Flippy method

I've been long enough being a stalker in FF with no contribute, yet I've learn so much from here. This will be my thanks to all of you good people in FF . Very special thanks to (in no particular order) : Diallist, BK, Jacko, Merlin, James16, FXOpportunist, Accrete, Twinchell and many other (cant remember you all that willing to share your insight on this forum.

This method is completely mechanical. And it based on my manual price action method 'retest on support/resistance' entry, combined with cci50 for trend direction and pivot breakout for entry.

1. set 4h chart on GBP/USD and put in flippy indicator.

2. entry point :
Long entry -> Set buy stop on beginning of the day at current green line when :
- magenta lines is below green line
- blue lines is discontinued on the start of new day
or
- magenta lines is below green line
- red lines is NOT discontinued on the start of new day

Short entry -> Set sell stop on beginning of the day at current green line when :
- magenta lines is above green line
- red lines is discontinued on the start of new day
or
- magenta lines is above green line
- blue lines is NOT discontinued on the start of new day

Put 50 pips initial stoploss, and move initial stop loss to green line for existing position each new day.

3. exit point :
- let the stop loss hit
or
edit: - exit when magenta lines crossed with green line on beginning of the day, against the trend red/blue lines.
or
- On long position, exit at beginning of the day when red line discontinued.
- On short position, exit at beginning of the day when blue line discontinued.

Thats it for the mechanical part of this method. This mechanical approach generated 4.8k gross pips gain and 1.1k gross pips loss (thats 4:1 on R/R ratio), and around 60% win trades. Max consecutive loss is 3. and max drawdown recorded is 150 pips

In backtest I use 1% equity risk on each trade on compounded equity. It results is 200% current balance value from core equity. You can change the equity risk on backtest worksheet. It'll recalculate automatically on summary.

There's other way to trade this method, more profitable entry. Sometime that indicator doesn't catch a possible new trend fast enough. Fortunately, by knowing price action on 1-3 days back, I can see that market is rolling over, or a bounce on sup/res happens. In that case, I enter at beginning of the next day, with 50 pips stop loss. To use this other way, I suggest only for experienced traders who recognize market condition. Ccould use jacko 'anti-hedging' too for this discretionary approach.


*notes :
- I think this indicator wont 'repaint' the past, but to be sure, I need someone with good knowledge of MQL programming to confirm. I'm not quite good at coding with MQL. (something wrong with this indicator, Rusty helping me with recoding this, while I need to investigate why it shows different value with existing cci indicator)
- The mechanical method may work on EUR/USD and USD CHF pair and dont work on USD/JPY. But I haven't backtest on those pair yet.
- For those who curious on why I use yesterday pivot, I'm trying to catch a pinbar and engulfing pattern using both yesterday close and yesterday pivot.

Note : hmm need to retest/remake indicator. (just realized that pivot is a SMA[1] applied to typical price lol) I'll look into this, and recheck result later. The concept stays the same which is to catch pinbar/retest that break prev line. See you around.

Aha! found the problem. I'll do recheck and retest. I'll remove this invalid indicator & backtest. Will replace it later when finished.

January 2006 till now backtest, and indicator attached.

some chart illustration :

hi dutdot

thanks for sharing

is this system work on other pair?

I'm always trade GBP/JPY on 4hour chrat

I don't think it willl work with currency that paired with JPY. I think carry trades biased yen movement. And gossip from japanese official moved all yen paired currency too much. I've only forward tested this from December, on GBP/USD. Pls trade with cautious on other pair, pivot shift/width might need an adjustment too on other pair.

thanks for reply


>I think carry trades biased yen movement. And gossip from japanese official moved all yen paired currency too much.

I think so too

And some illustration on how this method works :

Glad you came out of the closet dutdot. grin. Looks like you've done a nice job of putting together descriptive screen shots, explanitory graphics and rules of engagement.

Best wishes on your trading!
Thom

Your system looks good, but i was just wondering if you have done any backtesting on it?

Hello friend
Do you have a EA of this TS?

Kind regards,
Marcelo Marques

Wow dutdot, impressive. Put this indicator on and if it don't 'repaint' like you said, it is a very nice system. Thanks.

@nikim
backtest result is on the zip file....

@aptrafx
nope, I trade it manually, only need to look at each working day at 0 or 1 GMT for moving SL / setting new entry if there's a signal. Then I go play something for the rest of the day.

...at the moment i can say only wow, absolutly great work.

will have a closer look and hope the indi dont repaint.

