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Dreamliners’ MPAS (Mechanical Price Action Strategy) System

  • #41
  • Dec 24, 2010 2:43pm Dec 24, 2010 2:43pm
Some of this information is not directly related to this method, but hopefully will help us to trade it successfully.

I use Oanda for my broker, mainly due to the fact that I can compound automatically. I simply set the "default order size" to "80%" and that gives me a 1% risk for each trade (assuming a stop loss of 10 pips).

Then after each win, the lot sizes (units) will increase, and after each loss, they will decrease, to always maintain the same amount of risk.

So, we are only risking 1% on each trade, and we are compounding automatically. All is well.
  • #42
  • Edited 3:03pm Dec 24, 2010 2:49pm | Edited 3:03pm
Quoting Dreamliner
As of today's date, December 24, 2010, I have clarified the wording on the initial rules to the system. If you read the initial rules before this date, please re-read if you would like to. If you read the rules on or after this date you have the updated rules. I only changed the wording for clarification; the system remains the same.

Hey Dreamliner...

So you don't recommend the trend version of the system? You are always trading ranging?

For MM I'm looking at researching Pascal's triangle... there's a thread on here somewhere about it.

Jag
  • #43
  • Dec 24, 2010 3:05pm Dec 24, 2010 3:05pm
Hi Jag,

If we use the rules as now stated they will take into account both trending and ranging conditions. It is just that in a strong trend the market does not often retrace a full 10 pips from the open to give us an entry. But when it does it works perfectly, as we are "buying dips in a rally" and "selling highs in a sell-off" which is the perfect way to trade trends.

Because I use "Trading Journal Spreadsheets" I am able to track the success/failure of entering with a 5-7 pip pull-back, an 8-10, a 11-13, etc. In a strong trend we may have to settle for only a 7-pip pullback, which of course will give us much better reward/risk.

Pascal's Triangle for Dynamic Stop/Target is much smarter than I am. I don't understand it at all, and for the moment and simply sticking with the current exit strategy.

Quoting sidhujag
Hey Dreamliner...

So you don't recommend the trend version of the system? You are always trading ranging?

For MM I'm looking at using something like Pascal's triangle for dynamic TP/SL... there's a thread on here somewhere about it.

Jag
  • #44
  • Dec 24, 2010 3:19pm Dec 24, 2010 3:19pm
Dreamliner,

 

  1. At the open of a new bar, set an alert notification (see next post for the alert system I am using) for 10 pips lower than the open price and another alert for 10 pips higher than the open price.
  2. If your low alert is triggered (see next post for the alert system I am using) set a limit buy (or Buy Stop, whichever you prefer to call it) at the open price of the current candle—the candle that triggered the alert. If your high alert is triggered set a limit sell (or Sell Stop, whichever you prefer to call it) at the open price o the current candle--the candle that triggered the alert.

If I think this is the post your eluding to for instructions on how to use this system then I am thoroughly confused with how you can trade both trending and ranging markets.

This to me means that you are buying on a low alert and selling on a high alert.. thus trading against the trend. To me then it is saying its trading a ranging market. During a rally for example you may hit your high alert... you take a sell at open per the rules and then it finishes up... how are you buying the dips?

Jag

  • #45
  • Dec 24, 2010 3:26pm Dec 24, 2010 3:26pm
Take a good look at the downtrend on December 17. This is a serious downtrend. With the open of each new bar there are a few pips of upward retrace, sometimes as much as 10 pips. It is on those retraces that we enter our sell orders at the open, and jump on the bus going downhill.

As they say, may your longs go higher, and your shorts go lower .

Quoting sidhujag
Dreamliner,

[list=1][*]At the open of a new bar, set an alert notification (see next post...
  • #46
  • Dec 24, 2010 3:36pm Dec 24, 2010 3:36pm
Quoting Dreamliner
Take a good look at the downtrend on December 17. This is a serious downtrend. With the open of each new bar there are a few pips of upward retrace, sometimes as much as 10 pips. It is on those retraces that we enter our sell orders at the open, and jump on the bus going downhill.

As they say, may your longs go higher, and your shorts go lower .
Ahh I see however wouldn't you have bought at bottom of some those bars that retraced to the open after a low alert.. when you know there is a good chance it will probably reverse and continue the selloff?

I guess that's where having the good R:R would help..

Jag
  • #47
  • Dec 24, 2010 3:40pm Dec 24, 2010 3:40pm
Yes, I'm sure we would have. This is what cannot be shown in backtesting but will no doubt be discovered live. As you said, the good R:R will help.

Quoting sidhujag
Ahh I see however wouldn't you have bought at bottom of some those bars that retraced to the open after a low alert.. when you know there is a good chance it will probably reverse and continue the selloff?

I guess that's where having the good R:R would help..

Jag
  • #48
  • Dec 24, 2010 3:49pm Dec 24, 2010 3:49pm
Quoting Dreamliner
Yes, I'm sure we would have. This is what cannot be shown in backtesting but will no doubt be discovered live. As you said, the good R:R will help.

Yup you're right... KISS until proven otherwise.. don't add complexity until over x number of trades the win/loss ratio doesn't allow your MM to increase equity on a stable basis. (creates a negative equity channel)

If you can improve win/loss (longer time before trades) then it will take longer to validate because more time to get to x number of trades.. but I think that's where backtesting will come into play.

