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Average Daily Range (ADR) - code check 8 replies

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Attachments: Daily Trading Strategy [ADR + RSI = High Probability]
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Daily Trading Strategy [ADR + RSI = High Probability]

Quoting meck1
{quote} Yea trending pairs are a disaster with counter trading strategies, I was also thinking maybe taking trades which fulfill the requirements at a major S/R level maybe. That way the stop will be protected by the S/R level plus we'll be trading the bounces of those levels. Pretty good confluences.
Or trade should be in the direction of the trend
Quoting PipBros
{quote} Or trade should be in the direction of the trend
Trading in the direction of the order flow, makes sense
"Cut your loses short and let the winners Run"
200HMA on the daily perhaps?
eurgbp 5min signal
Quoting broncoviz
eurgbp 5min signal
Not seeing it. We haven't gone over 100% ADR?
Quoting meck1
Trades from the past 20 days using 1:1 risk reward ratio Wins Loses GbpUsd 15 3 EurUsd 14 3 UsdJpy 10 6 UsdChf 13 2 UsdCad 10 2 AudUsd 10 1 EurGbp 14 0 EurAud 8 5 EurChf 14 2 EurJpy 8 4 If we are risking 1 % per trade so that all trades are equal despite pips made we would make 116 - 28 = 88% profit in the past 20days Here I didn't add anything to the system, I just followed the rules and avoided trades at 10pm GMT+2 ( because of big spreads) and also no trades on NFP (because spikes will distort ADR readings). I'll backtest 10 more pairs tomorrow...
Bro the only way we can know if it is sustainable is if you choose to back test a random month eg August 2019, April 2020 or any random month from the past and we compare results. Otherwise, good job done. Remember that the market keeps mutating, so if this system can withstand the mutation, then we are good to go
Quoting edwinjil
{quote} Bro the only way we can know if it is sustainable is if you choose to back test a random month eg August 2019, April 2020 or any random month from the past and we compare results. Otherwise, good job done. Remember that the market keeps mutating, so if this system can withstand the mutation, then we are good to go
That's very true , if it survives random months it will really be impressive. We'll find a way to run it through more past data
"Cut your loses short and let the winners Run"
Quoting meck1
{quote} That's very true , if it survives random months it will really be impressive. We'll find a way to run it through more past data
So, finding a long term historical ADR indicator is pretty key at this point I think.

Next week I'm going to try applying a HMA (haven't decided on the period) to the daily to confirm trade direction and also take early profit or loss if the MACD LWMA starts to turn back. Hopefully this can avoid full losses whilst not damaging profit potential. Still an initial 1:1 RR.
Hi, if someone makes an indicator with this strategy, I can discover the best SL-TP/RR.

All the best.
The past is history, the future is a mystery.....
Quoting sixbuttons
{quote} So, finding a long term historical ADR indicator is pretty key at this point I think. Next week I'm going to try applying a HMA (haven't decided on the period) to the daily to confirm trade direction and also take early profit or loss if the MACD LWMA starts to turn back. Hopefully this can avoid full losses whilst not damaging profit potential. Still an initial 1:1 RR.
What about the one in Post 284.
Can I ask you, people, something?
Are you looking for 5 pips on every trade or you go for more based on the RR
Quoting christos1967
Can I ask you, people, something? Are you looking for 5 pips on every trade or you go for more based on the RR
based on sl,tp should be as much as your sl is,thanks
Quoting Pip Bull
{quote} What about the one in Post 284.
Unfortunately it only goes back a couple of weeks.
Hey Guys,

Firstly, apologies I've not been active on this thread over the past week, but I've been keeping a close eye on it and I'm so happy of the success people have been having with this strategy. I would also like to thank meck1, PipBros, varseb, Brmg3620 and the others who have been posting their before and after charts.

I've also enjoyed reading about the slight variations to the entry/stop/take profit as their is not official rule, it what works best for you - more on this later.

Two main things from reading the comments is an MT4 template and reward to risk. I've addressed both these points in my video below.

In the video I walk through the chart set-up I use to trade this strategy and why each one is important. I forgot to mention about the MACD LWA, but you know what it's for by now!

The template and all the indicators needed are attached below. The only indicator that is not below is the Round Numbers indicator which you can get free here: https://www.mql5.com/en/market/product/20933

The second part of the video talks about risk management and not every trade is considered equal. Each trade will have a different PROBABILITY of reaching your TP target. There are two factors that influence the probability - MARKET CONDITIONS / HOW BIG YOUR SL AND TP IS

Marketing Conditions - The video walks through 3 indicators to gauge market conditions, which will give you a steer on how much you should risk. It's a mechanical methodology which you can download the Google Sheet below and use it to determine how much to risk per trade. Your risk parameters may be different to mine so please adjust accordingly.