You test already forward ?

josef

Very impressive....it looks like you have a very good system and I wish you many pips.

Good Luck!

hello dutdot,

whitch datafeed you use for backtest ? alpari ?

i use the datafeed from mt4 (Ibfx) and the results look differernt.

greetings

josef

@josef

yes I use Alpari data for backtest.

Were can i get that indicator? I like to test this strategy out.

Ok, here's what my concept is drawn in chart. For this moment due to my limited ability to make good indicator , I'll postpone the indicator stuff . We only use chart pattern for now. The basic idea is illustrated at post #6

1. On daily chart, draw SMA period 1 , typical price [hlc/3], shift value 2
2. Use JRSX indicator attached, value 14 for trend detection.

3a. Bounce scenario (file scnbounce.gif at post #6):

http://i9.tinypic.com/35kmkjo.gif

-outside bar must not touch SMA (blue lines).
-entry should be a 'stop entry' -> price piercing blue lines in the same dirs of rsx[14] slope. initial SL 50, trailing stop at blue lines value on each new day.


3b. Breakout scenario (file scnbreak.gif at post #6)

http://i9.tinypic.com/2ujsfbs.gif

-The breakout bar has to be engulfing bar or at least double top/bottom and closes on the opposite site of SMA(blue lines)
-Entry on open of next bar. initial SL 50, trailing stop at blue lines value on each new day.


Problem faced so far, can't break daily bars into 4h bars while keeping same trend detection with daily trend. Better if start of the day counted as frankfurt open -1.

@dutdot

hmmmm.....i was late with reading the first post again.

As far as i see the "old" flippy indicator dont repaint the paste, but as you write in the first post, there are same other problems with it.

However, i was testing gbp/usd (ibfx data - gmt 00:00). Result 62% Winner, 38% Looser. Pipresult: 4772 (2 Entrys - one with 50 Pip TP....other one with open TP)

uSD/CHF Januar to June shows also very good results.

So i am a little bit confused in the moment. Is it possible that you create an indicator with a mistake what produce over 4000 pips ???

And if so......what will be the result with a correct indi ?

grettings

Ok, flippy indicator has been fixed by Rusty.

rules is abit different.
1. set GBP/USD chart on 4h timeframe
2. put both flippy.mq4 and turbo_JRSX.mq4 to indicators folder.
3. put flippy on chart.

a. Entry.
-Put sell stop at green line value if purple & blue exist above green line.
-Put buy stop at green line value if theres purple & red exist below green line.
set initial stop loss 50 pips.

b. Exit
- each new day, if there's open position, move SL to green value.
- if on new day, purple line has crossed green line against our open position, then close that position.

indicator & some illustration attached.

will do backtest from 2005 in couple of days with this new indicator (quite nasty whipsaws on 2005 history data. let see if this one survive or not)

Been busy with flood in jakarta

New indicator, same concept, and some trade idea in pictures. win & loss included.
This sample use 50 pips SL. 25 box width, and 24 ROC value for 1H chart:

A. 3 lines formed. sell stop @ blue lines, price come from the other side. (loss)
B. 3 lines formed. buy stop @ red lines, price come from the other side (win)
C. 3 lines formed. sell stop @ blue lines, price come from the other side. (loss)
D. 3 lines formed. buy stop @ red lines, price come from the other side (loss)
E. 3 lines formed. buy stop @ red lines, price come from the other side (win)
F. 3 lines formed. sell stop @ blue lines, price come from the other side. (loss)
G. 3 lines formed. buy stop @ red lines, price come from the other side (win)
H. 2 lines formed. sell stop @ yellow lines. price come from above red. (loss)
I. 3 lines formed. sell stop @ blue lines, price come from the other side. (win)
J. 3 lines formed. buy stop @ red lines, price come from the other side (win)
K. 2 lines formed. sell stop @ yellow lines. price come from above red. (win)
L. 2 lines formed. buy stop @ yellow lines. price come from below blue. (win)
M. 2 lines formed. sell stop @ yellow lines. price come from above red. (win)
N. 2 lines formed. sell stop @ yellow lines. price come from below blue. (loss)
O. 2 lines formed. sell stop @ yellow lines. price come from above red. (win)
P. 3 lines formed. buy stop @ red lines. price come from the other side (win)

Trade it as you like, use common sense for stop loss/take profit (or just put fixed 50 pips SL). Adjust box width as you like depends on what pair you use to trade. Use common sense to pick which breakout you took. Stick to ROC value 24 for 1H chart.