4H Box Breakout | Page 124 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Box Breakout indicator 197 replies

Breakout EA based on New York Box 3 replies

4H Weekly Box Breakout [TD] 4 replies

EURUSD Box Breakout 6 replies

Breakout Box 5 replies

Attachments: 4H Box Breakout
Exit Attachments

4H Box Breakout

  • #2,461
  • Edited 11:00am Aug 25, 2009 10:49am | Edited 11:00am
Quoting yen44x
I'd be very interested as well. It's an intriguing concept if it's actually more profitable over time. I would also be interested to know if you or Freako did any backtesting to validate the modification.

I'm not normally a big believer in backtesting most systems, but this system is so simple that backtesting seems easier to interpret.
personally i dont like backtesting.. thats why i open a small account to see the results.. u want to see result with current situation,not last few months or last few years.. too all who actually have backtest the system,great job actually cos u make an effort.. with teamwork in this thread, we can profit with ACE system.. Helping each other,we can benefit from it together.. anyone not sure bout the system can just simply post ur question.. i guess most traders willing to help.. we use to be a newbie too..

just an advice..before u learn to walk,someone is actually helping u to learn to crawl..
so if u are now a experience trader,remember that u are once a newbie trader who ask for help from experience traders regarding this and that before..
so y hesitate to help others? dont criticize them..
just my experience..
  • #2,462
  • Aug 25, 2009 10:56am Aug 25, 2009 10:56am
Quoting shiko
First weekly candle closed on FXDD. You calculate box size by adding buffers and spread for long order. set 2 orders. 1 long and one short. these are 2 trades for a week. 1 long and 1 short.
Now that is a text book perfect answer!
Thanks man!
  • #2,463
  • Aug 25, 2009 11:04am Aug 25, 2009 11:04am
Quoting shiko
First weekly candle closed on FXDD. You calculate box size by adding buffers and spread for long order. set 2 orders. 1 long and one short. these are 2 trades for a week. 1 long and 1 short.
to understand better,its first candle on 4hr time frame starting of the week..
  • #2,464
  • Aug 25, 2009 11:12am Aug 25, 2009 11:12am
nice thread
  • #2,465
  • Aug 25, 2009 11:32am Aug 25, 2009 11:32am
Quoting smartearn
nice thread
That's because Ace read the warning before starting this thread . . .
Attached Image
Greetings from Guanajuato, Mexico
  • #2,466
  • Aug 25, 2009 11:42am Aug 25, 2009 11:42am
Quoting yen44x
That's because Ace read the warning before starting this thread . . .
lol.. nice..
  • #2,467
  • Aug 25, 2009 12:04pm Aug 25, 2009 12:04pm
Hallo to all

First i say Thanks for this easy System.
I take 2,5% Risk per Trade but I only Trade GBPJPY

I never move my Stop to BE so why. When the Week start i accept a loss of 2,5 % thats ok for me.

Start with this Strategie on May my Account go Up 36%

I not take Profit at any levels I close the Trade Friday Evening

My second Strategie is the Fass Method .

Both Strategies i put my Orders and End of the Week i take a look

Icemaan
  • #2,468
  • Aug 25, 2009 12:05pm Aug 25, 2009 12:05pm
Quoting Bobcat2
Hi Ace,

There are so many variations of this strategy it makes my head spin! lol

I'm wondering how much consideration you paid to setting the initial SL to the opposite side of the box? I need to do some backtesting on this, but many box traders place the initial SL at the midpoint (50%) of the box. With the initial SL set at 50% of the box, the opening risk is reduced by 1/2. You could double the lot size and increase profitability unless 50% is retraced too often. Or, you could afford twice as many losing trades for the same risk exposure...
If the 50% mark does work then we would effectively increase our RISK:REWARD from 1:4 to 1:8. That'd be something of beauty. To expand on that, perhaps the initial stoploss can be placed at the top or bottom of the candle that broke the box. Thats something i've been noticing because during ranging weeks, when TP1 is not hit, the price usually moves to other side of the box and we take the full hit. We can minimize that with the approach I just mentioned.

I've also been looking at whether SL should be moved to BE after 100 pips instead of TP1. This helps especially if the box range is around 150 pips.

