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4H Box Breakout

  • #641
  • Jun 28, 2009 6:39am Jun 28, 2009 6:39am
Quoting SwingMan
For weekend analyses you can check the potential of the signals with a simple indicator.


The indicator take automatic the upper time frame:
- lower or equal H1 -> daily
- equal H4 -> weekly
- equal D1 -> monthly



- In the middle of the start bar is drawn an area with the height = 1 ATR, and three lines with the distance 1 ATR.

- Signal arrows are drawn only if the open is located between the high and low of the area, and the close crosses one of this lines.
.
Nice work, SwingMan : thanks ... but if you could make the ATR parameter an adjustable input (in which case the lines would also draw at multiples of that parameter), then even better.... ?

J.
  • #642
  • Jun 28, 2009 8:16am Jun 28, 2009 8:16am
Quoting VonBek
Hi Bobcat,

The way I do this, is simply to add 30 to either side of the box, this allows for the buffer and any spread. The reason I use 30, is when back testing I found this to be the best setting, it reduced the amount of false trades, where the price goes to your entry and then retraces to your SL.

Hope this helps.
Ian.
Hi Ian,

Yes...very helpful...thanks. So where do you place your Stop Loss for least week's Short trade? Is it at the opposite side of the actual box (158.87 last week) or the opposite side of the "expanded" box with the 30 pip buffer added (159.17 last week)?
  • #643
  • Edited 8:57am Jun 28, 2009 8:55am | Edited 8:57am
hey all

been following this thread for the last week

think it has potential and will look forward to trading this nxt week.

I will look to a buffer of 25 pips +/- after seeing the latest ATR. I will keep it simple

#1 : place the buy and sell stops for the week. Max 2 trades.

#2 : place TP at 2x and 3x since this is my first trade. Always good to have some money in the bank for the first trades.

# 3. will use a 2% MM.

System is simple enuf. So will keep it simple.

Thanks to ACER and the rest here who have posted all their research. Lets make the pips next week!
  • #644
  • Jun 28, 2009 9:34am Jun 28, 2009 9:34am
Quoting SwingMan
For weekend analyses you can check the potential of the signals with a simple indicator.


The indicator take automatic the upper time frame:
- lower or equal H1 -> daily
- equal H4 -> weekly
- equal D1 -> monthly



- In the middle of the start bar is drawn an area with the height = 1 ATR, and three lines with the distance 1 ATR.

- Signal arrows are drawn only if the open is located between the high and low of the area, and the close crosses one of this lines.
.
Swingman
Thanks for another great addition . It looks very promising. Diffinetly will test it with other pairs when the market opens. By the way, Swingman, you are keeping me busy all the timeand I like that. Regards
  • #645
  • Jun 28, 2009 10:29am Jun 28, 2009 10:29am
I'm posting the buying and selling scenario. These are the rules that I've followed. Hope it helps.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: buying scenario.gif Size: 55 KB
Click to Enlarge Name: selling scenario.gif Size: 54 KB
  • #646
  • Edited 11:54am Jun 28, 2009 11:51am | Edited 11:54am
Quoting Bobcat2
Hi Ian,

Yes...very helpful...thanks. So where do you place your Stop Loss for least week's Short trade? Is it at the opposite side of the actual box (158.87 last week) or the opposite side of the "expanded" box with the 30 pip buffer added (159.17 last week)?
Hi Bobcat,

My SL for the the Short, would be at the top of the box, I do not add anything onto the stoploss, only the entry.

Ian.
  • #647
  • Jun 28, 2009 12:36pm Jun 28, 2009 12:36pm
Quoting jtrade
... but if you could make the ATR parameter an adjustable input (in which case the lines would also draw at multiples of that parameter), then even better.
Here you are the version with parameters:
.
Attached File(s)
File Type: ex4 BoxBreakout Signals_v2.ex4   18 KB | 1,261 downloads
  • #648
  • Jun 28, 2009 1:43pm Jun 28, 2009 1:43pm
Quoting SwingMan
Here you are the version with parameters:
.
Thank-you .
  • #649
  • Jun 28, 2009 1:46pm Jun 28, 2009 1:46pm
Quoting VonBek
Hi Bobcat,

My SL for the the Short, would be at the top of the box, I do not add anything onto the stoploss, only the entry.

