GBP Highlow-Strategy | Forex Factory

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GBP Highlow-Strategy

  • #1
  • First Post: Edited Dec 9, 2008 5:57pm Dec 8, 2008 5:52am | Edited Dec 9, 2008 5:57pm
Hello Traders,


i have a simple strategy for gbp/usd who i trade real a long time. At to many times i was angry that i have no EA for this. So i will post here my strategy and i search help to make an EA. I have no C++ experience.
The idea behind them is to search a trend with new highs and lows. This idea is very old and it give many many strategy with high/lows.


GBP/USD 15min Chart

  1. When the 1st 15min Candle closes with momentum above 100 from below we are looking for short trade. If momentum under 100 from below we are looking for long trade.
  2. We count 5 bars prior and identify the lowest/highest close of these five bars, this is now our trigger
  3. You must wait for a close to have a signal

How to Search the last High/Low
At Nr1. the momentum above 100 from below. Now we have a shorttrigger and wait until a close <trigger
Every momemtum crossing >100 <100 makes a new trigger.
When the momentum >100 we have a new shorttrigger.
When the momentum <100 we have a new longtrigger


I hope my discreption is not to bad with my english

Attached Image (click to enlarge)
Click to Enlarge Name: StratGBP_bearbeitet.JPG Size: 112 KB
  • #2
  • Dec 8, 2008 11:10am Dec 8, 2008 11:10am
Did not get your rules well.

That is how i get it.

At the moment when Momentum cross 100 line up you search for lowest price in the period while momentum was lower then 100. This lowest price became your sell triger.
  • #3
  • Dec 8, 2008 11:23am Dec 8, 2008 11:23am
Quoting Dezil
Did not get your rules well.

That is how i get it.

At the moment when Momentum cross 100 line up you search for lowest price in the period while momentum was lower then 100. This lowest price became your sell triger.
That's what it sounds like, but what does he mean by looking 5 bars back?
  • #4
  • Dec 8, 2008 11:48am Dec 8, 2008 11:48am
I think what he is saying is

First look for the momentum to cross 100 (up for long)
Then identify the swing low of the Momentum (not price) before the cross happened
Then from the corresponding price bar of that mom swing low go back 5 bars, the highest bar in this area is the trigger bar to go long

Not sure though
Regards
  • #5
  • Dec 8, 2008 4:50pm Dec 8, 2008 4:50pm
-Not everytime the lowest of the momentum = lowest of the current candle. also you must search in an area of 5 bars... see my picture

-a new buytrigger you can early have after the first candleclose of the momentum goes from >100 under 100
Attached Image (click to enlarge)
Click to Enlarge Name: gbpstrat3.JPG Size: 39 KB
Attached Image
  • #6
  • Dec 8, 2008 5:24pm Dec 8, 2008 5:24pm
what if the high/low was farther back than 5 bars? Do you just go back 5 bars or all the way to the low?
"Keep your eyes on the helpers" - Mr. Rogers
  • #7
  • Dec 8, 2008 5:29pm Dec 8, 2008 5:29pm
i only search in an area of 5 bars the highest/lowest close!
  • #8
  • Dec 8, 2008 5:44pm Dec 8, 2008 5:44pm
the last two days were very effective because there was a fine trend... see the picture
Attached Image (click to enlarge)
Click to Enlarge Name: gbp.JPG Size: 93 KB
  • #9
  • Dec 9, 2008 12:11am Dec 9, 2008 12:11am
Hi Nixfreizeit,

What do you mean by "you are always in the market"? Target and stop?
  • #10
  • Dec 9, 2008 2:41am Dec 9, 2008 2:41am
Quoting howard
I think what he is saying is

First look for the momentum to cross 100 (up for long)
Then identify the swing low of the Momentum (not price) before the cross happened
Then from the corresponding price bar of that mom swing low go back 5 bars, the highest bar in this area is the trigger bar to go long

Not sure though
The idea of what I explained is correct, however as I see it is the other way round:
When the 1st 15min candle closes with momentum crossing above 100 from below we are looking for short trade
Also he is looking for the lowest close in the 5 bar area, not the lowest low

Is this correct ?
Regards
  • #11
  • Dec 9, 2008 3:50am Dec 9, 2008 3:50am
@howard
yes it is correct. we looking only for a lowest close or highest close


@arilou
no target
stop = you have every time a buy and a selltrigger... thats your SL
  • #12
  • Dec 9, 2008 6:05am Dec 9, 2008 6:05am
Hi Nixfreizeit, your system is very simple. I will try this on demo.

So the rule is only on TF 15M? And no other pair?

Thank you
  • #13
  • Dec 9, 2008 11:24am Dec 9, 2008 11:24am
Nix, I am trying really hard to understand this system, because it seems very interesting, but I still do not understand it Can you please post a chart with only one clear long and short signal, and write on it when, what and why you do? I tried to understand the first chart but it is full of signals, and I do not know which circle belongs to which signals. Thanks.
  • #14
  • Edited 1:46pm Dec 9, 2008 1:08pm | Edited 1:46pm
Quoting Arilou
Nix, I am trying really hard to understand this system, because it seems very interesting, but I still do not understand it Can you please post a chart with only one clear long and short signal, and write on it when, what and why you do? I tried to understand the first chart but it is full of signals, and I do not know which circle belongs to which signals. Thanks.
maybe the attached chart would help

1- At vertical line 1 momentum has crossed 100 level
2- We find the lowest low of the mementum before the cross, vertical line 2
3- We count 5 bars prior to line 2 and identify the lowest close of these five bars, red horizontal line. This is the short trigger
Attached Image
Regards
  • #15
  • Dec 9, 2008 1:16pm Dec 9, 2008 1:16pm
1-At vertical line 3 momentum has crossed below 100 level
2- Vertical line 4 shows the highest peak of momentum before the cross
3- We count 5 bars before that and find the highest close of these 5 bars, red line, this is the long trigger
Attached Image
Regards
  • #16
  • Dec 9, 2008 1:17pm Dec 9, 2008 1:17pm
OK Howard, I'm with you so far. But how worthwhile does it seem?
" Average traders look to the left, great traders look to the right."
  • #17
  • Dec 9, 2008 1:43pm Dec 9, 2008 1:43pm
Quoting magicchance
OK Howard, I'm with you so far. But how worthwhile does it seem?
Cannot tell until it is forward tested for a few weeks
Regards
  • #18
  • Dec 9, 2008 2:15pm Dec 9, 2008 2:15pm
No mechanical system works long enough in this bizness.
  • #19
  • Dec 9, 2008 2:31pm Dec 9, 2008 2:31pm
Quoting howard
1-At vertical line 3 momentum has crossed below 100 level
2- Vertical line 4 shows the highest peak of momentum before the cross
3- We count 5 bars before that and find the highest close of these 5 bars, red line, this is the long trigger
Hi howard, thanks a lot for your explanation. As I see, these triggers are not activated within the chart. In fact, I would like to see a scenario when there is a long trigger, it is activated, then comes a short trigger, it is activated too and we reverse position into short. Because I dont quite see how it is possible.

Eg, if your price curve turned down after line 1, then the short trigger would be activated. But then the Momentum also would turn down immediately and it would be below the 100 line again, so next time it could only give a short signal again. So how could the position turn into long? It seems as if this strategy could only allow only consecutive shorts or longs.
  • #20
  • Dec 9, 2008 2:58pm Dec 9, 2008 2:58pm
It sounds pretty simple.

Whats the best time frame for this system?
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