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Bread and Butter Trades

  • #21
  • Jul 22, 2011 5:35am Jul 22, 2011 5:35am
some obvious questions arise, as pointed out by laimonk.

to set a limit order in advance , you need to guess the position of the 24ema in advance. the problem here is, you cannot accurately 'predict' the position of the 24 ema as it moves constantly and can indeed have huge moves on big price movements. the closing position could be way different then the point at which you set the limit order..

how do you deal with this and how do you set the limit order yourself. an illustrated example would be helpful..


Ans: You set limit orders based on the last hourly candle when trading manually. With the ea, it monitor the position of the 24ema and draws a line when it is 20 pips from it (using the default). You can however set what you think you are comfortable with.



i still dont understand the SL criteria. again if you can show an example please.

Ans: Read the post with trade example again.


lastly, it seems that this method only works well in a trending market, in a ranging market you will get stopped out many times ?

Ans: During ranging market, if the distance travelled away from the 24ema is not up to 20 pips, no need to take a trade as there is no need to trade any bounce. You can set the 20pips higher if you are comfortable. Trade it according to your personality.

also, what is the least number of pips distance the price needs to be at before the you can consider the bounce as valid.

Ans: Minimum of 10 pips and that is why I said 10+ pips.


I hope the answers suffices.

Cheers.

cheers[/quote]
  • #22
  • Jul 22, 2011 6:47am Jul 22, 2011 6:47am
EA has its first trade on my demo - EJ buy, H1.

  • #23
  • Jul 22, 2011 6:49am Jul 22, 2011 6:49am
Quoting Ibuks
some obvious questions arise, as pointed out by laimonk.

to set a limit order in advance , you need to guess the position of the 24ema in advance. the problem here is, you cannot accurately 'predict' the position of the 24 ema as it moves constantly and can indeed have huge moves on big price movements. the closing position could be way different then the point at which you set the limit order..

how do you deal with this and how do you set the limit order yourself. an illustrated example would be helpful..


Ans:...
[/quote]


ok. thanks . i got the SL bit now.

it seems though, that one has to be glued to the computer all day to check for bounces. and indeed to check for stop losses if trade is triggered. due to work committments, thats a difficult thing to do for me. in your experience are the higher time frames, daily, 4 hourly as effective ?

ea's arent my thing. i dont use those.


attached chart shows two trades i randomly selected, both got stopped out. going back to my point of a ranging market not so good...
Attached Image (click to enlarge)
Click to Enlarge Name: gu july b.gif Size: 79 KB
  • #24
  • Jul 22, 2011 6:53am Jul 22, 2011 6:53am
the above shows bounce entry short - red line. stopped out - blue line.


another bounce entry - green line. stopped out - brown line.


where the trades taken correctly ?
  • #25
  • Jul 22, 2011 6:55am Jul 22, 2011 6:55am
Quoting SteveHopwood
EA has its first trade on my demo - EJ buy, H1.


steve

i always find it difficult to get ea's to work on my mt4 (alpari) platform. is there a special way of installing them..?
  • #26
  • Jul 22, 2011 6:58am Jul 22, 2011 6:58am
all,

there appears to be a bounce long trade just come up on the eu 1 hr chart...
  • #27
  • Jul 22, 2011 7:04am Jul 22, 2011 7:04am
Quoting whatfx
steve

i always find it difficult to get ea's to work on my mt4 (alpari) platform. is there a special way of installing them..?
Go to tools>options>expert advisors
make sure everything is checked except for

Ask manual confirmation
Confirm DLL function calls
  • #28
  • Jul 22, 2011 8:00am Jul 22, 2011 8:00am
Quoting moneydeep
Go to tools>options>expert advisors
make sure everything is checked except for

Ask manual confirmation
Confirm DLL function calls

how do i load the ea on the chart i want ?. i have quite a few ea's already on the mt4...
  • #29
  • Jul 22, 2011 8:45am Jul 22, 2011 8:45am
well, the long bounce trade on the eu turned out to be a loser ...


thinking of shorting..
  • #30
  • Jul 22, 2011 9:07am Jul 22, 2011 9:07am
Quoting whatfx
well, the long bounce trade on the eu turned out to be a loser ...


thinking of shorting..
There was a cad news, so i was not even at my desk to trade at all.