Ian.
If you guys may allow me to opine...

The core idea behind the buffer is to reduce any false breaks. Since we are trading bar highs/lows, it is reasonable to assume that a bar high/low might be retested prior to moving the opposite direction. As far as the buffer goes, there really isn't any exact calculation. Like those have said, a 20+ buffer either way is good. For buy entries, add the spread as well. So nearly 30 pips for buy and 20 or so for sell is sufficient.

I have found in back testing that these parameters are fine. What I do in addition is that I move my stop to BE after 100 pips but that break even is more like -15 or so. I have found that price has retraced (on more than enough occasions for me to notice) to the origin of the break out and than taken off in the direction it was already going. So hence, the -15 or so stop loss once it has gone 100+ pips.

But I don't think we should get too tangled up with the buffer. 20-30 pips should be fine. And remember this: the best trades are those where price swiftly and sufficiently moves through our breakout zones. When this happens, sacrificing 30 pips is minimal. Don't beat yourself up if you place a large buffer and you get taken out. The trade was not destined to work out anyway.
  • #650
  • Jun 28, 2009 8:35pm Jun 28, 2009 8:35pm
Just to clarify this weeks box high and low on the GBP/JPY

Box high: 157.48

Box Low: 156.92
  • #651
  • Jun 28, 2009 8:57pm Jun 28, 2009 8:57pm
Quoting jahual89
Just to clarify this weeks box high and low on the GBP/JPY

Box high: 157.48

Box Low: 156.92
The high of my first 4 hr bar is 157.43, so if I add 15 pips I get 157.58. I belive most traders of this system add more.
My low of the candle is 156.88, so if I subtract 15 pips I get 156.73.
Are you using fxdd?
Michael
  • #652
  • Jun 28, 2009 9:30pm Jun 28, 2009 9:30pm
Quoting alllivemind
The high of my first 4 hr bar is 157.43, so if I add 15 pips I get 157.58. I belive most traders of this system add more.
My low of the candle is 156.88, so if I subtract 15 pips I get 156.73.
Are you using fxdd?
Michael
The high of mine is 157.45 and the low is 157.01 using ODL. Seems like quite a difference from the low I got in comparison to yours and jhaul89.
  • #653
  • Jun 28, 2009 9:32pm Jun 28, 2009 9:32pm
Broker : Tadawulfx

GBPJPY
Box High - 157.39
Box Low - 156.89
Buffer - 20 pips
Spread - 8 pips

Buy 1: 157.67, SL 156.69, TP 158.65
Buy 2: 157.67, SL 156.69, TP 159.63
Buy 3: 157.67, SL 156.69, TP 160.61
Buy 4: 157.67, SL 156.69, TP 161.59
Sell 1: 156.69, SL 157.67, TP 155.71
Sell 2: 156.69, SL 157.67, TP 154.70
Sell 3: 156.69, SL 157.67, TP 153.75
Sell 4: 156.69, SL 157.67, TP 152.77
  • #654
  • Jun 28, 2009 9:33pm Jun 28, 2009 9:33pm
Quoting SwingMan
Here you are the version with parameters:
.
----------------
Hi SwingMan,

Please add InPut (adjustable) for buffer & spread in your Breakout box, and additional Signal Filter :

