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Attachments: daily range Strategy
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daily range Strategy

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Quoting Micardo

Max... I use a stop loss of 50 pips and a profit target of 30 pips. You managed to get 50+ pips today that is excellent, can I ask you what your exit strategy is?

Micardo, sorry to say I don't yet have an exit strategy. I had set the trade without any limit and just happened to look at the chart about 3pm to see it up at 1.9096 and closed out manually at 1.9093.

Markj, thanx for posting the chart. If I understand you correctly your starting point is the London open at 8am GMT. On my chart the 8am candle opened at 1.8967. So for the long trade entry point would have been 1.8987. It went up to 1.9026 before falling back. Do you mean that you wait until it hits your upward entry point again (in this case 1.8987) and then re enter the trade? Sorry if I've misunderstood but I'm trying to work out the criteria you use to get the two trades.

Thanks for all the input here
max
Here is a spreadsheet based on 21 trading days. It includes both a bear run and the current bull run. The second page may tell a story.

The average open-low regardless of where the bar closed is 46. If the bar closed down, the average open-low is 60. This means if 50 pips is the limit order, on average you would only get in a trade if the bar will close down, but will not hit the 30 pips.

Conversly, the average high-open is 67, regardless of where the bar closed, and if it closed up the average high-open is 87. This means a 50 pip limit order, on average, will get you in a trade even if the bar eventually closed down.

These numbers, though, are very close to the 50 you guys have been talking about, and if you can get a bias, maybe put the entry at 50 pips according to your bias, and 60 pip against your bias.

Any other thoughts on this is appreciated, but interesting indeed.

(Sorry- One of my columns was labeled wrong before)
Attached File
File Type: pdf prelim.pdf   43 KB | 562 downloads
"Its not where your at, but where your coming from"
Max77,

This system places trades as they hit either, 20 pips below London open or 20 pips above London open. This is not a two order straddle where you set two orders at seperate points to enter trade and thats it for the day. In this systems you may enter 1,2,3, 4 or even 5 trades in a day. But normally averages around 2 - 3.

I then trade 3 lots when either line is reached with 3 different profit levels. 14, 30 and 80.

Today their were two trades where the price hit the uper target line (20 pips above London open)

First trade at 9GMT where price went to 1.9025 and I collected 1st and 2nd profit for 44pips the 3rd lot was moved to break even when 2nd profit was collected and was closed out on the 11am candle for breakeven.

Second trade would have been entered on the 1GMT time. The reason it was not entered at 12gmt time candle is that I will never re-enter a trade in the same direction on the next candle when trade has been stopped.

This second trade then took all three profit levels of 14, 30 and 80 pips.

Total gains for this system, this month on paper, have been 1604. Total losses have been - 730.

Hope this helps

Cheers
  • Post #204
  • Quote
  • Edited at 9:38pm Oct 31, 2006 8:22pm | Edited at 9:38pm
I was replying to the original thread #1 also. I know there are other ideas out there. This is a perfect "hedge" type system. If the market starts to go against you, open a reversal trade at the same time, say with double the lots and move your stops, etc. etc.
"Its not where your at, but where your coming from"
mmmmm.... what to say about today? Well I got stopped out at 50 pips which I believe makes us negative so far this week. What can I say... The markets this week have been quite thin....

NFP.... could this be the reason. Is it best just to sit this week out?

What do you guys think?
Today this system made 44 pips on the first trade. You could have taken a second trade for another 44 pips but this system has rules not to re-enter a trade in the same direction next candle after a stop. So it would not have been taken.

Cheers
Here is the chart.
Attached Image
File Type: bmp Example 2.bmp   673 KB | 857 downloads
This is an indicator that I am trying to put together with my limited JAVA101. I am still trying to finalise the signals.

No one has come forward regarding the development of an EA yet.

So far trade is looking good for today. Profit 1 and 2 hit for 44 pips and profit 3 still in play. A possability profit 3 could be hit as it level with the high of yesterday.

Cheers
Attached Image
File Type: bmp Example 3.bmp   495 KB | 785 downloads
Hi People ok is it possible for someone to write a program to back test a few variations of these strategie's so as to let us know which is best. I think there are about 4-5 variations now.

I can provide 1 minute data going back to 2002 that can be imported into Metatrader but I can't code :-).

