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Mikkom's stophunter system

  • #81
  • Apr 29, 2009 9:38am Apr 29, 2009 9:38am
Quoting Rastaman
TP is always 20 pips?

The risk reward ratio seems a little unbalanced for anyone as the SL is currently over 200 pips on EUR/USD.

There must be more to this than meets the eye.
TP is always 20 pips from the open of the new daily bar.
You may make much more than 20 pips, overall.
If you lose, your loss may be much less than the SL.

There is no way to calculate the R/R ratio without actually testing it.
  • #82
  • Apr 29, 2009 9:39am Apr 29, 2009 9:39am
Rastaman, would you be willing to take a suggestion without taking offense? The suggestion is to read the first post. If you do, you will discover that take profit is not 20 pips, but 20 pips in addition to the open of the next day's bar, which could be hundreds of pips. The suggestion is to read.

Quoting Rastaman
TP is always 20 pips?

The risk reward ratio seems a little unbalanced for anyone as the SL is currently over 200 pips on EUR/USD.

There must be more to this than meets the eye.
  • #83
  • Apr 29, 2009 9:45am Apr 29, 2009 9:45am
I read the post. But I think I get it now from what you are saying.

The next day's bar gets to run it's course, and the 20 TP is on the the open of the next bar?

Hey, even you were not clear about this initially how is anyone less experienced supposed to know without asking questions?
Starting to see instead of just looking.
  • #84
  • Apr 29, 2009 9:47am Apr 29, 2009 9:47am
Quoting Rastaman
I read the post. But I think I get it now from what you are saying.

The next day's bar gets to run it's course, and the 20 TP is on the the open of the next bar?

Hey, even you were not clear about this initially how is anyone less experienced supposed to know without asking questions?
The bar you enter on gets to run its course.
From then on, place a TP at the next bar's open +20 pips.
  • #85
  • Apr 29, 2009 10:02am Apr 29, 2009 10:02am
Quoting billbss
The bar you enter on gets to run its course.
From then on, place a TP at the next bar's open +20 pips.

This is EUR/USD with just over 9 hours left on the current bar.
I have drawn the next bar (optimistically) and the TP will be at the red horizontal line then.

Obviously we have to time the entry correctly or we could be sleeping when the next bar opens.

Also, I am not sure how fractals work but is it possible to get a new fractal before the current fractal high and low are broken? If so what do we do if we get a new one?

And thanks Bill for having patience.
Attached Image (click to enlarge)
Click to Enlarge Name: TP.jpg Size: 69 KB
Starting to see instead of just looking.
  • #86
  • Apr 29, 2009 10:16am Apr 29, 2009 10:16am
Quoting Rastaman
This is EUR/USD with just over 9 hours left on the current bar.
I have drawn the next bar (optimistically) and the TP will be at the red horizontal line then.

Obviously we have to time the entry correctly or we could be sleeping when the next bar opens.

Also, I am not sure how fractals work but is it possible to get a new fractal before the current fractal high and low are broken? If so what do we do if we get a new one?

And thanks Bill for having patience.
The way you have it, I can't tell when the entry is.
If it is today's bar, then the TP will be the open of tomorrow's bar +20 pips.

If the up fractal is not broken until tomorrow, then we let the bar run it's course tomorrow and place the TP at the next day's open +20 pips.

There is no way we can time an entry. We have to enter when the fractal is broken.
We set Buy Stop and Sell Stop orders to do that for us. We don't have to be there when it happens.

If new fractals appear while we are in a trade, we do as we always do. We make pending orders to buy or sell if the fractals are broken.
  • #87
  • Edited 2:13pm Apr 29, 2009 1:28pm | Edited 2:13pm
(about cumulation of stops)

Quoting LuboLabo
Mikkom,
Always a little mysterious!
Not really, in fact it's quite simple. People tend to place their stops above peaks and below bottoms. When the price touches there, the stop orders will trigger as market orders meaning they move the price. This is a short term method that tries to benefit from that effect.

About 30 days rule when you delete the stop orders, it's not really an exact number.
  • #88
  • Apr 29, 2009 1:35pm Apr 29, 2009 1:35pm
Quoting billbss
If you're in a long, have not been stopped out, and tomorrow's bar opens at 1.3000, you set your TP at 1.3020.
That is 20 pips above tomorrows open.

If tomorrows bar goes up 20 pips, you're out of the trade.
Exactly. Thanks bill.

I warned on the first post that this is a bit different than other systems didn't I
  • #89
  • Apr 29, 2009 1:47pm Apr 29, 2009 1:47pm
Quoting Dreamliner
This is one of the most important questions that needs answering by Mikkom. It looks like it is happening right now with Cable. Thank you.
Sometimes you have to take a small loss to avoid bigger one - just take the loss if +20 is a loss (I have tested this rule quite a bit).
  • #90
  • Apr 29, 2009 1:50pm Apr 29, 2009 1:50pm
Quoting Rastaman
Also, I am not sure how fractals work but is it possible to get a new fractal before the current fractal high and low are broken? If so what do we do if we get a new one?
Add another buy stop there but don't remove the previous one unless the two trades combined have too big risk for your taste.
  • #91
  • Apr 29, 2009 2:15pm Apr 29, 2009 2:15pm
You can't have a negative TP? How do I set my TP +20 pips if it's a loss?

