Generic Breakout V5

Ok everyone. I know that Generic Breakout Version 4 has plenty of flaws. Post your wishlist for generic breakout version 5.

 

1. Better visual interface on the chart
2. Stops to be a percentage of the range

* 2 or 3 TP-levels and a BE-function

...RSI settings

...PDF instructions

Ronald,

The EA should dynamically define the breakout range....based on price trading within a range for a certain time frame.

Say the M15 candle high and low establishes a range and for the next 4 or 5 candles it stays within that range, the number of candles could be a variable you set....well, that's the range for the breakout.

So it looks to say M15, M30 or H1 for this type of price action and then trades the breakout of this dynamically created range, based on a trigger like the trend on a bigger timeframe....or maybe the slope of a fast moving average on the timeframe where the range is created.

On a smaller timeframe a range is often a pullback of a larger time frame trend, so it often makes sense to look to the higher timeframe for a que of what to do.

The problem with setting a certain times for the breakout range is that every day is a bit different....some days, the range starts earlier than other days....and some days, it's not ranging at all, it's trending or it's just a mess.

A breakout, by definition, is price consolidating within a high and low price for an extended period, and then it breaks out. So that it what the EA needs to look for.

You might play a M5 range breakout, M15, H1, H4, D....all can have those situations where price trades within a high and low for an extended period and then breaks out. It's just a question of how big a lot and your stops when you take the breakout on the particular timeframe.

If this makes any sense to you, I have some further ideas.

Cheers
CanuckCT

So..basically you're looking for multiple bars inside one 'super bar'?

Is the breakout based on how many bars are inside the inside bar afterwards?
Or is it based on a series of inside bars?

Here is an example...

EU, M15, 5 bars inside a super bar....
and EU, daily, 5 bars inside a super bar (middle chart)....

When price moves beyond the range by X pips or a percent of the range, it opens a trade....

Exit strategy is a whole other thing

Would be nice be able to select the timeframe for selecting the range and be able to select a different timeframe for exit strategy

Cheers
CanuckCT

Is it just me, or do these examples all have breakouts opposite the direction of the super bar?

Here's an example....

Big M15 candle is created and then 5 candles after that are within the super candle range...that creates an upper and lower limit to the range. This one is an 80 pip range.

I drew a box to illustrate the extension of the range....that is how I see it.

It broke a few pips to the downside...10 pips.....but that shouldn't trigger a trade...really it's still in the range.........it's the upside break that you want to trade.

So maybe it's say 25% of the range...so you would need a 20 pip break to take the trade in the above example...it's the logic around the break that needs some work, if you think this is a valid way to dynamically determine the range.

Maybe 50% retrace back into the range is the stop.....and risk x% of capital on that.

Need some logic for how to get to BE and how to trail...but I think this makes sense re determination of the range.

If not, let me know.

Cheers
CanuckCT

Ron,
The other thing I notice...is that when these candles are created....fibs work great as a way to decide what to do....(I know the 200 is not a fib number)....
Cheers
CanuckCT

It like this thread...using the master candle to dynamically determine the range.....

http://www.forexfactory.com/showthread.php?t=140130

Good thread at forex4noobs as well.... Master candle setups and breakouts on 1 hour charts... if you need any other reference points for this trade entry method. These and inside bars offer very good breakout entries.

There are some folks on at thread forex-tsd who are doing this.....they have it cluttered with a bunch of indicators which may be the best way, but it's price action based.

At the start of the hour (for whatever hours we want to trade), it takes a trade as price moves away from the open for the hour. So we take the trade in the direction of the hourly candle color...

The visual is below....the question is....what else should you look at to decide whether to take the trade, without going crazy with indicators.

The stops can be tight and the targets in the 10 to 20 pips range....it's a breakout trade, sort of....a breakout from the hourly open price.

Ron...think this has some merit?

Cheers
CanuckCT

Looks good as an independent system.

GenericBreakout was initially meant to be your basic time-based breakout platform. I think we have something here which could be developed on. I'll get to work on that master-candle type EA when I get back.

Ron,

Template and a couple of indicators....

Cheers
CanuckCT

CT, which of these is the EA?

none, these are indicators

I got some of the last few hours....:-)
Second chart is with 55sma....maybe something like this is all you need...
Cheers
CanuckCT

Ron....as I see it, there are two initiatives here...one is the master candle breakout EA....that dynamically determines the range and trades the break of that range....based on something yet to be defines.

The second the some type of hourly trader that trades in the direction of the color of the hourly candle...again, with trigger yet to be defined.

Should we do this in two separate threads?

Cheers
CanuckCT

Lol, take it easy there! I'm still on break.

But, yes, when I get back, I'll get to work on the master candle EA, and the dynamic breakout v5

This other option regarding the hourly direction I think needs a little more refining. Unless I'm completely brain dead from all the salty sea air.

Hey Mr RayGun-any copies of these 2 systems? Any help (or charity) would be kind. Thnks in advance.