Breakout + Spread!! Sure!!!

this is remarkably similar to the SRDC III system, for which skyline (programmer extraordinaire) made this EA.

http://srdc.wikidot.com/episode-iii

skyline - hope you don't mind me posting it!

I found this free breakout ea. That site is closed as of yesterday. I tried it last night live & demo and no bugs so far. Let me know if you find any.
Files at bottom of this post
GaoXing Daily Breakout v1.4

[IMG]file:///C:/DOCUME%7E1/CHARLE%7E1/LOCALS%7E1/Temp/msoclip1/01/clip_image001.gif[/IMG]

[IMG]file:///C:/DOCUME%7E1/CHARLE%7E1/LOCALS%7E1/Temp/msoclip1/01/clip_image002.gif[/IMG]

[IMG]file:///C:/DOCUME%7E1/CHARLE%7E1/LOCALS%7E1/Temp/msoclip1/01/clip_image003.gif[/IMG]

Developed by BaasHarm
Description: This EA trades a daily breakout as described by Hans123 at http://www.strategybuilderfx.com/showthread.php?t=15439 on the first page. The EA places and manages buy and sell orders based on breakouts of 2 timeframes. By default, the first timeframe is set from 6 – 10 CET and the second from 10 – 14 CET. All positions are closed after 0.00 CET and 22.45 CET on Fridays. The EA can be added to M5, M15, M30 and H1 chart and uses that chart to determine high/low values for the referenced timeframe
User Parameters:
ServerTimeZone: Server's time zone, 0 = London Time, 1 = London Time + 1, etc.
Use 2 for FXDD
0 for IBFX
1 for MIGFX
TF1Start Start timeframe 1 in hours CET
TF1Stop End timeframe 1 in hours CET
UseTF2 True enables 2nd timeframe
TF2Start Start timeframe 2 in hours CET
TF2Stop End timeframe 2 in hours CET
Breakout # of pips above or below high or low to open a position
Reverse False disables the reverse order on the opposite side of the Channel
Stop: Stop Loss in pips
ProfitTarget: # of pips in profit to close position
Stop2BE: # of pips in profit to move stop to breakeven
UseCloseOrdersTime True closes all positions and deletes all orders at CloseOrdersTime
CloseOrdersTime CET Time to close positions and delete all orders. On fridays,
orders are closed at 22:45 CET if not closed before that time.
UseMM > 0 turns Money Management on
1 uses fixed dollar risk as percentage of balance per trade
2 uses fixed pip value as percentage of balance per trade
MMRisk Money Management risk per trade in percent
LotSize: Default lot size with UseMM = 0
TrailStop: Pips to trail; if > 0 trails price when Profit Target is reached
ChannelFilter If > 0 Channel filter is used
Maximum # of pips between period high and low to place orders.
When breakout channel (time frame high-low) exceeds channel
filter, no orders will be placed for the referenced timeframe
channel filter, no orders will be placed for the referenced
timeframe
MagicNumber Magic Number to identify orders
EAComment Order comment, maximum of 16 characters
Export2CSV When true pips and profit results are save to an CSV File
FileName Filename for CSV export file, the currency symbol is added to the filename. The CSV file is save in the experts\files directory of your MT4 directory
ChartPeriod Chart time frame for backtesting. Must be entered as h1 or H1, m15 or M15 etc. to enable backtesting.

this thread appears to have died prematurely. Skyline - did your SRDC3 EA not have legs? or do you not believe in the strategy? Forward testing manually the last week has been positive on cable, but suffered whipsaws on GBPJPY.

one simple filter would be only place trades in direction of 5SMA.

I still think the indicator repaints itself so I'll have to place lines manually from now on.

Happy Christmas and many gains...

Thanks Eagle

This is still a very good system. Wished someone would come up with an EA for this system.

This is a very interesting concept, and it inspired me to do something I rarely do: read the entire thread (all 44 pages!)

After a little study, I've decided to do some testing, with the following customizations...

1. The box will end at 18:00, not 23:00 (same time zone as Eagle's), because most movement is over by then.

2. Timeframe = M15

3. Use LSMA Slope for confirmation (period = 6)

4. Open a trade for each bar that crosses a box boundary from the inside out (breakouts), long for upside breakouts, short for downside breakouts.

