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4H Box Breakout

  • #2,161
  • Aug 20, 2009 5:22pm Aug 20, 2009 5:22pm
I have been studying your “Variations of based strategy with active trade management” from your post 1805, but don’t understand the next rules,

 

  1. 5) Close trade @end of the week if target TP / SL not reach & 11) No trade on the last 3 candle for the week

  1. 6) Continue to place as (2) if initial set of trade SL on the next candle

  1. 10) Half SL when price move > 75% of 1X TP

Please could you explain them?
Regards

Quoting danno96
Hi Guys,

First of all, thank you Ace for a great system and all for contributing to a great thread. I'm new to FF and just getting started with Forex trading. I've done some manual backtesting for the pass 2 1/2 years from 2007 to now. I've also perform some simple analysis, which I like to contribute to all follow traders.

Here are the summary below:

2009: 5,028 pips so far
2008: 4,135 pips
2007: 4,215 pips

However based on my analysis, if apply some variations to trade managements such as:
[list=1][*]Move SL to BE + 20...
  • #2,162
  • Aug 20, 2009 5:35pm Aug 20, 2009 5:35pm
Quoting danno96
Hi Piptalk

I manually backtest by looking at chart with ACE's indicators, sorry you're right this is an error on my part....

Danno96, you are cool!
I wonder, what if you try taking partial profits for those bad years at say TP1 50% or something like this with setting stop loss to BE. You are really doing a great job. Amazing skills. I think some minor variations can make a big difference and in ranging market when we cannot actually get our self big moves of TP3 partial profit taking can be quite a good thing.
Now, imagine that almost every week is like this one. I took partial profits in both direction and had account 0.8% up with no leverage. 1:1.


Sunday closing 4H candle is a significant one.
  • #2,163
  • Aug 20, 2009 5:42pm Aug 20, 2009 5:42pm
I'm trying to strategy test and forward test the latest EA from Ronald Raygun. BTW thank you, thank you, thank you Ronald. The idea that I could trade this strategy and actually sleep at night is very exciting.

I have tried to put the EA on a forward demo but don't know what chart timeframe should be used. Earlier posts suggested the 30 minute chart while changing "the settings to get the EA to think it is on a 4HR chart." How does one do that?

When I tried a strategy test on the 1 hour timeframe for a one month period, after 3 hours, not a single trade occurred in the results and the test was far from over. Should it take that long?

Also, when I did try a forward demo, no matter what timeframe I used the EA sucked up 100% of my processor. Is the EA really that resource hungry or is there a problem in the code that needs to be corrected or streamlined?
  • #2,164
  • Aug 20, 2009 6:03pm Aug 20, 2009 6:03pm
danno96,

I have not done much backtesting, only from the beginning of the year so it is not conclusive. I am live trading my variation at the moment.
I would like to backtest further, but time constraints don't allow. My limited backtesting showed good results on ej, au, gu, gj, eu and ucad.

Regards,

Anthony

Have attached a 4h box calculator spreadsheet for those who want it. It calculates entries, sl and tp levels. Just alter spread and currencies to suit.
Attached File(s)
File Type: xls 4H Box Calculation (4).xls   28 KB | 578 downloads
  • #2,165
  • Aug 20, 2009 6:08pm Aug 20, 2009 6:08pm
Quoting Dibanos
I have been studying your “Variations of based strategy with active trade management” from your post 1805, but don’t understand the next rules,

 

  1. 5) Close trade @end of the week if target TP / SL not reach & 11) No trade on the last 3 candle for the week

  1. 6) Continue to place as (2) if initial set of trade SL on the next candle

  1. 10) Half SL when price move > 75% of 1X TP

Please could you explain them?
Regards

Hi Dibanos

These are variations which I was playing around with my backtesting to see if it could reduce risk. I've not implement latter 2 for live trading as they will be too time consuming to manage.

1) close any open trade by end of the week Fri 23:00 but do not open any new trade based on the last 3 candle for the week from Fri 12:00

2) Re-entry rule so once a trade been close alway open a new pending order on the next candle so you have alway have a set of pending order for the next break out. Price must return back into the box before you place a pending order on.

3) Move SL to half the size of the box when price move 75% of 1 x TP to try reduce the amount of SL

  • #2,166
  • Aug 20, 2009 6:08pm Aug 20, 2009 6:08pm
Quoting aajduk
danno96,

I have not done much backtesting, only from the beginning of the year so it is not conclusive. I am live trading my variation at the moment.
I would like to backtest further, but time constraints don't allow. My limited backtesting showed good results on ej, au, gu, gj, eu and ucad.

