Dealing with GBP/JPY algos

cloesd
21 Sep 2016, 13:03

RE:

cloesd said:

I've written an algo to help me position trades better for grid systems.

 

(eg. Place an order every 10 pips). The problem is the pips are very different for different pairs. The big problem is GBP/JPY. but really all JPY pairs.

 

If I set it to place a trade every 20 pips, it works perfectly for most pairs, EXCEPT JPY pairs. In JPY pairs, it places all the orders in the same place ontop of each other. (Well maybe there's a tiny space in between them).

 

Is there some way to fix this easily? I want the 'spacing' between the trades to be equal.

 

 

I was thinking of sampling the EURUSD 'ATR' and then comparing it to the ATR of the position, and thne scaling it to be the same as EURUSD.

So GBP/JPY ATR is much higher than EURUSD because of pipsize difference, but we can scale it to get a uniform reference. Is this the best way.

Answered my own question;

Use 'pipsize' as scaling factor.

eg.

EURUSD pipsize = 0.0001

GBP/JPY pipsize = 0.01

So to get the same 'spacing', multiply 'pips between each order' by (0.01 / 0.0001).