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4H Box Breakout

Quoting Ace284
Nope. I remember when I first learned this, and I think it is quite useful.

*IMPORTANT*

Okay, say you wanted to go long at 150.00 and the spread was 5 pips. You would have to place your long order at 150.05. If you do that, then on your chart, when price hits 150.00, the order will be activated.

If you had placed your actual long order at 150.00, then it would be activated when your chart reads 149.95. That would be too early.

For short orders, say you want to sell at 120.00. Then you would place you're sell order at 120.00...
This is simply the very best description on how Entry, SL and TP calculations all interrelate!

Kudos, Ace!
Quoting Ace284
Nope. I remember when I first learned this, and I think it is quite useful.

*IMPORTANT*

Okay, say you wanted to go long at 150.00 and the spread was 5 pips. You would have to place your long order at 150.05. If you do that, then on your chart, when price hits 150.00, the order will be activated.

If you had placed your actual long order at 150.00, then it would be activated when your chart reads 149.95. That would be too early.

For short orders, say you want to sell at 120.00. Then you would place you're sell order at 120.00...
Wow thanks Ace!

That really explains it well!
I always figured since i'm -5 pips the second i enter the market no matter if i'm Long or Short, meaning i always have to add spread at the entry spot.

..but this really makes sense.

Thanks man!
Attached is the equity chart for 2009, assuming the parameters mentioned in my previous post, ie:


1) 4x TP, according to Ace's indicator
2) Move SL to BE at TP1
3) Keep both trades open regardless of ATR
4) Take every trade
5) Close trade at the last 4 hr candle of the week, if not already TP'd or SL'd.

We all know what happened in 09. January kicked butt, followed by choppiness and an eventual uptrend.

Tom
Attached Image (click to enlarge)
Click to Enlarge Name: 09 chart.gif Size: 17 KB
Attached Image
Any thoughtst on using semi-martingale, especially during years with small profits... It is able to convert a mild year into a very successful one.

Quoting jones247
I believe that increasing your lot size after every two consecutive losses, then reverting back to the prior lot size after a win would have turned 2002 into a very successful year...

For example, the 1st & 2nd weeks were traded at 1 lot, and both weeks were loosers. On the 3rd week, increase the lot size to 2 lots per trade. If the 3rd & 4th weeks were loosers, then the 5th week would trade at 3 lots. Assuming the 5th week is a winner, then the 6th week would trade at 2 lots. If the 6th week is a winner, then the 7th week is traded at 1 lot....
Using danno's excel file from post 2654 (reposted by Jesper on #2764), 2002 would have been profitable by 1555 pips instead of losing 139 pips with this semi-martingale approach.

The essense of the approach is to increase the lot size every time there's two losses in a row. Then after a win scale back to the previous lot size. I tried to explain the approach on post #2717.

Perhaps there's a flaw in my logic, but I don't think so...
jones -- you would probably have to rerun all the years. To be accurate However, a backtest of any positive gain over 5 years aint too shabby ..!. Ace is great for sharing. I like your martingale theory myself but it may take a little bit to triple up for example...as you know past performance does not guarantee future partying.
Quoting Ace284
*IMPORTANT*

Okay, say you wanted to go long at 150.00 and the spread was 5 pips. You would have to place your long order at 150.05. If you do that, then on your chart, when price hits 150.00, the order will be activated.

If you had placed your actual long order at 150.00, then it would be activated when your chart reads 149.95. That would be too early.

For short orders, say you want to sell at 120.00. Then you would place you're sell order at 120.00 which is the same. The spread is actually deducted when you buy...
Is S/L the size of the first H4 bar of the week or the H4 box (including buffer and spead)? Can you clarify on this, please?
Quoting michaelhryu
Is S/L the size of the first H4 bar of the week or the H4 box (including buffer and spead)? Can you clarify on this, please?
Copied from post #1:

Rules:
- Add a buffer of 10-20 pips on each end of candle
- Buy on upper break of weekly box (including buffer+spread)
- Sell on lower break of weekly box (including buffer)

SL - other side of Box
Quoting michaelhryu
Is S/L the size of the first H4 bar of the week or the H4 box (including buffer and spead)? Can you clarify on this, please?
The box size does not include the spread. It does include the buffer on each side.
Quoting jones247
Using danno's excel file from post 2654 (reposted by Jesper on #2764), 2002 would have been profitable by 1555 pips instead of losing 139 pips with this semi-martingale approach.

The essense of the approach is to increase the lot size every time there's two losses in a row. Then after a win scale back to the previous lot size. I tried to explain the approach on post #2717.

Perhaps there's a flaw in my logic, but I don't think so...
No there is no flaw in your logic. I'm quite familiar with martingaling having read it quite a few times in the past. I know that it can get dangerous risking double, triple, quadruple...the amount of regular risk. The main thing we would need to look out for is whether it does get too out of control because that's where more martingale traders fail by actually blowing up their account faster.

2002 resulted in profit, have you checked the other years? Note down whether your positions got way too high. Looking to hear back.
Until now we still cannot get a better prediction for what is better TP for each weeks. but a solution by Mr. Ace and other trader here very good to minimise the losses wherether it in a ranging situation or not...

