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Attachments: Breakout + Spread!! Sure!!!
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Breakout + Spread!! Sure!!!

  • #301
  • Jul 23, 2007 2:02pm Jul 23, 2007 2:02pm
Ok guys. Hi

I've had a look at this indi and really like it. The only thing though is that I see most are using 3hours to draw the box, and which 3 hours during the Euro opening session seems to differ as well.

So try my take on it. No matter what charting you use, use GMT time. I am only using 2 hours to calculate my box. And that will 5GMT till 7GMt.

Europe opens at 7GMT.

I use a 15min TF, but you can use anything from 1min to 30min, and here's why. On my 15min chart I have placed a 30min 30ema.

So from 5GMT to 7GMT my 'breakout zone' has been determined yeah. So now I wait, and wait, chat to mates on SKYPE, and wait some more, have breakfast and wait some more till the breakout occurs. The breakout occurs, I don't enter then. I go brush my teeth, make a cup of tea and then come back to my computer to trade.

The reason for explaining it this way is for those who are always wanting to 'pull' the trigger and chase the market. Yes there are those who are able to do that, I'd rather go make a cup of tea and relax.

Why relax? Because once the breakout has occured, I will place an order 3 pips away from my 30min 30ema, in the same direction of breakout. This way, I am waiting for the pullback to the 30ema. My stop can then be 15 pips other side the 30min 30ema.

If the breakoput was false and I entered the trade and the market came back and hit my stop, I lose. But most breakouts occur in that zone have a pullback to roughly the 30min 30ema. That way when my order no gets triggered, many time it's on par with what the breakout was, some times even a bit better, but at least my stop is now for of certain than just chasing after the market.

If the breakout was false, then many time you are able to enter a trade in the opposite direction, enter at the half way price of the high and low of your 'breakout zone'. Then also use 20 pip stop.

I will then all day long keep placing orders 2 pips from the 30min 30ema, but now my stop can be smaller.

We can only be wrong once during the day, the other way has to work.

Don't chase em, let them show you there hand, then let them come fetch your business.

Kind regards always
Susan
Attached File(s)
File Type: ex4 30MIN 30EMA.ex4   3 KB | 741 downloads
File Type: mq4 30MIN 30EMA.mq4   4 KB | 942 downloads
  • #302
  • Jul 23, 2007 2:02pm Jul 23, 2007 2:02pm
Hi everyone,

I did a backtest on GBPUSD and I got good numbers.

I do not know how to use EA so I download historical data form
September 2006 to July 2007. I got 1,525 pips in profit. I download
it to a Dbase or FoxPro DB and played with it.

I hope I made no mistake on programming.

The data I used was
Time 6:00 to 9:00 (please let´s no start the time thing)
A target of 35 Pips.
A StopLoss of 50 pips (I found these numbers to be the best)

If a trade was open in ethier directon but the target was not meet, then
the deal is closed at day end.

I attached an XLS file for you. Even when the file I used
is 30 min chart the time frame is from 6 to 9. The importat fields are...

The Hours and Minutes look like 6-0 or 6-30 is actually 6:00 and 6:30.
HighReached and LowReached: which are the high and low of the TimeBox.
This Line is just below the end of the 9:30 data line at 9:30 candle close.

Signal: This is the Line when the profit, Stoploss or end of the day
is reached.

Pips: Pips made.

Example for the first 13 lines of the file
Line 10 shows a High of 1.8955 and a Low of 1.820(This is our timeBox)
Line 12 show "Short TP" and 35 Pips. It means that the Action was going
short and the TakeProfit was hit.

Hope it helps.
PD The XLS file also includes a screen dump of my chart.
I´m in Mexico with my time set at GMT-6.

Best Regards,
Attached File(s)
File Type: zip gbpusd.zip   468 KB | 1,200 downloads
  • #303
  • Jul 23, 2007 2:24pm Jul 23, 2007 2:24pm
Sorry, I forgot to mention an extra filter I use.

Still on 15min TF in the same window I have a 60min 5-3-3 stoch and a 4hr 8-3-3 stoch.

Just following them with the 30ema, you will win more often than not.

