Elder’s Safe Zone
November 1, 2006 3:30 amI found a reference to Elder’s Safe Zone, which is a trailing stop methodology attributed to Alex Elder, the author of The Legendary Approach to Trading for a Living. Since I’ve read his book, I was intrigued.
The reference that I found had the code for an indicator from MT3, so I recoded it for MT4. I don’t know how useful it is yet, but I thought I would post and update it if necessary.
Here’s a snapshot:
Get this indicator:
11 Responses to “Elder’s Safe Zone”
Cube, what a nice indicator.
The default settings :
LookBack = 10;
StopFactor = 3;
EMALength = 13;
1) lookBack means current line based on last 10 price bars?
2) StopFactor = ?
EMA length best between 10-20.
Hi Simon,
Thanks for the kind words! I wish I could tell you more about this, but its a straight recode of the MT3, and I’m just figuring it out myself. The StopFactor is simply a multiplier that widens or tightens your stops. I wish I could comment what an optimal value of it would be, but…
Yes, LookBack is how far back it checks the price for. Elder used D1 charts mostly from what I can tell, so to him it was a number of days. This indicator is programmed to be # of bars back, so set it accordingly if you want to use it with other TF’s and still want days.
It took me a bit of time to figure it out, but the EMA length is what is determining if the SL paints above or below the line, and the LookBack is used for the determination of the SL value.
Hope it helps!
I’d appreciate hearing any tips or tricks you have after you’ve used it for a while… I’ll be posting what I find too…
Cheers,
CS
Cube,
Did the reference you found with the MT3 code also have MT3 code for any of Elder’s other indicators (specifically the Elder Impulse System)? I’ve coded the Impulse system for QuoteTracker and since following it, my trading has been very profitable. I just got started with MT4 and am looking at integrating the same Impulse system. Thanks for your help,
Brian
Hey Brian,
Unfortunately not – it was just this indicator. If it had, I would have ported those too! I love Elder’s work.
-CS
Cube,
I found the code for the Impulse System in e-Signal (below). Do you know how difficult it would be to convert it into MT4 code? Thanks,
Brian
code:
var myStudy1=null;
var myStudy2=null;
var myStudy3=null;
function preMain() {
setStudyTitle(”Impulse Indicator”);
setCursorLabelName(”Impulse”, 0);
setCursorLabelName(”MACDHist”,1);
setPriceStudy(true); }
function main() {
var myStudy1 = ema(13);
var myStudy2 = new macdHist(12,26,9);
var myStudy3 = ema(13);
//Impulse Up
if ((myStudy1.getValue(0) > myStudy1.getValue(-1)) && (myStudy2.getValue(0) > myStudy2.getValue(-1))) {
setPriceBarColor(Color.green);
}
//Impulse Down
else if ((myStudy1.getValue(0)
Code got cut off, here’s the link (just open in notepad)
http://www.forexproject.com/images/stories/impulse.efs
Shouldn’t be too hard. I’ll take a look!
-CS
Thanks!
Any luck?
boy this piece of code is leaky…
Yeah, probably is. Didn’t look at basic programming structure, etc. just did a source code change… Sorry for any inconvenience…
Care to comment?