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A Simple London Breakout V.2

  • #1,241
  • Sep 27, 2011 1:17am Sep 27, 2011 1:17am
Wonderfull, Thanks again.
  • #1,242
  • Sep 27, 2011 11:24am Sep 27, 2011 11:24am
Hi Dodge,
really appreciate this Monday fix update, have been lurking in the back ground following this thread since conception. Hoping some day this would get fixed.
Mer's system is amazing!

Thank you, all!
  • #1,243
  • Sep 28, 2011 1:12am Sep 28, 2011 1:12am
Quoting rtrs111
Hi DodgeV83,
do you think you can modify the MT4 version to stick with martingaling one trade only? Let's say a trade is triggerred after 4:00 - 10:00AM GMT interval and it takes 3 days after the 5th iteration to win, but no other trade would be placed in the meanwhile.
Thanks!
I was not aware the EA would take additional trades from the next day's box even while a current martingale is being worked out. Am I understanding you correctly?
  • #1,244
  • Edited 2:18am Sep 28, 2011 1:26am | Edited 2:18am
Quote
I was not aware the EA would take additional trades from the next day's box even while a current martingale is being worked out. Am I understanding you correctly?
It does take multiple trades, but the new rule I proposed regarding the trades that sqaulou was supposed to work on was that the EA would would close all open trades at the session end time, whether in profit or not. But again, sqaulou has not made it that far so I will get the new EA parameters I wanted to you as soon as I free up some time to see if you can help out since sqaulou is probably a little overloaded right now with other projects.
  • #1,245
  • Sep 28, 2011 1:33am Sep 28, 2011 1:33am
Hi Mer,
is it possible to incorporate the "two bar closed below the box" as used in the indicator on FH's indie sqDynamicboxbreakout?
I think this would be a useful addition to your system.
I have been back testing this to your system and it improves the positive trades considerably!
  • #1,246
  • Sep 28, 2011 2:15am Sep 28, 2011 2:15am
Quote
Hi Mer,
is it possible to incorporate the "two bar closed below the box" as used in the indicator on FH's indie sqDynamicboxbreakout?
I think this would be a useful addition to your system.
I have been back testing this to your system and it improves the positive trades considerably!

The problem that arises here is you shorten the gap between the entry point and the first target which means you'd have to increase your target distance to make up for losing those pips. Plus, if you use the opposite side of the box as your initial stop, you have now increased the stop loss as well and that is not the way the strategy is designed.

Forexhard's stairstep breakout strategy does not rely on specific target distances like this strategy does, so I doubt that it will be added, but if you want to use that format manually, more power to you.
  • #1,247
  • Edited Sep 29, 2011 12:07am Sep 28, 2011 8:29am | Edited Sep 29, 2011 12:07am
Hi DodgeV83.

If possible do you think you could add an Entry buffer to this indicator. What I am looking for is to be able to specify a number of pips either above the "Entry Buy" or below the "Entry sell". EG. If I specify 7, then the "Entry Buy" or "Entry Sell" price must show 7 pips above or seven pips below. All other calculations for profit targets must then also take the new Buy or sell price into considderation.
I have attached the indicator that I want you to change, if you can, this is the one that you changed for me to fix the Monday box problem.

Your help is appreciated.
John.
Attached File(s)
File Type: mq4 3 Tier London Breakout V.3.3b.mq4   21 KB | 1,824 downloads
  • #1,248
  • Sep 28, 2011 10:53am Sep 28, 2011 10:53am
Hi everyone, I'm new to the forum. I am writing this post to thanks mer, squalo and dodge for a good job done and for sharing it free (without forget to thank great forum which is FF). I am an Italian trader (sorry for my bad english) and in a few days I've read all this interesting 3d. For a couple of days I'm testing the indicator posted by Dodge (now 3.3b v3.2b) with good results on E/U and G/U. I am using as the start session 3:00 GMT end session 6:14 GMT (do you think is good period time?). None of you are using an indicator or oscillator for filtering the signal breakout? I hope to be able to participate actively in this 3d, for now I wish you all a good trading guys!
  • #1,249
  • Sep 28, 2011 11:45pm Sep 28, 2011 11:45pm
Quoting mer071898
It does take multiple trades, but the new rule I proposed regarding the trades that sqaulou was supposed to work on was that the EA would would close all open trades at the session end time, whether in profit or not. But again, sqaulou has not made it that far so I will get the new EA parameters I wanted to you as soon as I free up some time to see if you can help out since sqaulou is probably a little overloaded right now with other projects.
So if Mer wants to have this option is fine, but for me I would prefer to stick with the initial breakout box until eventually closes successfully, many times after at least a day.
For example, a trade is placed Tue, at 10:00 GMT, going short at the lower edge of the box; then Tue, at 23:00GMT SL is hit and EA enters another trade in the opposite direction (long) with the second Martingale level; at 10:00 GMT next day, Wed, no SL or TP is hit yet we are still in the second level trade, but no trade is placed for the new box that was just displayed; at 12:00 GMT Wed, SL is hit again and a short trade is entered at the lower edge of the first day (Tue) breakout box (3rd Martingale level); at 17:00 GMT Wed, TP is hit for the only trade that we were in and no more trade is placed for that day; at 10:00 GMT next day (Thu) EA will enter a new trade. I'm not sure if "SessionEndTime" or "MaxTrades/Wins/LossesAllowedPerSession" parameters will have to be tweaked as well to accomplish this after you change the EA (I tried so far but didn't work).
Thank you very much in advance!
r u ready?
  • #1,250
  • Sep 30, 2011 9:05am Sep 30, 2011 9:05am
Dear Mer,

let's come out of the lurker crowd, here, for saying a big thank you to all the contributors, but expecially to you. It is quite uncommon finding good traders who are also good teachers and nice people, and you're surely one of the few.

