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50 pips candle system

  • #401
  • Dec 9, 2009 1:44pm Dec 9, 2009 1:44pm
Quoting Saintsurfer
I believe that if your ea had a filter like moving average, for egzample if price is over 200 ma with some distance GRG , RGR, GG long if below it GRG, RGR, RR short it would help to avoid oposite resultats in changing markets, but that`s just a thougt. I do not doubt these resultats you show but there is not garanty for nothing

Saintsurfer,
We had the same thought!!
Here what I wrote to Stephen yesterday:
"Stephen,
Excellent job! Clever idea using pattern recognition as an input parameter.
...
I find these results encouraging. I will try the EA to study other pairs and will let you know. If you get a chance and add a MA filter might also help filtering the bad trades"

So, if Stephen gets to it, it would be a good filter in my opinion.

Kostas.
  • #402
  • Dec 9, 2009 1:46pm Dec 9, 2009 1:46pm
Quoting zebulon
Nice ! very good job Kostas and Sangmane !

Is your SL = 50 pips ?

Zebulon,
As per your rules it is 50pips SL but I added the rule to take profit when 100pips positive.

Kostas.
  • #403
  • Dec 9, 2009 2:05pm Dec 9, 2009 2:05pm
Quoting kostas1
Zebulon,
As per your rules it is 50pips SL but I added the rule to take profit when 100pips positive.

Kostas.
I've thought at this before ! 100 pips allow to jump some ranges...

If you have GG you play long
If the price climbs 50 pips up you have GGG, so do you play long again ? so you have 2 lots because TP = 100 pips or you don't play because your previous order is not finished ?

What about the martingale, do you play always with 1 lot or increase the lots ?
  • #404
  • Dec 9, 2009 2:07pm Dec 9, 2009 2:07pm
Entered long some minutes ago at 1.62500 as per my strategy...if I can i will forward test here...
Market is like a puzzle, YOU have to fit the pieces!!
  • #405
  • Dec 9, 2009 2:08pm Dec 9, 2009 2:08pm
Quoting zebulon
I've thought at this before ! 100 pips allow to jump some ranges...

If you have GG you play long
If the price climbs 50 pips up you have GGG, so do you play long again ? so you have 2 lots because TP = 100 pips or you don't play because your previous order is not finished ?

What about the martingale, do you play always with 1 lot or increase the lots ?
Always 1 lot (no martingale). So when GG I go long and take profit at GGGG. Then wait until next trade pattern appears.
  • #406
  • Dec 9, 2009 2:35pm Dec 9, 2009 2:35pm
Kostas,
do you use any indicator for making those bars we all use here, or does your EA use any ??? I would aprechiate very much if you attach it or link to it if you use.
  • #407
  • Dec 9, 2009 2:38pm Dec 9, 2009 2:38pm
Quoting Saintsurfer
Kostas,
do you use any indicator for making those bars we all use here, or does your EA use any ??? I would aprechiate very much if you attach it or link to it if you use.
I use PriceChangeChart1 and SweetSpotsGOLD. You can find both at the attachments folder of this thread.
Actually, I think PriceChangeChart1 is brilliant since it allows to see actual chart data and then makes Red or Blue boxes on top.
  • #408
  • Dec 9, 2009 2:49pm Dec 9, 2009 2:49pm
very good, thank you Kostas
  • #409
  • Dec 9, 2009 4:23pm Dec 9, 2009 4:23pm
Quoting Chris_B
Entered long some minutes ago at 1.62500 as per my strategy...if I can i will forward test here...
Trade Update:

+50 pips...moved stop to breakeven...

...and armed a sell order if price retraces...
Attached Image (click to enlarge)
Click to Enlarge Name: trade.gif Size: 13 KB
Market is like a puzzle, YOU have to fit the pieces!!
  • #410
  • Dec 9, 2009 8:45pm Dec 9, 2009 8:45pm
Quoting kostas1
I have tried several backtests and the following rules create the curve in the picture from May to December 2009:
1. Go long when GG or RGR or GRG
2. Go short when RR
3. Always take profit at 100pips
4. Do not trade GGGG

Kostas.

P.S. Credit goes to Stephen (Sangmane) who has generously created an EA which recognizes patterns so makes backtesting a breeze. Please do not ask me to release his EA since he made it just for me and asked not to release it. Nevertheless, if you think it is useful maybe you can ask him with private messages...

Hello Kostas,

Great idea there on your modification. I sure would like to test the EA and
give feedback. How do I contact Sangmane?

Sangmane, if you are there please send me your contact info.