Yes it was a looser. You need to get your discipline with it and I will advice you backtest it and see how it fits your personality.

To sell, you now need to put a limit at the 24ema to sell the bounce which may give you your losses and more if played well.

Good try....
  • #31
  • Jul 22, 2011 11:18am Jul 22, 2011 11:18am
Quoting Ibuks
There was a cad news, so i was not even at my desk to trade at all.

Yes it was a looser. You need to get your discipline with it and I will advice you backtest it and see how it fits your personality.

To sell, you now need to put a limit at the 24ema to sell the bounce which may give you your losses and more if played well.

Good try....

losing one trade is not an issue at all....

i lose and win many during the course of a week.

for your info. i had immediately eneterd short after the loss. and quickly recovered +20 pips. was very lucky..

i then waited for a bounce to the 24ema, and entered another short. currently still in the short, and last time i checked it was up +5 pips. lets see how things go. i may leave the trade open until next week. only thing is though will have to pay weekend spread !! GRRRRR ...!
  • #32
  • Jul 22, 2011 12:57pm Jul 22, 2011 12:57pm
Quoting whatfx
losing one trade is not an issue at all....

i lose and win many during the course of a week.

for your info. i had immediately eneterd short after the loss. and quickly recovered +20 pips. was very lucky..

i then waited for a bounce to the 24ema, and entered another short. currently still in the short, and last time i checked it was up +5 pips. lets see how things go. i may leave the trade open until next week. only thing is though will have to pay weekend spread !! GRRRRR ...!

Thats the spirit mate....
  • #33
  • Jul 22, 2011 8:57pm Jul 22, 2011 8:57pm
Hi Ibuks,

Thanks for sharing.

Simple and easy to understand trading system.

I have tested the EA on my MT4 strategic Tester with 10 years data using default setting. So far the result has been negative. However if i zoom it down to 3-5 years, it is profitable depending on the different time frame.

Do you use the default setting? What is the best setting in term of profit target and stop loss? There are several occasion that huge SL take away all the profit that been made.

I will do more testing on the major currency pair and share my finding. Another reason for the different in result may be the spread of broker.

I am testing them on Oanda MT4 platform. Anyone else doing testing of the EA, please do share your finding. I think if we can fine tune the setting, it can be a very good scalper..

Cheers.....




Quoting Ibuks
I have been a member of FF for a while now and I have really been blessed with this great forum. I have met great people here on this forum and also learn a lot.

As a token of my appreciation, I will like to share this simple system that I call bread and butter trade.

This system is not for every trader, but if you find it useful, pls feel free to adapt it to your personality.

Another thing I will like to say before I go to the system is that as a trader, you need to reduce the drawings on your charts to see price which is truely the best...
Attached Image (click to enlarge)
Click to Enlarge Name: TesterGraph.gif Size: 14 KB
  • #34
  • Jul 23, 2011 12:41am Jul 23, 2011 12:41am
Hi erelation,

Very good mate. On the backtest, did you get 90% data quality?

I have not tried to backtest it at all and as I mentioned in my post, I trade it manually.

However, I will be very interested in trading with the ea if there is much interest and we can together work on the settings that will be very profitable.

Try it on higher tf as well and try to optimise it as well to see the best results. I will also to to do some work on it and come up with the results I get.

Thank you to trying....

Ibuks


Quoting erelation
Hi Ibuks,

Thanks for sharing.

Simple and easy to understand trading system.

