TOTAL VISUAL UPDATE 25 AUG @ 20:00 GMT
I have removed the "First Version" of my system. This is UPDATE II
Please open the new .zip file for the current set up (screen shot of my setup attached)
Trading principles are the same...only thing that changed is supporting visual/confirmation indicators.
I added the Snake Meter because it gives real-time multi-time frame color signals...For example. I only take trades on the 1H when the 4H is the same color.
I added Waddah Attar Trend because it is MUCH better than the AO...when used as a Signal Arrow confirmation indy it will ELIMINATE false trades.
READ THE ATTACHED WORD DOCUMENT
Pairs: GBP/USD right now...GBP/JPY in the future
Time Frame: 1H
UPDATE******* STOP LOSS IS NOW: The Fractal before the entry candle, or in other words the level you used to drag the Fib plot to*******
UPDATE: 25 AUG I have gotten rid of the AO and added the Waddah Attar Trend meter..very accurate and non-repainting.
Use is as follows:
After entering on the break of the signal candle confirm movement of trade with corresponding WAT color bar
What this is:
1. A 1H breakout strategy is a Price Action/Fibonacci based trading strategy.
2.A simple, repeatable mechanical trading system
3.A template that can be applied via the trader to achieve a specific and defined profit
What this is NOT:
1. The Holy Grail
2.An indicator laden, user intensive trading system
3.A scalping system with specific Pip targets (exit at +5, or +10 Pips)
Why I am doing this:
I want to improve my trade execution sequence (see checklist) via a better method to exiting a trade once the 161.8 level has been hit. (Trailing stop experimentation)
What you will get out of doing this:
You will gain confidence from practicing, mastering a mechanical thought process and trade execution sequence. You will gain an understanding of how Fibonacci affects all trades, furthermore, you will learn to control greed and master patience.
The easiest thing about my system:
It can be applied using a simple checklist, which allows for ZERO user input…just execute the process steps in order.
The most difficult thing about my system:
You will enter trades for short/medium/long durations, all of which are completely out of your control…you MUST wait for the target to be reached.
Oh yeah, and the Stop Loss is at least 150 pips from your entry.
The most important thing to remember:
Trust the trade, and stay in until the target is reached.
Concept:
By utilizing the ScalperSignal alerts which are based on PA and MA correlation, the 1H Cubicle Breakout Strategy triggers trades which once the entry criteria is met will take the trade to a profit level of 161.8, 80% of the time on GBP/USD. (More pairs in testing)
------------------------------------------------------------------------
The "secret" to the fib plots is in the doc, as well as ALL settings, and other info. Please download the .zip it will contain everything needed. Including my template.
I hope that my explanation in both image/words will satisfy any readers questions. If you DO have a question, please post it HERE...DO NOT PM me please!!!! Thank you.
-Darren
Probability Analysis:
So, there is a 5% Chance we will only hit 138.2 Fib
A 80% Chance we’ll hit 161.8
A 45% Chance we’ll hit 261.8
A 15% Chance we won’t hit any level including 138.2 (Total Failure)
I think those are pretty good odds.
Largest drawdown before hitting 161.8 or 261.8 was -150 pips.
I’d say on ANY trade you would need a stop loss of 200 pips! I know, I know…crazy…but look at the odds.
There were only 2 Drawdowns over 100 pips prior to hitting 161.8/261.8…so it would be worth the pain for a little while.
Just set the TP level and forget.
The average Trade pip profit was @ 40 pips (LOW AVG)…so from May 1 09 to Today…that’s a net profit of 5,400 pips…on ONE pair.
I have removed the "First Version" of my system. This is UPDATE II
Please open the new .zip file for the current set up (screen shot of my setup attached)
Trading principles are the same...only thing that changed is supporting visual/confirmation indicators.
I added the Snake Meter because it gives real-time multi-time frame color signals...For example. I only take trades on the 1H when the 4H is the same color.
I added Waddah Attar Trend because it is MUCH better than the AO...when used as a Signal Arrow confirmation indy it will ELIMINATE false trades.
READ THE ATTACHED WORD DOCUMENT
Pairs: GBP/USD right now...GBP/JPY in the future
Time Frame: 1H
UPDATE******* STOP LOSS IS NOW: The Fractal before the entry candle, or in other words the level you used to drag the Fib plot to*******
UPDATE: 25 AUG I have gotten rid of the AO and added the Waddah Attar Trend meter..very accurate and non-repainting.
Use is as follows:
After entering on the break of the signal candle confirm movement of trade with corresponding WAT color bar
What this is:
1. A 1H breakout strategy is a Price Action/Fibonacci based trading strategy.
2.A simple, repeatable mechanical trading system
3.A template that can be applied via the trader to achieve a specific and defined profit
What this is NOT:
1. The Holy Grail
2.An indicator laden, user intensive trading system
3.A scalping system with specific Pip targets (exit at +5, or +10 Pips)
Why I am doing this:
I want to improve my trade execution sequence (see checklist) via a better method to exiting a trade once the 161.8 level has been hit. (Trailing stop experimentation)
What you will get out of doing this:
You will gain confidence from practicing, mastering a mechanical thought process and trade execution sequence. You will gain an understanding of how Fibonacci affects all trades, furthermore, you will learn to control greed and master patience.
The easiest thing about my system:
It can be applied using a simple checklist, which allows for ZERO user input…just execute the process steps in order.
The most difficult thing about my system:
You will enter trades for short/medium/long durations, all of which are completely out of your control…you MUST wait for the target to be reached.
Oh yeah, and the Stop Loss is at least 150 pips from your entry.
The most important thing to remember:
Trust the trade, and stay in until the target is reached.
Concept:
By utilizing the ScalperSignal alerts which are based on PA and MA correlation, the 1H Cubicle Breakout Strategy triggers trades which once the entry criteria is met will take the trade to a profit level of 161.8, 80% of the time on GBP/USD. (More pairs in testing)
------------------------------------------------------------------------
The "secret" to the fib plots is in the doc, as well as ALL settings, and other info. Please download the .zip it will contain everything needed. Including my template.
I hope that my explanation in both image/words will satisfy any readers questions. If you DO have a question, please post it HERE...DO NOT PM me please!!!! Thank you.
-Darren
Probability Analysis:
So, there is a 5% Chance we will only hit 138.2 Fib
A 80% Chance we’ll hit 161.8
A 45% Chance we’ll hit 261.8
A 15% Chance we won’t hit any level including 138.2 (Total Failure)
I think those are pretty good odds.
Largest drawdown before hitting 161.8 or 261.8 was -150 pips.
I’d say on ANY trade you would need a stop loss of 200 pips! I know, I know…crazy…but look at the odds.
There were only 2 Drawdowns over 100 pips prior to hitting 161.8/261.8…so it would be worth the pain for a little while.
Just set the TP level and forget.
The average Trade pip profit was @ 40 pips (LOW AVG)…so from May 1 09 to Today…that’s a net profit of 5,400 pips…on ONE pair.
Attached File(s)
1H Cubicle Breakout System_Master File-1.pdf
179 KB
|
5,956 downloads
|
Uploaded Aug 24, 2009 11:37am
25 Aug CUBICLE UPDATE.zip
1.5 MB
|
1,860 downloads
|
Uploaded Aug 25, 2009 4:48pm