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Buy sell line trading

  • #921
  • Mar 25, 2012 7:56am Mar 25, 2012 7:56am
Quoting fxtr51
I agree.

Yes, please . I agree 100 %

Oh yes, indeed.

But using some tools is convenient.
e.g. - indicator which alerts and displays the entry levels
- dashboard for multiple pairs and timeframes
- TradeManagement_EA ( does not take trades, only if trader activates it)

I have worked on these tools and will post them soon.
Just have to clean up the code and test some more ....
brilliant fx, we're on the same path....

I will try and go into more detail on good set ups and bad set ups and how we can add extra edges to our trading, but initially it is a great idea to take every set up (demo only) and record your results, this is why i suggest going through the week and taking every trade, because you start to recognise the patterns that are more successful and those that perhaps you should leave.

Consider this stage one... where we learn the basics of discipline and following a plan...

then we can go into optimizing...
tradewith60
  • #922
  • Mar 25, 2012 8:09am Mar 25, 2012 8:09am
Good day, I am beginner in EasyLanguage but this system (just classic) so simple that I backtested it for EUR/USD from April 2011 till March 2012 in Multicharts. Results for 1Hour and 4Hour charts are in attachment.

SC = signal candle. Net profit in USD 1point = 10USD, so 5000 net profit is 500 points. 1 Stoprange = 1 SC -1point for long and + 1 point for short position. 1 Profitrange = 1 SC. Entrypoints are points higher of the high of SC for long entry and lower of the low of SC for short entry (in classic 1pip). Lenght is length of SMA.

I am not going to discuss results of test. It’s clearly that stop in 2.5 SC ±1pip better then classic in 1SC ±1. But are you ready to trade system with such poor Risk/Reward ratio 2.5/1.5 ? I am not.

Regarding BE level, it was tested separately and the best was 0.9 of SC.

Also at 1 hour timeframe SC with range about 30 points near SMA usually is winner but SC with range about 100 point is usually loser, thus you can have 3 winner and 1 loser and have - 10 points in total. And while you are in position after 100 point SC you can miss 2 winner with 30 points SC.

Hope it will help to optimize this system.
Attached File(s)
File Type: zip Report_1Hour.zip   297 KB | 408 downloads
File Type: zip Report_4Hour.zip   279 KB | 379 downloads
  • #923
  • Mar 25, 2012 8:32am Mar 25, 2012 8:32am
Quoting Dem
Good day, I am beginner in EasyLanguage but this system (just classic) so simple that I backtested it for EUR/USD from April 2011 till March 2012 in Multicharts. Results for 1Hour and 4Hour charts are in attachment.

SC = signal candle. Net profit in USD 1point = 10USD, so 5000 net profit is 500 points. 1 Stoprange = 1 SC -1point for long and + 1 point for short position. 1 Profitrange = 1 SC. Entrypoints are points higher of the high of SC for long entry and lower of the low of SC for short entry (in classic 1pip). Lenght is length of SMA....
might as well be chinese to me... sorry can't understand any of this

if its following the rules, 3 winners and 1 losers = +4%
tradewith60
  • #924
  • Mar 25, 2012 8:50am Mar 25, 2012 8:50am
the problem with EA trading is this...

anybody here take this signal? ok, in the broadest sense it fits the rules...

but you have got to have the big picture in your mind, you can't switch off completely...
Attached Image (click to enlarge)
Click to Enlarge Name: Screen shot 2012-03-25 at 14.47.40.png Size: 22 KB
tradewith60
  • #925
  • Mar 25, 2012 8:54am Mar 25, 2012 8:54am
we have got to use our eyes...

we have got to understand what our edge is...

we want to buy the pullbacks in a trend...
Attached Image (click to enlarge)
Click to Enlarge Name: Screen shot 2012-03-25 at 14.52.45.png Size: 37 KB
tradewith60
  • #926
  • Mar 25, 2012 9:17am Mar 25, 2012 9:17am
Just because i suggest taking every set up whilst learning this strategy, I am not suggesting it is the way to trade it..

It is meant as an exercise in discipline, following a plan, and as a way to train ourselves how to quantify a strong signal and a weak signal...
Attached Image (click to enlarge)
Click to Enlarge Name: Screen shot 2012-03-25 at 15.11.57.jpg Size: 73 KB
tradewith60
  • #927
  • Mar 25, 2012 10:26am Mar 25, 2012 10:26am
Quoting Dem
Good day, I am beginner in EasyLanguage but this system (just classic) so simple that I backtested it for EUR/USD from April 2011 till March 2012 in Multicharts. Results for 1Hour and 4Hour charts are in attachment.

