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4H Box Breakout

  • #1,921
  • Aug 17, 2009 9:13am Aug 17, 2009 9:13am
Quoting 11andy11
long positions have not yet been triggered. Review post #1. You might want to demo trade the system for a couple of weeks before going live. All your questions are answered multiple times in the thread. Go back in the thread and look on Sundays, Ace posts a pic of his chart with the exact entry, stoploss and the different take profit levels. Review it with your charts during the same time period so that you are proficient with the correct entry criteria.

Yes i think i am gonna trade demo first for the practice. thanks a lot for your input
  • #1,922
  • Aug 17, 2009 9:18am Aug 17, 2009 9:18am
Ok, I throw out pivots! Let's try KISS strategy.
  • #1,923
  • Aug 17, 2009 9:33am Aug 17, 2009 9:33am
Thanks for this system Ace, it seems like a very good one. Collected 139 pips today on this system. Done for the week. Right now i'm being conservative by only going for tp1 while trading one micro lot. Many pips to all.

AB
  • #1,924
  • Aug 17, 2009 10:18am Aug 17, 2009 10:18am
Quoting time1300
Hi guys,

I just wanted to clarify something about the variations that Danno96 mentioned which with my backtesting, I had impletmented the same set of rules but if anyone or if Danno96 can clarify variation #6 which is
"6) Continue to place as (2) if initial set of trade SL on the next candle"
What does that mean?

thank you
Hi Time1300,

This is reentry rule I try in my backtesting, when a trade hit the SL wait for price to move back into the box range and reset a new trade order only on next candle. For example, current sale order price hit TP1 move SL to BE +20 pips. Price then retrace back up and hit the SL and move pass the lower of the box range at the completion of the candle. At this point, we should only have 1 pending buy order. We then place a pending sale order again to ensure we have a new order set ready for next price breakout. This is purely for my backtesting, I not trading this live. My detail analysis shown there will be weeks where you'll get hit with a string of SLs and require to much time to manage in front of the PC.

  • #1,925
  • Aug 17, 2009 10:21am Aug 17, 2009 10:21am
Quoting abailey
Thanks for this system Ace, it seems like a very good one. Collected 139 pips today on this system. Done for the week. Right now i'm being conservative by only going for tp1 while trading one micro lot. Many pips to all.

AB
Congrats on the pips and on your first post!

However, with all due respect, targeting TP1 as your only target is NOT a "conservative" approach. It means you need to have a winning trade over half the time to be profitable. Trading as Ace suggested with TP 3 or 4 lowers your risk considerably because you only need to win 20-25% of your trades (more or less) to be at breakeven with this system. Anything more than that and you're profitable, which is every trader's goal.

If you can afford to trade 2 micro-lots, you might want to consider setting 2 targets: one at TP1 as you've been doing, and the other at TP3 or 4. Try it out on a demo account. I think you'll find that your risk:reward ratio is considerably better, which translates to more money in your account.

Good luck on your trading.
Greetings from Guanajuato, Mexico
  • #1,926
  • Aug 17, 2009 10:25am Aug 17, 2009 10:25am
Quoting danno96
An EA would be great especially with the trailing, In my backtesting I only apply to 1X to BE +20pips, 2X to 1X, no trailing for 3X as I want to give room to hit my 4X TP and 4X to 3X to let the profit run (you will notice...
Danno, great backtesting results. It is interesting because when i got introduced to this system and while I was studying the charts and eyeballing the charts while I was reading, I came across many of the same variations to limit our losses and extend our profits. And it was great to see someone else as well to back up that data. One thing I wanted to ask you is what does your #6 variation mean, if you can explain?
"6) Continue to place as (2) if initial set of trade SL on the next candle"
What does that mean?

