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Inside Bar Trading Revisited

  • #741
  • Mar 31, 2009 12:57pm Mar 31, 2009 12:57pm
Eur-Jpy.
Outer bar must be before the inside bar.
Trade 4H only.
Buy when price breaks the high of the outer bar.
Or
Sell when price breaks the low of the outer bar.

TP = 0.6 of the size of the outer bar.
SL = on the other side of the outer bar. If we go Long, SL will be at the low of the OB and vice versa.

Option:
If SL hit, you may try to go immediately to the opposite trade with the same rules.

Good luck.
  • #742
  • Mar 31, 2009 1:09pm Mar 31, 2009 1:09pm
Warning. Any thread on Forex Factory could be deleted. You will not have a say in the matter and all the effort you put into your posts will be wasted.

===================================

You were right. DRAIN THE BANKS
TRO
  • #743
  • Edited 8:21am Apr 5, 2009 8:09am | Edited 8:21am
Cumulative trading charts. Last weeks charts are here.

0900 GMT+1 still seems like a good time to trade. EURJPY and GBPJPY are the big losers overall.
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  • #744
  • Apr 5, 2009 8:18am Apr 5, 2009 8:18am
Attached are the individual currency charts showing when it's a good time to trade. Note that these results are from Alpari UK's demo feed and the hours are GMT+1 on the 30M charts using Outer bar IBs. The results date from late Jan. The EA has been configured with default settings and has no optimisations applied.

The previous weeks charts are here.
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  • #745
  • Apr 5, 2009 8:20am Apr 5, 2009 8:20am
... and the rest ...
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  • #746
  • Apr 6, 2009 4:44am Apr 6, 2009 4:44am
Quoting 1ka

I like the idea of taking the second, or subsequent, breakout. If I get time in the next few days I might try that to see what impact it has.

1ka,

You had any luck with this? The more I look into it the more I think it would help.
  • #747
  • Apr 6, 2009 10:29am Apr 6, 2009 10:29am
Hi kostas1

Been a bit busy lately, but will make some time for this in the next day or two. I'm not too sure how to implement it, either I ignore the first IB cross and take the next, or I ignore all IB crosses on a particular bar and wait for the cross on the next bar. As a first pass I think I'll do the latter one and wait for another bar.
  • #748
  • Apr 6, 2009 12:08pm Apr 6, 2009 12:08pm
Quoting 1ka
Hi kostas1

As a first pass I think I'll do the latter one and wait for another bar.
I was thinking the exact same thing! I wish I could help with coding but I'll stick with the ideas part for now. My EA would be profitable for the brokers...
  • #749
  • Apr 7, 2009 4:24am Apr 7, 2009 4:24am
Quoting kostas1
I was thinking the exact same thing! I wish I could help with coding but I'll stick with the ideas part for now. My EA would be profitable for the brokers...

OK, this has been done. The EA on the first post has been updated. Set the parameter IgnoreFirstIBBreak to true to turn this on. By default it is off. The EA will ignore the first bar to break the IB when this is true. It has had limited testing, so let me know if anything looks wrong.

Let me know how this compares.
  • #750
  • Apr 7, 2009 9:25am Apr 7, 2009 9:25am
Hello 1K,

I have been testing different IB strategies and attempting to incorporate them using your EA. Would it be possible for you to add an option to place the initial stop outside the outside bar (? number of pips), assuming one uses the "UseIBForBreakout" set to true? I am seeing numerious occasions where the IB bar is tested without breaking the OB.

Thanks,
Kirl
  • #751
  • Apr 8, 2009 12:24am Apr 8, 2009 12:24am
Quoting 1ka


Let me know how this compares.

Great job! Will let you know how my testing goes.....
  • #752
  • Apr 8, 2009 3:58am Apr 8, 2009 3:58am
Quoting 1ka

Let me know how this compares.
Initial back testing shows good improvement (06/2008-03/2009) with profit factors above 2.5 and profit trades above 75%. Before I was getting 1.7 and 65% respectively. Also Tuesdays became profitable whereas before they sucked.... In general it looks like a good improvement and I am putting it in demo forward testing.

One question: Assume a MaxBar=7 and first break at bar=3 and next break at bar=5. Can the EA take the trade at other than the bar right next to the first break (or in this case it would take only a break at bar=4)
  • #753
  • Apr 8, 2009 2:53pm Apr 8, 2009 2:53pm
Quoting kostas1
Initial back testing shows good improvement (06/2008-03/2009) with profit factors above 2.5 and profit trades above 75%. Before I was getting 1.7 and 65% respectively. Also Tuesdays became profitable whereas before they sucked.... In general it looks like a good improvement and I am putting it in demo forward testing.