Tested visually for the past year and it is more profitable. Concrete evidence in excel format to come soon.
  • #2,469
  • Aug 25, 2009 12:10pm Aug 25, 2009 12:10pm
Quoting Ace284
If the 50% mark does work then we would effectively increase our RISK:REWARD from 1:4 to 1:8. That'd be something of beauty. To expand on that, perhaps the initial stoploss can be placed at the top or bottom of the candle that broke the box. Thats something i've been noticing because during ranging weeks, when TP1 is not hit, the price usually moves to other side of the box and we take the full hit. We can minimize that with the approach I just mentioned.

I've also been looking at whether SL should be moved to BE after 100 pips...
Hi Ace:
Just a quick thank you for your generosity. You could be doing all this research for yourself and just keeping it hidden but you choose to share it with the members of FF and I just wanted you to know that you are appreciated.

Jim
  • #2,470
  • Aug 25, 2009 12:20pm Aug 25, 2009 12:20pm
Quoting Ace284
If the 50% mark does work then we would effectively increase our RISK:REWARD from 1:4 to 1:8. That'd be something of beauty. To expand on that, perhaps the initial stoploss can be placed at the top or bottom of the candle that broke the box. Thats something i've been noticing because during ranging weeks, when TP1 is not hit, the price usually moves to other side of the box and we take the full hit. We can minimize that with the approach I just mentioned.

I've also been looking at whether SL should be moved to BE after 100 pips...
Thanks Ace...I like your approach of placing the initial SL at the top or bottom of the candle that broke the box...another intriguing thought!

BTW, did I mention...I am your biggest fan!
  • #2,471
  • Aug 25, 2009 12:24pm Aug 25, 2009 12:24pm
GBP/JPY is testing to break the support line at 153.55
  • #2,472
  • Aug 25, 2009 12:29pm Aug 25, 2009 12:29pm
I've actually been thinking about this system, and how to help increase the R:R in the traders favor, and I have devised something that I believe all of you here could benefit from.

1. Follow all original rules except stoploss and takeprofit rules, COMPLETELY IGNORE THEM.
2. Create a smooth moving average, call it "BE MA" and set it's parameters to 3, 1 (Period 3, shift 1) make this MA red.
3. Create another Smooth Moving Average, call it "PRO MA" and set it's parameters to 2, 5 (period 2, shift 5) and make this MA Black.

When the price breaks out of the box, have the red "BE MA" moving average determine the stoploss UTILL it hit's the breakeven point. Have the stop follow the breakeven point until the Black "PRO MA" moves over the breakeven point, then have the stop follow the black moving average.

With this stoploss technique, I have found that it reduces the losses incurred by at minimum half, and by not setting a takeprofit, you're allowing the movement to accumulate before finally retracing and crossing back over the "PRO MA"

If at the end of the week, your trade is still in play, close out for MAXIMUM profits for the week (The only other way you could have possibly made more is by trading against the weeks trend everytime there was a slight reversal).

Check it out guys, let me know what you think, I think this stoploss system could be the exact thing all you 4H box brakout traders have been looking for, or trying to devise.
  • #2,473
  • Aug 25, 2009 12:45pm Aug 25, 2009 12:45pm
Quoting Pharoah
I've actually been thinking about this system, and how to help increase the R:R in the traders favor, and I have devised something that I believe all of you here could benefit from.

1. Follow all original rules except stoploss and takeprofit rules, COMPLETELY IGNORE THEM.
2. Create a smooth moving average, call it "BE MA" and set it's parameters to 3, 1 (Period 3, shift 1) make this MA red.
3. Create another Smooth Moving Average, call it "PRO MA" and set it's parameters to 2, 5 (period 2, shift 5) and make this MA Black.

When the price breaks...
I think this sound interesting, but do you think you could post a chart ipcture where you utilize this method to show us?

I like the part of minimum loss vs Maximum profit.
  • #2,474
  • Aug 25, 2009 12:55pm Aug 25, 2009 12:55pm
Quoting Pharoah
I've actually been thinking about this system, and how to help increase the R:R in the traders favor, and I have devised something that I believe all of you here could benefit from.

