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4H Breakout With Custom Stop Loss

  • #61
  • Sep 3, 2009 7:01am Sep 3, 2009 7:01am
Quoting Pharoah
I would like to take this time to point out a trade that would have occurred on this bar.

A Short would have been triggered as the price rose above, and fell below bthe breakout zone, but you'll notice with this trade, both the Black MA, and the Red MA is below the breakout zone, because of this condition, we must rely on conditional ruleset 2, and set a trailing stop of 50% of the breakout zone. One the trailing stop passes back over the Black MA we will continue to follow the Black MA.

This is NOT a re-entry, this is simply an additional breakout...
Pharoah,

My chart indicates that 50% of the breakout zone is at 151.44 and that price retraced back to 154.58. It looks like the Short pending order was never filled...but if it had been...this would be a loss for this additional breakout Short order? Instead though, we would have a pending Short order waiting for us at 150.71?

Are reentry trades only valid when price moves back into the breakout zone and then breaches either the upper or lower boundary?

  • #62
  • Sep 3, 2009 9:16am Sep 3, 2009 9:16am
Hi Pharaoh, and all....

Firstly, thanks for offering your expertise in this! As you will see, I clearly am not "getting it" yet... I am having a hard time following the charts, so please allow me to post your most recent chart, annotated with my view of the "trade"... to me, it looks like two fill losses, first on a short, then second on a long,...

Can you (or others) please review and critique? I am sure I am missing something here...

Thanks!!

mk
Attached Image (click to enlarge)
Click to Enlarge Name: example1.jpg Size: 142 KB
  • #63
  • Sep 3, 2009 9:53am Sep 3, 2009 9:53am
Quoting Bobcat2
Pharoah,

My chart indicates that 50% of the breakout zone is at 151.44 and that price retraced back to 154.58. It looks like the Short pending order was never filled...but if it had been...this would be a loss for this additional breakout Short order? Instead though, we would have a pending Short order waiting for us at 150.71?

Are reentry trades only valid when price moves back into the breakout zone and then breaches either the upper or lower boundary?

No, re-entry is a completely different thing, it's a re-entry into an existing trend that is outside of the breakout zone, and occurs when the price crosses the Red MA.
When it's a breakout of the original zone (no matter what time of the week it is) I consider this to be nothing more than a breakout, this is not a re-entry.

The buffer line will never be a "Re-entry" position.
  • #64
  • Sep 3, 2009 10:01am Sep 3, 2009 10:01am
Quoting mrkam
Hi Pharaoh, and all....

Firstly, thanks for offering your expertise in this! As you will see, I clearly am not "getting it" yet... I am having a hard time following the charts, so please allow me to post your most recent chart, annotated with my view of the "trade"... to me, it looks like two fill losses, first on a short, then second on a long,...

Can you (or others) please review and critique? I am sure I am missing something here...

Thanks!!

mk
No, this chart is not setup correctly, this chart shows complete breakout zone loss twice, this is not the case with this system.

Attached Image (click to enlarge)
Click to Enlarge Name: example.jpg Size: 129 KB


You'll notice that I have labeled each area with a number from 1 to 7.

1 = Short
2 = Short Close
3 = Long
4 = Long Close
5 = Short
6 = Short Close
7 = Short RE-ENTRY (outside of breakout zone)
6 = re-entry close (yes, 6 is used twice in this image)

I hope that clears up some stuff.

Remember, when a trades stop is within the Breakout Zone, follow the RED MA for a stoploss, when the Red MA passes BE, follow BE, when the Black MA passes BE, follow the Black MA.
  • #65
  • Sep 3, 2009 10:02am Sep 3, 2009 10:02am
hello,

do you have the script/Indicator that can close all positions at once?pls post.thanks
  • #66
  • Sep 3, 2009 1:50pm Sep 3, 2009 1:50pm
Perfect! (and thanks...)....

A picture, (or an annotated chart), is worth a thousand words!
  • #67
  • Sep 3, 2009 2:00pm Sep 3, 2009 2:00pm
Quoting ayour2a
hello,

do you have the script/Indicator that can close all positions at once?pls post.thanks
No, I have no EA that automatically closes trades at the end of the week, if anyone does have one however, please post it and I will include it in the original post.
  • #68
  • Sep 3, 2009 2:00pm Sep 3, 2009 2:00pm
Quoting mrkam
Perfect! (and thanks...)....

A picture, (or an annotated chart), is worth a thousand words!
No problem, glad I could help you understand it.
  • #69
  • Sep 3, 2009 3:06pm Sep 3, 2009 3:06pm
Quoting Pharoah
No, re-entry is a completely different thing, it's a re-entry into an existing trend that is outside of the breakout zone, and occurs when the price crosses the Red MA.
When it's a breakout of the original zone (no matter what time of the week it is) I consider this to be nothing more than a breakout, this is not a re-entry.

The buffer line will never be a "Re-entry" position.
Pharoah,

Thank you for explaining the difference between a breakout and a re-entry for your trading purposes.

I think your MA SL is brilliant. But what is the justification for a re-entry after a SL is filled? It seems that making a re-entry when price crosses the MA turns this trading segment into an indicator-based system which I am trying to avoid. What are your criteria for making this decision? Mind you, I am not saying that this tactic doesn't work, but what are the results?