I have tested the EA on my MT4 strategic Tester with 10 years data using default setting. So far the result has been negative. However if i zoom it down to 3-5 years, it is profitable depending on the different time frame.

Do you use the default setting? What is the best setting in term of profit target and stop loss? There are several occasion that huge SL take away all the profit that been made.

I will do more testing on the major currency pair and share...
  • #35
  • Jul 25, 2011 5:55am Jul 25, 2011 5:55am
Some one just called my attention to USDJPY trade opportunity with the 24ema. This move would have given 2 or 3 opportunities with each netting a minimum of 20 pips.

Chk it out on your favourite pair and see if you can get the bread and the butter on it.


Below is the picture.
Attached Image (click to enlarge)
Click to Enlarge Name: 2011-07-25_1149.png Size: 41 KB
  • #36
  • Jul 25, 2011 9:57am Jul 25, 2011 9:57am
The EA is throwing this error for me:
OP_SELLLIMIT order send failed with error(131): invalid trade volume

It's probably something obvious... can anyone tell me how to fix this?

Thanks!
  • #37
  • Jul 25, 2011 11:04am Jul 25, 2011 11:04am
Quoting r2997790
The EA is throwing this error for me:
OP_SELLLIMIT order send failed with error(131): invalid trade volume

It's probably something obvious... can anyone tell me how to fix this?

Thanks!
Maybe the EA is trying to send a 0.01 order but your broker's smallest lotsize is 0.1? I guess it has something to be like that.
Try changing the lotsize.
  • #38
  • Jul 25, 2011 11:32am Jul 25, 2011 11:32am
24 Ema bounce trading is a very successful system if used wisely. Phillip Neil started a thread in 2007 which can be seen here: http://www.forexfactory.com/showthread.php?t=11854

Thanks for simplifying it even more Ibuks. This is what I like about your approach:
1-The 20 pip buffer avoids us from entering in ranging markets.
2-Your Stop Loss idea, which is not a hard stop but more a time based one.(Price opens and closes above, below the ema)

Will be following this thread..
  • #39
  • Jul 25, 2011 11:54am Jul 25, 2011 11:54am
Quoting The7
24 Ema bounce trading is a very successful system if used wisely. Phillip Neil started a thread in 2007 which can be seen here: http://www.forexfactory.com/showthread.php?t=11854

Thanks for simplifying it even more Ibuks. This is what I like about your approach:
1-The 20 pip buffer avoids us from entering in ranging markets.
2-Your Stop Loss idea, which is not a hard stop but more a time based one.(Price opens and closes above, below the ema)

Will be following this thread..
Many thanks The7 for coming along.

One thing I have come to understand about trading system is that the more simple it is, the better chance that you can think it through yourself without any external guru. Unfortunately, the human mind is so complicated and we always want something complicated before it can really make sense.

However, if you can truely understand that life itself is simple, yet complicated, the more complicated you make it, the more complicated you will see and approach it. If you take it simple, you will see it simple and it will come to you simple.

One thing still stand out, you are the best trader that the world is waiting for....so why not look inward, adapt some of the stuff you have learnt, take ownership and make it your own.....or you will follow gurus for the rest of your trading life.....this is bad becos you have only made the world wait in vain for your brilliancy.....lol

Happy trading and have a great week full of pips.

PS: Pls chk the 24ema with your favourite pair, chk it on the 4hr,daily and wkly and you will be amazed what will jump at you.

Cheers.

Ibuks
  • #40
  • Jul 25, 2011 12:15pm Jul 25, 2011 12:15pm
Quoting JulesvH
Maybe the EA is trying to send a 0.01 order but your broker's smallest lotsize is 0.1? I guess it has something to be like that.
Try changing the lotsize.
Thanks Jules, it's working now

The EA has a stoploss parameter, is this actually used as an emergency backstop? Does the EA actually follow IBUK's candle stop loss rule?

I haven't had a loser today so I was wondering what to expect with the SL situation when it happens.

Cheers all.
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