One question: Assume a MaxBar=7 and first break at bar=3 and next break at bar=5. Can the EA take the trade at other than the bar right next to the first break (or in this case it would take only a break at bar=4)...
Here is a screen shot where the IB was first broken on the 6th bar but order was filled on 8th bar.
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  • #754
  • Apr 9, 2009 2:19am Apr 9, 2009 2:19am
Quoting Abnormalone
Here is a screen shot where the IB was first broken on the 6th bar but order was filled on 8th bar.
Thanks Abnormalone, that answers kostas1 question perfectly

I looked at your chart and wondered if it should have broken out on the 7th bar for a sell. However, perhaps it broke the bar but not if we include the BarOffset.

A quick note on MaxStart. This is used when a new bar forms to check if there is an IB in the last MaxStart bars. Note that we don't count the newly formed bar so our IB could be one further left than we were expecting.
  • #755
  • Apr 9, 2009 2:23am Apr 9, 2009 2:23am
Folks, whilst working on another EA which is very time sensitive we have noticed that the switch to DST has caused a few problems.

In the UK, Alpari use BST (GMT+1) all year around. Do other brokers do this?

What this means is that if the best time to trade was at 9am then after DST it will be 10am, because everybody is trading an hour later according to 'real-world' times. God damned Alpari, why couldn't they just move times along with everyone else.

I'd expect that the charts I produce will start to show a gradual shift of best trading times by an hour (that's if they are actually showing anything that is repeatable and not random).
  • #756
  • Apr 9, 2009 2:30am Apr 9, 2009 2:30am
Quoting kirl
Hello 1K,

I have been testing different IB strategies and attempting to incorporate them using your EA. Would it be possible for you to add an option to place the initial stop outside the outside bar (? number of pips), assuming one uses the "UseIBForBreakout" set to true? I am seeing numerious occasions where the IB bar is tested without breaking the OB.

Thanks,
Kirl

Hi Kirl,

The intial SL is set to the opposite side of the IB when a trade is opened. If I understand this correctly you would like to be able to add an additional 'x' pips to the SL so that it is larger and less likley to be hit? OK, I can add that to the mix.

At some point I want to refactor some of the code in IBTrader. As part of an ongoing plan to code the 'best' EA I have come up with a library of routines for trading that simplify the logic for writing an EA and include things like trade retries. The IBTrader would benefit from this, especially retries as it currently doesn't do this.
  • #757
  • Apr 9, 2009 7:12am Apr 9, 2009 7:12am
Quoting 1ka
Thanks Abnormalone, that answers kostas1 question perfectly

I looked at your chart and wondered if it should have broken out on the 7th bar for a sell. However, perhaps it broke the bar but not if we include the BarOffset.

A quick note on MaxStart. This is used when a new bar forms to check if there is an IB in the last MaxStart bars. Note that we don't count the newly formed bar so our IB could be one further left than we were expecting.
1. You're probably talking about MaxBars here (not MaxStart).
2. I am assuming that the EA uses BarOffset in both breaks, isn't it?
  • #758
  • Apr 9, 2009 7:38am Apr 9, 2009 7:38am
Quoting kostas1
1. You're probably talking about MaxBars here (not MaxStart).
2. I am assuming that the EA uses BarOffset in both breaks, isn't it?

1. Correct, and thanks for pointing that out
2. Yes it does.
  • #759
  • Apr 9, 2009 7:46am Apr 9, 2009 7:46am
For the sample I posted I increased Bar offset in order to create the situation we were looking for and bar 7 did not exceed that limit. While watching that run on other IB's I noticed that the new bar where the buy or sell is placed does not have to start or return inside the OB. It will execute an order if the new bar returns inside the limits set by I assume Max start and Bar offset and sometimes this is at a worst price than desired.
On one run I had Max start still set at default and bar offset at 3 pips and was getting orders executed 8 or 9 pips out side the OB limits.
  • #760
  • Apr 9, 2009 10:17am Apr 9, 2009 10:17am
Thanks 1ka for your efforts and the rapid response!

I understand the initial SL is set to the opposite side of the IB. What I am asking is an option to use the preceding OB to set stops. It appears the "BarOffset" is controlling the SL amount, with respect to the IB. And yes, I would like to be able to add or subtract an additional 'x' pips to the SL.

I am working on the addition of custom indicators to the EA through your external source tool. However, I am having a bit of a problem having the EA recognize the indicator's signal. I hate to burden you, but can you give me an example, possibly with a screen shot of the Expert Properties window and/or set file to demonstrate the settings? Perhaps you could use a simple indicatior such as MACD or a moving average.

Again, thank you for your efforts,
Kirl

Quoting 1ka
Hi Kirl,

The intial SL is set to the opposite side of the IB when a trade is opened. If I understand this correctly you would like to be able to add an additional 'x' pips to the SL so that it is larger and less likley to be hit?...
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