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Easy Fractal Breakout Strategy

  • #21
  • Apr 21, 2009 9:54pm Apr 21, 2009 9:54pm
Quoting todd960960
trublu are you not using the horizontal lines?

thx,
todd
I personally prefer to use the fractal channel. The horizontal line indicator (fractal level Xrust) just shows the last 2 fractals with out showing where the previous lines would have been. You can use either or both indicators they show the same thing. I posted them both so you can use which ever you like better.

Here's a chart showing what I mean. I hope this clears up any confusion.
trublu
Attached Image(s) (click to enlarge)
Click to Enlarge Name: fractal example2.gif Size: 24 KB
Click to Enlarge Name: fractal example3.gif Size: 25 KB
  • #22
  • Apr 21, 2009 10:20pm Apr 21, 2009 10:20pm
Quoting trublu
Sorry I'm confused about what exactly your asking. Are you asking why I don't have the horizontal lines on my chart? Try to rephrase and maybe I can help you out or maybe someone else knows what you are tying to ask.
trublu

These are the horizontal lines I was talking about.
On your chart you just have the fractals above and below current price.

I worked it out though, I guess you are not using the "Fractal Level Xtrust" Indicator.
Attached Image (click to enlarge)
Click to Enlarge Name: Fractal.jpg Size: 56 KB
Starting to see instead of just looking.
  • #23
  • Edited Apr 22, 2009 4:45am Apr 21, 2009 10:27pm | Edited Apr 22, 2009 4:45am
Hi trublu,

I tested this before but abandoned it in favour of pure price action, but the strategy has merit.

Try using this indicator which I edited from Eli Hayun based on Barry's. There were a few issues with the code like you couldn't turn off time frames, there was a buffer issue with a missing support line which resulted in a colour mismatch which I corrected and I added lines to form the channels. Other than that, the code is all his work.

I recommend using this with 15 min turned on (I changed this for you for the default) for a M5 TF, but try this with other time frames too. Personally, I had much better results with M15 and using 30 as the channel. Less breakouts but better. It will only display all timeframes above the current chart setting.

My only issue with this was measuring targets accurately. I had some success using ATR and playing with the settings.

Enjoy!
Attached File(s)
File Type: mq4 SR_Barry_Eli_MTF_channel_ammended.mq4   7 KB | 2,044 downloads
  • #24
  • Edited Apr 22, 2009 12:23am Apr 21, 2009 11:45pm | Edited Apr 22, 2009 12:23am
This Max Non Lag MA seems to keep one in good trades and out of bad ones with this system.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Fractal E.jpg Size: 328 KB
Click to Enlarge Name: Fractal Exit.jpg Size: 430 KB
Attached File(s)
File Type: ex4 MAX_NonLagMA.ex4   8 KB | 1,570 downloads
Starting to see instead of just looking.
  • #25
  • Apr 22, 2009 12:23am Apr 22, 2009 12:23am
The fractal channel is just the old 1-2-3 setup wellknown since a few hundred years ... nothing new here.
  • #26
  • Apr 22, 2009 2:45am Apr 22, 2009 2:45am
This BBFlat indicator lets you get into a trade with a lot of momentum behind it and keeps you out of the non performers.

Enter when the red two yellow lines have good separation and BULB out and the red line crosses either the upper or lower line. Exit when the red line breaks the yellow line in the opposite direction to your trade. When the yellow lines are flat the market is ranging when the bulb out a trend is taking place.
Attached Image (click to enlarge)
Click to Enlarge Name: BB.jpg Size: 217 KB
Attached File(s)
File Type: mq4 BBflat_sw.mq4   2 KB | 1,902 downloads
Starting to see instead of just looking.
  • #27
  • Apr 22, 2009 6:53am Apr 22, 2009 6:53am
Thanks for the suggestions Rastaman and Limstylz, looks like I have some things to try out.

