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Inside Bar Trading Revisited

  • #281
  • Feb 9, 2009 11:16am Feb 9, 2009 11:16am
Quoting Abnormalone
It stay red as long as the price stay near the bottom band and I only did shorts. When it runs into the top band it changes to blue and I only made long trades. Seems like once price runs into either side it stays there and head in that direction for awhile.

OK, I tried a similar thing with the Bollinger Bands (BB).

The first graph shows the trades without BB

The second shows trades with BB. Here we only trade Long when the price is in the upper band and Short when in the lower one.

The third is a variation of this in that we don't trade if the price goes outside the BB (which are at the default 2 standard deviations)

Unfortunately, it doesn't look like this makes a positive impact
Attached Image(s) (click to enlarge)
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  • #282
  • Feb 9, 2009 11:23am Feb 9, 2009 11:23am
Quote
OK, I tried a similar thing with the Bollinger Bands (BB).

The first graph shows the trades without BB

The second shows trades with BB. Here we only trade Long when the price is in the upper band and Short when in the lower one.

The third is a variation of this in that we don't trade if the price goes outside the BB (which are at the default 2 standard deviations)

Unfortunately, it doesn't look like this makes a positive impact
I guess that shows how deceptive back testing on a chart can be.
  • #283
  • Feb 9, 2009 11:26am Feb 9, 2009 11:26am
http://i43.tinypic.com/se22v9.gif

So far, so good.
TRO
  • #284
  • Feb 9, 2009 11:45am Feb 9, 2009 11:45am
Quoting Abnormalone
I guess that shows how deceptive back testing on a chart can be.
Either that or my coding sucks
  • #285
  • Feb 9, 2009 11:45am Feb 9, 2009 11:45am
Quoting 1ka
Nice, I see you are using the Inner Bar as your trigger for the breakout. I've been using the Outer Bar so would be interested to see how you get on
I don't understand what you mean. I thought the trigger was the high and low of the inside bar?

http://i42.tinypic.com/5yu74k.gif
TRO
  • #286
  • Feb 9, 2009 11:55am Feb 9, 2009 11:55am
Caught a nice little run

http://i41.tinypic.com/okv8k5.gif
TRO
  • #287
  • Feb 9, 2009 12:24pm Feb 9, 2009 12:24pm
Quoting Money4Nothing
I don't understand what you mean. I thought the trigger was the high and low of the inside bar?
It's not a problem. Just that I've been following this thread (recently deleted ) that suggests trades are triggered when the price passes the High/Low of the Outside Bar.

I might tweak the code to use the inside bar and see whether I get better results from that.

=====
Hang-on, I already have that code - let me run the tests again.
  • #288
  • Feb 9, 2009 12:31pm Feb 9, 2009 12:31pm
Quoting 1ka
It's not a problem. Just that I've been following this thread (recently deleted ) that suggests trades are triggered when the price passes the High/Low of the Outside Bar.

I might tweak the code to use the inside bar and see whether I get better results from that.

=====
Hang-on, I already have that code - let me run the tests again.
Thanks. These inside bar breakout are working.

http://i40.tinypic.com/15rk460.gif
TRO
  • #289
  • Feb 9, 2009 12:40pm Feb 9, 2009 12:40pm
Quoting Money4Nothing
Thanks. These inside bar breakout are working.

What is your TP strategy?
  • #290
  • Feb 9, 2009 12:55pm Feb 9, 2009 12:55pm
TP? Don't have a set TP. I usually wait for a big move of 10+ pips and then exit afterwards before it retraces.

Next inside bar trade...

http://i44.tinypic.com/dtz0n.gif
TRO
  • #291
  • Feb 9, 2009 1:14pm Feb 9, 2009 1:14pm
Quoting Money4Nothing
TP? Don't have a set TP. I usually wait for a big move of 10+ pips and then exit afterwards before it retraces.

Next inside bar trade...
OK, that explains why my backtesting doesn't do so well.

Attached are the charts for EURGBP H1. First one uses the outside bar and the second uses the inside bar as the trade trigger. TP is 1/2 ATR, SL set at the other end of the bar.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: Picture 2.png Size: 103 KB
  • #292
  • Feb 9, 2009 1:23pm Feb 9, 2009 1:23pm
Quoting 1ka
What is your TP strategy?
This was a tough 5 pips. Done with trade.

http://i41.tinypic.com/2646m3s.gif
TRO
  • #293
  • Feb 9, 2009 1:31pm Feb 9, 2009 1:31pm
I covered too soon

http://i40.tinypic.com/o5qd1i.gif
TRO
  • #294
  • Feb 9, 2009 1:59pm Feb 9, 2009 1:59pm
Next trade? Maybe short will cover?

http://i40.tinypic.com/dyawep.gif
TRO
  • #295
  • Feb 9, 2009 3:32pm Feb 9, 2009 3:32pm
Next inside bar trade?

http://i41.tinypic.com/103woqd.gif
TRO
  • #296
  • Feb 9, 2009 3:54pm Feb 9, 2009 3:54pm
I thought you took the high + xx or the low+ xx of the prvious bar not the high / low of the current inside bar
  • #297
  • Feb 9, 2009 3:58pm Feb 9, 2009 3:58pm
Quoting dryclean
I thought you took the high + xx or the low+ xx of the previous bar not the high / low of the current inside bar
Money4Nothing is trading the Inside Bar, we've been trading the Outside Bar.
  • #298
  • Feb 9, 2009 3:59pm Feb 9, 2009 3:59pm
that;s what I thought thanks
  • #299
  • Feb 9, 2009 4:04pm Feb 9, 2009 4:04pm
Today's results.
Attached Image (click to enlarge)
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  • #300
  • Feb 9, 2009 5:09pm Feb 9, 2009 5:09pm
From the first page:

So what are Inside Bars? Simply put it's where a bar on the chart closes with a lower high and a higher low than the previous bar.

But what is it really? It's a point of consolidation. The current trend has stopped and there's a moment of indecision as the currency fluctuates between a previous high and low.

So what causes it? Anything and everything. All we know for sure is that the current trend has paused. It could have hit a point of support or resistance where there is enough buying or selling pressure to stop it going further. It could be that there is an overbought or oversold condition. It could be there's a news release imminent and the market is waiting, etc., etc.

What happens next? Ideally, a new trend starts that breaks the bounds of the Inside Bar and goes on for a few hundred pips.

Am I doing it "wrong"? Cause it's working

http://i40.tinypic.com/w2dg5e.gif
TRO
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