Thank you Danno
Keeping Life Simple
  • #1,927
  • Aug 17, 2009 10:28am Aug 17, 2009 10:28am
As Danno stated, in 2005 this strategy was almost break-even for the enitre year. However, if you were willing to enter up to 4 (stop & revseral) trades, instead of only 2 (stop & reversal) trades, then it would have been very profitable.

Walt
  • #1,928
  • Aug 17, 2009 10:29am Aug 17, 2009 10:29am
I'm out at slightly over 100 pips on the short. My long is still waiting.
  • #1,929
  • Aug 17, 2009 10:29am Aug 17, 2009 10:29am
Quoting yen44x
Congrats on the pips and on your first post!

However, with all due respect, targeting TP1 as your only target is NOT a "conservative" approach. It means you need to have a winning trade over half the time to be profitable. Trading as Ace suggested with TP 3 or 4 lowers your risk considerably because you only need to win 20-25% of your trades (more or less) to be at breakeven with this system. Anything more than that and you're profitable, which is every trader's goal.

If you can afford to trade 2 micro-lots, you might want to consider setting...
Thanks for the advice. That is something I was thinking about and I do believe I will try this going foreword. Thanks again and good luck.
  • #1,930
  • Aug 17, 2009 10:44am Aug 17, 2009 10:44am
Quoting T.E.Lawrence
This is my chart:

Attachment
If you used an indicator to draw those dots and TP levels can you post it?

Thanks
  • #1,931
  • Aug 17, 2009 10:58am Aug 17, 2009 10:58am
Quoting T.E.Lawrence
Is there any way to measure the candle's height in pips?
Hi

Try this indicator. Remember to change the Buffer to what you use.
Attached Image
Attached File(s)
File Type: mq4 Box Candle Size.mq4   5 KB | 717 downloads
  • #1,932
  • Aug 17, 2009 10:59am Aug 17, 2009 10:59am
Quoting danno96
Hi Time1300,

This is reentry rule I try in my backtesting, when a trade hit the SL wait for price to move back into the box range and reset a new trade order only on next candle....
Danno,

thank you so much for your response and explanation. I do agree with all of your variation and I believe it will take some time in front of the monitor but again, to be a successful trader, one needs to treat this as a business and needs to monitor his/her trades. Also with the use of so many technological advancements, it is much easier now to track and monitor your trades from anywhere pretty much. I had back tested before reading your results and I was happy to see that you had used the same variations that I had, except I did not use the reentry rule and also I put my SL to BE and not +20 but I have been now testing with +20 which I like better anyways because I like to grab at least a few pips if price turns around against me.


And did you backtest the reentry only when 1xTP was achieved and sl was moved to be+20? so since that trade was a BE then it's like starting new with another short and long entry? correct?

great job though backtesting and for your live trading which variations are you implementing?
Keeping Life Simple
  • #1,933
  • Aug 17, 2009 11:22am Aug 17, 2009 11:22am
Quoting time1300
Danno,


And did you backtest the reentry only when 1xTP was achieved and sl was moved to be+20? so since that trade was a BE then it's like starting new with another short and long entry? correct?

great job though backtesting and for your live trading which variations are you implementing?
Time1300,

No, retry even after a SL, that why there are week where there was 5 sl in a row. Only backtested reentry for the last couple of year.

I'm implementing all my variations except for re-entry, only 2 trade per week.
  • #1,934
  • Aug 17, 2009 11:34am Aug 17, 2009 11:34am
Quoting lolpie
If you used an indicator to draw those dots and TP levels can you post it?

Thanks
I use indicators posted in the 1st post.
  • #1,935
  • Aug 17, 2009 11:38am Aug 17, 2009 11:38am
Quoting fx2248
Hi

Try this indicator. Remember to change the Buffer to what you use.
Thanks, but is it showing the current candle or the candle used to 'draw' the original box?
  • #1,936
  • Aug 17, 2009 12:10pm Aug 17, 2009 12:10pm
Quoting time1300
hello Everyone,

I have been a regular contributor of the 4H MACD forum and came across this thread few days ago and have had a chance to go over the pages and the posts and I wanted to give my opinion and maybe some advice if I could....
Thanks for your post. I'm from Toronto, what about you?