One last word, I have mates who are keeping a watchful eye on many currencies, 5 to 8 etc.

If you concentrate just on 3, then there is no reason why 50 pips a day cannot be the norm. And personally I do not trade eur, as I make my tea in my time. I don't let a currency have me wait on it to move snail pace.

I just trade gbpusd, usdchf and euryen and I average no less than 60 pips a day no sweat. And don't get me wrong, I'm not trying to blow my own horn. It's just that we always read that we have to aim for 20 pips a day. Well that's what I read and learnt when I started a year ago. And I personally think that slowed my growth rate down extremely much.

This is probably the most easiest and simplest method one can use. It works and it's very profitable. As you get more experience you'll learn to close only some of your positions and leave some over night. After weeks and weeks and months and months you'll have so many many small positions that all have a healthy profit, that you'll be able to only have to trade 2 mayb 3 days a week.

And that is the idea is it not. Tha's why we all started off slaving in front of the screens, learning and learning method ater method. So we can enjoy time with our families and friends.

It's just a note to all who feel down, or disheartened or whom think it cannot be done, it can you will yeah.

Kind regards always
Susan
Attached File(s)
File Type: ex4 4hrStoch.ex4   5 KB | 612 downloads
File Type: mq4 4hrStoch.mq4   3 KB | 779 downloads
File Type: ex4 60min stoch.ex4   5 KB | 631 downloads
File Type: mq4 60minStoch.mq4   3 KB | 764 downloads
  • #304
  • Jul 23, 2007 3:31pm Jul 23, 2007 3:31pm
Quoting spiritbreezer
Ok guys. Hi

I've had a look at this indi and really like it. The only thing though is that I see most are using 3hours to draw the box, and which 3 hours during the Euro opening session seems to differ as well.

So try my take on it. No matter what charting you use, use GMT time. I am only using 2 hours to calculate my box. And that will 5GMT till 7GMt.

Europe opens at 7GMT.

I use a 15min TF, but you can use anything from 1min to 30min, and here's why. On my 15min chart I have placed a 30min 30ema.

So from 5GMT to 7GMT my 'breakout zone' has been determined yeah. So now I wait, and wait, chat to mates on SKYPE, and wait some more, have breakfast and wait some more till the breakout occurs. The breakout occurs, I don't enter then. I go brush my teeth, make a cup of tea and then come back to my computer to trade.

The reason for explaining it this way is for those who are always wanting to 'pull' the trigger and chase the market. Yes there are those who are able to do that, I'd rather go make a cup of tea and relax.

Why relax? Because once the breakout has occured, I will place an order 3 pips away from my 30min 30ema, in the same direction of breakout. This way, I am waiting for the pullback to the 30ema. My stop can then be 15 pips other side the 30min 30ema.

If the breakoput was false and I entered the trade and the market came back and hit my stop, I lose. But most breakouts occur in that zone have a pullback to roughly the 30min 30ema. That way when my order no gets triggered, many time it's on par with what the breakout was, some times even a bit better, but at least my stop is now for of certain than just chasing after the market.

If the breakout was false, then many time you are able to enter a trade in the opposite direction, enter at the half way price of the high and low of your 'breakout zone'. Then also use 20 pip stop.

I will then all day long keep placing orders 2 pips from the 30min 30ema, but now my stop can be smaller.

We can only be wrong once during the day, the other way has to work.

Don't chase em, let them show you there hand, then let them come fetch your business.

Kind regards always
Susan

Hi Susan... I like what I read here... is it possible to share some charts of what you are doing ? thanks so much, cheers Walter.

By the way thanks for the so encouraging words ¡¡ yes it can be done.
{Promotion Removed}
  • #305
  • Jul 23, 2007 3:58pm Jul 23, 2007 3:58pm
Quoting rtrevino
Hi everyone,

I did a backtest on GBPUSD and I got good numbers.

I do not know how to use EA so I download historical data form
September 2006 to July 2007. I got 1,525 pips in profit. I download
it to a Dbase or FoxPro DB and played with it.

I hope I made no mistake on programming.

The data I used was
Time 6:00 to 9:00 (please let´s no start the time thing)
A target of 35 Pips.
A StopLoss of 50 pips (I found these numbers to be the best)

If a trade was open in ethier directon but the target was not meet, then
the deal is closed at day end.