For the record, I do support the notion of taking new multiple breakouts of the breakout zone to catch a ride on the trend when it forms, as this has more to do with probability trading. I guess you could say that you are still trying to catch a ride with the re-entry, but I don't see it in the same light as taking multiple breakouts from the zone.

Any light you can shed will be greatly appreciated...
  • #70
  • Sep 3, 2009 3:22pm Sep 3, 2009 3:22pm
Quoting Bobcat2
Pharoah,

Thank you for explaining the difference between a breakout and a re-entry for your trading purposes.

I think your MA SL is brilliant. But what is the justification for a re-entry after a SL is filled? It seems that making a re-entry when price crosses the MA turns this trading segment into an indicator-based system which I am trying to avoid. What are your criteria for making this decision? Mind you, I am not saying that this tactic doesn't work, but what are the results?

For the record, I do support the notion of taking new multiple...
As stated in one of my re-entry post, this is completely up to your discretion. However, for my own personal tradings, the justification is because while we do have a very smart stoploss system, we have to consider that it's not perfect, which means there could be a level of consolidation in the profit zone of a breakout, and it could also house a VERY profitable move in the near future, normally consolidation periods act like a tightly coiled spring being pushed just waiting to be released and shoot off like a rocket.

The reason I do not think of this re-entry system to be a "indicator-based" system is because the MA's are shifted for 1, which means the actual point of the MA above the current open bar is arealy locked in and will not change, it also creates a small scale S&R line.

I mainly take re-entries when I feel there is more movement to come. Once again, the EA in development right now will include re-entries so you all will know the difference between having them, and not having them.

The different tests I plan to conduce on this system are as follows:

1. Hedging With Re-entries
2. Hedging Without Re-entries
3. Non-Hedging With Re-entries
4. Non-Hedging Without Re-entries

They will be broken down into these timeframes:

1. Overall
2. Yearly
3. Monthly

I will have results from 2000 (I'm making sure this system can handle the events of 2001) with a html report of each month/year and overall.
  • #71
  • Sep 3, 2009 8:10pm Sep 3, 2009 8:10pm
Thanks, Pharoah...looking forward to your results
  • #72
  • Sep 3, 2009 8:56pm Sep 3, 2009 8:56pm
Quoting ayour2a
hello,

do you have the script/Indicator that can close all positions at once?pls post.thanks

i think ...this script is what your looking for
Attached File(s)
File Type: mq4 CloseAll.mq4   6 KB | 326 downloads
  • #73
  • Sep 3, 2009 9:00pm Sep 3, 2009 9:00pm
Quoting harihebat
i think ...this script is what your looking for
Thank you harihebat, I have added it to the main post.
  • #74
  • Sep 4, 2009 12:09am Sep 4, 2009 12:09am
I would like to take this time to point something out here.

Attached Image (click to enlarge)
Click to Enlarge Name: example.jpg Size: 124 KB


You'll notice in this chart that there is a level of consolidation within the breakout zone, this may or may not be a good indication of a major movement in the near future. This could be considered a good sign for a nice breakout, but could also be the beginning of another range, tred lightly, we are in a major S&R zone, it could continue to range for the rest of the week, or it could breakout of the major S&R.
  • #75
  • Sep 4, 2009 10:23am Sep 4, 2009 10:23am
so far, my predictions on this week are holding true, Another order would have been executed last night, and immediately stopped out at the next bar.

Attached Image (click to enlarge)
Click to Enlarge Name: example.jpg Size: 130 KB


This week is definitely one of those weeks that kills this system.
  • #76
  • Sep 4, 2009 3:38pm Sep 4, 2009 3:38pm
This concludes week 1 of this system, next week, we will be looking at both hedging, and non hedging account types, I have setup 2 separate demo accounts with FXDD so our charts will match, this will also allow us to have full trade results from both types.
  • #77
  • Sep 4, 2009 4:23pm Sep 4, 2009 4:23pm
Looking forward to it... I wouldn't count any trades from last night.... being as the NFP was this morning... and we are on a 4 hr system, I would not have taken anything yesterday...
  • #78
  • Sep 5, 2009 2:18am Sep 5, 2009 2:18am
Just because I can't test this right now, but if I place a pending order on an account, then log out, does the order still get filled?
  • #79
  • Sep 5, 2009 3:59am Sep 5, 2009 3:59am
If you try to place the order with the market closed, then no. MT4 needs to be connected to the broker for the order to be transmeitted and processed. Once it shows up on the pending order screen, then your broker has received it, and yes, you can log out and the order will be filled just fine, because it is now on the brokers' server. But until then, no....

If you try now, you will get the new order screen, you will enter the order, and try to send it, your order screen will say "Please Wait", then will say "Market is Closed", then the order window will close with no pending order sent.

Gotta have the market open and MT4 connected....
  • #80
  • Sep 5, 2009 4:16am Sep 5, 2009 4:16am
Quoting mrkam
If you try to place the order with the market closed, then no....
Yeah, it's just because I'm going to have 2 separate accounts for Hedging and Non Hedging, and I need to be able to place my orders on both, I have to keep a better eye on the Hedging one tho, so that will be the one I'm logged into most. Thanks
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