1. Follow all original rules except stoploss and takeprofit rules, COMPLETELY IGNORE THEM.
2. Create a smooth moving average, call it "BE MA" and set it's parameters to 3, 1 (Period 3, shift 1) make this MA red.
3. Create another Smooth Moving Average, call it "PRO MA" and set it's parameters to 2, 5 (period 2, shift 5) and make this MA Black.

When the price...
pharoah,

can you post a screenshot explaining how this would work?
  • #2,475
  • Aug 25, 2009 12:55pm Aug 25, 2009 12:55pm
Quoting Jesper
GBP/JPY is testing to break the support line at 153.55
do you reckon its heading south after that?
  • #2,476
  • Aug 25, 2009 12:58pm Aug 25, 2009 12:58pm
I most certainly can.

Attached Image (click to enlarge)
Click to Enlarge Name: Image1.jpg Size: 152 KB


As you can see in this chart, the price retraced enough that it could have stopped out ALOT of you at a rather disappointing take profit (compared to what the market did this week). With this technique, you can have easely earned yourself almost 3 times the amount of the breakout box size (and if you re-entered at the crossover of the price and Red Simple MA to recieve an even larger profit.

Attached Image (click to enlarge)
Click to Enlarge Name: Image2.jpg Size: 148 KB


in this image, the price broke out on the bottom twice, it got stopped out one below the BE point by about 1/3 of the whole distance of the breakout block, the second one would have stopped out at NO loss, then the price would have retraced through the breakout box and up far far past it, this system would have captured ALL those pips in the major up move it made near the mid-end of the week.

My final image is a pure sideways week, and how it can help us in these weeks.

Attached Image (click to enlarge)
Click to Enlarge Name: image3.jpg Size: 156 KB


Now, you'll notice in this image, the price has been in a range for a number of days now, and doesn't appear that it's actually going to truely breakout.

anyway, the first breakout was on the bottom, this trade would have stopped out at NO loss

The second trade was in an upward movement, and would have been stopped out 1/7 or 1/8th the distance of the breakout block. the final breakout was to the south again, this trade would have closed at NO loss.

This is not saying I have extensively done the backtesting, but it seems like a VERY feesable stoploss system.
  • #2,477
  • Aug 25, 2009 1:01pm Aug 25, 2009 1:01pm
Quoting Pharoah
I've actually been thinking about this system, and how to help increase the R:R in the traders favor, and I have devised something that I believe all of you here could benefit from.

1. Follow all original rules except stoploss and takeprofit rules, COMPLETELY IGNORE THEM.
2. Create a smooth moving average, call it "BE MA" and set it's parameters to 3, 1 (Period 3, shift 1) make this MA red.
3. Create another Smooth Moving Average, call it "PRO MA" and set it's parameters to 2, 5 (period 2, shift 5) and make this MA Black.

When the price breaks...
I run my trades manually from the 1HR timeframe using the EA's developed here for the boxes only. I assume your moving averages are for the 4 hour time frame. If so, what do you suggest for the 1HR timeframe.

Dave r.
  • #2,478
  • Aug 25, 2009 1:02pm Aug 25, 2009 1:02pm
Quoting hutchy
do you reckon its heading south after that?
I hope not, i'm Long for a bounce up, lol.
But seriously, don't take my word for anything, i'm a fresh fish Newbie at FX trading.
  • #2,479
  • Aug 25, 2009 1:07pm Aug 25, 2009 1:07pm
Quoting droland
I run my trades manually from the 1HR timeframe using the EA's developed here for the boxes only. I assume your moving averages are for the 4 hour time frame. If so, what do you suggest for the 1HR timeframe.

Dave r.
I don't have that EA, would you be able to post it? The one I used it ONLY for 4H and doesn't work on any other time frame, but if you can post the ea or box breakout indicators, I'm sure I could devise a 1h stoploss system that you can benefit from. No promises though.
  • #2,480
  • Aug 25, 2009 1:10pm Aug 25, 2009 1:10pm
NOTE: I must caution anyone that when working with this stoploss system you MUST not be greedy. From what I have checked out, NEVER enter a single direction more than twice (this hold VERY true for image 2's current week which is VERY VERY ranged)
2 traders viewing now