Tony's Two Candle trading system | Page 7 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

MT4 candle-by-candle manual backtesting 9 replies

How to make EA that send Open Price of Candle for every new candle 5 replies

Day's first H4 candle correlation to daily candle 14 replies

Correlation between first 4 hour candle and daily candle 1 reply

tony's trading journal 7 replies

Attachments: Tony's Two Candle trading system
Exit Attachments

Tony's Two Candle trading system

  • #121
  • Jun 5, 2009 8:00am Jun 5, 2009 8:00am
Quoting mikkom
The point of 25% rule was to target the "best" bull candles to see if there is potential in the "best" setups of this system.

Here are the results for the above rules (down candle, up candle, stop at +-5 from open and 20 pips tp)

If a tp is not hit during the candle, position is closed at the next candle open.
hi mikkom,
my idee about the 25%rule:
i personally like the 50% fibo retracement very much and if the retracement from the extrem of the 1. candle (this includes the wick) is less than 50% for me it is a 1-2-3 Breakout trade and thats good PA
i show u and example from yesterday
Attached Image
  • #122
  • Edited 1:27pm Jun 5, 2009 12:33pm | Edited 1:27pm
ind. - arrows on entry points +(sl/tp lvl)
2RevBarsEntry_arr0Bar_mtf.mq4 - blinker (current close><open condition)
dem, Tony, u shold be fast with this system, demit : )))))))
---------
p.s. blinker mtf would blink on lover TFs (1,5,etc min) -same exactly as ind. on 1h tf. does (condition -curr Close><Open), - open 1h(60min) bar untill it closes (open bull/bear candle)
Attached Images
Attached File(s)
File Type: mq4 2RevBarsEntry_arr_mtf.mq4   4 KB | 1,637 downloads
File Type: mq4 2RevBarsEntry_arr0Bar_mtf.mq4   4 KB | 3,854 downloads
  • #123
  • Jun 5, 2009 1:00pm Jun 5, 2009 1:00pm
Quoting fxxx
ind. - arrows on entry points +(sl/tp lvl)

Hello
Can you explain how to interpret this indicator?

Thanks
The Market pays you to be disciplined
  • #124
  • Jun 5, 2009 1:24pm Jun 5, 2009 1:24pm
I was trying to figure out the entry. Even though it is stated on pg 1 is the 5 pip entry at candle price or above/below wick high low. hope this makes sense. any help would be great.
  • #125
  • Jun 5, 2009 3:15pm Jun 5, 2009 3:15pm
Just looking at the new threads I came upon Tony_ dtrader and his simple method. I made a chart of all the entries I saw using his 1m template. The 7 entries today made 20 pips each depending if you could patiently hold two of them over an hour. One of those had 14 pips drawdown which is a loss for some folks. The other 5 paid within the hour. Seems a 10 pip stop, b/e at +10 with a 10 pip trailing stop might be a good money management plan. Just my opinion from initial observation.

Anyhow, an easy 80+ pips during the time I trade today near New York timezone.

Thanks for an interesting simple concept.

Steve
Attached Image (click to enlarge)
Click to Enlarge Name: twocandlemethod.gif Size: 64 KB
  • #126
  • Jun 5, 2009 4:21pm Jun 5, 2009 4:21pm
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting Razor_trader
How you do that is up to you. You could move your SL to +5 after say 20 pips, and if you weather the storm you could make greater pips. I post a pic of the GBP to show you what I mean. By doing this you can also alleviate the amount of time spent at your screen.

Razor
Also Stevewise

neither of these methods are what i conside to be greedy, they are controlled methods of trade management, the greed comes in when poeple start trying aim for 100pips each time, suddenly there in massive drawdowns even with a small SL position - WHY, well because the system looks to me to be geared towards trading the momentum factor and has no bearing on the actual trend - so aim to high and it will kick you good and hard

TP 1 half at position X and letting the rest run and trailing it wll take some control but seem to me to be an excellent option, a simple low MA (ie 5) would i expect easily increase the odds of far higher gains on the second position

But for now lets let Tony teach his way, after all he may have tried all these ideas.
  • #127
  • Jun 5, 2009 4:28pm Jun 5, 2009 4:28pm
here is AFL (Amibroker Formula Language) Code :
The bodyfactor argument controls the minimum accepted size of candle's body as a fraction of high-low range.
The rangefactor argument controls the minimum accepted size of candle's body compared to 15-bar simple moving average of |close-open| range.

