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© 2011-2015 Freedom Investment Group, Inc

Norwood Stops

forex strategyforex trading simplified

Version 2.0.0.2

Norwood Stops2


Table of Contents

Part 1 Introduction 3

................................................................................................................................... 31 Overview

................................................................................................................................... 52 MT4 Changes in Builds 574 - 628

Part 2 Installation 6

................................................................................................................................... 61 Stage 1 - MT4 & Norwood Stops Considerations

................................................................................................................................... 82 Stage 2 - Norwood Stops Setup Program

................................................................................................................................... 113 Stage 3 - Configuring MT4 Scripts & Templates

.......................................................................................................................................................... 11a) Configure Expert Advisors

.......................................................................................................................................................... 11b) Add Scripts to Favourites

.......................................................................................................................................................... 13c) Add Favourites to Initial Chart

.......................................................................................................................................................... 14d) Create a Default Chart Template

................................................................................................................................... 154 Stage 4 - Complete Setup

Part 3 Stops Definition Window 16

Part 4 Norwood Trailing Stop 19

Part 5 Earnings Disclaimer 21

Part 6 Uninstallation 22

Introduction 3


1 Introduction

1.1 Overview

The Early Bird Stop (EBS) and the Norwood Trailing Stop (NTS) are both designed to help youmanage your trades when you are unable to or do not want to be at your computer. For example -

when you have to work a full-time jobwhen you have to run some errandswhen you need to get some sleepwhen you need to have a life other than trading

Another benefit of the stops is you can trade many more currency pairs at the same time. You’ll beable to add on to current trades and still manage each trade individually. This means that you canmake more pips with less effort.

Both the Norwood Trailing Stop and the Early Bird Stop can be used on the same currency pair atthe same time - whichever one is triggered first will be the one that will close the trade. Both stopswill work on any Meta Trader 4 platform (from Build 574 up).

Both the Early Bird Stop (EBS) and the Norwood Trailing Stop (NTS) are profit-protecting stops,not loss-limiting stops. You should continue to set loss-limiting stops manually as you do atpresent.

NORWOOD TRAILING STOP

The Norwood Trailing Stop is designed to protect profit (not to limit losses). It can be added to thetrade at any time but it will not activate until the trade becomes profitable. Then it is managing profit.

You can add a Trail value (in pips or points depending on which your broker uses) which will giveyour trade more room to move before the stop closes the trade. If you are trading in a long positionyou place a stop one pip (ie 10 points) or up to five, ten or however many pips you choose below thebody of the previous Heiken Ashi bar. Each time a new bar is formed the stop automatically movesto the bottom of the previous Heiken Ashi bar (adjusted by the Trail value) at the setting youselected.The stop is used to trail the trade and stop the trade out when it reverses and loses its currentmomentum. It functions in a similar manner for a short position.

It will work on whichever timeframe that you set it on. For example, if you set it on the 30 minute itwill follow 30 minute price bars. If you set it on the one hour or the four hour it will work on the onehour or four hour Heiken Ashi bars.

It is a very good tool and will give you good exit points. The exit points may not always be as goodas you could choose if you were able to watch the trades yourself. But many times it is the best andmost efficient exit point.

EARLY BIRD STOP

When you enter a trade based on proper entry signals you will have a high probability trade - then you can place the Early Bird Stop right after you place the trade. It works for both long and shortpositions.

The Early Bird Stop works when you get a new Early Bird Alert signal going in the opposite direction- it will automatically close the trade. One of three things will happen when this stop is used:

you end up with a small loss

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you can get a small profityou can get a large profit

You will notice that the list does not include "you can get a large loss"!.

Most of the time the small profits and small losses will do. Either a breakeven or a small profit. Ifyou keep on taking trades with proper setups you’ll find that you will make a lot of pips when you getto the large profit moves.

In this documentation, the terms symbol and currency pair will be used interchangeably.

Introduction 5


1.2 MT4 Changes in Builds 574 - 628

MetaQuotes has made significant structural changes in their MT4 application. These changes wereintroduced in Builds 574 through to Build 628. The release prior to the release of Build 574 was thatof Build 509.

The changes mainly relate to:the introduction of Unicodethe location of MT4's own filesthe programming of indicators, expert advisors and scripts

There are no major changes to the functionality or display of charts, templates, profiles or alerts.

