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  • #541
  • Oct 22, 2006 3:00pm Oct 22, 2006 3:00pm
OK.............one more time on the ATR and the S/L. If the ATR(10) value on the daily chart is 65 (current value on eur/usd) then my initial S/L is 65 plus my broker spread. Then I move S/L as the price moves in my direction. In the fozzy EA, the S/L is automatically set at .7 ATR because the programmers wanted a value of 70% ATR, strictly discretionary.

I don't use fractal indicators.

PS.............my personal favorite is surfing in Australia, fozzy's home.

Quoting 4rex
BB,
Wonderful results! The next best thing would be if you are getting these results as you hang out at some beach preferably in Thailand(my personal choice).
Could you be so kind as to explain in more detail how you determine your S/L using ATR(10). I placed one in a chart and I can see the values that you speak of but how do you determine the price for your S/L. I'll read the help section in Meta as well. Oh, by the way, have you noticed that the fractal indicator coincides the high/low values in the ATR? Is this correct or am I seeing ghosts?

Thanks
  • #542
  • Oct 22, 2006 3:03pm Oct 22, 2006 3:03pm
I have not, but it would be very easy for you to search my posts in this thread, look at my "results" posts and tabulate the results yourself. Please post this for us all to review, it may prove enlightening.



Quoting cisco
BB,
Thanks for the results. I know it's not that far along yet, but have you been keeping track of how the individual pairs are doing with regard to profit and loss? In other words, are some pairs better suited for this method than others?

Steve
  • #543
  • Oct 22, 2006 3:19pm Oct 22, 2006 3:19pm
BB,


Thank You! I got it!
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  • #544
  • Oct 22, 2006 9:04pm Oct 22, 2006 9:04pm
Beachbum, I know this question is probably very basic, but you state below that ifthe ATR (10) is 65 then you set your initial S/L to 65 plus spread. Well what if the value is something different than 65? Like if it is 89 do you set your initial S/L at 89 plus spread? ,etc.? So whatever the value of the ATR is, that is what you set yours S/L to?

Sorry, like I said, probably very basic question, just trying to understand better.


Quoting BeachBum
OK.............one more time on the ATR and the S/L. If the ATR(10) value on the daily chart is 65 (current value on eur/usd) then my initial S/L is 65 plus my broker spread. Then I move S/L as the price moves in my direction. In the fozzy EA, the S/L is automatically set at .7 ATR because the programmers wanted a value of 70% ATR, strictly discretionary.

I don't use fractal indicators.

PS.............my personal favorite is surfing in Australia, fozzy's home.
  • #545
  • Oct 22, 2006 9:46pm Oct 22, 2006 9:46pm
Quoting 4rex
Accrete,Thanks for your reply. I have been questioning in my head the purpose of the 30/50/70 levels on the RSI indicator with the Fozzy since the BB bands seem to me to serve the same purpose. Correct me if I am wrong on this. I have kept the 50 level on the RSI indicator as a visual aid...
Hi 4rex, your post quoted here is great. You have John Bollinger's concept down on what his intention of the upper/middle/lower bands, and how they equate to the 70(overbought)50(midline)30(oversold) horizontal lines. If you find the 50 level horizontal line is assisting you in your trades keep it! This is all about something that clicks inside you. After all, as you know, in the end it is just you and your tradestation when the entry finaly takes place.

Good trading,
Thom
  • #546
  • Oct 22, 2006 9:49pm Oct 22, 2006 9:49pm
I must not be making myself clear.................my initial S/L is ATR(10) on the daily chart (whatever the value is, it could be 65, 89, 78, 92) plus my broker's spread. It's just that simple.............I like simple trading methods, one of the things about the "fozzy" I really like.........



Quoting mikejody
Beachbum, I know this question is probably very basic, but you state below that ifthe ATR (10) is 65 then you set your initial S/L to 65 plus spread. Well what if the value is something different than 65? Like if it is 89 do you set your initial S/L at 89 plus spread? ,etc.? So whatever the value of the ATR is, that is what you set yours S/L to?

Sorry, like I said, probably very basic question, just trying to understand better.
  • #547
  • Oct 23, 2006 12:15am Oct 23, 2006 12:15am
Are you using the Fozzy 2-1 EA to get these results or are you doing these manually? Thanks.


Quoting BeachBum
Recently there have been a few questions about this indicator. The following definition is from Metatader's "Help" section. Early on I suggested using this value as a basis for setting the S/L (see my previous post which explains my thinking). An ATR(10) provides the daily range for the previous 10 trading days, IMO a nice value to work from. It's easy to put on your charts (if you don't know how, the same "Help" section in Metatrader will explain it for you) and so far it has worked well. The "fozzy" EA (prepared by stockwell & tradeigel) uses it effectively.


Average True Range

Average True Range Technical Indicator (ATR) is an indicator that shows volatility of the market. It was introduced by Welles Wilder in his book "New concepts in technical trading systems". This indicator has been used as a component of numerous other indicators and trading systems ever since.

Average True Range can often reach a high value at the bottom of the market after a sheer fall in prices occasioned by panic selling. Low values of the indicator are typical for the periods of sideways movement of long duration which happen at the top of the market and during consolidation. Average True Range can be interpreted according to the same principles as other volatility indicators. The principle of forecasting based on this indicator can be worded the following way: the higher the value of the indicator, the higher the probability of a trend change; the lower the indicator’s value, the weaker the trend’s movement is.

Calculation

True Range is the greatest of the following three values:

  1. difference between the current maximum and minimum (high and low);
  2. difference between the previous closing price and the current maximum;
  3. difference between the previous closing price and the current minimum.