Edit: I would have to move my SL then?

TimeFreedom

Quoting mikkom
Sometimes you have to take a small loss to avoid bigger one - just take the loss if +20 is a loss (I have tested this rule quite a bit).
  • #92
  • Apr 29, 2009 2:23pm Apr 29, 2009 2:23pm
Quoting TimeFreedom
You can't have a negative TP? How do I set my TP +20 pips if it's a loss?

TimeFreedom
I could do with knowing this as i have 3 trades open all in the red. I will get a new candle in 1hr 45 mins on my broker FXDD, as they are two hours in front of GMT.

regards Punta
  • #93
  • Edited 2:40pm Apr 29, 2009 2:25pm | Edited 2:40pm
Quoting LuboLabo
I think the Mikkom's aim for this thread wuold be discuss on ideas people might come up with.
Strangely no it isn't. I have no idea what my point on this thread was

Maybe it was just temporary insanity or maybe I just felt that this site has given so much that I should give something [very] valuable back.

Btw, this is one of the 16 systems that I trade live. Combination of simple daily systems with positive long term expextancy is IMHO the best way to trade but that's just me.
  • #94
  • Apr 29, 2009 2:40pm Apr 29, 2009 2:40pm
Quoting mikkom
Strangely no it isn't. I have no idea what my point on this thread was

Maybe it was just temporary insanity or maybe I just felt that this site has given so much that I should give something [very] valuable back.

Btw, this is one of the 16 systems that I trade live. Combination of simple daily systems is IMHO the best way to trade but that's just me.

I just picked up your words from the first post.

I hope that in future you would like to share other systems.

Thanks.

Lubo.
If I know how, I tell You!! Few but Good!!
  • #95
  • Apr 29, 2009 2:56pm Apr 29, 2009 2:56pm
Quoting TimeFreedom
You can't have a negative TP? How do I set my TP +20 pips if it's a loss?

Edit: I would have to move my SL then?

TimeFreedom
Today's EUR/USD is a good example.
It broke the upper fractal at 1.3303 (including spread)
I entered long.

Right now it's at 1.3245. It's down 58 pips.

If the tomorrow's bar opens at that price, I will set my TP at 1.3265. (Open +20 pips.)

If price goes up, tomorrow, to 1.3265- I'm out.

I'll have a 38 pip loss for the trade.

No. I don't adjust the SL.
  • #96
  • Apr 29, 2009 3:34pm Apr 29, 2009 3:34pm
Just a hint to everyone - there is also another way of adjusting the aggressiveness of the method than the r% trade risk size.

Because the system uses r%, the risk is always proportionate to the sl. If you want to be more aggressive, you can use tighter stop level, for example 40% or 30% down from the top between up fractal and down fractal (long trade, opposite meaning 40% or 30% up from the last downfractal with short). Because of the r% position sizing, the trade size will be bigger and the risk will remain the same.
  • #97
  • Apr 29, 2009 3:48pm Apr 29, 2009 3:48pm
Do we set pending order only once per fractal?

For ex - fractal formed 2 bars ago so we set buystop.Buystop triggered but price go down and we get sl. Question is do we set new buy stop to the last (same) fractal?
  • #98
  • Apr 29, 2009 3:53pm Apr 29, 2009 3:53pm
Quoting Dezil
Do we set pending order only once per fractal?

For ex - fractal formed 2 bars ago so we set buystop.Buystop triggered but price go down and we get sl. Question is do we set new buy stop to the last (same) fractal?
Just once per fractal. When it's triggered, the stops that were cumulated above that fractal (or below if it's downfractal) are triggered and there is no point in using the same level again.
  • #99
  • Apr 29, 2009 4:06pm Apr 29, 2009 4:06pm
but your rules are a lot more clearly defined than mine ever were. Anyway, I back tested this on Forex Tester 2 (well worth the investment) with the default fractals (I don't know how to code in C or Delphi) and I only had what appeared to be 2 losers on cable. I tested from January this year to 5 days ago. I will run some more tests with FT2 when I have more time...

Nice and clean.
  • #100
  • Apr 29, 2009 4:15pm Apr 29, 2009 4:15pm
You would add losses today on all pairs. GBP/USD, EUR/USD, and USD/CHF.

Quoting Limstylz
but your rules are a lot more clearly defined than mine ever were. Anyway, I back tested this on Forex Tester 2 (well worth the investment) with the default fractals (I don't know how to code in C or Delphi) and I only had what appeared to be 2 losers on cable. I tested from January this year to 5 days ago. I will run some more tests with FT2 when I have more time...

Nice and clean.
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