SC = signal candle. Net profit in USD 1point = 10USD, so 5000 net profit is 500 points. 1 Stoprange = 1 SC -1point for long and + 1 point for short position. 1 Profitrange = 1 SC. Entrypoints are points higher of the high of SC for long entry and lower of the low of SC for short entry (in classic 1pip). Lenght is length of SMA....
Would you like to explain a bit more? Which variables were optimized? What ranges did you use?
  • #928
  • Mar 25, 2012 10:35am Mar 25, 2012 10:35am
Quoting 60minuteman
might as well be chinese to me... sorry can't understand any of this

if its following the rules, 3 winners and 1 losers = +4%
Sorry for my English, I try to translate:
SIGNAL 1

1. price below the (Length) sma we only short, price above the (Length) sma we only long.

2. open and close price must engulf the previous bars open/close.

3. entry is at (Entrypoints) pip +spread below the signal bars low (for shorts), entry is at (Entrypoints) pip +spread above the signal bars high (for longs)The trade should trigger on the very next bar or the trade is invalidated, we must have momentum...

4. we place our stops 1 pip above the signal bars high for shorts, 1 pip +spread below the low for longs

5. We aim for 1/1 Stoprange (Risk)/ Profitrange (Reward).

By the way you wrote "1. do we believe that buying into a trend will be successful over a period of time?

I always think that this means enter at beginning of the trend and wait as long as it goes. So personally for me it mean Risk/Reward 1/10 and higher.

With R/R 1/1 in the trend you stay a lot of money on the table.

Anyway many thanks for sharing it.
  • #929
  • Mar 25, 2012 10:35am Mar 25, 2012 10:35am
Good stuff here

60mm, is there any discretion to what is an "engulfing candle" signal in your trades or textbook which would be a candle that that completely eclipses the previous candle?


cheers
  • #930
  • Mar 25, 2012 10:46am Mar 25, 2012 10:46am
Quoting goldsurfer
Good stuff here

60mm, is there any discretion to what is an "engulfing candle" signal in your trades or textbook which would be a candle that that completely eclipses the previous candle?


cheers
difficult to answer really, but in essence i am looking for the chart to signal that the retrace has ended and buyers have forced the sellers out (or vice versa of course)

I think the candle you are referring to is dark cloud cover , where the high and lows are engulfed? if so, yes I like those signals, in fact i traded one last week, but the momentum of the move and the retrace prior to the signal were contributing factors in my decision... here's a chart... is that what you mean?
Attached Image (click to enlarge)
Click to Enlarge Name: Screen shot 2012-03-25 at 16.44.59.png Size: 24 KB
tradewith60
  • #931
  • Edited 11:33am Mar 25, 2012 10:47am | Edited 11:33am
Quoting reuptake
Would you like to explain a bit more? Which variables were optimized? What ranges did you use?
Stoprange (Risk) from 0.5 to 2.5 pace 0.5
Profitrange (Reward) from 0.5 to 3.0 pace 0.5
Entrypoints from 0 to 15 pace 1
Length (length of SMA) from 20 to 50 pace 5
  • #932
  • Mar 25, 2012 11:02am Mar 25, 2012 11:02am
Quoting goldsurfer
Good stuff here

60mm, is there any discretion to what is an "engulfing candle" signal in your trades or textbook which would be a candle that that completely eclipses the previous candle?


cheers
Here is the definition of "engulfing candle" for this system which is used in the indicator logic ( as agreed upon with 60mm ):
http://i.imgur.com/osYdO.jpg

We accept a tolerance of 4 Pips ( not set in stone ) for the Open of the SignalCandle relative to the Close of the previous Candle.

The classic definition is: the Body of the Signal Candle must engulf the Body of the previous Candle.

Since an indicator needs fixed rules , this definition is good enough to get alerts but if you have time to be glued to the PC all the time, then
you certainly will discover more signals.
  • #933
  • Mar 25, 2012 11:12am Mar 25, 2012 11:12am
Quoting 60minuteman
difficult to answer really, but in essence i am looking for the chart to signal that the retrace has ended and buyers have forced the sellers out (or vice versa of course)

I think the candle you are referring to is dark cloud cover , where the high and lows are engulfed? if so, yes I like those signals, in fact i traded one last week, but the momentum of the move and the retrace prior to the signal were contributing factors in my decision... here's a chart... is that what you mean?
Yup that's what I see defined as bearish engulf by Investopedia, but i see on the charts some signals that don't quite eclipse the previous candle "wick to wick". But I see fxtr51 post now, so there is some discretion evidently. Sorry if this was previously covered, missed that post.

