The gg53 "Killing Zone"

This thread is dedicated to the concept of "killing zone" kindly shared by gg53 For this reason the chief guest and guide in its development is him, because he is his creator. All credit for gg53 for this method
Additionally this thread is just to put the system as a separate topic of the Evaluator SAFT thread, which initially discussed. We don´t want to mess or disturb Eval´s incredible concepts, for this reason attached document with gg53 early posts as Guide to start this topic, if you are new here please (. . as a suggestion, of course) read it before, then continue reading all this thread and then you can post.
"G" asks where possible or not using TL or MA's, let's see what happens late.
Welcome all.

- - - - KZ "MuSt To SeE" Section - - -

#50 gg53 explain step by step drawing the Killing Zone
#7 Trade management
#70 How to trade Blindly
#122 Bed Time Story . . .
#193 trade with logic - not mechanical
#355 MM - Forex is a game of Defence - look for a realistic R/R
#384, #385, #387, #392 , #394 , #397, #550 , Follow the Elephants series
#490 , #493 Fractal and PSAR as SL
#534 , #535 , "G" release Gadi_NormalizedVolume & Gadi_TickVolume respectively
#537 power to people . . .
#560 , #567 , #568 , #581, #607, #776, Spaghetti series
#653 "G" release Gadi_Currencies v2.2
#680 "G" updated Gadi_Currencies v2.5 (add SUFFIX parameter + color legends)
#752 "G" release Gadi_OBV v1.4 - MTF feature
#809 Correlation issues
#821 Dominating the Denominator
#838 "G" release Gadi_Currencies v2.7
#965 "G" release Gadi_OBV 2.2 - updated version
#1010 Gadi_Currencies MTF concept
Post 1021 Indicators Update: Gadi TicVolume v2.0 / Gadi NormalizedVolume v2.0
Post 1,028 Indicators Update: Gadi TicVolume v2.1 / Gadi NormalizedVolume v2.1
Post 1,045 9:9 = 100%: mini-signals introduction
Post 1,086 Gadi_NormalizedVolume v2.2
Post 1,122 MTF trading in 4H
Post 1,140 Gadi_Trend v1.2 for "long Term" Trades
Post 1,148 Gadi_Currencies v2.8
Post 1,161 Gadi_Currencies_Diff v3.0 -feature of calculating the difference between the two currencies
Post 1,181 Gadi_Trend v1.3 - MTF feature
Post 1,202 Gadi_TickVolume v2.2 - MTF feature
Post 1,371 Good post about divergence on Gadi_Currencies_Diff
Post 1,400 Trading With Market Statistics and VWAP series from Traders Laboratory here: Post 1,401 Post 1,402 Post 1,403 Post 1,404 Post 1,405
Post 1,419 Gadi_TickVolume_Divergence
Post 1,420 Gadi_Currencies_Divergence
Post 1,421 Gadi_OBV_Divergence
Post 1,612 How to use the Gadi_Currencies: The "dangerous" method
Post 1,613 How to use the Gadi_Currencies: The "conservative" entry


- - - - MEN (and women) AT WORK area - - - -
Here you may find interesting material with which this thread is developing. Be warned that it is material in process, that is being tested and not final working ones.
The intention is to assist in its analysis, share your observations and create a finished product of which we are all proud.

#134 futurespec post mm_KillinZone V1.1.mq4
#136 EaglePip post gg53kf.mq4
#229 EaglePip post gg53kf 0.1.mq4
#241 futurespec post mn_KillingZone V1.3.mql4
#251 futurespec post mn_KillingZone V1.3.1.mql4
#276 EaglePip post gg53kf V0.2.mq4, and what arrows mean here #325
#531 altoronto updated mn KillingZone with V1.3.3
#792 (EA) Middleastern post Gadi Asian Breakout
#839 (EA) Middleastern post Gadi Asian Breakout v1.1
#885 (EA) Middleastern post Gadi Asian Breakout v1.2
#933 Pat1 post Gadi Asian Tunnel
Post 1,246 interesting post by Sabrina
Post 1,373 Currencies Divergence Diff indicator by altoronto based on post Post 1,371
Post 1,381 TickVolume Divergence indicator by altoronto
Post 1,388 altoronto TickVolume Divergence & Currencies Divergence updated version
Post 1.465 (EA) Consolidation_Breakout_ Gadi - testing, EA to trade Gadi_OBV breakout after Asian Sesion by middleastern
Post 1,607 (EA) imaxi´s Asian_OBV_EA v1
Post 1,609 (EA) imaxi´s Asian_OBV_EA v1.1
Post 1,618 (EA) imaxi´s Asian_OBV_EA v1.2
Post 1,660 (EA) imaxi´s Asian_OBV_EA v1.3
Post 1,686 (EA) imaxi´s Asian_OBV_EA v1.4



------- NeWs ---------
SEP-02-12: We need Volunteers for indicators coding for this Forum Agenda #115
SEP-09-12: Required additions - "Horizontal Bars" for Gadi_OBV indicators #351
DEC-14-12: GG request a channel on Gadi_OBV Post 1,367


- - - - ThE VIP aReA - - -
a small but sincere appreciation to those who have contributed significantly to the development of this thread, a million thanks (and a million pips for you) futurespec, EaglePip, altoronto, Middleastern, Pat1, imaxi

------------------------------------ -------------------------------

NOTE: if you find this thread useless or boring, please go here

Haven't hit a really fresh idea for a while. Dang nice work.

G, this was your trigger enter point? am I ok?
Do you wait for bar close or enter when PA cross the line of the killing zone with Gadi_OBV break signal?
Some ideas about TP/SL?

NO !!