The introduction of Unicode allows MT4 to be able to accept, store and display text in all thelanguages of the world that it wishes to use.

The language used for the programming of indicators, expert advisors and scripts has beensubstantially enhanced. Object-oriented programming features have been introduced (similar to thatin MT5) and additional functionality has been added. Compatibility with existing compiled code hasbasically been maintained however some existing code may break due to the differences in the sizeor usage of Unicode character strings versus ANSI character strings and also with code thatreferences files and folders. These changes do affect the Norwood Trend, Norwood Alerts, Early BirdAlerts and Norwood Stops.

In Build 509, there was a folder called "experts" directly under the main MT4 installation folder. This"experts" folder had separate sub-directories for indicators, includes, libraries, files and scripts.

From Build 574 onwards, there is now a new folder, called "MQL4" directly under the main MT4installation folder. This "MQL4" folder includes separate sub-directories for experts, indicators,includes, files and scripts.

In addition to these changes, MetaQuotes has now, for most installations of MT4 on Vista and lateroperating systems, reorganised the MT4 installation folder by separating out the user-configurabledata on the one hand from the program executables and static files on the other. The data files arenow located in an entirely different area on the hard disk. This is in compliance with the programmingguidelines issued by Microsoft that programs, once installed, should not modify any data or filesinside the Program Files directory tree.

To find the location of the MT4 Data Folder, run MT4 and select the File menu and then the OpenData Folder menu option. The location of the MT4 Data Folder will be shown in the address bar of theWindows Explorer window which then opens up.

If the MT4 Data Folder is different to the MT4 installation folder then the MT4 Data Folder will containa text file called "origin.txt" which contains a single line of text pointing to the MT4 installation folderthat the MT4 Data Folder relates to. Similarly, if a MT4 installation folder contains a MQL4subdirectory, you will know straightaway that the MT4 Data Folder and the MT4 installation folder arethe same.

With MT4 versions up to Build 509 it was possible to do a file copy of the MT4 installation folder tocreate another implementation of MT4. It is recommended that this practice be discontinued, as withthe advent of Build 574+ with its separation of installation and data folders in some cases theapplication may fail and in others it may cause cross-contamination.

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2 Installation

2.1 Stage 1 - MT4 & Norwood Stops Considerations

The background:MT4 allows for additional functionality to be provided in conjunction with their charts by the useof user-definable Expert Advisors (and Indicators and Scripts, but we're not interested in thesefor this discussion - we'll ignore demo accounts here too). An Expert Advisor (EA) is a smallprogram written in a C-style language.MT4 only allows one Expert Advisor to be attached to a chart.The Norwood Trend and the Norwood Alerts together use one Expert Advisor to provide theirfunctionality.The Early Bird Alerts need a separate Expert Advisor to provide their functionality.The Norwood Stops need a separate Expert Advisor to provide their functionality as well.The Norward Stops can be installed into the same MT4 installation as the trades they areintended to manage or into their own MT4 installation.

When initially the only add-ins were the Norwood Trend & Alerts, a user (trading say 20 currencypairs) would typically have only one MT4 installation with 20 charts for their live trading and theNorwood Trend & Alerts would be installed into that MT4 installation and attached to those same 20charts).

With the advent of the Early Bird Alerts, the approach adopted was to install a second MT4installation (with the same, say 20, charts) and have the Early Bird Alerts' Expert Advisor attached tothem. Live trading continued unaltered in the first MT4 installation.

To incorporate the Norwood Stops, there are two options available: Stay with the two MT4 installations described above, functioning exactly as they were before. Add another matching, say, 20 charts to the Norwood Alerts installation where the trades arebeing entered and attach the Norwood Stops Expert Advisor (NStopsEA) to each of these 20new charts. With this approach (having two charts per currency pair) it does not matter for theNorwood Stops whether your trades are entered on the original Norwood Alerts related chart orthe new Norwood Stops related chart for a particular symbol. Install a new MT4 installation for the Norwood Stops (in addition to the two above). Install theNorwood Stops into this installation. For this option you have two further choices:

Use this installation (instead of your original installation) for placing and managing trades. Retain the first installation for the Norwood Alerts, the second for the Early Bird Alerts anduse the third for all live trading and the Norwood Stops.Use this installation for the Norwood Stops only - enter your trades in the original NorwoodAlerts related chart as previously and only enter your Norwood Stops for those same tradesin this installation. To do it this way you need to set up this new installation to access yourexisting account where the trades are. Get the Account Number, Password and Server IDof the trading account from your original MT4 installation, then go to the File | Login menu inthis Norwood Stops MT4 installation and enter these credentials there. This will give youtwo MT4 installations operating on the same trading account. You can do this with live orwith demo accounts.