From my observation, (on monday) for ranging area just put TP at 1 or 1.5 and if not ranging situation put TP3 or TP4. If the reversal on monday put TP 4....

This it just my observation this time, i hope next week the figure and target still valid for me.

Thanks guys which working hard for this system. this nearly back to the original system propose by mr. Ace.

Thanks
Quoting Ace284
Nope. I remember when I first learned this, and I think it is quite useful.

*IMPORTANT*

Okay, say you wanted to go long at 150.00 and the spread was 5 pips. You would have to place your long order at 150.05. If you do that, then on your chart, when price hits 150.00, the order will be activated.

If you had placed your actual long order at 150.00, then it would be activated when your chart reads 149.95. That would be too early.

For short orders, say you want to sell at 120.00. Then you would place you're sell order at 120.00...

I've been thinking, even if the Short order gets activated at 120.00 as we want it, you still have extra work putting in the spread 2 times at the SL and TP.
If we would've added spread at the entry and gone active 119.95, we still would've had the same result with SL and TP's without spread.. but with less work?

Does that make any sense?
Of course then all the backtests aren't valid anymore if we change that.

Danno, did you add the spread anywhere in your massive backtest with variation?
I can't see anything about spread in the rules in your excel file?
Would be good to know if it was based on spreads or without spreads.
Quoting Jesper
Hi Shiko

true, but shouldn't we add spread for the Short positions too?

But Ace wrote in his original rules that spread must be added with long position and not with short cause it is already included, no?
Hi all, I new to forex but i really like to just express the thanks for Ace systems for 4hours breakout. It's kinda make newbies like me get into interest as the rule is really simple.
Regards, Nelson
Quoting TYoung6608
Attached is the equity chart for 2009, assuming the parameters mentioned in my previous post, ie:


1) 4x TP, according to Ace's indicator
2) Move SL to BE at TP1
3) Keep both trades open regardless of ATR
4) Take every trade
5) Close trade at the last 4 hr candle of the week, if not already TP'd or SL'd.

We all know what happened in 09. January kicked butt, followed by choppiness and an eventual uptrend.

Tom...
Great results. I can't help but wonder how many of those BEs were in profit and could have been converted to wins by taking partial profit. Pharoah's MA trailing stop system maybe

Sandy

later---- I went back and checked Danno's great data for 2009 using the trades with modifications. There are 9 trades that closed at BE after hitting TP1. So if you used the strategy of placing two pending trades in the same direction instead of one, closed 1 at TP1 and set the other to BE + 10 or +20 (upto you) you would have 9 additional trades that closed in profit this year.

Sandy
Quoting nubchai
Great results. I can't help but wonder how many of those BEs were in profit and could have been converted to wins by taking partial profit. Pharoah's MA trailing stop system maybe

Sandy

later---- I went back and checked Danno's great data for 2009 using the trades with modifications. There are 9 trades that closed at BE after hitting TP1. So if you used the strategy of placing two pending trades in the same direction instead of one, closed 1 at TP1 and set the other to BE + 10 or +20 (upto you) you would have 9 additional trades that closed...
The problem is we take partial profit when we are right but taking full loss when we are wrong. Something should be done about it.
Indicator Supertrend as an alternative for a SL, it keeps you in the trade if it keeps trending. Last week, it stopped the trade out with a profit.
Attached Image
Quoting shiko
The problem is we take partial profit when we are right but taking full loss when we are wrong. Something should be done about it.
No if you hit TP1 you're guaranteed no loss. And if you set to BE + 20 for example the worst that you can do is make 20 pips. But if you have a second position and close it for profit at TP1 then you've make 100+ pips and have a second trade that you can let run.

This is pretty much FXLabs' approach. My variation is to open 1 pending trade in both directions per the rules. But when I hit TP1 I will close 1/2 the position and set the remainder to TP+20 and let it run. If the box is bigger though I may do this at 100 pips as someone else has suggested.

Again if you look at Danno's data for 2009 you'll see 14 trades where TP1 was not reached. That leaves 33 where at least TP1 was reached. And of the 14 trades where TP1 was not reached 3 hit over 100 pips before stopping out at BE.

So it raises questions about taking profit on 1 position and setting SL to TP+20 on a second position at 100 pips. It also raises the question of setting the SL at 1/2 the box instead of the opposite side of the bo. Although I haven't looked at that in depth.

Sandy
Quoting Fms
Indicator Supertrend as an alternative for a SL, it keeps you in the trade if it keeps trending. Last week, it stopped the trade out with a profit.
That doesn't looks bad, thanks for the info.
Though what i am looking for, i don't know if this exist or if it's even possible to program as an indicator, is an indi that automaticly moves the SL when certain areas prices are hit.

Like an automated SL, kind of like a trailing stop, but it only moves when, as said, certain prices are hit, for instance:

TP #1 is hit, EA now moves SL to BE +20.
TP #2 is hit, EA now moves SL to TP #1
TP #3 is hit, EA now moves SL to TP #2
etc...

Does anyone know anything like that to exist or if it's possible to create?
I think that would've been an optimal solution with absolute minimum screen time for this system.
What do you guys think?
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