All you really need is 50/50 which is asking for alot taking spread into account. After that its all MM.

BTW Dreamliner... I'm going to call you DL from now too long to type your name (programmers are lazy)... Dukascopy seems to allow you to use range bars (up to 10 for some dumb reason)... but you can simulate 30 easily by only looking at every bar x 3... this would mean stability of the range bars "should" be pretty good because the platform is doing it for you... strategy testing on JForex is alot better because of bid/spread built in historical data. Tick quality is always 100% so you can get a realistic idea of how your system performs over time.


Let's see how it goes.. merry xmas and happy new year..
Jag
  • #49
  • Dec 24, 2010 3:53pm Dec 24, 2010 3:53pm
Thanks for your words of wisdom here, Jag, very nicely said!

Merry Christmas to you too, and have a wonderful new year!

Quoting sidhujag
Yup you're right... KISS until proven otherwise.. don't add complexity until over x number of trades the win/loss ratio doesn't allow your MM to increase equity on a stable basis. (creates a negative equity channel)

If you can improve win/loss (longer time before trades) then it will take longer to validate because more time to get to x number of trades.. but I think that's where backtesting will come into play.

All you really need is 50/50 which is asking for alot taking spread into account. After that its all MM.

Let's see how it goes.. merry...
  • #50
  • Dec 24, 2010 6:08pm Dec 24, 2010 6:08pm
Sorry Brian, I really didn't understand your post here. Why are you talking about "4 hours" and "daily" timeframes? We use range bars here. Can you please explain exactly what you are saying here? I don't usually click on .zip files unless I trust the source, and I don't know you.

Quoting brijon
thank you for sharing , from my point of view timming is an aportant element time frame

which time frame have you been using ?

if i can make a few sujestions to help later with your approval only i will

but here is an intersting timing aticle that may help you move into live trading

as demo in my opion at best is a guide only

the most interesting aspect is the timing of the range indicator frame

eg 4 hours daily ect as in the wrong time frame the trading range is too small
for making a profit after your entry as the range may be...
  • #51
  • Dec 24, 2010 6:14pm Dec 24, 2010 6:14pm
sorry i didnt clarify this eg 15 minute charts 30 minute charts live and offline

dont click on the aattachment its not dangerous but i understand your reason


these are only great files on currencys percentage pips at certain times of the day excellent articles

sp to clarify my question in mt4 which chart do you use 15 min 1 hour 1 day ect for your range bars


from BRIAN
  • #52
  • Dec 24, 2010 6:19pm Dec 24, 2010 6:19pm
As mentioned in the first several posts, I'm not answering support questions on range bars. Please search Forex factory and you'll find out how to set them up. I'm not at all trying to be rude, it is just that if we start talking about how to set up range bars we will be flooded with technical support questions on offline charts, range bars, etc. and I don't want that to happen in this thread. Thank you for understanding.

Quoting brijon
sorry i didnt clarify this eg 15 minute charts 30 minute charts live and offline

dont click on the aattachment its not dangerous but i understand your reason


these are only great files on currencys percentage pips at certain times of the day excellent articles

sp to clarify my question in mt4 which chart do you use 15 min 1 hour 1 day ect for your range bars


from BRIAN
  • #53
  • Dec 24, 2010 6:23pm Dec 24, 2010 6:23pm
UNDERSTAND
  • #54
  • Dec 24, 2010 6:51pm Dec 24, 2010 6:51pm
http://www.the-forex-strategy.com/in...FQrhbgodMRVenw

this was good set up perfect clear view on mt 4
  • #55
  • Dec 24, 2010 6:57pm Dec 24, 2010 6:57pm
easy when you know how sorry i was so dumb
Attached Image (click to enlarge)
Click to Enlarge Name: range bars.jpg Size: 64 KB
  • #56
  • Dec 24, 2010 7:01pm Dec 24, 2010 7:01pm
im a slow learner 35 years trading but mt4 , i learn something new every day thank you

from brian
  • #57
  • Dec 24, 2010 7:05pm Dec 24, 2010 7:05pm
It looks like you got it!

Quoting brijon
easy when you know how sorry i was so dumb
  • #58
  • Dec 24, 2010 7:06pm Dec 24, 2010 7:06pm
I'm sure I could learn a lot from you, Brian!

Quoting brijon
im a slow learner 35 years trading but mt4 , i learn something new every day thank you

from brian
  • #59
  • Dec 24, 2010 7:18pm Dec 24, 2010 7:18pm
realy great stuff mate it so happens it fits in perfect with my thread great work a dream

i understand why my question was so stupid but once isaw the video i understood looks a superb tool your idea is super cool

what you have descibed is a perfect fractal use using 10 pips

understanding best entry time of day will help i think

but great work with those negative idiots block them out

a very very merry xmas

thank you once again

from Brian
  • #60
  • Dec 24, 2010 7:36pm Dec 24, 2010 7:36pm
next i must learn to ajust the true range indicater to the actual as per the square indicater ( the 2 yellow lines) in this case to maximize your great system

still need to ajust the settings but looks great beginning
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