DislikedHi Laoma,
Your short levels are correct, but how did you find TPs since there is no TP in original BAT system (for #1 trades). We use red BAT line to take profit for short trades.Ignored
My Bat from team aphid trades 82 replies
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DislikedHi Laoma,
Your short levels are correct, but how did you find TPs since there is no TP in original BAT system (for #1 trades). We use red BAT line to take profit for short trades.Ignored
DislikedNo, we haven't considered that kind of filter, but we will test it for a couple of months and see if it filters profitable trades as well, especially big ones. By the way, do you mean Alpari server time or EST or else?Ignored
DislikedHi TA:
Can you clarify how you compensate for spread when placing orders off the bat lines. For example, right now on EURAUD, my red bat line is at 6715, the Alpari feed has a ask/bid of 6691/6676 and my ecn is showing 6687/6691. Where would you place the order for the buy at the Alpari 6715? If the red bat line is charting the bid, then would the formula be RED BAT LINE + ALPARI SPREAD - 4Ignored
DislikedTEAM APHID
Set a buy stop at 9615 cable Monday night before retiring, based on the projected red-bat line break. Although the actual bat-line changed overnight by 15 pips, I still awakened today, Tuesday morning, to find a pleasant profit based on where I thought the 161 would wind-up (it too changed).
Is it correct that most of the movements occur during the European and UK session, while we yanks are sound asleep, enjoying pipdreams??Ignored
2 positions at the 127%
1 position at 168%
1 position at 200%
1 position at 261%. this position can be let open and eventually to be stopped out , when triggered by the next BAT line to change course.
DislikedHi Team Aphid, thanks for the mechanical Bat system of yours. I have some ideas/input which I would like to share. I believe it can improve the net result ie more pips in the pocket and maybe less stress. I have read in the thread that there are a number of traders who get a heart attack when faced with some of the large losses. I am playing around with the following idea:
A) you construct your swing as per your rules. Add the following fib extensions 127%, 200% 261%
B) in the BAT indicator change the factor from 4,0 to 3,5
C) Make the 61% retracement level your stop loss
D) Enter 5 positions. This equates on average to about 2% of capital risk.
E) Take profit at the following levels2 positions at the 127%
1 position at 168%
1 position at 200%
1 position at 261%. this position can be let open and eventually to be stopped out , when triggered by the next BAT line to change course.
I am busy doing some backtesting and I am still busy with April 2006. It does seem to me that the above method does offer good Risk/reward ratios. Furthermore your losses are contained. Most of the times the price will make a spike and then retrace. By changing the factor down to 3,5 a small profit at the 127% level can be taken. Furthermore the number of trades are not increased significantly.
The above is just an idea . Positive criticism is surely appreciated.
I have included a sketch showing the 2 fib extensions.
The BAT blue/red is he original , while the BAT light blue/ orange is the modified factor
Regards EckbertIgnored
DislikedHi TA:
First, I just want to take a breather and say thank you for sharing the Bat with all of us here on FF.
Just for clarification, when you say that it is possible to open with 2 lots, this must mean that you are also willing to increase your total risk per trade by 25%? Otherwise, allocating the same 2% (or whatever %R per trade you are using) across either 4 or 5 lots would not result in any net difference, as you would simply be decreasing the lot size.
Also, with regards to money management and risk allocation per lot, would it make sense to weight the risk allocation per lot based upon the historical average win ratio of each lot? For example, in 2006, about 60% of all the pips were generated from Lot #1, therefore, if you're total risk per trade is 2%, would it make sense to allocate 1.2% to Lot #1, and then to distribute the .8% over the remaining lots, perhaps also on a weighted basis?
All the best,
MichaelIgnored
DislikedOne other question, must you wait for the Bat line to turn horizontal before moving your stop from swing-10? For example, on the chart below, where would your stop be for the currenct EURAUD long?Ignored
DislikedThanks for sharing your ideas, they are well explained and 100% mechanical which is suitable to the nature of BAT system. We liked your strategy and we have decided to test them properly.
Just a couple of issues; instead of using 127% extension, we are going to use 138%.