When installing as a standard user, please note that administrator rights will be required on Win 7 tocomplete the install of MT4 itself and the install of the Norwood Stops (regardless of whether or notthe program is being installed in the appropriate Program Files directory structure or not).

Notes on installing MT4, if you have chosen to go down that path:Both MT4 and the Norwood Stops are 32-bit programs. On a 32-bit machine the standardProgram Files directory is "Program Files". On a 64-bit machine, 64-bit programs are

Installation 7


commonly installed into the "Program Files" directory and 32-bit programs are installed intothe "Program Files(x86)" directory. MT4 can be installed into or outside the appropriate"Program Files" structure at your option. The Norwood Stops are actually installed inside theirassociated MT4 directoryWhen installing, it is suggested that you add "NStops" or "Trades"to the name of the folderyou are installing into simply to make it easier to recognise which MT4 installation is to beused for the Norwood Stops. Make a note of the name of this folder, as this is the folder thatthe Norwood Stops will be installed into in the next StageAfter installing MT4, when you are ready, delete all the default chart/feature/advertisingwindows that came with MT4 in the normal chart area - either click on the red close box oneach window or press Ctrl+F4 repeatedly until they are all gone.

The Norwood Stops require Build 574 of MT4 as a minimum. The Build number can be found byrunning MT4 and selecting Help | About, but do not check it at this stage, as the Norwood Stopssetup program will check for this when the Alerts are being installed and a warning will be issuedthen if necessary.

PREREQUISITES

The Setup program as it runs through will ask for:the MT4 installation directory to install the Norwood Stops intothe MT4 Data Folder associated with this MT4 installation directory (run this particular MT4installation, select the File menu and then the Open Data Folder menu option. When theExplorer window opens go to the address bar, left-click on the white-space to the right-handside of the folder address and then use the normal copy and paste functionality to copy theaddress of the data folder to a temporary location (eg a Notepad text file)the email address provided when you first registered with Forex Strategy Secretsthe Facilities Key key that is emailed to you on signing up for the alerts (this is also availableon your personal Profile Page on the http://forexprofitclassroom.org.site).

It will simplify the process for you if you gather this information together prior to running the Setupprogram.

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2.2 Stage 2 - Norwood Stops Setup Program

NOTE FOR USERSPlease uninstall any existing version of this program before installing the current version.

Refer to the manual for details on how to uninstall this product.

When installing as a standard user, please note that administrator rights will be required on Win 7 tocomplete the install of MT4 itself and the install of the Norwood Stops (regardless of whether or notthe program is being installed in the appropriate Program Files directory structure or not).

Please note that you cannot run two instances of the Norwood Stops at the same time on the onemachine.

Download the Norwood Stops package (NorwoodStops_2.0.0.2.zip) from the http://forexprofitclassroom.org website and save it to your desktop or a temporary directory. The zip filecontains two files, the PDF file for the Norwood Stops Manual and the installation fileNorwoodStops_2.0.0.2_Setup.exe. Extract both files to a temporary directory. Read the NorwoodStops Manual, particularly the Installation Stage 1 - MT4 & Norwood Stops Considerationssection and the Stage 2 - Norwood Stops Setup Program section.

Fig 1 Setup (initial w indow)

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Run the NorwoodStops_2.0.0.2_Setup.exe program and install it into your chosen MT4 installation (Fig 1). The setup program does a comprehensive set of checks at this point to ensure the NorwoodStops are being loaded into an appropriate MT4 folder. If you get any security warnings on the waythrough, accept them and keep going.

Fig 2 Setup (data folder w indow)

Enter the MT4 Data Folder and click next.

Fig 3 Setup (licence credentials)

Enter the Email Address and Facilities Key and select Next.

