System Improvements

I've changed a couple of things in the Signals Generator and Money Manager of my trading EA.

1. Instead of using Higher-Highs & Higher-Lows for BUY and Lower-Highs & Lower-Lows for SELL I'm now using PIVOT POINTS (i.e. [OPEN+HIGH+LOW+CLOSE]/4) to generate BUY or SELL signals. Three higher PIVOT POINTs in a row will generate BUY and three lower PIVOT POINTs in a row will generate SELL signal.

2. By following the universal traders' mantra "Cut the losses and let the profits run" I have taken out the TAKE-PROFIT option from my Money Manager Routine, but still keeping the STOP-LOSS intact in the Money Manager.

(Dated: December 20, 2013.)
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Basics Of My System And My EA

My system has following three basic components,

     (1) Signals Generator, 

     (2) Orders Handler, and 

     (3) Money Manager.

Signals Generator produces either BUY or SELL signal according to the CONDITION specified. The condition could be anything and as simple as 3 consecutive bars with -- Higher Highs and Higher Lows for a BUY (or) Lower Highs and Lower Lows for a SELL.

Orders Handler opens a BUY or SELL order When a signal is produced by the Signals Generator and If no opened-order exists.

Money Manager takes profit and closes an Opened-Order when the Take-Profit level is reached or broke through. It also cuts loss and closes an Opened-Order when the Stop-Loss level is reached or broke through. 

(From my more than 15 years of trading index-futures one crucial fact I've learned is to correctly set the Take-Profit and Stop-Loss levels, and thus the Optimum Ratio between these two levels, according to the prevailing market. Right now my optimum levels for S&P 500 eMini CFD market are 4 index points and 8 index points for Stop-Loss and Take-Profit respectively.)

(Dated: October 1, 2013.)