I attached an XLS file for you. Even when the file I used
is 30 min chart the time frame is from 6 to 9. The importat fields are...

The Hours and Minutes look like 6-0 or 6-30 is actually 6:00 and 6:30.
HighReached and LowReached: which are the high and low of the TimeBox.
This Line is just below the end of the 9:30 data line at 9:30 candle close.

Signal: This is the Line when the profit, Stoploss or end of the day
is reached.

Pips: Pips made.

Example for the first 13 lines of the file
Line 10 shows a High of 1.8955 and a Low of 1.820(This is our timeBox)
Line 12 show "Short TP" and 35 Pips. It means that the Action was going
short and the TakeProfit was hit.

Hope it helps.
PD The XLS file also includes a screen dump of my chart.
I´m in Mexico with my time set at GMT-6.

Best Regards,
Nice job!!!!

I am humbled at the quality of your work. Thanks very much!
  • #306
  • Jul 23, 2007 4:10pm Jul 23, 2007 4:10pm
Quoting spiritbreezer
Ok guys. Hi

I've had a look at this indi and really like it. The only thing though is that I see most are using 3hours to draw the box, and which 3 hours during the Euro opening session seems to differ as well.

So try my take on it. No matter what charting you use, use GMT time. I am only using 2 hours to calculate my box. And that will 5GMT till 7GMt.

Europe opens at 7GMT.

I use a 15min TF, but you can use anything from 1min to 30min, and here's why. On my 15min chart I have placed a 30min 30ema.

So from 5GMT to 7GMT my 'breakout zone' has been determined yeah. So now I wait, and wait, chat to mates on SKYPE, and wait some more, have breakfast and wait some more till the breakout occurs. The breakout occurs, I don't enter then. I go brush my teeth, make a cup of tea and then come back to my computer to trade.

The reason for explaining it this way is for those who are always wanting to 'pull' the trigger and chase the market. Yes there are those who are able to do that, I'd rather go make a cup of tea and relax.

Why relax? Because once the breakout has occured, I will place an order 3 pips away from my 30min 30ema, in the same direction of breakout. This way, I am waiting for the pullback to the 30ema. My stop can then be 15 pips other side the 30min 30ema.

If the breakoput was false and I entered the trade and the market came back and hit my stop, I lose. But most breakouts occur in that zone have a pullback to roughly the 30min 30ema. That way when my order no gets triggered, many time it's on par with what the breakout was, some times even a bit better, but at least my stop is now for of certain than just chasing after the market.

If the breakout was false, then many time you are able to enter a trade in the opposite direction, enter at the half way price of the high and low of your 'breakout zone'. Then also use 20 pip stop.

I will then all day long keep placing orders 2 pips from the 30min 30ema, but now my stop can be smaller.

We can only be wrong once during the day, the other way has to work.

Don't chase em, let them show you there hand, then let them come fetch your business.

Kind regards always
Susan
Susan, thanks for taking the time to contribute to our group effort. It is very refreshing to hear a new voice with positive ideas (Wow! I have only dreamt of 60 pips a day). Do you trade all three pairs during the London session?

OK...I will test out your ideas when the maket opens tomorrow. Would you mind if we ask follow up questions?

Thanks for sharing and being open with your ideas, I am sure that we are all very grateful .
  • #307
  • Jul 23, 2007 4:36pm Jul 23, 2007 4:36pm
Quoting Skygod
Nice job!!!!

I am humbled at the quality of your work. Thanks very much!
Thanks Skydog. I will dive more in to it. I think we can make this
strategy work. Will be posting more results soon.

Reynold
  • #308
  • Jul 23, 2007 5:04pm Jul 23, 2007 5:04pm
Quoting spiritbreezer
Sorry, I forgot to mention an extra filter I use.

Still on 15min TF in the same window I have a 60min 5-3-3 stoch and a 4hr 8-3-3 stoch.

Just following them with the 30ema, you will win more often than not.

One last word, I have mates who are keeping a watchful eye on many currencies, 5 to 8 etc.