cheers
  • #934
  • Mar 25, 2012 11:29am Mar 25, 2012 11:29am
Quoting 60minuteman
First thing to note is how flat the ma is...

then after taking the first entry you would of sat in a few pips profit for a long time, so i would just wait for price to move, there's nothing in that price action that would make me consider a 2nd entry...is there?
You're right, I didn't even notice that the MA was completely flat.
  • #935
  • Edited Mar 26, 2012 7:51am Mar 25, 2012 12:01pm | Edited Mar 26, 2012 7:51am
Ok, here is the TradeManager_EA.
Open for improvements.

Attention: The EA will never open a trade or place a pending order automatically.
You can attach it to the chart without worries.

Only if you click and drag the buttons ( Start EA , Place LONG, Place SHORT etc. )
the EA will act and do what the button is meant to do.

Sometimes some do not read the Attention part, therefore I post it again in blue color for convenience:

Attention: The EA will never open a trade or place a pending order automatically.
You can attach it to the chart without worries.

Only if you click and drag the buttons ( Start EA , Place LONG, Place SHORT etc. )
the EA will act and do what the button is meant to do.



Hint: You can use it whenever you want to place a pending or market order.
It is a visual order EA.
You drag and drop the lines ( Entry, TP and SL lines )
and the EA will modify or place the orders for you.

Special feature:
I coded it for usage in strategy tester. This is a gem I think.
You can just trade the historical charts with it as if you would
trading live ( restriction: you cannot change RiskPercent or your selected lot-size , maybe I will allow that in a later version )

Usage for the Buy sell line trading method:
Set Use_SignalCandle = true .
It will watch if the order gets triggered on the bar next to the Signal Candle. If not, it will delete the pending order.

Some explanations ( please test in strategy tester and play with it ):

1. You decide to place a pending or market order with the help of the EA.
Attach it to the chart and select the features you want in the properties menu.
This will be on your chart after clicking OK.
http://i.imgur.com/7rHzI.jpg

2 buttons: Place LONG and Place SHORT
Why this ?
Because you need to tell the EA what to do.
Either you want go short or long.

Double click on one of buttons and drag it a bit.
A tiny move is enough.
Let go of the mouse button and the EA will act upon your command.

It will not place an order at this point, it will
only draw 3 lines on the chart which can be moved wherever you
want them ( Entry line , TP line and SL line )
It will use the last closed candle, thus the lines could be very close
together depending on the range of the last closed candle,
but you can then click and move all lines afterwards.
It will look like this:
http://i.imgur.com/JPrS7.jpg

When you move the lines, the distance in Pips will adapt automatically ( SL and TP line relative to the Entry )

And you will see the START EA button in the upper right corner.

As soon as you want the EA to place a pending order (you are satisfied with the position of the lines ), double-click the button and drag it a bit and let go.

The EA will place the pending order for you.

If you want a market order instead of a pending order,
just delete the Entry line.
The EA will then use the Bid or Ask (depending on Long or Short) as
entry level.

It will look like this after the EA placed the order:

http://i.imgur.com/yOB0d.jpg

You will see the tp and sl levels again with info how far away they are
from the entry-level.

And you will see the white line, which is the Breakeven level.

If you prefer to close the pending or active order at any time,
for that you can use the CLOSE ORDER button.

You can again drag and drop the lines - including the Breakeven line.

If you know the visual order editor by luktom, my EA works exactly
like that one ( since I am using his code which is not commercial.
Thanks to luktom )

The EA detects black and white chart background and adapts
automatically . This way you don´t have to change the colors each time
you attach it to your favorite charts.

If you find errors, please let me know (with screenshot and experts journal and description etc. )

There are many coders here who are able to create much better EAs.
They are welcome to share their EAs and I will be happy to use theirs
if they fit for my needs
If a coder is interested in helping to improve mine, please pm and I will send you the source code.

Disclaimer
This EA is not meant to be used on live accounts.
It is merely for experimental usage on demo-accounts and it is not a commercial product.
If you use it on a real money account, I take no responsibility
for probable losses caused by the EA.

Update: V4.2 uploaded
Cleaned up code.
To do list: Partial Close at Breakeven(requested by spread)
Attached File(s)
File Type: ex4 ! BuySell_Manager_V4.2.ex4   60 KB | 470 downloads
  • #936
  • Mar 25, 2012 12:06pm Mar 25, 2012 12:06pm
Quoting fxtr51
Ok, here is the TradeManager_EA.
Open for improvements.

