Hello this is Kirill from forexboat dot com. 2
And welcome back to the course on testing and optimization in a traitor for. 3
And today's a bonus to Tauriel because I have just updated the simple system expert adviser and I wanted 4
to show you what's new and how to use it. 5
So we're up to version 7 of the simple system for each robot. 6
And before we dive into this I'll show you where you can get it if you don't know yet. 7
So you go to one second. 8
So you go to Forks both dot com slash simple haif system. 9
And here on this page if you scroll down a bit you'll see the latest versions. 10
So the latest version now a simple system version so on point oh you just click on it or right click 11
and save link as. 12
And you will get the zip file which contains expert advisor here put in a bit of a description what's 13
new in the in this version. 14
But we'll talk about that in this Titor. 15
So if you haven't got it yet go ahead and download it and you can follow me in this tutorial. 16
All right going back so here we've got a simple system expert advisor selected. 17
Now I'm just going to go to exper properties and here you can see that we've got two new settings or 18
two new parameters that you can set for the sexpert visor and these are used trailing stop loss and 19
trail value. 20
And that's right as quite a few of you have already requested I have added the trailing stop loss module 21
into this expert wise. 22
So if you're not familiar with what a traffic stop is not a not a worry we will talk about that right 23
now and I'll explain to you exactly how it works. 24
So to start off with I'll just show you that you can still use expert visor as it were in the previous 25
version so if you don't want to use the same model just click false here. 26
And then the module will be just activated so just go ahead and launch it now and you'll basically see 27
that nothing really nothing has changed at all. 28
So here are British pound dollar is generating ticks and there is a sell order. 29
And basically just as per usual the expert advisor is letting this order you know play out as it's supposed 30
to play out. 31
Let's have a look at another one. 32
So that's a buy order. 33
And as you can see so the seller was profitable the buyer order turned into a loss so we'll stop at 34
that. 35
And now we'll explain how the stop trailing stop loss works. 36
So let's go here and change. 37
Use trailing stop loss to true. 38
We'll leave it at 40 pips. 39
And what that means is that the expert adviser will automatically maintain a given distance from the 40
price to your Stop-Loss so it won't allow the price to run away from your stop loss. 41
In a sense. 42
So if if the market is going in a favorable direction to your order then that means a stop loss will 43
be just we'll just keep following the market price at this set distance of 40 pips. 44
If the market is going against your order then the stop loss won't move. 45
So the market will just get close to stop loss. 46
It might be a bit complicated at first to understand but let's have a look at it a live example that 47
that's probably the best way to understand it. 48
So I'm just going to restart this expert advice. 49
But now with the trailing stop loss and we will carefully examine what's going on. 50
So I'll I'll just pause this process at some points. 51
All right. 52
So as you can see there we had a stop loss sell or open. 53
And if you notice the stop loss has already moved. 54
So just watch the stop loss up here and look how it moves with that order. 55
See do you see it like jumping and that is because it's always maintaining a distance. 56
If I measure this distance it's going to be well in this case it's 43 pips or 42 picks. 57
That's because it includes the spread. 58
But if you take out the spread it's exactly 40 pips. 59
So what the expert Wiser's doing is it's moving the Stop-Loss closer and closer and closer to the price 60
just to maintain this distance. 61
If the price happens to go back towards a stop loss in the stock loss or more. 62
So you kind of specifying the maximum distance that can be like can be observed between the price and 63
the stop loss. 64
So let's just keep playing that a bit for a bit longer. 65
You see the price went back up so I'll just probably slow this down by one bar. 66
So the price went back that the stock was the right move. 67
Which is which is kind of the core concept of the stop was and only moves when the market is moving 68
in a terrible direction. 69
So probably slowed down a bit more. 70
And so they see like as long as the stop loss is less than 40 pips on it from the price. 71
It doesn't move it stays where it is but as soon as it's the price of one more doll the stop loss will 72
start moving as well. 73
See like the price move down and the Stop-Loss move down with it. 74
And there we go so that's where the take profit was hit. 75
And basically the order was closed. 76
So you can see by these two the red marks the stop loss started here and moved all the way here with 77
the price. 78
All right let's keep keep playing this and let's watch the next one. 79
So we'll just give it a few seconds till the next door's opened. 80
As you remember it was a byword or a byte order which previously closed at the top also here in the 81
previous example when we're looking at how the expert reviser which followed this model. 82
So now we're going to also carefully observe the stop loss and other stock losses at the bottom because 83
it's a buy order. 84
Let's see what happens. 85
Can you see that the Stop-Loss is moving up and that is because our prices going up so the stock losses 86
also maintain still at. 87
In this case 36. 88
Oh well sorry. 89
From the maximum the price so in this case it's about 40 pips So that's because the basically the price 90
that you see on the chart is the bid price but by all it was open at the ask price. 91
So if you include if you measure from Ask price is still going to be foolish. 92
It's just like in the case with the stop loss of the seller. 93
But nevertheless let's just watch the stop loss here. 94
So you can see the stop loss isn't moving. 95
Prices going down. 96
The stop loss is not moving. 97
And there you go the order got close at the stop loss price. 98
So what can we observe from this example. 99
Well the main thing is that previously the buy order closed at this price so lower over here. 100
Now the buy or reclosed here so if we keep playing this you'll see that the price did eventually go 101
all the way down but we got out of the market early so the loss that we incurred from this buy order 102
could have been greater but because we had a trailing stop it got reduced. 103
So that's the main principle the trailing stop loss that it kind of helps you not only control your 104
losses but to reduce them in certain cases so when when the market goes in your favor you take advantage 105
of those movements in your favor and you you kind of fortify the ground that you have conquered. 106
So the price is moving with you so that means you can move your Stop-Loss more and that way you're slowly 107
slowly gaining on and gaining on until your stop loss actually gets to the break even point. 108
And from there it will keep going with the price. 109
Unless you're of course you're already reached to take Kropp. 110
That's a very handy way to manage you. 111
For exporters it might not be the best idea in all trading systems. 112
And for some types of markets trailing stop losses might not improve how well the forex robot works 113
. 114
But once again it's up to you. 115
So in this course we learn how to optimize Forex robots. 116
If you want to go ahead please feel free to use this module and test it out and see how it can improve 117
the performance of your forex robot. 118
And like just as we do with all the other parameters we optimize them feel free to use this trailing 119
stop loss and optimize it as well. 120
However also on the other hand if you want to follow the course as well as the lectures are structured 121
then bear in mind that we didn't have the trailing stop loss module when the course was created originally 122
so perhaps in that case you might want to switch the trailing stop loss functionality off or finish 123
the course and then once you're done then experiment with the truck stop loss. 124
So that's all up to you. 125
But it's always better to have the module and not use it than not have it and need it. 126
And that's all for today. 127
Don't forget to download the new simple system from folks support web site and look for it see you next 128
then. 129
Until then happy trading.