If you concentrate just on 3, then there is no reason why 50 pips a day cannot be the norm. And personally I do not trade eur, as I make my tea in my time. I don't let a currency have me wait on it to move snail pace.

I just trade gbpusd, usdchf and euryen and I average no less than 60 pips a day no sweat. And don't get me wrong, I'm not trying to blow my own horn. It's just that we always read that we have to aim for 20 pips a day. Well that's what I read and learnt when I started a year ago. And I personally think that slowed my growth rate down extremely much.

This is probably the most easiest and simplest method one can use. It works and it's very profitable. As you get more experience you'll learn to close only some of your positions and leave some over night. After weeks and weeks and months and months you'll have so many many small positions that all have a healthy profit, that you'll be able to only have to trade 2 mayb 3 days a week.

And that is the idea is it not. Tha's why we all started off slaving in front of the screens, learning and learning method ater method. So we can enjoy time with our families and friends.

It's just a note to all who feel down, or disheartened or whom think it cannot be done, it can you will yeah.

Kind regards always
Susan
Hi Susan,

This is very encouraging to see that you are making good pips everyday. I am a bit confused about the 30min 30 EMA. The 30 EMA is calculated from 30 periods depending on what timeframe you apply it too. So if you apply a 30 EMA to a 30 min chart is calculates 30 x 30 min time periods. So if you apply a 30 EMA to a 15 min chart it calculates 30 x 15 min time periods. So if you apply a 30 EMA to a 15 min chart and to a 30 min chart it is not plotting identical lines on each chart. If I place a 30 EMA on a 30 min chart to get the same line or close to it I would need to plot a 60 EMA on a 15 min chart.

Can you clarify what you mean by a 30min 30EMA?
  • #309
  • Jul 23, 2007 7:19pm Jul 23, 2007 7:19pm
Quoting Xenjin
I stopped beleiving in breakout systems like these after I saw Hans123 system performance for this year. It worked for over 3? years, and now its a pity it stopped since the beginning of this year.
Breakout systems work in theory -- if you can handle the monotony of drawdowns that follow.

My primary system that I use (I have one I use and one automated system on futures contracts) does 650 pips consecutive drawdown. That's enough for me. But I get 900-1300 consecutive pips runup...

Hans123 system will do 400 pips in the red, 50 in the black, 200 in the red, 200 in the black, 1000 in the red, etc...

That sucks. I can't handle 6 out of 12 months losing... that's a horrible system IMO and wouldn't pass my development.
Mr. Trend
  • #310
  • Edited 3:27am Jul 24, 2007 3:24am | Edited 3:27am
Hi Spirirtbreezer,

I have been looking at your chart set up on the 15 min chart for gbp and I don't see many great set ups using the retrace back to the 30 EMA after the initial breakout. Could you post one of your recent trades so we could take a look at how you are trading the breakouts and what you look for?


Thank you...
  • #311
  • Jul 24, 2007 5:33am Jul 24, 2007 5:33am
Hi Spiritbreezer,

I'm very interested in your post, I've taken time to have a look at it and would like to go ahead and test it. Before I do please can you clarify the following:
What is your take profit target, or do you trail your trades?
Do you only trade when both stochastic's are in the direction of the breakout?
Do you only trade when the 30/30 sma is in the area of the breakout box?
If you could post a picture of a trade set up it would be great.

Thanks in advance.
Lord Lomotey
  • #312
  • Jul 24, 2007 6:07am Jul 24, 2007 6:07am
Hello Spiritbreezer...

Please take a look at the attached files. They are the pairs that you favor, gbp/usd - usd/chf - eur/jpy.

I used the 15 minute TF and added the 30ema and 60 min stoch (the 4 hr stoch does not seem to work).

It seems like your method did stop me from being "faked out" in usd/chf this morning . But here are my questions:

1) What to do when the 30 ema (blue line) is not in the box at the time of a break out??? Please see charts for gpb/usd and eur/jpy. On the e/j the 30 ema is way above the box and on the g/u it is way below the box during a break out. In the g/u chart, the break out is headed towards the 30 ema. Should these situations be a "no trade"?