Continue with the remaining screens and complete the Setup program. You can then delete all thefiles initially downloaded and extracted, including the manual, as the setup program has installed

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another copy of the manual under the MT4 data folder in the Files directory and a Start | AllPrograms | Forex Strategy Secrets menu entry pointing to the manual and the uninstallation folder isalso created.

Installation 11


2.3 Stage 3 - Configuring MT4 Scripts & Templates

2.3.1 a) Configure Expert Advisors

*** For the Expert Advisors to work it is very important that this is set up correctly ***

Run MT4 and bring up the Options window (Fig 4) by using the keyboard shortcut Ctrl+O or selectingTools | Options from MT4's main menu. Then select the Expert Advisors tab, set the options asindicated and click OK.

Fig 4 Expert Advisor Options

2.3.2 b) Add Scripts to Favourites

The Norwood Stops setup program installed, amongst other things, four MT4 scripts:NStopsEA - an Expert Advisor which actually processes the stops as each tick comes inNStopsScript - a script which initiates the Norwood Stops Monitoring programNorwood Heiken Ashi Bar - an indicator which displays the basic Heiken Ashi indicator in anarrow histogram display in a separate windowNorwood Heiken Ashi Smoothed Bar - similar to the one above, and utilised internally by theNorwood Stops (see below)

This step is to set these scripts up as Favourites, which will make them easier to find later on.MT4 provides a Navigator window (refer Fig 5) - if you cannot see it on screen then go up to the mainmenu bar and select View | Navigator (or use the keyboard shortcut Ctrl+N instead). There are twotabs at the bottom of the window, Common & Favourites. The Favourites tab may be empty.

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Fig 5 Navigator w indow

To add the NStopsEA to the Favourites window, go to the Navigator window, click on the "+" sign tothe left of the Expert Advisors entry, scroll down to the NStopsEA entry and right-click on it, thenleft-click on the Add to Favourites entry in the pop-up menu (Fig 6).

Fig 6 NStopsEA to Favorites

Then, to add the NStopsScript to the Favourites window, go to the Navigator window, click on the "+"sign to the left of the Scripts entry, scroll down to the NStopsScript entry and right-click on it, thenleft-click on the Add to Favourites entry in the pop-up menu.

The Favourites tab on the Navigator window should now look like Fig 7:

Installation 13


Fig 7 Completed favourites

tab.

There are two Custom Indicators supplied and used internally with this application - while you maychoose not to install them on your charts, they should not be deleted from your hard disk (unlessuninstalling the application of course). They are:

Norwood Heiken Ashi BarNorwood Heiken Ashi Smoothed Bar

Each of these are a narrow bar stretching across the whole area of the chart in a separate window.The first one shows exactly the same information as the basic Heiken Ashi indicator but in a verycompact way.The second one shows the same information again except that the latest bar, only for the duration ofthat bar, smooths signals to reduce small "whiplashing" fluctuations.

It is entirely optional whether you apply either or both of these indicators to your Norwood Stopcharts. Either one can be copied across and applied to your main MT4 trading installation if you sochoose. It is suggested you install the Norwood Heiken Ashi Smoothed Bar to your Norwood Stopscharts.

They can be added to your Favourites window in the same manner as the scripts above (they arelocated in the Custom Indicators category).

Fig 8 Norwood Heiken Ashi Smoothed Bar indicator

2.3.3 c) Add Favourites to Initial Chart

If you haven't done it already, delete all the default chart/feature/advertising windows that came withMT4 in the normal chart area - either click on the red close box on each window or press Ctrl+F4repeatedly until they are all gone.

Right-click on a symbol (any will do) in MT4's Market Watch window and select the Chart Windowoption in the resulting pop-up menu.

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Go to the Favourites tab in the Navigator window and click on the NStopsEA entry and, still holdingthe mouse down, drag it to the new chart window and release the button. This action will bring upthe Expert Advisors screen - click on the Common tab if it is not already selected and ensure it isset to match Fig 9 below:

Fig 9 Expert Advisor

Ensure the Expert Advisors are ON and active (see Fig 10 following).

Fig 10 Expert Advisors ON/OFF toggle.

No further setup action is required for the script NStopsScript at this point.If you want to add the Norwood Heiken Ashi Smoothed Bar indicator to your chart, this is the timeto do so.