Regards,

Anthony

Have attached a 4h box calculator spreadsheet for those who want it. It calculates entries, sl and tp levels. Just alter spread and currencies to suit.
Thank you aajduk. Very helpful spreadsheet.
  • #2,167
  • Aug 20, 2009 6:19pm Aug 20, 2009 6:19pm
What chart timeframe do you put the 30EMA on for your daily 4hr method?

thanks
  • #2,168
  • Aug 20, 2009 6:19pm Aug 20, 2009 6:19pm
[quote=aajduk;2973094]danno96,

I have not done much backtesting, only from the beginning of the year so it is not conclusive. I am live trading my variation at the moment.
I would like to backtest further, but time constraints don't allow. My limited backtesting showed good results on ej, au, gu, gj, eu and ucad.


Hi Anthony

What are you TP, SL and trade management for these currency pairs? Can you provide more detail on how you filter using 30 EMA? I would like to do some back testing for those lean years back in 2005 and 2002 to see if this approach standup.

  • #2,169
  • Aug 20, 2009 6:59pm Aug 20, 2009 6:59pm
Hi Guys,

Looking back to the daily chart, it seem to be a uptrend if base on Elliote wave. I am waiting to see today movement to make some prediction where should I put more lot to collect, Long or Short next week.... Or just 1X...

Danger is there while the trend is ranging...

Btw, it seem members in this forum are so active recently... the post is almost 10 pages in a day... I m don't know whether it is good or bad but I wouldn't go thru every post but just some info which is useful.

Cheers!!
  • #2,170
  • Aug 20, 2009 7:43pm Aug 20, 2009 7:43pm
Quoting octomanoak
I'm trying to strategy test and forward test the latest EA from Ronald Raygun. BTW thank you, thank you, thank you Ronald. The idea that I could trade this strategy and actually sleep at night is very exciting.

I have tried to put the EA on a forward demo but don't know what chart timeframe should be used. Earlier posts suggested the 30 minute chart while changing "the settings to get the EA to think it is on a 4HR chart." How does one do that?

When I tried a strategy test on the 1 hour timeframe for a one month period, after 3 hours, not a...
That EA runs on a relatively underpowered Intel Little valley (~1GHZ) with 30 of its buddies with no problem. What are the specs of your computer?

As for getting the EA to work...

1) How many bars from the week's start on your timeframe makes 4 hours?
2) What is the lot size? I set the lot size to 0 by default. Back in the day, I used a standard size of 1 lot, and some idiot attached my EA to their chart and blew their account. That same idiot decided to sue me for "negligence".
  • #2,171
  • Aug 20, 2009 8:08pm Aug 20, 2009 8:08pm
Quoting yen44x
What's the "little red dot" all about?

Little red dot....a small country i am proud of, google:http://en.wikipedia.org/wiki/Little_red_dot
  • #2,172
  • Aug 20, 2009 8:33pm Aug 20, 2009 8:33pm
Hi Danno,

Regarding the 2003, 2005 & 2006 results... what was the lot size on each trade, and how many wins vs. losses during each year?

thanks again for your due diligence,

Walt

Quoting danno96
Hi Piptalk

I manually backtest by looking at chart with ACE's indicators, sorry you're right this is an error on my part. I try to get through the hugh amount of data quickly so there will be few errors in my backtesting.

Hi GreatYves

For my variation rule 10 - Half SL when price move >75% of 1X TP

I still notice there were large number of SL so what I try to test here is to see if price move > than 75% of 1X TP then reverse and hit SL. Can the damage be reduce by moving SL to half.

I've been looking at a number of trading systems on the...
  • #2,173
  • Aug 20, 2009 9:55pm Aug 20, 2009 9:55pm
Quoting yen44x
To give you some idea, here are my results so far in August based on trading the 4H Box System as follows:
I open two positions each for EUR/JPY and GPB/JPY.
My targets are as follows:
EUR/JPY: 1 position at TP1, 1 at TP3
GBP/JPY; 1 position at TP1, 1 at TP4
If price reaches TP1, I move the SL on the remaining position to BE +20 (per Danno’s suggestion), and then incorporate somewhat of a trailing stop by moving the SL to TP1 if price hits TP2, to TP2 if price hits TP3, and so forth.
Since I’m still experimenting with that setup, the results I’m...

Thanks Yen
  • #2,174
  • Aug 20, 2009 10:07pm Aug 20, 2009 10:07pm
Quoting fxann
Little red dot....a small country i am proud of, google:http://en.wikipedia.org/wiki/Little_red_dot
Thank you fxann . . . my curiosity is satisfied. I've learned something new today.
Greetings from Guanajuato, Mexico
  • #2,175
  • Aug 20, 2009 11:15pm Aug 20, 2009 11:15pm
Hi guys.

