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Inside Bar Trading Revisited

  • #521
  • Feb 18, 2009 12:42pm Feb 18, 2009 12:42pm
Quoting smilee89
No, that's not the definition of an IB. This is my interpretation.
The body of the IB should be inside the body of the outer bar, or at least most of the IB's body.
I only suggest to test it in the EA.
Hi Smilee89,

With the EA, the inside bar High/Low must be totally enclosed by the High/Low of the outside or containing bar.

We've got some people who trade when the price breaks the High/Low of the inside bar, and some, from Jim's thread, who trade when the price breaks the High/Low of the outer bar.

The EA can trade either.
  • #522
  • Feb 18, 2009 12:49pm Feb 18, 2009 12:49pm
Quoting 1ka
Hi Smilee89,

With the EA, the inside bar High/Low must be totally enclosed by the High/Low of the outside or containing bar.

The EA can trade either.
Do you have any statement of the EA with this rule?
(In other words, did you run a backtest and can show us the statement?)
  • #523
  • Feb 18, 2009 1:20pm Feb 18, 2009 1:20pm
Quoting smilee89
Do you have any statement of the EA with this rule?
(In other words, did you run a backtest and can show us the statement?)
Hi Smilee89,

All the tests by the EA associated with this thread use this rule and work off the outer bar unless otherwise stated. They're sprinkled throughout this thread. Alternatively view all the posts by my name.

The live forward tests and charts are all based around this
  • #524
  • Feb 18, 2009 1:39pm Feb 18, 2009 1:39pm
Oops. I am sorry.
I meant something different.
The body of the IB should be inside the body of the outer bar.
*body means between the open and the close (without the spikes).
See the examples in post #520.
http://www.forexfactory.com/showpost...&postcount=520
  • #525
  • Feb 18, 2009 1:44pm Feb 18, 2009 1:44pm
Quoting smilee89
Oops. I am sorry.
I meant something different.
The body of the IB should be inside the body of the outer bar.
*body means between the open and the close (without the spikes).
See the examples in post #520.
http://www.forexfactory.com/showpost...&postcount=520
Thanks for the clarification.

I haven't tried this method, it might be worth looking at. I assume that the same rules apply, i.e. only trade when price breaks the outer bars body? We're ignoring the shadows, in other words.
  • #526
  • Feb 18, 2009 1:58pm Feb 18, 2009 1:58pm
I tried the same test I used yesterday on EUR/JPY where I eliminate the small IB's but this time on EUR/USD for a longer time period and the results were terrible.
  • #527
  • Feb 18, 2009 2:23pm Feb 18, 2009 2:23pm
Late start, early finish.
Attached Image (click to enlarge)
Click to Enlarge Name: Picture 1.png Size: 72 KB
  • #528
  • Feb 18, 2009 2:30pm Feb 18, 2009 2:30pm
SETUP... I wonder if the shorts will cover before rollover today?

http://i44.tinypic.com/2cs9v7o.gif
TRO
  • #529
  • Feb 18, 2009 2:32pm Feb 18, 2009 2:32pm
Quoting 1ka
Thanks for the clarification.

I haven't tried this method, it might be worth looking at. I assume that the same rules apply, i.e. only trade when price breaks the outer bars body? We're ignoring the shadows, in other words.
I did not think that way but maybe it works better if we trade only when price breaks the outer bars body (ignoring spikes). I did not make any difference if we ignore the spikes for entering a trade.

The most important is that the IB's body is inside the CB's body.
Some will enter a trade when price breaks the high/low of the IB,
other will enter a trade when price breaks the high/low of the CB,
and others will enter a trade when price breaks the body (without spikes) of the CB.

I would like that the EA will test these options.
  • #530
  • Feb 18, 2009 2:36pm Feb 18, 2009 2:36pm
Quoting smilee89
I did not think that way but maybe it works better if we trade only when price breaks the outer bars body (ignoring spikes). I did not make any difference if we ignore the spikes for entering a trade.

The most important is that the IB's body is inside the CB's body.
Some will enter a trade when price breaks the high/low of the IB,
other will enter a trade when price breaks the high/low of the CB,
and others will enter a trade when price breaks the body (without spikes) of the CB.