2.3.4 d) Create a Default Chart Template

This step will create a default template with the NStopsEA Expert Advisor already attached, so thatwhen a new chart window is opened it will have these automatically applied, thus saving you addingthem (as you did in the last stage) to each new chart.

Now is the time to make any cosmetic changes to the Norwood Stops charts that you would like,such as chart styles (OHLC, line, candlesticks etc) and colours for all chart components (F8), butbear in mind that you will not look at these screens very often.

As you will not need the prices to display on these charts, one combination you could choose thatgives a completely blank chart area is to:

Go to the File | Charts and select the Line Chart optionRight-click on the chart & select Properties (or just press F8) and set the following colours:

Installation 15


Background to DimGray (or another darker colour),Foreground to White, Line Graph to None (display the colour selection boxes & select the None option box atthe top)

When you are ready, go to MT4's main menu bar and select Charts | Template | SaveTemplate andsave the current screen with the name "NStops" (without the quotes).

Then go to MT4's main menu bar and select Charts | Template | SaveTemplate again and save thecurrent screen with the name "Default" (without the quotes). Answer Yes when asked "Default.tplalready exists. Do you want to replace it?".

You can create as many chart windows as you wish now (or later) by right-clicking on a currencypair in the Market Watch window and selecting the "Chart Window" option from the pop-up menu.

Only create one chart window for each currency pair you are interested in. The Norwood Stops willprocess the stops for all timeframes requested for all trades in the Stops Definition screen for thatcurrency pair when processing that chart window. If multiple charts are opened for the one currencypair, duplicate processing will be needlessly done & may also generate spurious error messages.

2.4 Stage 4 - Complete Setup

To complete the installation, close the Norwood Stops display window and also close the NorwoodStops MT4 instance, then restart the MT4 program - then, as you just did, go to the Navigationwindow, select the Favourites tab, click & hold on the NStopsScript entry and drag it over the mainchart window and release the mouse. If there are trades available then you can now apply the EarlyBird Stop and/or the Norwood Trailing Stop to them.

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3 Stops Definition Window

The main Stops Definition window as it initially displays is shown below (Fig 11 ):

Fig 11 Stops Definition - default screen

If you right-click anywhere on the centre of the grid, you can choose to add any or all of 10 optionalcolumns to the display (Fig 12 ). These selections can be modified at any time.

Fig 12 ) Stops Definition - all columns:

Features:This screen is a static snapshot, it does not update in real-time. For an updated position,close the screen and restart it.For the Early Bird Stop, your machine must be active and connected to the internet at alltimes as all the decision making and actions are done on your machine, not the broker'sserver. For the Norwood Trailing Stop the situation is similar - your machine makes all the decisionsand changes the stoploss on the server. If your machine is not functional and MT4 and yourinternet connection are not operational, then the broker's server continues with the laststoploss it heard from your machine.Basically this means if you have open trades with these stops applied you should leave yourmachine running 24 hours a day while the market is open.If a chart running the NStopsEA expert advisor was not found for an open trade, then the tradewill be displayed in the grid, the Chart Expert column for that row will be bright red and nostops will be able to be created or modified for that row. Restoring the chart and/or its EA willremedy the situation. While the application is loading a number of status messages (like "Norwood Stops ...Loading trades") are displayed in the top left-hand corner of the chart window to keep you