Inserted Code
bodyfactor = param("BF", 20, 10 , 90, 20)/100;
rangefactor = param("RF", 100, 100 , 200, 20)/100;

Buy = CdWhite(bodyfactor,rangefactor );
Short = CdBlack(bodyfactor,rangefactor);
Sell = Cover = 0;

//PositionScore = 100 * mtRandomA(); 

SetChartOptions( 0, chartShowDates | chartShowArrows );
Plot( C, "", colorWhite, styleBar );
PlotShapes( Buy* shapeSmallUpTriangle, colorGreen, 0, L );
PlotShapes( Short* shapeSmallDownTriangle, colorRed, 0, H );



/* Backtester Settings*/
SetOption( "initialequity", 100 );
SetOption( "FuturesMode" , 1);
SetOption( "ActivateStopsImmediately", 0 );
SetOption( "Allowsamebarexit", 0 );
SetOption( "PriceBoundChecking", 0 );
SetBacktestMode(backtestRegular);

PointValue = 1;
MarginDeposit = -2;
/* Exit*/
stp = 1.5* ATR(10);
tKp = 0.2*ATR(10);
ApplyStop( stopTypeLoss, stopModePoint, stp, 1 );
ApplyStop( stopTypeProfit, stopModePoint , tKp, 1 );

SetPositionSize( 5 , spsPercentOfEquity );
Attached File(s)
File Type: zip Backtest results.zip   895 KB | 1,273 downloads
  • #128
  • Jun 5, 2009 7:12pm Jun 5, 2009 7:12pm
Hi tony,how do i get the template for 1hr candle setting? Great work keep it up!!!!!!!!
  • #129
  • Jun 5, 2009 7:22pm Jun 5, 2009 7:22pm
hi great thread will be following all the way keep up the good work
  • #130
  • Jun 5, 2009 7:38pm Jun 5, 2009 7:38pm
Spot on, that is why I have respect for you. The setting of unrealistic goals (100 pips in a market of currencies may not seem like much) forces traders to spend far to long looking, monitoring and adjusting there trades. When you start to set goals, you start to chase your tail, by that I mean if 100 pips a day is your goal and you have 2 lossers for 20 pips each, suddenly your goal is 140 so you ultimatly sit there are rack out trades trying to make up for the loss. Let the market do as it will. It is simply an opportunity flow. Some days you will make nothing, others you will make up for it.

You need to understand trading as a business, not a day job. If you look at each day as a day where you have to make money then you are going to stress yourself to a point of exhaustion.

Thanks MPP

Razor

Quoting MPP
Also Stevewise

neither of these methods are what i conside to be greedy, they are controlled methods of trade management, the greed comes in when poeple start trying aim for 100pips each time, suddenly there in massive drawdowns even with a small SL position - WHY, well because the system looks to me to be geared towards trading the momentum factor and has no bearing on the actual trend - so aim to high and it will kick you good and hard

TP 1 half at position X and letting the rest run and trailing it wll take some control but seem to me to...
  • #131
  • Jun 5, 2009 7:44pm Jun 5, 2009 7:44pm
Quoting stevewide
Just looking at the new threads I came upon Tony_ dtrader and his simple method. I made a chart of all the entries I saw using his 1m template. The 7 entries today made 20 pips each depending if you could patiently hold two of them over an hour. One of those had 14 pips drawdown which is a loss for some folks. The other 5 paid within the hour. Seems a 10 pip stop, b/e at +10 with a 10 pip trailing stop might be a good money management plan. Just my opinion from initial observation.

