Price action during the last two - three hours went from Long to Neutral (Hedge) to Short..
Daily Scalping Hedging/ATR Discussion 23 replies
DislikedInteresting that you found this by accident. The H4 with the same 25LWMA and +/-50 levels appears to work very well.
I have been running with the basic tKimble and have completely overlooked the H4.
Your idea of switching to +/- 25 on the H4 does show some merit. Definately needs to be backtested before any conclusion can be made.
Looks a lot more profitable. I'll run backtesting on it to see and post the results later.
DislikedJust a note. I would be cautious testing any system with a 50 pip Hedge or SL level on a four chart. It may look good but in reality it could move against you 50 pips 3 times in that 4 hour candle and in the end finishing 50 pips above giving the allusion of not being stopped.
From my experience you really need to drill down to 30 min chart at least with a 50 pips stop to get an accurate reading from the data.Ignored
DislikedI'm not sure I understand.
if we reach the top of a trend we would surely close all hedges which are in profit as a natural course of following the system.
Surely if we didn't there would have been no point in hedging in the first place and we might as well have placed stops.
The danger you point out seems to be one inherent in any system that uses an imperfect hedge. I'm not proposing any difference from the original method of opening and closing trades.
We would also always place a number of trailing pending orders at -100 pips the current position in order to hedge ourselves. This is only common sense should a retrace not materialise and is following the system exactly.
(The modification Yezbick mentioned is a good one I think)
At the top of a surge the vast majority of longs are already naturally extinguished.
At that point there is the danger you point out, but if we didn't close out our profitable positions when would we?
it follows that if the natural danger of the system is averted and there follows a large retrace, then our open stales become a much lesser burden on the system.
Ifr we believe it to be a retrace and that the long term trend will reassert itself then all I'm proposing is that such moments are best to rid ourselves of all open trades except those that maybe still held from the top of the trend and start again from nearly scratch.
once a retrace has reached 4 - 500 pips simply delete all but one pending order and set all stale shorts to a trailing stop of 100 pipsIgnored
I have been tryiing to some backtests on this system and i was very impressed with the low amount of hedges and all the profits as the market takes of. Then i saw i was on the 4 hour chart. Have you perhaps been looking at this with the same MA settings?
It looks like a lot more profits and you will have about 2 thirds less on your open hedges.
Just an observations. No real testing has been done
DislikedI think the 25/-25 levels were mentioned by howard in an earlier post. I have been tested this and found a lot of entries caused by the wicks of the candles. I am now busy testing with the close of the candle above 25 for long and below -25 for a short.I will finish it over the weekend and post my results here. So far the max open trades is only 15 after 18 months of backtesting.I am testing from 2003 to collect as much info as posible so that we could determine a MM sytem for this strategy.
Also i have found so far that a time limit will not work on G/J but a pip value of 1500 per trade looks do-able.
PS. I am testing on IBFX live account via the step-by-step function so i believe we will be able to give reliable results hereIgnored
Dislikedcould we not filter some bad trades in ranging markets by utilising a smaller MA Eg 10, or 12 to operate alongside the original 25 ma.
We could make a rule such that if the 25 ma is flat, then instead of watching price action we should only trade once the short ema has crossed the uppoer and lower boundary. Just a thought.Ignored
DislikedLong MA but stands a good look. Not much wipsaw.
H4 = 125LWMA 25+/-
H1 = 500LWMA 25+/-
M30 = 1000LWMA 25+/-
Example listed in H4. Wipsaw almost totally removed.Ignored
|Thread Tools||Search this Thread|