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Inside Bar Trading Revisited

  • #821
  • May 8, 2009 3:14am May 8, 2009 3:14am
Quoting PipPig
Would be interested to see the resulting numbers. Cheers.

Me too!
Interesting suggestion PipPig. I also found in my testing that if only we could filter a few bad ones it would dramatically improve the results. I have found many times that when I filter with both Stochastics and Pivot I get more than 95% wins (sometimes 100%) but the resulting trades are reduced a lot (3-4 per month in EURUSD 30m)
  • #822
  • May 9, 2009 2:36am May 9, 2009 2:36am
PipPig

Thanks for that, I hadn't come across this indicator before. I will see if I can integrate it into the EA using the extensions mechanism. That way it will be a good example for other people to refer to. My time is limited at the moment

As Kostas1 noted, the IB method does seem to have potential, if only we could have a more consistent way of identifying losing trades
  • #823
  • May 9, 2009 4:18am May 9, 2009 4:18am
Quoting PipPig
...
Default settings are short period 6, long period 100 and average method 0 and values below 0.5 (50%) at the formation of the IB apparently gives us better trades...
I had a quick look at the indicator, the HVR value doesn't appear to be a percentage, just a 'number'. From my initial view, I'm not sure how to use it. At low values as you suggest, the trend appears to be flat, which would seem to indicate more risk of the IB failing. I would have thought that taking an IB when the HVR is above a certain threshold would be better?
  • #824
  • May 10, 2009 2:40pm May 10, 2009 2:40pm
I see your point a1k but the way I read into the HVA was that when it went below the 0.5 or 50% mark, this indicated that volatility was at a level akin to the calm before the storm whereby any move thereafter would be like a breakout which would indicate a strong move.

Here's the document attached I came across which explains it more. As IB is a price action strategy, combining it with lagging indicators such as stochs is not effective in my opinion but some kind of indication is needed to prune out the potentially bad trades, this just could be it
Attached File(s)
File Type: pdf NR4-IB.pdf   574 KB | 924 downloads
  • #825
  • May 10, 2009 4:14pm May 10, 2009 4:14pm
Quoting PipPig
...
Here's the document attached I came across which explains it more....
Cheers, I'll have a read and see what I can do to integrate this.
  • #826
  • May 22, 2009 7:59am May 22, 2009 7:59am
Anybody around here?
  • #827
  • May 23, 2009 7:27am May 23, 2009 7:27am
Only us chickens

There's not much happening on the EA front, I'm rather busy at work at the moment, and run out of ideas for improving the EA.

I'm about to move over to 4hr timeframes to see if the default EA performs any better.
  • #828
  • May 24, 2009 2:18am May 24, 2009 2:18am
Quoting 1ka

I'm about to move over to 4hr timeframes to see if the default EA performs any better.
Check the break of the outside bar in this TF.
  • #829
  • May 25, 2009 7:54am May 25, 2009 7:54am
Quoting 1ka

I'm about to move over to 4hr timeframes to see if the default EA performs any better.

Still a 30min believer here. Can you remind me the Stochastics filter?
For example, in some backtesting I used StochOffset=60, is this Stoch(8,3,3) and what is the offset?
  • #830
  • May 25, 2009 8:03am May 25, 2009 8:03am
Hi smilee
Could you remember the rules of entries and exits with outside bar and show some samples in TF4 ?
Regards
  • #831
  • May 25, 2009 9:35am May 25, 2009 9:35am
Read this:
http://www.forexfactory.com/showpost...&postcount=675

A break is when the price is 1 pip above the high of the outside bar or 1 pip below of the low of the outside bar.

In the example you see an OB and IB after it.
Each time the price breaks the high or the low of the OB - you open a trade.
TP is divided to 2 or 3 targets.
1st TP is 0.6 of the size of OB.
Than you move the SL of the other open trades to break even.
2nd TP is the same size of the OB.
3rd TP can run with Trailing stop or can be 1.6 of the OB.
Attached Image (click to enlarge)
Click to Enlarge Name: outside bar breakout.gif Size: 9 KB
  • #832
  • May 25, 2009 10:40am May 25, 2009 10:40am
Quoting kostas1
Still a 30min believer here. Can you remind me the Stochastics filter?
For example, in some backtesting I used StochOffset=60, is this Stoch(8,3,3) and what is the offset?
Correct, the Stochastic option uses the 8,3,3 default setting (hmm, maybe I should parametrise this...). The 60 value is used to validate the buy and sell modes. i.e. You can only sell when (stoch value > (100-StochOffset)) and buy when (stoch value < StochOffset). What we're trying to do is avoid buying or selling when we're at the wrong end of the stochastic indicator.

  • #833
  • May 25, 2009 10:51am May 25, 2009 10:51am
Cumulative trading charts. Previous charts are here.

GBPJPY is the big loser overall.

These are the last charts I'll be doing based on the 30m timeframe, at least for the time being.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Picture 1.png Size: 49 KB
Click to Enlarge Name: Picture 2.png Size: 39 KB
  • #834
  • May 25, 2009 4:47pm May 25, 2009 4:47pm
Quoting smilee89
Read this:
http://www.forexfactory.com/showpost...&postcount=675

A break is when the price is 1 pip above the high of the outside bar or 1 pip below of the low of the outside bar.

In the example you see an OB and IB after it.
Each time the price breaks the high or the low of the OB - you open a trade.
TP is divided to 2 or 3 targets.
1st TP is 0.6 of the size of OB.
Than you move the SL of the other open trades to break even.
2nd TP is the same size of the OB.
3rd TP can run with Trailing stop or can be 1.6 of the OB.

smilee89, are you going to share you EA?

Best regards
  • #835
  • May 26, 2009 3:42am May 26, 2009 3:42am
No. Sorry.
  • #836
  • May 26, 2009 5:58am May 26, 2009 5:58am
Quoting smilee89
Read this:
http://www.forexfactory.com/showpost...&postcount=675

A break is when the price is 1 pip above the high of the outside bar or 1 pip below of the low of the outside bar.

In the example you see an OB and IB after it.
Each time the price breaks the high or the low of the OB - you open a trade.
TP is divided to 2 or 3 targets.
1st TP is 0.6 of the size of OB.
Than you move the SL of the other open trades to break even.
2nd TP is the same size of the OB.
3rd TP can run with Trailing stop or can be 1.6 of the OB.
OK smilee
Thanks for explanations.
  • #837
  • May 27, 2009 4:24pm May 27, 2009 4:24pm
Quoting 1ka
I'm about to move over to 4hr timeframes to see if the default EA performs any better.
3 Day stats are here.
  • #838
  • Jun 1, 2009 8:09am Jun 1, 2009 8:09am
Why only last 3 days?
Show us all.
4H. Great!
  • #839
  • Jun 2, 2009 2:55pm Jun 2, 2009 2:55pm
Quoting smilee89
Why only last 3 days?
Show us all.
4H. Great!
I'll do some graphs when there is a bit more data. So far it does seem to be doing better.
  • #840
  • Jun 7, 2009 5:50am Jun 7, 2009 5:50am
Here are the cumulative trading charts for the 4H, starting from 25th May 2009. Based upon Alpari UK feed and times are shown as BST.

Early days, but does seem to be slightly better than the 30M charts.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Picture 1.png Size: 42 KB
Click to Enlarge Name: Picture 2.png Size: 37 KB
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