Anyhow, an easy 80+ pips during the time I trade today near New...
And looking at your chart the first thing I will do is revert back to a previous comment about being able to withstand the small pullbacks, get to 1:1 and let the trade run. The first trade would have still being running (pending further charts) which was over 100 pips on your first trade, and all you where looking for was 1:1 or there abouts and letting the trade do its thing. The other point I make is that after that first trade went 1:1 and you took some profit, it would have freed up some margin and you could have added some more along the way if you chose.

None of this is considered greed. All you are doing is taking the options that the market is giving you to maximise your account growth. You could quite easily stop at the first trade and see how it pans out. Positive pips is positive growth.

Take care all, have a good weekend

Razor
  • #132
  • Jun 5, 2009 10:51pm Jun 5, 2009 10:51pm
nice toy - ccshift - custom tfs (120, 480, etc), also - can be run on tester
Attached Image (click to enlarge)
Click to Enlarge Name: cc shift.gif Size: 16 KB
Attached File(s)
File Type: mq4 CustomCandleCC_Shift.mq4   9 KB | 1,381 downloads
  • #133
  • Jun 6, 2009 1:58am Jun 6, 2009 1:58am
Quoting apfx
here is AFL (Amibroker Formula Language) Code :
The bodyfactor argument controls the minimum accepted size of candle's body as a fraction of high-low range.
The rangefactor argument controls the minimum accepted size of candle's body compared to 15-bar simple moving average of |close-open| range.
can you paste the body factor and range factor parameter options (what the options are) from your amibroker BF and RF funtion library help file? So we can understand better.

Also am I correct in assuming your stop is 7 times your take profit. also what does positionscore mean?
  • #134
  • Jun 6, 2009 5:19am Jun 6, 2009 5:19am
do you use stop orders and add spread to that so for Uj it would be 5+1?
Thanks
Steve
  • #135
  • Edited 7:51am Jun 6, 2009 7:22am | Edited 7:51am
Quoting fugly
can you paste the body factor and range factor parameter options (what the options are) from your amibroker BF and RF funtion library help file? So we can understand better.
bodyfactor and rangefactor are the arguments for the candlestick functions generated by AB candlesitck functions plugin (candle.dll).

All functions have "Cd" prefix appended to avoid name conflicts with built-in functions.

CdWhite( bodyfactor = 0.4, rangefactor = 0) - returns True (1) when white candle appears, False (0) otherwise.
CdBigWhite( bodyfactor = 0.9, rangefactor = 1.5) - returns True (1) when a big white candle appears, False (0) otherwise.
CdBlack( bodyfactor = 0.4, rangefactor = 0) - returns True (1) when black candle appears, False (0) otherwise.
CdBigBlack( bodyfactor = 0.9, rangefactor = 1.5) - returns True (1) when a big black candle appears, False (0) otherwise.
CdDoji( threshold = 0.05 ) - returns True (1) when doji is detected, False (0) otherwise. The threshold argument defines maximum allowed difference between open and close as a fraction of high-low range.
CdHammer( rangefactor= 1.1 ) - returns True (1) when hammer is detected, False (0) otherwise. This function checks if Close is higher than half the distance between high and low and the candle is black. In addition to that the body size of the candle must be greater rangefactor * average |close-open| range from 15 bars, and open has to be located not lower than 10% of candle height from the high price.
CdBearishEngulfing( bodyfactor = 0.4, rangefactor = 0.5) returns True (1) when Bearish engulfing pattern is detected, False (0) otherwise.
CdBullishEngulfing( bodyfactor = 0.4, rangefactor = 0.5) returns True (1) when Bullish engulfing pattern is detected, False (0) otherwise.

bodyfactor = ( close - open )/ (high-low);
rangefactor = (close - open)/ MA ( (close-open), 15);
* absolute values

Quoting fugly
Also am I correct in assuming your stop is 7 times your take profit. also what does positionscore mean?
Yes, stop loss must be greater than take profit.