And we have a concern in regard to TP levels. If the swing low/high is too close to BAT lines, then you will be exiting too early @138% level (40% of the trade). Just check out GBPUSD chart and go to January 3rd, 2006 02.00hr bar. Swing low is at 01.00 hr bar and too close. We agree you'll not lose already gained pips with these TP levels, but on th other hand, you'll lose many potential pips if swing low/high is too close such as the one in above example. Anyway, it is a tradeoff, and we never know without proper testing.
We'll inform you about the outcome of our tests.
Thanks for your contributions.Ignored
DislikedHi Team Aphid, thanks for the mechanical Bat system of yours. I have some ideas/input which I would like to share. I believe it can improve the net result ie more pips in the pocket and maybe less stress. I have read in the thread that there are a number of traders who get a heart attack when faced with some of the large losses. I am playing around with the following idea:
A) you construct your swing as per your rules. Add the following fib extensions 127%, 200% 261%
B) in the BAT indicator change the factor from 4,0 to 3,5
C) Make the 61% retracement level your stop loss
D) Enter 5 positions. This equates on average to about 2% of capital risk.
E) Take profit at the following levels2 positions at the 127%
1 position at 168%
1 position at 200%
1 position at 261%. this position can be let open and eventually to be stopped out , when triggered by the next BAT line to change course.
I am busy doing some backtesting and I am still busy with April 2006. It does seem to me that the above method does offer good Risk/reward ratios. Furthermore your losses are contained. Most of the times the price will make a spike and then retrace. By changing the factor down to 3,5 a small profit at the 127% level can be taken. Furthermore the number of trades are not increased significantly.
The above is just an idea . Positive criticism is surely appreciated.
I have included a sketch showing the 2 fib extensions.
The BAT blue/red is he original , while the BAT light blue/ orange is the modified factor
Regards EckbertIgnored
DislikedWe have finished testing GBPUSD for the first three months of 2006 by using Eckbert's following rules except taking the first profit at 138% instead of 127% (we used 5 lots strategy for all options).
Original BAT rules Eckbert's rules Eckbert's rules with different exits
(with factor 4) (with factor 3.50) 1 @ 138%, 1@ 200%, 1 @ 261%
2 @ next BAT line
Jan 367 199 432
Feb 562 -336 -453
Mar 1157 657 1517
Total 2086 520 1496
When doing the backtest, following issues were observed:
1- New rules do not trade ranging market conditions (works only in trending markets with small retracement after entry) whereas original BAT rules benefit from both ranging and trending markets.
2- 61.8% retracement level for SL is too close, especially for volatile pairs, therefore it adversely affects win/loss ratio of the system.
3- As it was indicated before, 60% of profits are generated from Trade #1, therefore exit levels are too close, as well (difference between total pips proves this).
4- We still believe factor 4 is more appropriate.
Thanks again for your ideas and contributions.Ignored
DislikedHi Team Aphid, thanks for your response.
A question: how do you define a range trading market? Please read "BAT Range Trade" section (page 8) of original BAT document at post #35.
In your analysis, the first figure (367) is the original BAT, (199) Eckbert's rule and (432) Eckbert's rules with revised exits? Yes, that is correct. Is it possible to post your results. No, because it is in sketch form and we did not enter entry and exit dates on spreadsheet to finish the testing quickly, but we did a detailed, proper backtest for those three months and the results are correct.
If you say that a 61% retracement as stop loss is to close, what would you consider a reasonable stop loss? We still believe swing low/high -10/+10 is reasonable especially for volatile pairs. If you use 61.8 level as a stop loss, you are completely getting rid of range trading leg of the system which generates 40% of all profit.
The problem of BAT system, in our opinion, is that we are leaving too many hard earned pips on the table. This can only be improved by applying different exit strategies. Otherwise, we are happy with winning ratio or stoploss levels. But this does not mean we are not open to new ideas regarding all these issues. Whenever a sound, well explained strategy recommendation is made such as the one yourself did, we are taking it seriously and immediately backtest it to see the weaknesses and strenghts of recommendations.
Regards EckbertIgnored
DislikedHi Team Aphid, I have studies BAT document again. In a range trade you show the aqua arrows as a reentry. Where is your exit. As requested in the previuos post, please give me a definition on a range trade. A thought not yet tried out, would the BAT lines on a 4hr chart provide a clue for a range?
Your backtest results posted in the previous post : is it possible to define the entry and exit levels, or are they the same as per the original BAT document on post 35.
Regards EckbertIgnored