Question about how you use the MA indicator Rastaman, do you just go long if it's green and short when it's red or is there something else to it? Sorry if that's a dumb question.

Thanks for that other fractal channel indicator Limstylz it looks pretty cool. Figuring out a profit target is always a tough thing to do, do you remember what you were using as a stop loss with this indicator?

Thanks again guys for the help.
trublu
  • #28
  • Apr 22, 2009 7:23am Apr 22, 2009 7:23am
Quoting trublu
Thanks for that other fractal channel indicator Limstylz it looks pretty cool. Figuring out a profit target is always a tough thing to do, do you remember what you were using as a stop loss with this indicator?
I was using the swing on the other side of the channel for stops... I will post a chart for you of a set up I found today on Cable. I don't trade using this so please don't take this as set in stone...

Check this on your own chart and use a fib from the low to the high of the channel where you enter. This should give you a good indication of where price is heading.
Attached Image (click to enlarge)
Click to Enlarge Name: cable.gif Size: 25 KB
  • #29
  • Edited 8:21am Apr 22, 2009 8:17am | Edited 8:21am
Here's another picture of Cable slightly later than the last post. This time with fibs, so you can see what I mean about potential targets.

Entry is the fractal channel low, stop in this instance is where the fractal channels converge in the middle (around the 38.2% fib level at about 1.46). I recommend taking some profits at 138.2%, set the rest to BE and let it ride with trailing stop (or even better, with the trade manager by SMJones).
Attached Image (click to enlarge)
Click to Enlarge Name: cable2.gif Size: 16 KB
  • #30
  • Apr 22, 2009 9:31am Apr 22, 2009 9:31am
Quoting Limstylz
Here's another picture of Cable slightly later than the last post. This time with fibs, so you can see what I mean about potential targets.

Entry is the fractal channel low, stop in this instance is where the fractal channels converge in the middle (around the 38.2% fib level at about 1.46). I recommend taking some profits at 138.2%, set the rest to BE and let it ride with trailing stop (or even better, with the trade manager by SMJones).
Thanks for those charts Lim, I've fooled around with fibs before and looked at how much it retraced from the channel and if it went too far maybe you don't take the trade, but I don't know if that's good or not. I'll have to work more with your channel indicator and looking at some fib targets. Just wish I wasn't sick so I could spend more time at the computer, stupid cold haha.
trublu
  • #31
  • Apr 22, 2009 8:16pm Apr 22, 2009 8:16pm
I've just looked at the charts for E/U today on the 5 min and 15 min. I put on the indicator Lim gave and put the 15 min. channel on the 5 min chart and the 30 min channel on the 15 min chart. The results look pretty good just from eyeballing it and not taking too much to analyze the charts.

One thing I still am working on is a TP and SL point for every time frame. I plan to do some back testing this weekend and if I find any good results I'll post them here. Probably won't have too much data, since it takes a while to back test so it might take more than just the weekend but I'll try.

Other than that I plan on demo trading sometime tomorrow and maybe Friday morning. As always if anyone has any questions or suggestions feel free to post.

Thanks to everyone who's posted so far.
trublu
  • #32
  • Apr 22, 2009 10:52pm Apr 22, 2009 10:52pm
FractalChannel(2).mq4 (2.0 KB, post1 ___ not bad - goes with fractals (and all their beauty when it canceled (repainting issues - in some cases doesn't matter, in some does)
try this - FractalChannel_v5.mq4 (6.4 KB) - more realistic 4 history and real time
Attached File(s)
File Type: mq4 FractalChannel_v5.mq4   6 KB | 3,296 downloads
  • #33
  • Apr 23, 2009 11:43am Apr 23, 2009 11:43am
Quoting fxxx
FractalChannel(2).mq4 (2.0 KB, post1 ___ not bad - goes with fractals (and all their beauty when it canceled (repainting issues - in some cases doesn't matter, in some does)
try this - FractalChannel_v5.mq4 (6.4 KB) - more realistic 4 history and real time
Thanks for the indicator I'll check it out. I just wanted to say one thing about fractals repainting. I know a lot of people don't put any faith in fractals because they repaint or redraw. The problem is people don't wait for the 5th bar to close. If you are looking at your charts and the fifth bar is still open the 3rd bar will probably show a fractal but it is not confirmed until the 5th bar closes.