1. If 4H weekly High Low less than 50pips--->No Trade

2. If current Breakout Price above Friday close/Today open, then take only Long position, vice versa.

Thanks

Cheers
  • #655
  • Jun 28, 2009 9:42pm Jun 28, 2009 9:42pm
Broker : Tadawulfx

EURJPY
Box High - 134.09
Box Low - 133.63
Buffer - 10 pips
Spread - 4 pips

Buy 1: 134.23, SL 133.53, TP 134.93
Buy 2: 134.23, SL 133.53, TP 135.63
Buy 3: 134.23, SL 133.53, TP 136.33
Sell 1: 133.53, SL 134.23, TP 132.83
Sell 2: 133.53, SL 134.23, TP 132.13
Sell 3: 133.53, SL 134.23, TP 131.43
  • #656
  • Jun 28, 2009 9:44pm Jun 28, 2009 9:44pm
Hi guys,

Very interesting method. I'm in Australia and use 6am-10am Monday morning for the 4h box. Have the following values for this week:

4H high: 157.478
4H low : 156.92


Upper (buy)157.718 TP1: 158.676 TP2: 159.634 TP3: 160.592
Lower (sell)156.76 TP1: 155.802 TP2: 154.844 TP3: 153.886

Upper = 4H high+0.04+0.2
Lower = 4H low-0.04-0.2

(0.2 is 20 pips on G/J and 0.04 is half of 0.08 which is the spread between buy/sell for G/J)

SL for buy is just set to lower and vice versa SL for sell is just set to upper.

Please confirm this is correct as there is clearly lots of different box values people are using!
  • #657
  • Jun 28, 2009 11:31pm Jun 28, 2009 11:31pm
Here's the week, with the levels. I know im posting pretty late, but just came back from a wedding reception.

No order has been hit as of yet.
Attached Image (click to enlarge)
Click to Enlarge Name: _update.gif Size: 48 KB
  • #658
  • Jun 29, 2009 12:00am Jun 29, 2009 12:00am
The method I use on the GBPJPY:
Candle levels between 23:00 GMT open and 02:00 GMT Close:
Highest: 157.43
Lowest: 156.88

Buffers:
Long: 21 + spread (9 for me) = 30
Short 21

Breakout High: 157.43 + 30 = 157.73
Breakout Low: 156.88 - 21 = 156.67
Box height = 106 pips

SL = the other side of the breakout box

TP = end of the week close
  • #659
  • Jun 29, 2009 2:52am Jun 29, 2009 2:52am
hi all, i've been following this thread for some time...i'm from indonesia.
Today i start to follow this method..i'm trading GJ and EJ...and here is my OP

GJ :
Sell Stop @ 156.67 ; SL = 157.63 ; TP = 153.83
Buy Stop @ 157.73 ; SL = 156.68 ; TP = 160.48

EJ :
Sell Stop @ 133.46 ; SL = 134.27 ; TP = 131.87
Buy Stop @ 134.32 ; SL = 133.47 ; TP = 135.87

I'm putting 20+spread+1 for Buy Stop GJ and 20+1 for Sell Stop GJ, and 15+spread+1 for Buy Stop EJ and 15+1 for Sell Stop EJ.

Right now, i have two orders open. Buy GJ and Sell EJ. This is where i'm getting confused.. as far as i know GJ and EJ is a highly correlated pairs, which mean if GJ is bullish 100 pips EJ will likely follow it by about 80 pips bullish. Nah, I have opposing order on both pairs now, Buy GJ and Sell EJ. What do you think i should do?do i need to close Sell EJ?since it's 40 pips down right now??

One more question, ace please elaborate to us on how to use ATR to filter our trade. I believe this system is about price movement range in a week, so if we can figuring out the estimated movement per week for the pair using ATR we may have a better edge...

@kepalalutut : are you from indonesia too??seems so, as your nick suggest it...hehe...apa kabaR??
  • #660
  • Jun 29, 2009 5:25am Jun 29, 2009 5:25am
bad luck on first trade.

hit SL for the SS and now holding on to the BS.

lets see how our luck stands by the end of week. My TP is placed as a 2:1 R2R trade.
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