You're right, quite a few folks here will continuously ask when the bar forms or closes. Every week there is at least one person who will ask and it is quite irritating because week after week i've stated when the candle has closed. It also clutters up the thread.

All the questions about different brokers are different starting candles have been answered in the thread multiple times.

To whom it may concern,
If you do not know when the bar starts or when it forms wait one week, and i will state when its done forming as i always have. If it doesn't match up with the candle your looking at, thats because of different brokers. DOWNLOAD AN FXDD DEMO package as its the one I use. If your a newbie and are too lazy to read the thread, or wait one week to confirm the times than thats too bad for you. I say this because the 4H Box Breakout system itself requires patience.
  • #1,937
  • Aug 17, 2009 12:47pm Aug 17, 2009 12:47pm
Quoting biz0101
I think it happens because people are not patient enough to read the whole thread, and trying to get their hands on the trading system by reading the first and last pages... you should put it in the first post.
Actually that's an excellent idea. Most threads I follow, where we are expanding on an idea, the creator, updates the first page or contiues to modify the instructions based on the questions received later in the thread.

Ace, this could save you a lot of that repetitive stuff. Just say, REFER TO THE FIRST POST!!

Dave R.
  • #1,938
  • Aug 17, 2009 1:27pm Aug 17, 2009 1:27pm
Quoting Ace284
Is there a reason why you chose 50 pips? Have you tested it on a lower time frame like 1hr and 30 mins to see whether you'll get taken out at the start. GBP/JPY is quite volatile and can move 50 pips back and forth easily.

I was checking back testing and yes. Obviosly I am getting stopped with 50 pips take 50% profit and move to B/E approach.
Today I took 50% profit at 70 pips. In fact, all this require a lot of experience, but I tested strategy similar to this one and originator mentioned 50-100 pips as target to take 50% profit and move stop to B/E as a safer approach. But actually this system has one important advantage over the one I have just mentioned. The price should cross and close above/ below EMA 50 with RSI above/ below 50 with that system and I noticed very often momentum is not there already. With this system momentum is in most cases so strong that after box breakout it gives 50-100 pips.
I understand with this approach I am missing profits but it is safer. Once things start clicking with this strategy, price will move like jet airliner.
I am aiming to trade OPM so, safety is my main concern with decent profit of course. Today, i am out of this trade. I still have limit order for break out of the upper part of the box, but I want to continue back testing and waiting for next Sunday to continue.
  • #1,939
  • Aug 17, 2009 2:34pm Aug 17, 2009 2:34pm
Hi folks:
Looking for feedback. On G/J, price hit TP2, yea!. Now it's retracing and at the time I'm posting it's about 23 pips from retracing to TP1 level. I've moved SL to BE, I know that Ace would probably say let it ebb and flow and wait for bigger pips risking return to BE. Others might say close at TP1 and bank the pips. Just curious to other, more expierenced traders views. Nice problem to have though. LOL.

Jim
  • #1,940
  • Aug 17, 2009 2:49pm Aug 17, 2009 2:49pm
Quoting bigjim1958
Hi folks:
Looking for feedback. On G/J, price hit TP2, yea!. Now it's retracing and at the time I'm posting it's about 23 pips from retracing to TP1 level. I've moved SL to BE, I know that Ace would probably say let it ebb and flow and wait for bigger pips risking return to BE. Others might say close at TP1 and bank the pips. Just curious to other, more expierenced traders views. Nice problem to have though. LOL.

Jim

If your using the fxdd candle price has not hit tp2 yet. Your probably just measuring the size of the candle and not including buffer. Theres so many variations on how to take profit your gonna have to test for yourself to determine what works for your money management strategy. I target at least tp3 sometimes more depending on the size of the box and price action.
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