Attention: The EA will never open a trade or place a pending order automatically.
You can attach it to the chart without worries.

Only if you click and drag the buttons ( Start EA , Place LONG, Place SHORT etc. )
the EA will act and do what the button is meant to do.

Sometimes some do not read the Attention part, therefore I post it again in blue color for convenience:

[color=Blue][b]Attention: The EA will never open a...
its an awesome bit of kit mate...
tradewith60
  • #937
  • Mar 25, 2012 1:32pm Mar 25, 2012 1:32pm
Great discussions going on in this thread!

60mm is trying to get people to learn price action and ask what is happening in the market (I think). When looking at a chart and price action one has to ask themselves "what is price doing? What is the trend of the moment? Who is winning the battle?" I think something that really made sense to me when it comes to price action making sense was an analogy comparing it to a battlefield. You have two sides of price:

Supply and Demand or Bulls and Bears or buyers and sellers or whatever you want to call it.

These two forces are engaged in a never ending battle to either push price lower or higher. Then you have the natural tendencies of the market to find it’s equilibrium or it's mean. For example (see chart below) you have the bulls (buyers) winning the battle in an established strong uptrend. But to continue to keep winning the battle and push price higher, the bulls will become exhausted at some point fighting the bears and need to take a break and regroup (consolidation). The bears all this time will attempt to turn the tide of the battlefield and engage in "price war" battles. Depending on how many buyers there are or demand, the bears will continue to be pushed back, defeated and retreat so they can regroup and stage another charge.

Eventually, could be the next hour, the next day, the next week...who knows? The other side WILL take control of the battlefield. The more times the opposing side attempts to take control of the battlefield and the stronger the offensive push is, typically the weaker the side of the trend will become and eventually change hands. Hopefully this analogy makes sense and helps somebody as it did me. (The chart below should help).

This strategy is attempting to give the trader an edge by only following the trend of the moment (above or below the 50sma), and waiting for a pullback in price and then a resumption of strong price action with the trend with nice momentum. It also is using a 4H time frame to help minimize all the noise that accompanies the smaller time frames and won’t keep people glued to the charts. It's designed to give the General on the battlefield an edge by advancing his/her force with momentum after repelling an attempt to change the trend.
Attached Image (click to enlarge)
Click to Enlarge Name: audusd 4h example.gif Size: 36 KB
  • #938
  • Mar 25, 2012 1:38pm Mar 25, 2012 1:38pm
Quoting 60minuteman
its an awesome bit of kit mate...
Thank you very much 60mm.

Your strategy is awesome too and I thought it is worth the time
to make an indicator, dashboard and TradeManagement-EA for it.

As you always said: the proof of the pudding is not in the indicators or other tools, they are only tools to make mechanical things easier.

The substance of this thread is to learn discipline in order to become profitable in Forex.

SMcGuire45, perfect description of what it is about.
  • #939
  • Edited Mar 26, 2012 5:58am Mar 25, 2012 2:36pm | Edited Mar 26, 2012 5:58am
Here is the indicator for engulfing candles according to the rules of the Buy sell line method.

It detects black or white chart background and adapts the colors --->
you can use it on black and white charts.
( Big thanks goes to zznbrm , he sent me code for this feature. )

You can select Popup-Alert and e-mail Alert.

It displays the entry levels until the next bar to the Signal Candle is not closed. After the close , the entry-levels will disappear, only the arrow
on the signal candle will stay.
Update: versionV1.1 uploaded
(on request of xeqter. option for lookbackbars included.
if you don´t like to have all the past arrows on the chart, insert
5 or 10 or whatever into "lookbackbars" and all arrows before that number of candles in the past will not be drawn)

http://i.imgur.com/L0ZzZ.jpg
Attached File(s)
File Type: ex4 ! BuySell_line_indicator_V1.1.ex4   16 KB | 733 downloads
  • #940
  • Mar 25, 2012 5:14pm Mar 25, 2012 5:14pm
Quoting fxtr51
Here is the indicator for engulfing candles according to the rules of the Buy sell line method.

It detects black or white chart background and adapts the colors --->
you can use it on black and white charts.
( Big thanks goes to zznbrm , he sent me code for this feature. )

You can select Popup-Alert and e-mail Alert.

It displays the entry levels until the next bar to the Signal Candle is not closed. After the close , the entry-levels will disappear, only the arrow
on the signal candle will stay.
It's not working with me, don't know why..... Have made the colors exactly like yours.
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