So after reading the whole thread (besides, sorry, the "diverging section"), coming from "outside" the thread (and even FF: the world is bigger! LOL!) I must say the most "shining" feature of your system seems to be the controlled use of Martingale as risk management device. Actually, I would summarize (form myself) your system as composed by two elements: a BO (with proper TP levels) AND a Martingale scheme.

So, I would like to ask you two questions that I think were not fully addressed so far in the thread looking for answers, but eventually also other comments:

1. If you would try to separate conceptually the two parts, which one do you think is the "more responsible" for the trading success of this strategy? BO or Martingale? I ask because, just as a superficial impression, sometimes it looks like that your "way of Martingaling" would make wonders even just with a random entry... I.e. with "zero edge" systems. xmph spoke in the past pages of win/loss ratio being very bad, and he promised (unfortunately without a follow up) statistics which would have been quite interesting... Did you/anybody had consistent success with this method without martingaling?

2. Being undercapitalized is a very bad thing with this system, as we all know. Is there a system of yours or others that you would suggest for slowly building up a decent working capital from few money?

Thanks in advance for your surely exciting reply.

BL
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  • #1,251
  • Oct 7, 2011 3:11pm Oct 7, 2011 3:11pm


Hallo people: were my questions, especially the first one, scaring everybody here?

Or is simply the fellowship dispersed? (Eventually the quest for the ring is concluded?...).

Bye

BL
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  • #1,252
  • Oct 8, 2011 10:06pm Oct 8, 2011 10:06pm
Sorry, I've been out of town on business so I apologize.

Quote
1. If you would try to separate conceptually the two parts, which one do you think is the "more responsible" for the trading success of this strategy? BO or Martingale? I ask because, just as a superficial impression, sometimes it looks like that your "way of Martingaling" would make wonders even just with a random entry... I.e. with "zero edge" systems. xmph spoke in the past pages of win/loss ratio being very bad, and he promised (unfortunately without a follow up) statistics which would have been quite interesting... Did you/anybody...
To be honest, they are both important. But I would say that the martingale aspect has the higher prevalence here by I'd say maybe a 65/35 ratio because the martingale aspect can be adapted to "zero edge" systems and other strategies (not recommended though). I respect xmph and his opinions, but that is a common thing on these forums where someone will make comments like that but fail to provide proof. That is why I put up my charts to show that over a longer period of time, with proper account capitalization, this system can work. I have tried manual forward testing without using the martingale before I even started the thread and did not have very good results without the martingaling aspect.

Quote
2. Being under capitalized is a very bad thing with this system, as we all know. Is there a system of yours or others that you would suggest for slowly building up a decent working capital from few money?
Right now, I am looking into a few new modifications to the EA here on this thread. I am also following forexhard's Stairstep Breakouts thread and looking into the possibility of using sqaulou's indicator he made for that thread and melding it with the EA he made here. The reason why is because of the consolidation method that he uses will improve the breakout success allowing us to lower the number of multipliers used in it's trading and because the consolidation zones are much smaller and consistent in size which also lowers the overall risk. I am also looking into a modified version of the SRDC I strategy which uses the hi/low of the daily candle as your entry, but that is still being worked on and tested as we speak.
  • #1,253
  • Edited 6:31am Oct 11, 2011 1:21am | Edited 6:31am
Thank you very much for your reply, Mer. Very interesting as expected.

I will think about more and more, and eventually come back with some comments in the near future. The first impression is that, yes: I also think that without martingaling the "smart way" you do those breakouts cannot turn out to be very profitable.

Concerning FH thread/method, please take just care. Besides FH's attitude of kicking off his threads anybody asking questions..., there is quite a wealth of evidence around (public, but mostly private... and then shared behind the curtains, as the guy doesn't allow us to make it publicly) that the "accuracy" (win/loss ratio) of those consolidation areas is not terribly better than your simple breakouts, and therefore I would not expect those consolidation breakouts giving a much higher advantage than your London BO. That's not as saying that no profitable system can be built up starting from FH's ideas, nor that he's not a profitable trader, probably introducing, explicitely or by habit, discretionary filters in his daily trading. Surely, not in the simplified and/or partially explained way he is preaching there. Your system here, Mer, teaches all of us how it is possible, with good risk management, to transform even a win/loss ratio < 50% into a profitable system. This is what is missing in several other discussions. Thank you very much!

Thank you also for the link to OrangeRoshan's thread.