The indicator of Average True Range is a moving average of values of the true range.

"Loss and failure are inevitable but misery is optional"
  • #548
  • Oct 23, 2006 3:09am Oct 23, 2006 3:09am
Quoting BeachBum
I must not be making myself clear.................my initial S/L is ATR(10) on the daily chart (whatever the value is, it could be 65, 89, 78, 92) plus my broker's spread. It's just that simple.............I like simple trading methods, one of the things about the "fozzy" I really like.........
BeachBum when you have some time can you please post your Atr indicator for the newbie (me) here? You are doing great congratulations.

  • #549
  • Oct 23, 2006 4:07am Oct 23, 2006 4:07am
This is a newbie question but once you have the ATR(10) posted on the chart what do you do with the value? Add it to the price and come up with a SL?
  • #550
  • Oct 23, 2006 5:51am Oct 23, 2006 5:51am
ATR - Average True Range - its a standard indicator that comes with MT4 - just set it to 10 and Bob's yer uncle
  • #551
  • Oct 23, 2006 6:56am Oct 23, 2006 6:56am
Accrete,


Thanks, I appreciate your comments. I have been on the FX path for almost a year using demos and trading micros @Oanda and it has taken me this long to get a sense of owning a system.
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  • #552
  • Oct 23, 2006 7:40am Oct 23, 2006 7:40am
Manually.

Quoting carmel
Are you using the Fozzy 2-1 EA to get these results or are you doing these manually? Thanks.
  • #553
  • Oct 23, 2006 7:43am Oct 23, 2006 7:43am
Quoting Xerof
ATR - Average True Range - its a standard indicator that comes with MT4 - just set it to 10 and Bob's yer uncle
I am sure this is not the indicator BeachBum uses.
Attached Image
  • #554
  • Oct 23, 2006 7:45am Oct 23, 2006 7:45am
Quoting BeachBum
In the fozzy EA, the S/L is automatically set at .7 ATR because the programmers wanted a value of 70% ATR, strictly discretionary.
Hey BB,

We applied this based on your post - http://www.forexfactory.com/forexfor...&postcount=292.

Are you no longer using a % of ATR to set your initial stops?

stockwet
  • #555
  • Oct 23, 2006 7:54am Oct 23, 2006 7:54am
Quoting Miguel
I am sure this is not the indicator BeachBum uses.
It is. However, BB "minimizes" it and hides the line by changing it's color, and then only has the value display.

Here is an example, notice the ATR in the bottom left.
http://www.aforexblog.com/wp-content...e-10-20-06.gif
So far so good.
  • #556
  • Oct 23, 2006 7:56am Oct 23, 2006 7:56am
Hi Stockwet.....

I have been "playing" with this amount. For the last two weeks, I have been using 100% ATR plus spread for calculating the initial S/L. I don't suggest you change the .7 ATR value in the EA, this is just part of my forward test. Someone here on this thread did a small backtest recently and posted a chart showing the retrace amounts after the opening of the daily candle/bar on the eur/usd. I think on average the amount was very small except on big news days. This would be an interesting value on average to know, but I think it would be smaller than 70% ATR. Please keep up the good work with the EA. I'm running it on a demo account with good results so far.

Cheers...................BB


Quoting stockwet
Hey BB,

We applied this based on your post - http://www.forexfactory.com/forexfor...&postcount=292.

Are you no longer using a % of ATR to set your initial stops?

stockwet
  • #557
  • Oct 23, 2006 8:20am Oct 23, 2006 8:20am
Quoting paul2
It is. However, BB "minimizes" it and hides the line by changing it's color, and then only has the value display.

Here is an example, notice the ATR in the bottom left.

Thank you for your kindness in showing me this Paul.



Quoting Xerof
ATR - Average True Range - its a standard indicator that comes with MT4 - just set it to 10 and Bob's yer uncle
Xerof thank you 2. Sorry if i didn't understand at first
  • #558
  • Oct 23, 2006 12:21pm Oct 23, 2006 12:21pm
Did you ever find a god way of achieving this. Its the one thing that really bugs me. I have tried buying a second lot and setting the SL to break even e.g. 1st trade reaches 100 pips so buy/sell another lot and set SL to price -/+50. If it goes back then you get out at breakeven other wise you now have 2 lots going forwards. Only my idea and only used it a couple of times. Never seemed to get onto a good enough run until recently.



Quoting fozzy
Hi parabolic,

I move my stop to break even after 40 pip gain. If the move continues another 25 pips (so 65 in total) I trail the stop. So, for example, if the move has gone 100 pips my stop/loss would be 75 pips. If the move only goes 50 pips and reverses I would get out at break even. However, if the move gets as far as 70 pips my stop/loss would be 45 pips. This is just something I'm playing around with as I've found that this method is slow to take off at times and needs to be given room to move. One thing I'm now looking at is this suggestion from HAGeek.



Sorry my explanation wasn't very clear. The most difficult part I find in my trading is knowing when to get out without giving back too many pips.

Cheers

Fozzy
  • #559
  • Oct 23, 2006 12:49pm Oct 23, 2006 12:49pm
Hi guys,

just played with the 4H time frame with my Fozzy charts, looks like this could also be an interesting strategy...Anybody traded the 4H Fozzy???

FT
  • #560
  • Oct 23, 2006 3:33pm Oct 23, 2006 3:33pm
Fingotrader,

The name of this thread is THE DAILY FOZZY METHOD... You need to start a new thread THE FOUR HOUR FOZZY METHOD. I would like to read it if you get it going.
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