Risk Calculator - https://docs.google.com/spreadsheets...it?usp=sharing

The theory is that if you have a R:R of 1:1 you need a win rate greater than 50% to be profitable. The assumption here is that your risking the same amount per trade. To be a successful trader, you need to know what the probability is of a winning outcome and risk according to the probability. The risk calculator is a simple start of how you can start adding this element to your trading.

How Big Your SL/TP Is. For example - the bigger the TP the lower the probability of a winning outcome. I suggested in the OP video a R:R of 1:1. This is a guide, but you need to adapt this based on market conditions e.g. is there a significant round number / MA that price needs to get through before hitting your TP? In this example, when price hits the significant level, you could move your top to BE and take the risk of the table. I will create a video on this in more detail and things to look for when setting SL/TPs.

Inserted Video


I'm hoping to record a few live trades over the next couple of weeks to walk you guys through my approach further on this strategy.

Looking forward to the feedback and successes on this strategy on the new trading week!

MT4 Template

Attached File
File Type: tpl 10 pips a day.tpl   53 KB | 264 downloads


Indicators

Attached File
File Type: ex4 MACD LWMA v1.01.ex4   11 KB | 324 downloads
Attached File
File Type: ex4 OGT ADR Indicator v1.1.ex4   41 KB | 273 downloads
Attached File
File Type: ex4 OGT Trend Dashboard v1.2.ex4   61 KB | 307 downloads
Attached File
File Type: ex4 OGT RSI MTF Indicator v1.1.ex4   15 KB | 277 downloads
Never stop investing. Never stop improving. Never stop doing something new
Quoting zoheb01
Hey Guys, Firstly, apologies I've not been active on this thread over the past week, but I've been keeping a close eye on it and I'm so happy of the success people have been having with this strategy. I would also like to thank meck1, PipBros, varseb, Brmg3620 and the others who have been posting their before and after charts. I've also enjoyed reading about the slight variations to the entry/stop/take profit as their is not official rule, it what works best for you - more on this later. Two main things from reading the comments is an MT4 template...
Glad to see you back and the risk calculater makes alot of sense. Let me play around with it and check it out and thanks for the detailed video
"Cut your loses short and let the winners Run"
Quoting BWilliam
{quote} Try this adr band that shows the day high/low(gold dot line) and the ADRhigh(Green) and ADRlow(Red). Input options for period, color and lookback. Cheers. {file} {image}
This is great, thank you
  • Post #417
  • Quote
  • Edited Aug 17, 2020 8:15am Aug 16, 2020 8:40am | Edited Aug 17, 2020 8:15am
I have been reading this read with interest, thank you for sharing your idea.

As a method to enhance or increase the R:R, maybe identifying the phase that the currency is in on M5 might be useful? See attached.
EW rules say that wave 4 must not go lower than the high of wave 1 and wave 3 is generally the longest.

Your method in this thread has alerted to a potential sell on this pair, ADR reached and a MACD cross although not over the zero line yet.
That is, if I am reading the thread correctly, please correct me if I am incorrect.

I think wave 4 will go somewhere down my red drawn line and wave 5 will exceed the wave 3 high.
Hopefully makes sense and helps? I am still learning EW, and your method, hopefully this will not detract from it.
Scchplendid

17th August edit - price went down to almost touch the blue line then continued upwards
Attached Image (click to enlarge)
Click to Enlarge Name: AUDCAD wc 17th.PNG Size: 73 KB
Quoting zoheb01
Hey Guys, Firstly, apologies I've not been active on this thread over the past week...
Thank you for your contribution Zoheb01, I'm more excited to trial a strategy than I have been for a long time.

Loving your risk calculator and will be adopting that approach 100% going forward.

Looking forward to a great week of trading ^_^
Hello Zoheb 01,
interesting strategy, I take a closer look. maybe a helpful tool here. if not, sorry for posting.
Attached File
File Type: ex4 FOREX_Info_Positionsrechner _V3.ex4   30 KB | 194 downloads
Quoting meck1
{quote} Glad to see you back and the risk calculater makes alot of sense. Let me play around with it and check it out and thanks for the detailed video
meck11 I have a doubt,from what time do you star operating this strategy?
I have a doubt, from what time do you start operating this strategy?
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