Bye

BL
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  • #1,254
  • Nov 16, 2011 8:30am Nov 16, 2011 8:30am
Okay,

I've read through the thread and got all my indi's/ea's loaded. Really lookin forward to taking this for a spin.

I do have one general area of confusion. The strategy in general really fits my eye, but I'm having trouble getting the time zones straight. All this GMT stuff coupled with daylight savings time, etc. messes me up.

What exactly is the "breakout" we're looking for. I think I have my chart's timing setup to match Mer's but it has my boxes starting about 4:00pm CST and ending about 11:00 pm. London open for me is 2:00 am. So when exactly is the "London Breakout".

I've attached a screenshot with my boxes, the server time shown, a market clock and my local time.

Any pointers would be greatly appreciated as to where I may have it messed up.

Thanks
Attached Image (click to enlarge)
Click to Enlarge Name: time zones.jpg Size: 212 KB
  • #1,255
  • Nov 16, 2011 5:58pm Nov 16, 2011 5:58pm
Welcome to the thread and good luck with the strategy. In regards to GMT times, there is no set time you have to use, but experiment around with the times to see what fits your style of trading. I have seen people with a box an hour long and some with 6-7 hours long. I have see people limit the box to 25-30 pips max and have seen some use no limits.

The key is to form the box before the breakouts normally occur during the Frankfurt/London sessions open. Since we are back to regular GMT time now, Frankfurt opens at 1:00 am and London at 2:00 am. I have mine set for a 6 hour box from 01:00 to 07:14 GMT (the :14 insures that the 07:00 candle's data is figured in) which means my box ends right at the Frankfurt open at 1:00 am. Again, this is not set in stone so play around with it.

Remember Hot Forex is GMT -1, so whatever times you choose to use, take off 1 hour from the start, stop, and end session times.

p.s. I am still trying to get some modifications done to the EA and if/when that happens, I will put them into post #1.
  • #1,256
  • Nov 23, 2011 12:30pm Nov 23, 2011 12:30pm
Hey Mer, first of all i would like to thank you and your team and all that has contributed for producing this simple but reasonable EA.

it took me alot of "spanking" to realize that trading is not a fast track to be rich.. it's just another way of "doing business" you win some.. you lose some.

Some people might say "well yeah sure it makes profit.. but the drawdown.. blabla.." But some don't realize that in order for an EA to "work", it must suite the persons way of doing business/ trading.. and to be concidered as a tool, not an ATM..

if someone wants 100% wins, well might as well take the next bus to work.. don't trade. I have never heard of a businessmen who has never had a loss in his life.

how i use this EA:

1.To think and re-think the amount of R:R if i enter the market.. (the maxsizebox option as a buy/sell trigger lines vs TP targets/ SL, greater the number, greater the R:R) and still have some time to read the news..
2. I have bad internet connection (but now using VPS)... to execute 5 trades that fast in that one time (price) and trailing them.. haven't used the martingale opts yet.. R:R=1:1 and the others turns to "free trades" are good enough for me

Been getting to know it for the last 3 weeks (just watching), done 3 trades with 30-60pips per trade. unfortunately i don't have much time to trade with it, I have a business to run.. and i get scared when i see the news tab in FF filled with oranges and reds that are smack in the middle of the market hours (london especially) .. also when the market ranges a few days after a long bull/bearish trend (tends to eat SL's a lot these days, might be solved by tightening up the box size ).

Is it possible to add an option in (F7) that changes trading directions? e.g
buy only, sell only, buy and sell on the EA?

Anyway, thank you and all that has contributed to this thread again for the EA and the whole concept of using Fibo in a "newbie friendly" kind of way...

  • #1,257
  • Edited 10:44am Nov 25, 2011 10:28am | Edited 10:44am
hey Mer, hey guys/gals..

just a quick update from a noob:

Today (+7 GMT, 11:25PM local/ broker time 18:25, Friday 25-Nov-2011):

chart : 15M, EURUSD
setup : default
extra Indicator(s) : Squalou's Sup&Res daily indicator (set to H4), just to determine trade direction..
box range : 23 pips
trade direction : Sell
lowest :TP target 1 @ +22 pips
highest:TP target 4 @ +78 pips
BE set : +1 per TP target achieved


Cheers!!

PS:Loving it!!!
  • #1,258
  • Dec 11, 2011 6:00pm Dec 11, 2011 6:00pm
mer,people newbie here!
My broker is ibfx.au which is +10 hrs, I am in East Africa +3 hrs which settings should i use for this strategy? I intend to trade from 5.00GMT - 8GMT which is equivalent to 8.00 a.m to 11.00 p.m local time. Tx n Gbless Nick
  • #1,259
  • Dec 12, 2011 1:41am Dec 12, 2011 1:41am
You need to ask your broker what their GMT time is and then add or subtract that number from the default times in the indicator. If they are GMT +2, then you add two hours. If they are GMT -2, then subtract two hours.
  • #1,260
  • Dec 12, 2011 7:45am Dec 12, 2011 7:45am
mer, they say their servers are at +0 GMT. So does the settings 6.00, 9.14 and 04.30 apply? i am testing H1, coz M15 too "loud" for me. Tx n Gbless Kish
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