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informed of progress before the main screen is displayed. While the trades are loading, youcan also see movement by looking at the Experts tab on the MT4 Terminal window. The lastmessage is displayed until the application actually closes, which may be after the mainscreen itself closes (as there may be additions or modifications that need to be processed &transferred to MT4 after the main screen closes).If on restarting the application you get the MT4 message "Do you really want to stop'NStopsScript' and execute 'NStopsScript' on the chart <currency pair>?", simply click the"No" button, wait a moment or two till the "Norwood Stops ..." status message in the top left-hand corner is no longer there, and restart the application again.The dropdown controls for the two timeframe columns recognise that you have finished editingthat cell when another cell becomes active - for instance by clicking on another cell in the grid. It works most easily for you if you select the timeframe before you click the associatedcheckbox to activate the stop. Deactivating the checkbox will also clear the timeframecolumn for that row.The dropdown control for the timeframe column for the EarlyBirdStop will display a green tickor a red cross beside each timeframe. The EarlyBirdStop is designed to close a tradeimmediately there is a change in the colour of the Heiken Ashi for the timeframe it is beingmanaged on. Assume you have a long position being managed on the M30 timeframe andyou wish to manage it on the H1 timeframe then if the Heiken Ashi on the H1 timeframe isshort (red) the position will be closed immediately the change is made! To help avoid thissituation, the direction of the Heiken Ashi (on each timeframe for that currency pair at the timethe snapshot was taken) is recorded. A green tick indicates the Heiken Ashi direction for theproposed new timeframe matches the direction of the trade (and a red cross indicates it doesnot). Note that it is possible for the direction of the Heiken Ashi on the proposed timeframe tochange while this screen is active which could result in the trade being immediately closedwhen the change is made - in which case you may want to replace it with a new trade.A faster way to select a particular timeframe in either of the timeframe dropdown cells is toselect the cell, then, for the minute series, hit "m" on the keyboard repeatably until yourparticular choice comes up. You can so the same with "h" & "w" as well.The StopLoss column, if the P&L column is visible, will display one of three colours in eachcell. o Green - if the trade is in profit and a profit-protecting stoploss (PPSL) is in place, or the

trade is losing and a loss-limiting stoploss (LLSL) is in placeo Tan - if the trade is in profit and there is only a LLSL in place

o Red - if there is no stop in place at all

Manual stops (entered directly into MT4) can be entered at any time. The Norwood TrailingStop will take any stop that is already in place and continue calculating using that value. Any or all of 10 optional columns can be displayed. Any selections made will be saved onexit and restored when the program is rerun. A click on any column heading will sort the grid by that column. Successive clicks will togglethe sort between ascending & descending order. This allows trades with or without EB or NTstops, stoplosses, or takeprofit stops to be quickly identified, buys vs sells to be seenquickly, P&L (in pips or points as determined by your broker) can be shown in ascending ordescending order.The P&L pips/points calculation here includes the number of lots in the trade (MT4'scorresponding calculation only shows for 1 lot, not the actual number of lots in the trade)Any commission or swap values are shown here, but are not included in the P&L calculations.Stops can be placed here - simply select the timeframe (using multiple clicks, or the arrowkeys or the MHDW keys or the arrow keys) then select the checkbox (by clicking or pressingthe spacebar) . For the Trail column values up to 999 pips or 9999 points can be entered. Enter all the stops you want to apply, modify or delete and then press the Update button.The left cell of a row being modified will be light green if all the required information is present,otherwise it will be an amber colour.The Comment column is initialised with the comment supplied by MT4. While unfortunatelyMT4 does not allow you to modify its comment once the order has been placed, thisapplication DOES allow you to create or modify a comment. The comment will be stored andredisplayed at any time during the life of the trade. This may assist you in the task of

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managing a trade.Information on the operation of the stops is written to the Experts tab in the Terminal window ifthe Verbose property of the NStopsEA is set to "true" (without the quotes). Set it to"false" (without the quotes) to turn it off. It is recommended you do not turn it on unlessinstructed to do so, as a very large number of entries will be written to the Experts log when itis on, possibly filling the log completely & crashing MT4. Close this application as soon as you can as leaving it open unduly may impact on MT4 itself. This application restricts your interaction with MT4 while it is open, so if MT4 seemsunresponsive,check for the amber icon in the taskbar and close this application.Note that removing or deleting a stop in this application only prevents this application frommaking any further changes to that stop - it does not modify anything the stop has alreadydone. For instance if the NTS had already created or modified a stop on the MT4 server thendeleting the stop in this application will not make any change on the server - the stop wouldremain on the server at whatever level it already was. If you also want the stop deleted ormodified on the server, then you can manually change the stop on the server through thenormal MT4 functionality.

If the Positions button is selected, the grid will display a summary of all trades grouped by thecurrency pair. This allows you to see the number of trades, the total lots and the total P&L for eachcurrency pair. From there you can double-click on any row (or click on a row & then select thebutton for that symbol) to see the full trade detail for all trades for the currency pair - see Fig 13.

