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Attachments: 0400-0700 GMT Breakout Strategy
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0400-0700 GMT Breakout Strategy

  • #2,681
  • Feb 16, 2010 2:10pm Feb 16, 2010 2:10pm
Quoting Archie
Hi Grant,

Thank you for your contribution with your superb system. I wonder why you chose to use 4-6 UK time instead of 4-7 or 5-7? Have you done any tests regarding this?


Regards

Archie
Archie,

when optimising the SL TP etc i had the Ea test numerous Time frames starting at midnight GMT through to the London open...

i never kept any of the results as there were far too many but i know that 0400 - 0600 UK time have the best return against draw down figures.

cheers

Grant
  • #2,682
  • Edited 2:30pm Feb 16, 2010 2:11pm | Edited 2:30pm
I suggest paying attention to the weekly swing lows and highs when drawing your boxes and how the price may use those levels in your trade after your break-out entry, as they are important intraday levels. If may be of assistance with setting stops after entry, take profit points (support/resistance), etc. Exampe attached (purple line on 15m and hr).

Regards,
Darren.
Attached Image (click to enlarge)
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  • #2,683
  • Feb 16, 2010 2:20pm Feb 16, 2010 2:20pm
Quoting dazzdude
Scull,

u still using 7 pips + spread long, 7 without spread for a SELL?

Regards,
Darren.
Hi Dazzude- yeah i would still use that, no need to change anything at the moment. It did have a losing month in Jan, but that's just the one in the last 6 months or so, so nothing to get too concerned about just yet. If we have another loser this month and then another in March, then we need to tweak accordingly.

I will be keeping my eye on it for sure, last year it was great, so i am hoping for much the same.

Cheers.
Trade the price action, not the cash!!!
  • #2,684
  • Feb 16, 2010 2:24pm Feb 16, 2010 2:24pm
Quoting dazzdude
Agreed. Some one made a post in this thread (I think it was here) that people will abandon a good system when it goes through a draw down.

Often after the draw down comes excellent results (just after people stop using the system). It's obvious that the system is sound. Stay and track as there could be some great months ahead.

ALL systems have draw downs. Smile, be patient (grrr.... my personal down fall) and keep trading.

Regards,
Darren.
Darren,

I couldnt agree more.

to go a touch further as well (climbs on soap box):-

i trade 3 systems for myself and clients. i always risk the same % for each and every trade regardless of the system the trade comes from.

So for example this morning the breakout said long which hit the SL for a loss (-1%), the trade triggered and went roughly 12 pips in profit before reversing. When the reverse kicked in the scalping strat i use set up a short trade which made the loss back plus a little more.

what i'm trying to say is dont just use/rely on the breakout method, learn to trade a couple of systems, so that if 1 isnt playing ball then you have another 1 or 2 systems that will be out to play.

ok soap box moment over... lol

good trading to everyone

Grant
  • #2,685
  • Feb 16, 2010 2:27pm Feb 16, 2010 2:27pm
Quoting Archie
Hi,

Have anyone tested Grant's system with bigger buffers, like 10 pips. I feel that 5 pips is too narrow sometimes.

Also, perhaps using the SL including the spread, as 15 pips is quite small if you have to take let's say 4 pips in spread into account.


Archie
Archie,

apologies, have just read trhis post after submitting my earlier reply..

all the inputs for the Grant breakout strat were optimized by an EA and then double checked by me visually for accuracy.

i tested buffers from 0 to 10 on both sides and came up with 7 long and 5 short as the buffers that gave the best results...

with regards the SL, TP etc there is a Spread sheet in the attachments that shows the backtests for differing TP values. i dont have the SL Spread sheet because of a hard drive failure just before christmas, but again 10 - 50 were tested and 15 is the number i liked.

hope this helps

Grant
  • #2,686
  • Feb 16, 2010 2:34pm Feb 16, 2010 2:34pm
Thank for confirming the buffer Scull.

Grant, agreed and good advice. Thanks.

Scull, at what point will you remove an entry order not triggerd with your setup? Good till what time?

