you can set a minimum usbale margin to be present before opening more positions.

2: Instead of opening posiitons on the signal I want thtem to create an enty order higher than the strike price in the event of a sell trade and lower then the strike price on a buy signal. Im thinking another field in the paramaters called something along the lines of "Order Offset"

"Order Offset" should be able to determine the new order pirce based on the Order Offset paramater and the strike price.

Example: AUD/USD stochastic criterie is met at a strike price of 0.6800 and generates a sell signal. Under nomral conditions the sinal would simply trigger the order and the position would open straight away. Under the use of Order Offset the following would happen.....

Trigger price of 0.6800> A entry order is created at the price of 0.6815 becuase the order offset paramater was set to 15. In the paramaters the Stop Loss was set to 20 bips. Under this order the stop would be placed at 0.6835. In the paramater the limit was set to 20. Under this order the limit would be placed at 20 bips below the strike pirce at 0.6780. Making the total limit in profits the (15 +20 bips) making the effective take profit 35 bips.

Might help to explain the logic behind the strategy. Essentially I optimized the strategy in FXCM Optimizer. I then analyse the backtest of the set of paramaters that was returned and found that the negative price action represented not only another buffer to guard against false starts but also an opportuity to turn that negative price action into higher profits when it reaches that average retrace. In manual testing over 6 weeks this all equated to maintaining higher usable margin, more bips total profit and the ability to enter more trades as the usable margin is higher and doesnt go as far into the negative as it did when trades where just entered at the strike price when the signal is generated. While less trades are entered the ones that are spend less time with negative bips and make the negative price action turn into profit, all the while having the trades open for less time. Making it a preferrable strategy.

cheers
iain

Posts: 20
Joined: Sun Aug 25, 2019 10:34 am

### Re: FXCM Stochastic 4 in 1 Modification

Development reference 275.

Apprentice
FXCodeBase: Confirmed User

Posts: 25304
Joined: Thu Dec 31, 2009 11:59 am
Location: Zagreb, Croatia

### Re: FXCM Stochastic 4 in 1 Modification

brilliant, total legends.