Once you mark the "Killing Zone" on the chart and mark the same points on Gadi_OBV - throw the chart, step on it, tear it apart, and spit on it....

From now on you trade VOLUME.
Didn't we all agree that VOLUME drive the price?
See the "Rob a Swiss Bank" chart again - and you will see that Gadi_OBV breakout happens BEFORE the price move.

You trade Gadi_OBV BREAKOUT !!

In that setup I don't trade PA.
I trade VOLUME:

BUY - if Gadi_OBV > -205900
SELL - if Gadi_OBV < -212960

G.

Thanks sir ! . . . and very welcome to your thread, here we hope to have the privilege of your experience.

Here is the setup again:

Chart 1 - Initial setup - idenfiying the "Killing Zone" and related Gadi_OBV.
Chart 2 - Trades closed after 2 breakouts in opposite directios.

See previous post for entry rules.

+27 pips on UP breakout (breakout happened before PA breakout).
+25 pips on DOWN breakout.

G.

Trade management:

Trading hours - London Open till London close+2.
Don't trade on Friday.
Don't trade 30 minutes before major news. If you have open trades - close them.

For BUY:
SL = Previous CLOSE (if too close then previous LOW).
TP = SL*2

When 7-8 pips profit - move SL to BE+1, remove TP, and
Apply Trailing-Stop ~5 pips.

Important !!
If not in profit within 4 bars - close the trade (no matter what).
Reason: We are not in a business of guesswork...
Our signal was either false or something new happend in the market.
Waive your ego and don't trade hopes.

G.

Golden setup:

Lets try some Gold digging...

Even small breakout - like T2 - yield a lot of nuggets...

And the last four bars are in a process of creating a new "killing zone".

G.

"Killing Zone" Indicator required - looking for coder.

I can't extract the Indicator itself from our EA. It's a mess...

Definition:
The "Killing Zone" is identified after a big move - followed by a sequence of at least 6-7 bars Up/Down/Up/Down bars.
It doesn't matter what the size of the bars.
A sequence of more than 3 up or 3 down bars mark the end of the "Ranging" or "Killing Zone".

The parameters are simple:
1. Search within at least 200 bars.
2. Search for a sequence of at least 6 bars (external parameter)
3. End of sequence ("Killing Zone") is at least 3 consecutive bars in the same direction.(external parameter).
4. mark the HIGH/LOW of that area in light red.

Anyone for the challenge?

G.

What is classified as a big move? (i.e. where to place 1st red bar)
Is it where a bar is x times length of previous bar?
What TF are you using?

From your chart example the end of KZ red bar is at start of 3 down candles... is that correct? Do you not want it at end of those 3 candles?

When do you trade? First break of OBV zone or close above that zone?

Sorry if Q's asked before but only just founf thread.

M.

Hi gg53,

this was my test trade, please can you tell me if I get it (concept) right?

GG53, please can you comment

- my lines of identifying Killing Zone
- at which point of bullish candle probably breakout of Gadi has occured (there should be entry point)
- what you think about managing trade (if I would apply your condtitions - place BE after 8 pips, remove TP, trail w/ 5 pips - I would be stopped on that bullish candle; what you think about trailing your stops candle by candle - place stops under next bullish candle until stopped out) ?

Many thanks for your Gadi and comments

I have the impression there is no Gadi_OBV-breakout 1

I agree.

At the time of entering the trade there was a breakout (if the candle is still open, also Gadi is changing so you can see that candle has closed and Gadi has also closed inside of Killing Zone). You're entering the trade on the fly - means when candle is open and Gadi is "open" and Gadi is breaking. In this case Gadi and candle has reversed and closed inside of range.

According to what I understand one use PA for determine and draw limits (high and low). Then we decide trade when indi line break limits.

As far as i understand this is a breakout idea centered on indi behavior more than PA. gg53 refers the prediction of indi, but do not explain wich TF is more effective to obtain best performance of prediction.

IMHO, due to a lack of more info so far, i can not call this a system. The uncomfortable thing is the use of high level of discretionary.

Meanwhile I'm testing this idea to realise if it can be used with trust.

Regards.

Pls Read Post #4.
"... Once you mark the "Killing Zone" on the chart and mark the same points on Gadi_OBV - throw the chart, step on it, tear it apart, and spit on it...."

From now on we are trading VOLUME, i.e. Gadi OBV Breakout.
In your example - there is no breakout #1.

G.

1. Big move: good question. Major change in price. In our EA we currently use ~x2 from previous bar.

2. TF: you can use any TF. I'm using H1 & H4. I'll elaborate on TF selection later on. It's an issue by itself.

3. Before/After 3 bars: I want it before. Reason - after the 3 bars, and in between them, there is a large volume. I don't want to include it in that range. That volume was the exception that drove the big price move.

4. When to trade: First break out of Gadi_OBV.
BUY - if Gadi_OBV > Gadi_OBV(upper_range+10)
SELL - if Gadi_OBV < Gadi_OBV(lower_range-10)

The (10) is just some small number to make sure it completly "Break Out".

If you want to go and play "Bubble Shooter" instead of watching the screen - put a Buy/Sell Stop according to the formula (little coding required).

G.

Right!

G.

DO you have the MQ4 for Gadi_OBV or will the standard OBV do?

In my previous example about the Gold - I said that it looks like a new "Killing Zone" is forming (it was only 4 bars).

Well, the "Killing Zone" was completed. See attached.

Pls pay attention that Gadi_OBV Breakout occurs BEFORE the price breakout.
This will give you so "extra" pips and a proof that VOLUME drive the price.
That's the reason why we trade VOLUME and ignore PA after the "Killing zone was correctly established.

The same happened in the extreme example of "How to Rob a Swiss Bank".

G.