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daily range Strategy

  • #161
  • Oct 28, 2006 4:41pm Oct 28, 2006 4:41pm
Quoting Micardo
Also Kamanda,


Where do you place your stops? You target 50 pips, do you ever take anymore if so what do you do just trail your stop?
... if i took 50 pips or more? yes,many times and sometimes less or negative because i dont use anything like trail stop...sometimes but not my favorite to do this , i lock in the first 15 or 20 pips(by putting a stop loss) and let it ride... is a sure thing of getting 20 pips but you can miss a bigger number of pips if ur stop loss got hit...sometime you have to understand the market,what if by 3 EST you have 15 pips profit and your target is 50...do u really believe ur goin to get those 50 pips before 5est pm? i dont think so...its all about probability(to me)!
  • #162
  • Oct 28, 2006 4:54pm Oct 28, 2006 4:54pm
Mike jordy,let me try to get this right

1) i enter trade after 5est pm everyday

2) i use the closing price of the previous day(from daily candle),example... closing price was 1880,so i'll go long at 18880 + 55pips =18935(enter long position at this price) and short position at 18880-35pips =18845(enter position at this price..worked well for me!
  • #163
  • Oct 28, 2006 5:04pm Oct 28, 2006 5:04pm
Quoting kamanda
... if i took 50 pips or more? yes,many times and sometimes less or negative because i dont use anything like trail stop...sometimes but not my favorite to do this , i lock in the first 15 or 20 pips(by putting a stop loss) and let it ride... is a sure thing of getting 20 pips but you can miss a bigger number of pips if ur stop loss got hit...sometime you have to understand the market,what if by 3 EST you have 15 pips profit and your target is 50...do u really believe ur goin to get those 50 pips before 5est pm? i dont think so...its all about probability(to me)!
Kamanda - Do u close yesterday's trade at 5:00 the next day and open 2 new entry straddle orders even if you are negative for the day, or do u keep the trade open until it is profitable?
  • #164
  • Oct 28, 2006 6:13pm Oct 28, 2006 6:13pm
Markj

if your backtesting and calculations are accurate:

"I guess the good thing about range strategies are they can be simple! so we don't want to complicate this (but if it works). In the end if we were to use just one order to collect profits at 14 pips assuming 90% per 100 trades = 1400 - 300 spread cost - (10% losing trades at - 20pips = 200) = 900. "

That is a big assumption - 90% win because if it proved to be true
this would be the only trade that u need to do each day with this 90% winning percentage - even though the win/loss ratio profit/stop is not good, a 90% win percentage will overcome this, and combined with proper MM such as a lot stepping or martingale strategy the 10% losses can be overcome to virtually eliminate losses.
  • #165
  • Oct 28, 2006 6:16pm Oct 28, 2006 6:16pm
Great, thank you Kamanda for clarifying. Now to complete your system, can you answer the following questions?

1) How many lots (contracts, positions,etc.) you enter with.

2) What is your stop loss?

3) What do you use to take profit?

Thank you again.


Quoting kamanda
Mike jordy,let me try to get this right

1) i enter trade after 5est pm everyday

2) i use the closing price of the previous day(from daily candle),example... closing price was 1880,so i'll go long at 18880 + 55pips =18935(enter long position at this price) and short position at 18880-35pips =18845(enter position at this price..worked well for me!
  • #166
  • Oct 29, 2006 7:55pm Oct 29, 2006 7:55pm
OK as I am unable to trade during the day at the moment I am going to continue auto trading with a profit target of 30 pips and a stop of 50 pips.

I understand that other people have different methods so would appreciate it if they could continue posting their results and thoughts in the hope that we can eventually come to a conclusion on which version of the daily range strategy is the most profitable long term.
  • #167
  • Oct 29, 2006 9:37pm Oct 29, 2006 9:37pm
Thanks Micardo, please keep us updated as to how you are doing.

I am going to stick with the 30 pip profit target and 30 pip stop loss. The only other thing I am considering is using 2 lots instead of 1, and letting the second lot run, closing it at 5:00 PM Eastern time.

Quoting Micardo
OK as I am unable to trade during the day at the moment I am going to continue auto trading with a profit target of 30 pips and a stop of 50 pips.

I understand that other people have different methods so would appreciate it if they could continue posting their results and thoughts in the hope that we can eventually come to a conclusion on which version of the daily range strategy is the most profitable long term.
  • #168
  • Oct 30, 2006 6:07am Oct 30, 2006 6:07am
I'm a little confused with the London opening time. Now that Daylight Savings Time is over in the US, what time (Eastern) are you all looking at for the London session to base the GBP/USD price. Thanks guys.
  • #169
  • Oct 30, 2006 7:27am Oct 30, 2006 7:27am
brick911

The time here in the UK is now exactly 13.30 - hope that helps u calculate the difference from where u are.
  • #170
  • Oct 30, 2006 8:25am Oct 30, 2006 8:25am
Theres 5 hours difference between london and new york
  • #171
  • Oct 30, 2006 8:29am Oct 30, 2006 8:29am
Quoting kamanda
... if i took 50 pips or more? yes,many times and sometimes less or negative because i dont use anything like trail stop...sometimes but not my favorite to do this , i lock in the first 15 or 20 pips(by putting a stop loss) and let it ride... is a sure thing of getting 20 pips but you can miss a bigger number of pips if ur stop loss got hit...sometime you have to understand the market,what if by 3 EST you have 15 pips profit and your target is 50...do u really believe ur goin to get those 50 pips before 5est pm? i dont think so...its all about probability(to me)!
kamanda: Thanks - just one more question - if u r down at 5est do u keep yesterdays position open?
  • #172
  • Oct 30, 2006 8:50am Oct 30, 2006 8:50am
Quoting Markj
Ikholod,

If we look at the open and create Line one and Line Two we get, Line 1 = 1.8925 and Line 2 = 1.8885.