Fig 13 Aggregate View

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4 Norwood Trailing Stop

It is not necessary at all to read this particular section - if it interests you, welcome!The Trailing Stop is a profit protecting strategy not a loss limiting strategy, so a normal stoplossshould be used to limit losses and the trailing stop should be used to protect profits.

The ASK is the market-maker's (broker's) selling price and therefore your buying price.The BID is the market-maker's (broker's) buying price and therefore your selling price.The ASK always exceeds the BID - the difference is the (market-maker's) spread.So you always buy at the higher of the two (the ASK) quotes and sell at the lower of the two quotes(the BID).

A broker may require a stoploss to be a certain distance, called the STOPLEVEL, away from themarket.A trailing stop will usually trail a user-definable distance, the Trail, below the market for a longposition and above the market for a short position. For this implementation the stop will trail belowthe body of the previous Heiken Ashi bar for a long position and above the body of the previousHeiken Ashi bar for a short position.

To close a LONG position you need to place a SELL order utilising the BID. A stoploss for a LONGposition can only be applied if the following conditions are satisfied:

the StopLoss is Trail pips/points (expressed as a price) below the body of the previous HeikenAshi bar for the nominated timeframeStopLoss > OpeningPriceStopLoss > Previous StopLossStopLoss <= Bid - StopLevel

A trailing stop for a long position can always be raised but never lowered.

To close a SHORT position you need to place a BUY order utilising the ASK. A stoploss for aSHORT position can only be applied if the following conditions are satisfied:

the StopLoss is Trail pips/points (expressed as a price) above the body of the previous Heiken

Ashi bar for the nominated timeframe

StopLoss < OpeningPrice

StopLoss < Previous StopLoss

StopLoss >= Ask + StopLevel

A trailing stop for a short position can always be lowered but never raised.

This trailing stop will not take effect until the profit exceeds the Trail pips/points (expressed as aprice).

Where a trade, long or short, has become profitable and then the market reverses, it is not possibleto place the desired NTS profit protecting stop until the market moves in a profitable direction. Toovercome this, if there is no such stop already in place, a stop will be placed using the currentmarket price rather than the low or high of the previous Heiken Ashi bar.

The Trailing Stop will be re-evaluated on every tick. The (somewhat cryptic) results of eachcalculation are written to the Experts tab of the Terminal window if the Verbose property of theNStopsEA is set to "true" - three examples (for the one trade) are shown below:

2013.05.17 16:35:50 NStopsEA AUDUSDm,H1: Norwood Trailing Stop: AUDUSDm_36076887_S NewSL=PrevHigh+Trail=0.99915+0.00030 = 0.99945; No actionrequired as NewSL is not less than Opening Price (0.97488).2013.05.17 16:37:40 NStopsEA AUDUSDm,H1: Norwood Trailing Stop: AUDUSDm_36076887_S NewSL=PrevHigh+Trail=0.97462+0.00010 = 0.97472;MktAsk=0.97473,MinDistance=0.00000. No action as NewSL(0.97472) is less than (MktAsk+MinDist) (0.97473).2013.05.17 16:42:39 NStopsEA AUDUSDm,H1: Norwood Trailing Stop: AUDUSDm

Norwood Stops20


Ticket 36076887 (Short) - StopLoss modified from 0.00000 to 0.97479A little background before explaining these entries - it is only necessary to have one chart percurrency pair to process all Norwood Trailing Stops for all current trades on that currency pair. Itdoes not matter which timeframe that one chart uses & it does not matter which timeframes thetrailing stops on current trades for that currency pair use (these issues are all resolved as part of theinternal processing). Taking the last entry first, the "2013.05.17 16:42:39" is the local time (24hr clock basis) when thisentry was written to this window. then MT4 itself writes "NStopsEA AUDUSDm,H1" being the nameof the EA, the currency pair and timeframe for the one chart involved. The NTS writes the remainderof the line - its own name, the currency pair, the symbol, the position (Long/Short), then anynecessary items and values in support of the final outcome, and the final outcome itself. (It can beeasier to read & follow all of this if you do it on a demo account with only one stop defined & turn theExpert Advisors off and back on again at your leisure).

However, it is recommended you do not turn on the Verbose property of the NStopsEA unlessinstructed to do so, as a very large number of entries may be written to the Experts log when it is on,possibly filling the log completely & crashing MT4.