I'm pretty new to EAs, so I have a few basic questions:

1) Once I attach the EA to the chart, what happends? I mean, I see in the top lef corner some info and the two yellow lines, but what is really happening behind the scenes? for exmple, Will the EA put an arrow in the chart when is time to enter?
2) If I check live trading, will it open orders and move the TP to BE for me?
3) Is there an initial post in which Ronald describes the different variables in the EA and how to use them?

Thanks in advance.
  • #2,176
  • Aug 20, 2009 11:25pm Aug 20, 2009 11:25pm
this is a great strategy. i have been trading live for a month now and it has been very profitable. I follow Ace's rule strictly and I put sl to be after tp1 is hit. this week i hit be. but its ok, u cant win every week.

I NEVER re-entry during the week. I believe strategy is very useful and profitable if v r disciplined and have a lot of patience. this strategy will back fire if v over trade

Thank u very much Ace
  • #2,177
  • Aug 20, 2009 11:39pm Aug 20, 2009 11:39pm
Quoting Ronald Raygun
That EA runs on a relatively underpowered Intel Little valley (~1GHZ) with 30 of its buddies with no problem. What are the specs of your computer?

As for getting the EA to work...

1) How many bars from the week's start on your timeframe makes 4 hours?
2) What is the lot size? I set the lot size to 0 by default. Back in the day, I used a standard size of 1 lot, and some idiot attached my EA to their chart and blew their account. That same idiot decided to sue me for "negligence".
I just want to confirm the resourse problem. I'm running a P4 3.2ghz pc with 2 gigs ram and I get the same thing - 100% cpu usage with the ea running on 11 charts. Just a further note; even when I only run 1 or 2 charts I simply can't open the properties menu of the ea. I have to close remove the ea and bring it back onto the chart to be able to access the input. I also cannot use the stategy tester with this ea - it just doesn't work.

I'd like to thank Ace for sharing this remarkable strategy with us and Ronald Raygun for the EA implementation, this looks like a bit of a breakthrough in trading......

Cheers
GG
  • #2,178
  • Aug 21, 2009 2:56am Aug 21, 2009 2:56am
danno96 and ozzie23,

have attached a chart to try and explain.
4 hour timeframe
my box candle is the candle that finishes at 0400gmt. some use the previous candle. personal choice.
you can use this candle on monday only or each day.
On attached chart red arrow is box candle, blue arrow is entry candle.
If trade has not executed in the 2 candles following box candle, i abandon.
30ema is sloping down and not touching the candle
Short entry 10 pips below low of box candle.
SL is 10 pips plus spread above high of box candle.
TP1 is box plus buffer of 20 (10 either side of candle) and spread, giving 1:1 risk reward.
TP2 is 2:1 risk reward.
SL to Breakeven when TP1 is hit or a support or resistance line is evident. This may mean taking a few less pips than 1:1 RR.
The attached chart was not a trade, it is for example purposes. I will post my future trades.
As mentioned previously, there are many opportunities but I try to be fussy and only trade 2 positions at any one time. I do not trade fridays and if I have 1 good win (tp2) or 2 tp1 trades, I will not normally trade for the remainder of the week.
Any more questions, please do not hesitate.
If any one wishes to backtest to prove if this is viable or not over the long term, please do so. I am not big on back testing, I would rather trade live, it soon determines whether a system works or not.

Regards,

Anthony
Attached Image (click to enlarge)
Click to Enlarge Name: ej.gif Size: 24 KB
  • #2,179
  • Aug 21, 2009 3:09am Aug 21, 2009 3:09am
When i talk about being fussy look at todays gj. Even though it is friday and i would not trade anyway, there are 2 reasons why i would not take the trade. If you zoom out there is a long term trendline just touching the box candle and there is a support line under it as well. Also it is a very big candle, 180 pips. If you used the previous candle as the box candle like ace does, it would have been a good trade. That can happen for and against you at times.
It meets all my other rules, but like I said, rules are for the blind following of fools and the guidance of wise men.
There has to be discretion, that's my opinion anyway.

Anthony
  • #2,180
  • Aug 21, 2009 3:29am Aug 21, 2009 3:29am
Quoting aajduk
When i talk about being fussy look at todays gj. Even though it is friday and i would not trade anyway, there are 2 reasons why i would not take the trade. If you zoom out there is a long term trendline just touching the box candle and there is a support line under it as well.... .

Anthony
Thank Anthony,


I'll try to do some backtesting, just another question relating to the 30EMA. How important it is as a filter, ie if the 30ema is sloping down but had already has a long run for a few day and look like it will retrace, would you still go short only or abandon the trade?

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