Two orders of three lots would have been entered for the day:

Order One 9 GMT when price broke line one and moved to 1.8870, which saw us take lot 1, profit 1 only for 14 pips. The other 2 lots closed out home line (London open) for - 40 pips. So this trade was worth - 26 pips.

Order Two was entered when at 1500GMT when price broke reached Line 1 at 18925. We took profit 1 and profit two for a total of 44 pips and profit 3 was left riding. Profit 3 nearly reached target just prior to Londin close but would have been closed manually at NY close 22:00GMT for a gain of 52 pips.

The total for the day would have been = (-26 from first trade and + 96 from second trade) = +76 for day. Second order only got as far as 76 pips from line 1 so missed 3rd profit by 4 pips.

Cheers
Markj,

Sorry I was away for a few days. I'm attaching the chart from my system with a cross of where I think you placed your trades. My broker uses GMT time and as you can see it looks like the trades were placed at 3:00 GMT. What I don't get is how is that London open? On Friday London opened at 7:00 GMT, now with the time change they went back to 8:00 GMT.

Thanks.
Attached Image
  • #173
  • Oct 30, 2006 9:10am Oct 30, 2006 9:10am
...pipbird.... everyday is a new trade after 5 est pm,today doesnt look good for 50 pips (most of the time 50pips will be there before 10est am)...if ur target is 20 pips i'm sure you must have them already and closed your trade,my position is still open but cable is very slow
  • #174
  • Oct 30, 2006 9:45am Oct 30, 2006 9:45am
Quoting kamanda
...pipbird.... everyday is a new trade after 5 est pm,today doesnt look good for 50 pips (most of the time 50pips will be there before 10est am)...if ur target is 20 pips i'm sure you must have them already and closed your trade,my position is still open but cable is very slow
Thanks kamanda - I agree - take what u get today
  • #175
  • Oct 30, 2006 10:12am Oct 30, 2006 10:12am
Kamanda, thanks so much for your input here.

I am still a bit confused on where you get your "closing price of the previous day".
Can I take 10/23 as an example? At the NY close on 10/23, 5pm EST, you would have gotten your closing price from

"the previous day(from daily candle)"

Are you saying you are taking the closing price for the 10/22 daily candle? Or are you saying you are taking the closing price of the 10/23 1 hour candle that closed at 5pm?

Sorry for being so anal... but your results are so good I want to be sure I get your method right.


Quoting kamanda
Mike jordy,let me try to get this right

1) i enter trade after 5est pm everyday

2) i use the closing price of the previous day(from daily candle),example... closing price was 1880,so i'll go long at 18880 + 55pips =18935(enter long position at this price) and short position at 18880-35pips =18845(enter position at this price..worked well for me!
  • #176
  • Oct 30, 2006 10:41am Oct 30, 2006 10:41am
INANJ...10/23 was monday,previous day was friday (10/20)..so you take closing price from friday daily candle....remember monday start 5est pm sunday to 5estpm monday.
  • #177
  • Oct 30, 2006 2:17pm Oct 30, 2006 2:17pm
Ok - here's how it went with +20/-20 from zero GMT last Friday and today.

Fri 27th = -60 (got whipsawed out of both trades)
Mon 30th = +30

I have noted that if I had used the London open (8am GMT and 3am EST) instead of 0GMT I would not have got whipsawed on Friday. From now on I will set trades to do both times to get a comparison if I can get up early enough.

max
  • #178
  • Oct 30, 2006 9:12pm Oct 30, 2006 9:12pm
OK today was a seriously slow day one entry was triggered but didnt hit its PT so at 00gmt I cancelled the trade that hadn't been triggered, entered 2 new orders and moved the stop of the open trae to within 5 pips which happens to be break even.

Lets hope tomorrow could be better.
  • #179
  • Oct 31, 2006 9:50am Oct 31, 2006 9:50am
Quoting kamanda
...pipbird.... everyday is a new trade after 5 est pm,today doesnt look good for 50 pips (most of the time 50pips will be there before 10est am)...if ur target is 20 pips i'm sure you must have them already and closed your trade,my position is still open but cable is very slow
Hi Kamanda!

If I understand your strategy correctly you went Short Today at 1.8960 (Daily Close 1.8995 - 35). You were stopped out at 1.9015 where you opened at Long Position with 2 Lots with Target 1.9065 and Stop Loss 1.8940.

Are these numbers correct? Then you made a big profit despite beeing initially stopped out.

Congratulations!
  • #180
  • Oct 31, 2006 9:56am Oct 31, 2006 9:56am
Ok heres an update of today and the trade that occured yesterday...

Yesterdays trade was closed at -12 pips.....

Todays trade closed a few minutes ago with our 30 pips in the bag.... So far we are 18 pips up on the week. Still looking good
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