So if someone would be willing to do that then let me know and I will go through this thread again and write you technical specifications on all of the variations.
Hi Micardo,

I agree with you and you have laid down a very well thought out strategy here, Kanmanda has a different one etc. I thought it may have been possible to get an EA developed with different variables so people would be able to pick there own way of trading the daily range. Since no one has come forward to help with the EA I might start a new thread? I do not want to confuse two many different strategies for the daily range. And I don't want to takeaway from the stratagy you are developing and using.

Cheers
Markj its upto you but I really think it would be best if we back test to compare each strategy first then once we find this out we put get to work on that EA.

Give a few more days if you can to see if we can get someone to come forward. You are in no way taking away from this thread.... You are definitely contributing a hell of a lot and it would be a shame to lose your insight.

I am in the middle of the specs now and should have them finished in about an hor and a half. I will then post it so you can see and make sure it looks fine. By te way how dod you place your stop loss and also what exactly did you mean by

"Second trade would have been entered on the 1GMT time. The reason it was not entered at 12gmt time candle is that I will never re-enter a trade in the same direction on the next candle when trade has been stopped."

How could I turn that into an instruction for the backtesting/EA etc?
Ok guys here are the specs.... Not quite finished yet but nearly there.

Markj and Kamanda, I think I have your strategies down correctly but could you please take a look and confirm. Also in particular could you fill in the red parts that are associated with your strategies.

Thanks guys.... Hopefully we can get this show onthe road.
Attached File
File Type: doc Strategy's.doc   35 KB | 743 downloads
Micardo,

Great. The worst thing that I wanted to see was a confusing thread regarding 100 different ways of trading the system. But if we can pull it into line and repost to the front of the thread, then great. Don't know about you but when reading some of these thread you lose interest very quickly when the system gets so many variations that it becomes impossible to follow who is trading what and the results.

Regarding the 12GMT, 1GMT entry. A rule I adapted to this system was never re-enter an order (if it has been closed out) in the same direction on the next hour candle. It is however ok to enter on 2nd candle. The reason I applied this rule is that if an order is closed out it can rebound quickly only to continue down direction the next candle. A lot of the time a order stop especially if only the 3rd profit is left has a big move so is inclined to a temp reverse. I found waiting for the 2nd candle kept you out of a lot of false rebounds.

Cheers
To Be fair I completely agree with you....

I will try to find a way to put a summary at the beginning of this thread stating that there are four main strategies that are being tested on this thread. I'll also attach the complteted spec so anyone can quickly come in and have alook at where we are currently at with it.

Also I wander if there is away to post summary results at the front of the thread as well. This way people can literally come in read the first post and be up to speed on the Strategies we are testing and their results.

Merlin.... Is there away to do this :-)
Quoting Micardo
Ok guys here are the specs.... Not quite finished yet but nearly there.

Markj and Kamanda, I think I have your strategies down correctly but could you please take a look and confirm. Also in particular could you fill in the red parts that are associated with your strategies.

Thanks guys.... Hopefully we can get this show onthe road.
Micardo,

I completely understand yours, but on the other 3 you've left some questionable blanks. In Markj's strategy you have trade cancelled at xxx. What does this mean?

What is "profit target strategy" mean?

Is it fair to say that Markj's strategy is one you have to watch at the computer all the time, whereas the other ones can be setup?

For some reason I thought the OCO he was referring to on the NY open strategy was an OCO for multiple trades in a day, so glad you cleared that up. Basically you only enter 1 trade a day with that strategy. Also, what is NY open now? Before NY open was GMT-4, now it is GMT-5, so I wonder if this affects the trading since GMT is GMT.

Thanks for your help.
I love Markj's strategy. I get up for like 5 minutes in the middle of the night (eastern time zone), set my entry orders with the appropriate profit targets. I have an alarm system that I will set to let me know when one of the 30 pip profit targets is hit, or the stop loss. This wakes me up, so that I can reenter an order if a stop loss has been hit, or move my stop loss if a 30 pip profit has been hit.

I wake up at 6:00 for work and see how things are going, and off to work I go. I get to work early so I can set alarms on my computer here at the office too. Of course, sitting in front of a computer anyway is very beneficial to me. I love that it can be mechanically traded though.
One thing I am adding to it is moving the stop loss to lock in any profit (instead of breaking even) right before a news announcement like ISM, for example. That way in case it causes a big dip, I can keep that profit. If the news doesn't effect the pair in this way, I will put the stop loss back to breakeven, to allow the trade to breathe.
Llambert,

The Blanks and writing in Red is where I need to the creaters of the strategy to put there input as it is not completely clear to me and I don't want to get anything wrong.