2) The use of 60 min stoch.... Do you just look for a general direction (up or down) to confirm the trade, or do you actually wish to see it touch the "80" or "20 " level to confirm the trade?

3) What are your ideas about TP?

Please answer, if you have time. Thanks again for your help
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurjpy 07.27.07 8.21 gmt.jpg Size: 84 KB
Click to Enlarge Name: gbpusd 07.27.07 8.12 gmt.jpg Size: 84 KB
Click to Enlarge Name: udschf 07.27.07 8.21 gmt.jpg Size: 93 KB
  • #313
  • Jul 25, 2007 2:52pm Jul 25, 2007 2:52pm
Quoting climax
If I understood the rules correctly, buy or sell if the price goes thru the box with 15 pips stoploss, then I have some bad news.

see pic
Climax,
You could have made 10 pips on each of those trades...it worked perfectly from your example chart. A 15pip SL is way too small for the GBP/USD or GBP/JPY. I've used this system and often times I do not use any SL. The key is to keep it at 10pips only, depending on market condition.

If you feel more comfortable putting in a SL. I would recommend a SL 1 or 2pips above the High(above the box if in a short trade) and 1or2pips below the LOW(below the box if going Long).

This system is not 100% but it is very good break out system for 10pips a day. Very simple system. You may even trade without the assistance of the box. Often times I find the box annoying, so I tend to trade without it.
  • #314
  • Jul 26, 2007 6:45am Jul 26, 2007 6:45am
Sorry for being away for a while. But blame these forums for this.

We come here and take bits and pieces from every bodys threads and add them to our charts to see how they work. And by doing that we learn adapt and evolve in the field of Forex. Which is Fantastic.

I have changed, or rather evolved things to be much better now.

I'll share all I know with you know, as that way I know we can make it better. There's alot of info gonna follow so I'll break it up into bits. But stick with it.

Buckle up it's gonna be a bumpy ride!!
  • #315
  • Jul 26, 2007 6:56am Jul 26, 2007 6:56am
Quoting spiritbreezer
Sorry for being away for a while. But blame these forums for this.

I'll share all I know with you know, as that way I know we can make it better. There's alot of info gonna follow so I'll break it up into bits. But stick with it.

Buckle up it's gonna be a bumpy ride!!
Bumpy rides are my favorite....we would all love to hear about the changes. Bring it on.
  • #316
  • Jul 26, 2007 6:57am Jul 26, 2007 6:57am
I use these. I break the different time frame into segments. I'll take the open of that time frame, meaning that with the period seperators vertical lines on, I take it from the open of the new period.

So only a weekly time frame, I use the open of the new year. I'll draw a horizontal line, then lines above and below at 360 pip intervals. Using your fibo channel tool it's easier.

I then take the daily time frame, and draw a horizontal line on the open of the new month, then again pips above and below at 180 pip intervals.

Then on the 4hr time frame, again horizontal line at weekly open and horizontal lines 50 pip intervals up and down.

I will also only use one fib retracement, and that is from the high to low of last week. Or low to high depending on which way the trend went.

Picture 090 will get explained n next post.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ScreenHunter_087.jpg Size: 36 KB
Click to Enlarge Name: ScreenHunter_088.jpg Size: 32 KB
Click to Enlarge Name: ScreenHunter_089.jpg Size: 38 KB
Click to Enlarge Name: ScreenHunter_091.jpg Size: 24 KB
Attached Image
  • #317
  • Jul 26, 2007 7:17am Jul 26, 2007 7:17am
Ok, so the first pic then is of a 4hr chart, where I can see all the supp and res from all the time frames. It may look messy to some, but because you drew those lines, and made them your own, you will know what they eman.

On the previous post was a pic of the moving averages I use.

If you use an hourly chart, like the pic, and traded it naked, no candles or bars, and just when the 12nonlag crossed the 13 smoothed ma, then you will win way way way more than you lose.

Now using the sup and res lines in combination with this, pips on!

Ok, so now we know trand direction by looking at the hour chart and where the 10 non lag is in accordance to the 13 smooth yeah.

So now the juicy bits get started when we switch to 30min. Here we still look for 10non lag to cross the 12sma in way of trend.