5. Open a trade at the open of each bar that is outside the box, if the direction of the LSMA Slope agrees, long for bars that open above the box, short for bars that open below the box.

6. SL and TP TBD by experimentation.

7. The size of each trade will be small, because of the strategy of opening many trades at once.

Looks like anice filter DGG.
Can you please post LSMA. There are many versions of that indicator and I want to be sure that I'm looking at the same indicator as you do.
http://www.forexmt4.com/_MT4_Indicators/

What value for slope do you consider best?

Thanks for sharing your idea.

That is the classic Eagle rule.

You enter on the breakout and then add to your position for every bar that openens outside the box? Regardless how much the price has moved?


Somehow I think you don't have a fixed target like Eagle does.
Besides that a 10 pip profit is very small (I use 30) some trades will be so close to the fixed exit that they don't even recover spread.
Is your target purely discretionary?

I 'use' the enclosed LSMA. Look for a slope in the right direction.
Yellow should be considered weak.

The picture shows false bearish breakouts followed by a bullish breakout.
GBPUSD, H1, Target 30 pips

Short entry:
1- Price crosses below the box.
2- LSMA is red.

Long entry:
1- Price crosses above the box.
2- LSMA is green.

Applying the above would have kept us out of the short trade because LSMA was yellow, green but never red.

Long exit:
1- Exit when you hit the target.
2- If the LSMA color turns yellow watch your stops/trade carefully.
3- If the LSMA color turns red then the breakout was a fake afterall. Take profits!
4- If LSMA turns yellow and turns down act as if it turned red.

-----------------------------------------

As I wrote I use a 30 pip target. That requires more power from the breakout.
So when aiming for that target you must play according to the rules mentioned above.
But the short breakout would have taken the 10 pip + spread traget.
So an additional short rule could be:

Short entry#2:
1- Price crosses below the box.
2- LSMA is yellow.
3- LSMA is sloping down. (not almost flat)
4- Change target to 12 pips.

Above I wrote about colors changing during a trade. If colors can make us exit earlier why not keep us in longer.
Say we took the 'yellow trade' and during teh trade the LSMA turns red.
I would change the target to 30 then. With care!!!

I've been using the 5SMA a trend filter and only placing orders at the box boundary in the direction of the MA. TP50, SL at other side of box. Still prone to whipsaws but good MM this one is a winner.

Can you please post that indicator?

Or do you mean teh standard 5 bar MA?
In that case Simple or Smooothed?

simple 5

I have shown the LSMA Slope, not LSMA.. See attachment for the code which I modified to give a slope value.


I haven't tested this concept yet, so I don't know what would work best. The parameters would change over time as the nature of the market shifted anyway. I chose 6 by a quick look at the charts; as a starting point for further research.

Yes, I included all the rules I want to use for completeness, even if they are the same as Eagle's original concept.

Yes. It's a probabilistic approach, based on the idea that an indicator signal identifies a time period within which the probability of price movement is greater in one direction than the other. According to the Law of Large Numbers, the sample size must be large for the actual result to be similar to the expected outcome. A single trade for each signal does not provide a sufficiently large sample to take full advantage of the probability asymmetry identified by the indicator signal.

As I mentioned above, I haven't performed any tests on this idea yet (for this indicator, anyway). When I do, the crucial parameters will be determined by optimization.

I like the LSMA a lot (though my current favorite MA is HMA...), but I'm leary of using the color changes because they are changed after the fact (repainted). Essentially they just indicate the slope of the indicator - in a fairly crude fashion - so I simply re-modeled the indicator to give just that; the slope of the original MA.

This system needed a fresh set of eyes. I am doing very well with this system and I was hoping that it could be improved.

Thanks for your help guys

Dear DGC,

Good luck with your testing. Looking forward to the results. And thanks in advance for sharing.

My best to you and yours,

Lenoxer

do you have any variations on the eagle rules? A different TP/SL perhaps?

Dear WHTenn,

How have you personalized the system to make it successful for yourself?

Thanks very much,

Lenoxer