Darren.
  • #2,687
  • Feb 16, 2010 2:37pm Feb 16, 2010 2:37pm
Thought this would interest people on here seen as we are trading breakouts:

"The markets have been extremely difficult to trade over the last 2 weeks in particluar, because of the negative correlation across most currency pairs imposed by problems in the European Union (Greece debt problems). For example, GBPUSD and EURUSD enjoyed a correlation factor of .88 for the last 2 years. The last weeks it was at 0.01! So GBPUSD and EURUSD moves together 88% of the time until the Greece problem hit! I am sure you know that the best breakouts occur when the currency pairs are moving together. This is not happening freely anymore"

This was just copied and pasted over from a blog, so thought i would drag it over here for you guys, could be time to reduce risk...... maybe........
Trade the price action, not the cash!!!
  • #2,688
  • Feb 16, 2010 2:38pm Feb 16, 2010 2:38pm
Darren i keep it open all day if i have to mate......
Trade the price action, not the cash!!!
  • #2,689
  • Feb 16, 2010 2:52pm Feb 16, 2010 2:52pm
Quoting Scullmeister
Thought this would interest people on here seen as we are trading breakouts:

"The markets have been extremely difficult to trade over the last 2 weeks in particluar, because of the negative correlation across most currency pairs imposed by problems in the European Union (Greece debt problems). For example, GBPUSD and EURUSD enjoyed a correlation factor of .88 for the last 2 years. The last weeks it was at 0.01! So GBPUSD and EURUSD moves together 88% of the time until the Greece problem hit! I am sure you know that the best breakouts occur...
Scull

good detective work thanks mate.

Grant
  • #2,690
  • Feb 16, 2010 3:52pm Feb 16, 2010 3:52pm
Grant,

You trade 3 systems. If you are long in system 1 and get a short signal in system 2 (same pair), do you reverse, ignore the short, or just run both side by side? Or, do you recommend running different systems with different pairs?

Darren.
  • #2,691
  • Feb 16, 2010 3:56pm Feb 16, 2010 3:56pm
Is there a measure of correlation in MT that can be used to ignore trades. Eg. No trade if correlation is less than X%?

Darren.
  • #2,692
  • Feb 16, 2010 3:58pm Feb 16, 2010 3:58pm
Quoting dazzdude
Grant,

You trade 3 systems. If you are long in system 1 and get a short signal in system 2 (same pair), do you reverse, ignore the short, or just run both side by side? Or, do you recommend running different systems with different pairs?

Darren.
Daz,

If 1 says long and 1 short in the same pair, then i'm long and short in that pair.

my RR is good enough that i will normally come out + pips, very occasionally both SL get hit but thats only very occasionally.

if the systems both say long then i'm long twice with the TP's for eahc system in place.

basically i trade my systems to the rules each and every time..

cheers

Grant
  • #2,693
  • Feb 16, 2010 4:08pm Feb 16, 2010 4:08pm
Quoting grant18265
Daz,

If 1 says long and 1 short in the same pair, then i'm long and short in that pair.

my RR is good enough that i will normally come out + pips, very occasionally both SL get hit but thats only very occasionally.

if the systems both say long then i'm long twice with the TP's for eahc system in place.

basically i trade my systems to the rules each and every time..

cheers

Grant
My addition to the answer abose is that if the short term trade is going opposite to the longer term trade. I can still dive in and out using the short term trade while keeping the position/long term trade. It is expected that in a long term trade there will be swings in the opposite direction within the longer term trend. One thing I dont do though is to trade 2 five minute strategies if they go against each other. If you are not careful you will lose double spread or double spread plus 2 losses
If you think you can or cannot do it you are correct
  • #2,694
  • Feb 16, 2010 7:09pm Feb 16, 2010 7:09pm
Quoting dazzdude
Is there a measure of correlation in MT that can be used to ignore trades. Eg. No trade if correlation is less than X%?

Darren.
Hi Darren,

It's not on MT4 but you can try this website. http://www.mataf.net/en/tools/correlation
They give correlation of all majors in 5min, 1h, daily and weekly.
  • #2,695
  • Feb 17, 2010 1:00am Feb 17, 2010 1:00am
have any EA on this strategy?
  • #2,696
  • Feb 17, 2010 2:00am Feb 17, 2010 2:00am
I have been filled LONG 1.5784 (Top of 5-7:15 Range 1.5780), SL (bottom of 5-7:15 range) 1.5758, TP 1.5864

Happy Trading all!!
Attached Image (click to enlarge)
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  • #2,697
  • Feb 17, 2010 2:34am Feb 17, 2010 2:34am
BE on Grants method today
  • #2,698
  • Feb 17, 2010 2:38am Feb 17, 2010 2:38am
Got B/E on Grant today .
Sill waiting for a good ride .....

zaba1
  • #2,699
  • Feb 17, 2010 2:41am Feb 17, 2010 2:41am
Frustrating again................................
Trade the price action, not the cash!!!
  • #2,700
  • Feb 17, 2010 4:08am Feb 17, 2010 4:08am
Zuke,

What is the dotted line trailing stop on your 5m chart?

Daz
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