Norwood Trailing Stop 21


5 Earnings Disclaimer

Disclaimer

No representation is being made that any account will, or is likely to achieve profits or losses similarto those discussed within this site, support and texts. Our Course(s), products, and services, are tobe utilized as learning aids. If you decide to invest real money, all trading decisions are your own. Norepresentation is being made that any account will or is likely to achieve profit or losses similar tothose shown. The risk of loss in trading currencies can be substantial. You should therefore carefullyconsider whether such trading is suitable for you in light of your financial condition.

The United States Commodity Futures Trading Commission (CFTC) and the National FuturesAssociation (NFA) require us to inform you that this web site and any comments and associatedmaterial, technical indicators, and suggestions are provided for informational purposes only. Also ourweb site and associated material has been prepared solely for informational purposes and is not asolicitation, nor an offer, to buy or sell any currencies. Information on our web site does not purportto be a complete description of any currencies, markets or developments referred to in our materialand any expressions of opinions are subject to change without additional notice to you. Allinformation on our web site is obtained from sources which we consider reliable but we have notindependently verified such information and we do not guarantee that it is accurate or complete.Information on our web site may not be suitable for all investors. The information is neither an offer tosell nor solicitation to buy any of the currencies that may be mentioned on this web site.

All information contained on our web site is the property of the Freedom Investment Group, Inc. Noperson or company may copy or reproduce in any form whatsoever, any information on our web siteor associated material without our expressed written consent in advance. Freedom InvestmentGroup, Inc has NOT granted permission to any company, organization, or individuals to distribute,sell, or reproduce our educational materials and trading methodology in any form or manner.

Copyright © 2011-2015 Freedom Investment Group, Inc All Rights Reserved

Norwood Stops22


6 Uninstallation

The Norwood Stops setup program installs the following files:

Location Files

<MT4 DataDirectory>MQL4\Libraries NStops.exeNStops.exe.manifestNStopsCredentials.exeNStopsCredentials.exe.manifestNStopsDLL.dllsqlite3.dll

<MT4 DataDirectory>MQL4\Experts NStopsEA.ex4

<MT4 DataDirectory>MQL4\Indicators

Norwood Heiken Ashi Bar.ex4Norwood Heiken Ashi Smoothed Bar.ex4

<MT4 DataDirectory>MQL4\Scripts NStopsScript.ex4

<MT4 DataDirectory>MQL4\Files NSDatabase_<AccountNo>.dbNorwood Stops Manual.pdf

Start | All Programs | Forex StrategySecrets

Shortcut to Norwood Stops Manual.pdfShortcut to NStops uninstallation folderShortcut to NStopsCredentials.exe

<MT4 InstallDirectory>\uninstallNorwoodStops

unins000.datunins000.exe

As well a range of registry entries are created under: HKEY_CURRENT_USER\Software\ForexStrategySecrets

based on Products and Product Settings.

If you are only uninstalling in order to install a later version then, unless advised otherwise, skipsteps 1 through 5 and only run step 6.The steps to completely uninstall the Norwood Stops are basically the reverse of the steps to install- follow all steps from 1 to 6 below.

Go to MT4's main toolbar and click on the Expert Advisors button to turn the Expert AdvisorsOFF.1) Delete all the charts from MT4's main chart window ( Ctrl+F4 repeated as necessary) 2) Go to MT4's main menu & select Tools | Global Variables, then delete any that start with

'NStop_Chart_...' or any that start with 'NStop_EB_...', or any that start with 'NStop_TS_...' and, finally, 'NStops' itself.

3) Replace the existing Default Template with another - Go to MT4's main menu & run Charts |Template | Load Template and select any template of your choice. Then run Charts |Template | Save Template and save it as Default.tpl

4) Go to MT4's main menu & run Charts | Template | Remove Template and select the NStops or Norwood Stops entry (if one exists)

5) Go to MT4's Navigator window, select the Favorites tab & for each of the two entries(NStopsEA and NStopsScript) right-click the entry & select Delete from Favorites.

6) Go to Start | All Programs | Forex Strategy Secrets | Uninstall Norwood Stops (or the <MT4Directory>\uninstallNorwoodStops folder) and run the program unins000.exe which willuninstall the files and registry entries which setup originally created.

<End of manual>

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