PositionScore = 100 * mtRandomA(); - is for picking randomly the trade signals out of the total number of generated signals for portfolio backtesting.
  • #136
  • Jun 6, 2009 6:48pm Jun 6, 2009 6:48pm
After a visual back test of a couple of weeks during london and ny sessions i get about a 50% success rate. It certainly didn't come close to 80% accuracy even if you were going for just 10-15 pips. This is eliminating any dojis and only trading clear bull/bear candles. Most of the time on the usd/jpy it never even gets to 20 pips profit. What does everyone else get? It doen'st look profitable to me but more of a crap shoot. Paris
  • #137
  • Jun 6, 2009 9:48pm Jun 6, 2009 9:48pm
Quoting Paris Hilton
It certainly didn't come close to 80% accuracy even if you were going for just 10-15 pips. This is eliminating any dojis and only trading clear bull/bear candles. Most of the time on the usd/jpy it never even gets to 20 pips profit. What does everyone else get? It doen'st look profitable to me but more of a crap shoot. Paris
You can never get a 80% accuracy with 1:1 risk/reward and fixed sizes of stops.
stops must be volatility based.
  • #138
  • Jun 6, 2009 10:34pm Jun 6, 2009 10:34pm
Quoting Paris Hilton
After a visual back test of a couple of weeks during london and ny sessions i get about a 50% success rate. It certainly didn't come close to 80% accuracy even if you were going for just 10-15 pips. This is eliminating any dojis and only trading clear bull/bear candles. Most of the time on the usd/jpy it never even gets to 20 pips profit. What does everyone else get? It doen'st look profitable to me but more of a crap shoot. Paris
Im so glad that you have joined the fraternity of wasted posters. What do you hope to gain by making a pointless post such as this.

Seriously im glad there are people like you in the commuity, its even better if your a trader because you complete disregard for time and effort gives me a smile as you enter trades probably at random.

A visual backtest holds NO water any where! And a system that has a 50% win rate, even on a VISUAL backtest can be profitable depending on how you manage you R/R (Risk / Reward).

So then where does that leave you? Searching for the Holy Grail no doubt, wandering from thread to thread until there is literally someone who will trade for you. Good luck Mr Liquidity, the market welcomes traders with your time and effort.

Razor
  • #139
  • Jun 6, 2009 10:45pm Jun 6, 2009 10:45pm
Quoting Razor_trader
Im so glad that you have joined the fraternity of wasted posters. What do you hope to gain by making a pointless post such as this.

Seriously im glad there are people like you in the commuity, its even better if your a trader because you complete disregard for time and effort gives me a smile as you enter trades probably at random.

A visual backtest holds NO water any where! And a system that has a 50% win rate, even on a VISUAL backtest can be profitable depending on how you manage you R/R (Risk / Reward).

So then where does...
All I'm saying is i have much better systems that are much more profitable than this one. I only checked this one for the wonderful claims that the first poster made. But after reviewing the charts it didn't hold water. At least not on the usd/jpy. Haven't checked other pairs. It's black and white. Paris
  • #140
  • Jun 6, 2009 11:42pm Jun 6, 2009 11:42pm
Hi Tony,

I just notice your thread.For the graph below, if lets say you enter a bearish -5 pips on GMT 11, it would result in a loss, due to gmt 12 is a bullish candle. So how you prevent not to ether this kind of trade?

Attached Image (click to enlarge)
Click to Enlarge Name: example graph1.gif Size: 14 KB



Quoting tony_dtrader
Howdy Folks,

Just wanted to share a high probability trading system to you. Its very simple, just pull out a 1hour chart any currency.

Now simply wait for a bull or bear candle to form, after it closes bullish or bearish, ITS MOST LIKELY the next candle will form bull or bear candle...theres some easy pips for you.

Examples:

Bull candle at 8gmt, most likely 9gmt candle could be a bull candle too.
Bear candle at 11gmt, most likely 12gmt candle could be a bear too.

Entry Exit Rules:
Bull candle --- Stoploss at the low of the previous candle,...
0 traders viewing now