Once I have this information I will collate all of the information and post a final guideline document.

It is then our intention to find someone who code to back test these systems over a period of years to see which is most profitable.

I'll then post the results for each of these strategies, hope fully with monthly summaries, Max Draw Down etc.

The My friends we might actually of found a way of trading that gets rid of the emotions and you just simply fund your accounts, turn on the EA and watch your account grow :-)
Quoting Micardo
Llambert,

The Blanks and writing in Red is where I need to the creaters of the strategy to put there input as it is not completely clear to me and I don't want to get anything wrong.

Once I have this information I will collate all of the information and post a final guideline document.

It is then our intention to find someone who code to back test these systems over a period of years to see which is most profitable.

I'll then post the results for each of these strategies, hope fully with monthly summaries, Max Draw Down etc.

The My friends we might actually of found a way of trading that gets rid of the emotions and you just simply fund your accounts, turn on the EA and watch your account grow :-)
Ok understood. I am a programmer, but not in Metatrader (YET hee hee) so can't help with that. I have done some manual backtesting using your strategy modified. Actually liking what I see.
OK..... I have someone who is going to back test our systems for us over a period of years and then will write the EA...... YAY!!!!!!!

We need to provide him with details first though. SO Kamanda and Markj, could you guys both provide me with the following details please:

Summary of Results for the past 2 months -

Number of Trades:
Number of Wins:
Number of Losses:
Amount of Pips Profit:

Could you also complete my specification that I attached in the earlier post.


Once I have all of this info then I can give this to the guy and he will backtest over a period of years and also write the EA for us.... then my friends we have our automated system.

We just need to turn the key and watch it grow :-).
Micardo,

Here are the answer.

Strategy Three<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

<o> </o>

This system places trades as they hit either, 20 pips below <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><st1:City w:st="on">London</st1:City> open or 20 pips above <st1lace w:st="on"><st1:City w:st="on">London</st1:City></st1lace> open. This is not a two order straddle where you set two orders at separate points to enter trade and that’s it for the day. In this systems you may enter 1,2,3,4 or even 5 trades in a day. But normally averages around <?xml:namespace prefix = st2 ns = "QV10" /><st2:bcv_smarttag w:st="on">2 or 3</st2:bcv_smarttag>.

I then trade 3 lots when either line is reached with 3 different profit levels. 14, 30 and 80.

“Second trade would have been entered on the 1GMT time. The reason it was not entered at 12gmt time candle is that I will never re-enter a trade in the same direction on the next candle when trade has been stopped.”

<o></o>

1) Place Buy and Sell orders 20 pips away from London Open – 3 lots each<o></o>

2) 3 take profit levels 14, 30 and 80 pips<o></o>

3) Stop Loss is placed at the NY close. Stop for third profit is placed to breakeven when 2 profit is collected<o></o>

4) the above recycles itself through out the day every time the price goes back below or above as it may be the entry price.<o></o>

5) All trades are cancelled at NY Close and reset.<o></o>

<o> </o>

Example<o></o>

1) <st1lace w:st="on"><st1:City w:st="on">London</st1:City></st1lace> open = 1.8800 so Buy 3 lots at 1.8820 and Sell 3 lots at 1.8780<o></o>

2) Take profit on lot one at 14 pips - Take Profit on Lot <st2:bcv_smarttag w:st="on">2 at 30</st2:bcv_smarttag> pips – Take Profit on Lot <st2:bcv_smarttag w:st="on">3 at 80</st2:bcv_smarttag> pips<o></o>

3) Stop Loss is placed at the <st1:City w:st="on"><st1lace w:st="on">London</st1lace></st1:City> open. <o></o>

4) 4) If we are entered into a long trade and the market retraces back below 1.8820 and stops us out then a new order is placed again at 1.8820 with the same above parameters. The same is true if we are in a short trade and the market retraces back up and stops us out.<o></o>

5) All orders are cancelled and rest at NY Close

October

Total Trades - 37

Losing trades – 15

Number of winning trades – 22

Pips profit – 874

<o> </o>

September

Total Trade – 27

Losses – 9

Winning Trades – 18

Pips Profit – 1132

I am presently finalising documentation and indicators regarding this system and will post here on completion.

Great news regarding the EA. Look forward tio completion.

Cheers
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