So if you are trading the breakout of a fractal's high or low you need to wait for 2 more bars to close (the 5th bar) before you trade or else you're just trading the break of a high not of a fractal.

There are indicators where you can change the fractal where it won't show up until the 5th bar closes which can help sometimes. I think I might have one and I'll post it later if i find it.

Not trying to say you don't know this fxxx just a lot of people seem to forget. Let me know if that's too hard to understand, not sure I did a good job explaining it.

trublu
  • #34
  • Apr 23, 2009 12:59pm Apr 23, 2009 12:59pm
I use fractals in a system that works quite well. For your TP try using measured moves. You'll be surprised at how often it works.

Also, using the channel width for SL isn't necessary. Try drilling down.
  • #35
  • Apr 23, 2009 2:16pm Apr 23, 2009 2:16pm
Quoting Dopey
I use fractals in a system that works quite well. For your TP try using measured moves. You'll be surprised at how often it works.

Also, using the channel width for SL isn't necessary. Try drilling down.
Thanks for the tips Dopey, looks like I got some more things to back test. I haven't tried using measured moves before, I'm intrigued. I've thought about putting SL at fixed number but I think maybe at some fib retracement or previous swing high or something might be better.

Do you mind sharing what kind of system you're using? I haven't seen that many that use fractals other than a few threads I've found on here.

trublu
  • #36
  • Apr 23, 2009 3:01pm Apr 23, 2009 3:01pm
Hey,

Nah, I don't share exactly what I do, never have, never will.

However, here's a few charts to show what I mean by measured moves. I'm tired now, but I'll try to get some charts up later to show how you can drill down and get better stop placement thereby increasing the r:r.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Eur_4HR_1.jpg Size: 127 KB
Click to Enlarge Name: Eur_4HR_2.jpg Size: 152 KB
  • #37
  • Apr 23, 2009 3:03pm Apr 23, 2009 3:03pm
The final chart.
Attached Image (click to enlarge)
Click to Enlarge Name: Eur_4HR_3.jpg Size: 141 KB
  • #38
  • Apr 23, 2009 3:10pm Apr 23, 2009 3:10pm
Quoting Dopey
The final chart.
Nice looking charts Dopey. Thanks for showing some charts, I thought I knew what you meant by measured moves but I was a little off so it's good you shared some charts.

One more question if you don't mind, have you tried the measured moves on shorter TF's or only on the 4hr? I've looked at the higher TF's before but I haven't done enough testing to look at TP or SL points so thank you again.

trublu
  • #39
  • Apr 23, 2009 3:18pm Apr 23, 2009 3:18pm
I decided to throw up some charts from today on the EUR/USD with the Fib targets that Dopey was just talking about. This is the 5 min. chart with the 15 min. channel. As you can see in the charts below both the moves I measured hit all of their targets. This is an interesting way to measure take profit points, now we just need to work on better stops.

If anyone else wants to throw up some charts or examples, feel free.

trublu
Attached Image(s) (click to enlarge)
Click to Enlarge Name: fractal example.gif Size: 18 KB
Click to Enlarge Name: fractal example2.gif Size: 18 KB
  • #40
  • Apr 23, 2009 3:22pm Apr 23, 2009 3:22pm
Here's one more chart from the E/U 5 min chart with the last breakout fibbed. As you can see it's hit it's first target and now I'm going to wait and see if it keeps going up or not.
Attached Image (click to enlarge)
Click to Enlarge Name: fractal example.gif Size: 18 KB
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