Thanks
  • #411
  • Dec 9, 2009 9:30pm Dec 9, 2009 9:30pm
Of course I am new forex trading. But I know some chart analysis. But this one 50 pips concept is never understandable to me. How can I draw such graph using just one pen and paper. Is 50 pips earning ensured everyday? how mush capital do I need to invest?
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  • #412
  • Dec 10, 2009 12:29am Dec 10, 2009 12:29am
Quoting kostas1
I use PriceChangeChart1 and SweetSpotsGOLD. You can find both at the attachments folder of this thread.
Actually, I think PriceChangeChart1 is brilliant since it allows to see actual chart data and then makes Red or Blue boxes on top.
Glad to hear the indicators I tweaked are working well for you! It's too bad others aren't willing to share their works in order to improve the collective good. I know Stephen released his original EA, but for some reason held back on subsequent releases...
  • #413
  • Dec 10, 2009 12:35am Dec 10, 2009 12:35am
Quoting kostas1
I have tried several backtests and the following rules create the curve in the picture from May to December 2009:
1. Go long when GG or RGR or GRG
2. Go short when RR
3. Always take profit at 100pips
4. Do not trade GGGG

Kostas.

P.S. Credit goes to Stephen (Sangmane) who has generously created an EA which recognizes patterns so makes backtesting a breeze. Please do not ask me to release his EA since he made it just for me and asked not to release it. Nevertheless, if you think it is useful maybe you can ask him with private messages...
I'm not trying to be negative, but what you are suggesting is effectively curve fitting previous data through visual optimization. This will fail in the long run. In order for a system to have longevity, you will have to come up with a strategy that is equal for long entries as for short entries...

For instance:
1. If you don't trade GGGG, then shouldn't you stay away from RRRR?
2. If RGR results in a long, then GRG should result in a short entry.

Keep the ideas coming!
  • #414
  • Dec 10, 2009 1:11am Dec 10, 2009 1:11am
Quoting optojay
Glad to hear the indicators I tweaked are working well for you! It's too bad others aren't willing to share their works in order to improve the collective good. I know Stephen released his original EA, but for some reason held back on subsequent releases...
Stephen would be more than willing to release his EA. From what I understand in his experience people attribute bad results to the coders and that's what worries him. If you guys can PM him (private message) and ask for the EA, he would probably reconsider.
  • #415
  • Dec 10, 2009 1:32am Dec 10, 2009 1:32am
Quoting optojay
I'm not trying to be negative, but what you are suggesting is effectively curve fitting previous data through visual optimization. This will fail in the long run. In order for a system to have longevity, you will have to come up with a strategy that is equal for long entries as for short entries...

For instance:
1. If you don't trade GGGG, then shouldn't you stay away from RRRR?
2. If RGR results in a long, then GRG should result in a short entry.

Keep the ideas coming!
I was thinking of optimizing every 2-3 months for the next 1-2 months at a time. But some patterns should have continuous value (e.g. GG, RR, etc.). In regards to why RRRR and not GGGG my idea was that usually markets fall faster and deeper than when rising so the RRRR would have enough power to be tradable but not GGGG (at least not without a correction first i.e. GGGGRG).
  • #416
  • Dec 10, 2009 2:03am Dec 10, 2009 2:03am
december updated :
initial method = -200 pips
evolution = 150 pips
Attached Image (click to enlarge)
Click to Enlarge Name: 09-12-10 08 48 48.jpg Size: 42 KB
  • #417
  • Dec 10, 2009 2:10am Dec 10, 2009 2:10am
Kostas ,

Can you tell us the results with your rules for the past months (in pips) ?

There are very good ideas in this thread and we could compare the different options and determine the best.
  • #418
  • Dec 10, 2009 2:22am Dec 10, 2009 2:22am
My version of the system has closed the first trade at breakeven...and now is short... SL 50 Pips and TP 150 pips...
Buy order armed if the price goes up..
Attached Image (click to enlarge)
Click to Enlarge Name: trade2.gif Size: 14 KB
Market is like a puzzle, YOU have to fit the pieces!!
  • #419
  • Dec 10, 2009 2:34am Dec 10, 2009 2:34am
Quoting Chris_B
My version of the system has closed the first trade at breakeven...and now is short... SL 50 Pips and TP 150 pips...
Buy order armed if the price goes up..
So you apply your "case B" strategy from your post n°385 ?
  • #420
  • Dec 10, 2009 2:43am Dec 10, 2009 2:43am
Quoting zebulon
So you apply your "case B" strategy from your post n°385 ?
Yes.... I think that is a good solution even without any type of martingale because it has a good 1:3 risk/reward...and a good trade management moving the stop to BE after 50 pips...

I think that the martingale needs to be applied very few times...and it's safe, after 3 consecutive losing trades you are using only 0.20 lots instead of 0.80 of others martingale... and after 5 consecutive losses you are using only 0.40 lots instead of 3.20 of others martingale...

But I repeat..martingale is not really needed when the risk/reward is good...

Losses happen most during range periods...and thy don't last long time on GBPUSD...

I consider breakeven trades as neutral trades...

It's very conservative....

Let's see how it progresses...time will tell..
Market is like a puzzle, YOU have to fit the pieces!!
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