My Breakout Strategy

Hi Luvene,
nice you've picked up this conversation. I can't write or receive PMs due to "Private Messages Restricted Per Member Status "...

Anyway ;-)

I think I found partly an answer according to our close trades and delete pending orders question:
"6. Close all positions when next orders are set" this is from the first post of this thread.

It's clear to me to close and delete all morning trades and POs at a few minutes before 13:00 (GMT+1/CET, Amsterdam, Berlin, Vienna,...) and it makes sense. It's not so clear with the 13:00 DAX trades/POs and the 15:00 Nasdaq100 trades and POs. For the moment, as I mainly focus on DAX as well, I close all DAX positions and POs at 17:30 (GMT+2/CET) when the DAX main session closes at Frankfurt stock exchange.
Although some screenshots of the initial post from RenkoBuddy show a DAX session end at 14:00 (supposedly GMT = 15:00 GTM+1/CET), I'm not sure to go with this as volatility of DAX remains usually high until 17:30 GMT+1/CET.
On the other hand, closing the noon DAX trades/POs shortly before 15:00 GMT+1, before placing the NQ100 POs at 15:00 GMT+1/CET, would be consistent according to the rule "6. Close all positions when next orders are set".

Therefore I placed my question in this thread. Maybe I/we get an answer or it's up to us to find it out on ourselves with back- and foreward-testing. Forex Tester 4 and MT4's strategy tester are good starting points.

I'm starting with MQL coding at the moment to implement the simple rules into an EA but it's harder than expected as my c++ programming skills are a bit rusty after a pause of 15 years and, although there are similarities, the MQL dialect is rather special according to the functions, classes and objects. Maybe a visual strategy builder approach could help as the logic if this strategy is so simple and should be easily implementalbe even with a visual tool. Only the calculation of the time conversion between server time (GMT+2,+3,...) and GMT+1/CET considering summertime/DST and the proper money management with different DAX- and NQ100-CFD calculation schemes is a little bit more complex. But as long the AE is only used privately it can always be modified when necessary without taking all eventuallities into consideration.

Cheers
Michael

Hi Michael,

Thanks for your response , I am a bit wiser. I think the method is pretty good, the future will tell! It sounds a bit strange, accepting more loss (50 points) than winning (20 points). But we should do what others don't..........right

The EA only works on one PC so I can't share it. For the time being I will continue with back testing forward and maybe backwards as well. It promises a lot, yesterday I was able to make 3 trades, 2 on the DAX and 1 on the Nasdaq. All good and 60 points in the pocket. Today the first also went well (SHORT). Since it ended in profit, I leave the BUY STP order at the top of the range with +5 on it because due false moves. Of course 20 TP and 50 SL. When the first had ended in a loss it would have become a recovery trade with 50 TP and 50 SL. Yes, you can indeed lose up to 100 points in a day, but how often does that happen? That's the question. I'm going to investigate. Fun!

Hey Luvene,
thanks for sharing your thoughts. This Range Box Trader looks rather sophisticated and suitable for the given task. Only the recovery trades have seemingly to be placed manually, right? Or is "Reverse" an indication for such a function? And there are some nice features as SL to BE at a certain profit or Trailing Stops which can be tested as well.

Have found the product page of ther Range Box Trader but it's not available any more.

Cheers

Hi Michael,

Despite my initial enthusiasm, I can tell you that the strategy seems very promising, but in practice the results are very disappointing! I have tried a lot in consultation with the EA, so the range in time and the size of the box as well as the TakeProfit and Stoploss settings. As the strategy is now, it is not good. You will have to add an indicator or whatever to improve. For as it is now it is gambling trading, please believe me. If you look for a number of days, it often looks good, but you really have to make at least 100 trades to gain some insight information into whether this is really good. I tested it with the Strategy Tester in MT4 and believe me, I know how to do that (!) But the results are not promising. Also not very bad, it is often a small loss and sometimes a small profit with certain settings, but it is not really interesting.

In addition, I find a range between 8.00 and 9.00 much more interesting than a range between 1.00 and 9.00. The range between 12:00 and 13:00 is less interesting. And I really ask my questions about the fact of accepting 50 points stop loss and only 20 points profit. And then that recovery trade with now 50 for 50 points ...... that seems like a real suicide in the long run! The construction looks interesting and after a few good results you are soon inclined to think that it will continue to go well over time, but it is purely gambling trading. I want to warn you and others about it.

I know for a long time that it is almost impossible to consistently withdraw money from the market with an EA for intraday trading. I have been working on it for years and still ..... I still keep trying but you have to forget it! It is doable but then you only have to activate the EA when you yourself have visually determined that the situation is favorable at that specific moment. Otherwise stick to manual trading.

Good afternoon I would like to leave my contribution here.
I only work with the US30 asset.
The range of the H4 sail from 09:00 to 13:00 broker is very satisfactory ASSETS (US30) High and low Sail H4 from 09:00 to 13:00
Heads up Grateful good weekend Green pips for everyone

Thanks for your contribution May I ask which time zone 09:00 - 13:00 you use? GMT? GMT+1?

Good afternoon US30 has a different H4 candle closing, as it opens the Market 01 hour later. I'm in Brazil (-3).