I would like that the EA will test these options.
I'm not sure you can trade when price breaks the body of the IB, as, by definition, the price will be at the open/close of the IB anyway. Probably only the CB is an option.
  • #531
  • Feb 18, 2009 3:29pm Feb 18, 2009 3:29pm
Quoting 1ka
I'm not sure you can trade when price breaks the body of the IB, as, by definition, the price will be at the open/close of the IB anyway. Probably only the CB is an option.
I did not mention this option at all.
  • #532
  • Feb 18, 2009 5:04pm Feb 18, 2009 5:04pm
SETUP...

http://i43.tinypic.com/2ivikwm.gif
TRO
  • #533
  • Edited 10:07pm Feb 18, 2009 8:58pm | Edited 10:07pm
I made a mistake in Post # 526. When you use a Min. Setup bar size with EUR/USD it does show an improvement. In the attached spread sheet rows 26 and 27 show the statistics for the EA by itself and what using a Min Setup Bar size would be. If you change the number in the Red Cell you can see what effect eliminating smaller size Setup bars would have on profit and winning trade percentages. What ever number you enter will eliminate trades with a Smaller Setup bar than the number you entered. The statistics for the EA have been adjusted to reflect what the real trade numbers should be when the winning trades are not double counted like the Strategy Tester does.
Attached File(s)
File Type: xls IB Size2.xls   927 KB | 328 downloads
  • #534
  • Feb 19, 2009 1:14am Feb 19, 2009 1:14am
Quoting smilee89
I did not mention this option at all.
I stand corrected
  • #535
  • Feb 19, 2009 2:31am Feb 19, 2009 2:31am
1ka,

looking at your daily screen shots - they look rather pessimistic don't they?


Are this all on the 30 min chart ?
__Thanks__ MJ
  • #536
  • Feb 19, 2009 2:34am Feb 19, 2009 2:34am
Quoting M_j
1ka,

looking at your daily screen shots - they look rather pessimistic don't they?


Are this all on the 30 min chart ?
Yes, the last few weeks haven't been too good for the EA

I'll keep running it just to get the statistics on best times and currencies.
  • #537
  • Edited 3:06am Feb 19, 2009 2:54am | Edited 3:06am
In the beginning my main test strategy did not look too promising either (but still better than the first IB impression ;-)

The difference was when I found a better TP/SL ration and some kind of more suitable filtering.

By now it actually looks quite promising.


My IB tests I had to change to lower time frame (using now 15 min). My main trouble is that I can not properly backtest with my system. And on the other higher Time frames there are just not enough signals to draw any conclusion in a resonable time.


I tried your EA (don't know about MT4) but having some small problem

When I change for instance MaxIBSize it also always enters values:

Not sure if that is a problem??
Attached Image
__Thanks__ MJ
  • #538
  • Feb 19, 2009 3:07am Feb 19, 2009 3:07am
Quoting M_j
In the beginning my main test strategy did not look too promising either (but still better than the first IB impression ;-)

The difference was when I found a better TP/SL ration and some kind of more suitable filtering.

By now it actually looks quite promising.


My IB tests I had to change to lower time frame (using now 15 min). My main trouble is that I can not properly backtest with my system. And on the other higher Time frames there are just not enough signals to draw any conclusion in a resonable time.


I tried you EA (don't know about...
That looks OK to me. The Value is the one that is used. The others are used in optimising and allow you to change the values dynamically during the back-testing.
  • #539
  • Feb 19, 2009 3:22am Feb 19, 2009 3:22am
Thanks that helps - did not know that.


Maybe you also know this: when I run the EA - is there a way to see visually (on the chart) where a trade would be entered and TP or SL.

get this kind of errors using visual mode?
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot-3.png Size: 5 KB
__Thanks__ MJ
  • #540
  • Feb 19, 2009 3:36am Feb 19, 2009 3:36am
Quoting M_j
Thanks that helps - did not know that.


Maybe you also know this: when I run the EA - is there a way to see visually (on the chart) where a trade would be entered and TP or SL.

get this kind of errors using visual mode?
These errors mean that your data has missing bits in it. You could go into the History Centre and download new data for that timeframe.

When running in visual mode, you can see the trade open, close, SL & TP values. Double click on the trades in the results tab and it will move the chart to the trade. Only seems to store the last few hundred though. When running in visual mode you can skip to the end, still updates the charts but is much quicker.
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