Now the box thing. I have seen some guys post there charts for explanation, but they have a black background and the box is like aqua or something bright. I would suggest to change the colour of your boxes so that you can see what is happening on the inside.

My box time, not GMT as mentioned previously sorry about that. My charts are using Europe time, so GMT plus one.

My box times are still 05:00 to 07:00. The box is an addition to the setup of the crosses on the 30 min, like an affirmation.
Attached Image (click to enlarge)
Click to Enlarge Name: ScreenHunter_092.jpg Size: 69 KB
  • #318
  • Jul 26, 2007 8:02am Jul 26, 2007 8:02am
Ok, so we look at the juicy 30 min chart. I hope you guys are prepared for this, because you are going to be trading all day yeah.

On the 30min chart we use the 12 non lag and the 10 ma. We are looking to buy if the 10ma is above the 70ma and to sell if it is below.

Importantly are the stochs 5-3-3 of the 60min and 30 min. We do not trade against the hourly stoch.

We let the hourly and 30min help us with momentun and we let the nonlag and 10 tell us direction

In the first pic you see clearly how at 10:30 the nonlag was looking to cross the 10 down, at same time stochs were turning down, then we had it concide with the box breakout. All the while the stochs are showing momentum down and the ma are showing us direction down, we looking to sell.

If we get a bull candle we sell again 1 pip below it, and so forth.

The second example is of a bullish trend and the buys we do.

Now these are just naked charts, without the previous supp and res lines. So once combined it becomes more powerful.

Stops and exits. Well this is to each his own, but if you look at your 4hr supp and ress for the week, it will give you an idea.

I forgot to mention: If you look at price it's forever spiking up and down on the charts. Now the nonlag is like price, just it has the rough edges polished. So when it crosses another ma, like the 70ma or 4hr 50ema etc etc, it is a good sigh, so can enter at the cross only if stochs are on your side.

So in the second pic, when price broke out of the box, the nonlag crossed the 70ma, so good sign to long.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ScreenHunter_096.jpg Size: 81 KB
Click to Enlarge Name: ScreenHunter_095.jpg Size: 74 KB
  • #319
  • Jul 26, 2007 8:04am Jul 26, 2007 8:04am
Hi all forex expert,
I am new in the forex.
Anyone can help me how to setup about this system?
Or i can download from which page?
Extension .mq4 should be use which software to open it. Because i cannot open all the .mq4 file download from FF. Please advice. Thanks.
Have a nice day.
  • #320
  • Edited 8:22am Jul 26, 2007 8:22am | Edited 8:22am
Quoting spiritbreezer
Ok, so we look at the juicy 30 min chart. I hope you guys are prepared for this, because you are going to be trading all day yeah.

On the 30min chart we use the 12 non lag and the 10 ma. We are looking to buy if the 10ma is above the 70ma and to sell if it is below.

Importantly are the stochs 5-3-3 of the 60min and 30 min. We do not trade against the hourly stoch.

We let the hourly and 30min help us with momentun and we let the nonlag and 10 tell us direction

In the first pic you see clearly how at 10:30 the nonlag was looking to cross the 10 down, at same time stochs were turning down, then we had it concide with the box breakout. All the while the stochs are showing momentum down and the ma are showing us direction down, we looking to sell.

If we get a bull candle we sell again 1 pip below it, and so forth.

The second example is of a bullish trend and the buys we do.

Now these are just naked charts, without the previous supp and res lines. So once combined it becomes more powerful.

Stops and exits. Well this is to each his own, but if you look at your 4hr supp and ress for the week, it will give you an idea.

I forgot to mention: If you look at price it's forever spiking up and down on the charts. Now the nonlag is like price, just it has the rough edges polished. So when it crosses another ma, like the 70ma or 4hr 50ema etc etc, it is a good sigh, so can enter at the cross only if stochs are on your side.

So in the second pic, when price broke out of the box, the nonlag crossed the 70ma, so good sign to long.
Hi Spiritbreezer,

Very interesting chart set up. So are you concerned with the overall long term trend direction, say determined by the 4hr chart? Most traders would advise you to trade with the trend. Do you take only set ups that trade in the overall trend direction or do you feel with this system you can take counter trend trades?
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