Ichimoku cloud burst ea

As you see in this case the ea reopen in the same direction. So it seems that the ea logic is good and the problem is about reliability. Only Seller9 could solve this issue and give us a new version capable to work in this "fast" ichi mode.

PS:look at the s/l following kumo at 0 pips: s/l is exactly under the last candle, than as you see the price retraces and we lost only 2 candles (3 pips each+2spread)

for obvious reasons I suggest to use this method during London open.
I work only between 9:00 am to 6:00 pm (GMT+1)

Considering the normal loss of liquidity and the consequent heavy range market the proportion between a great amount of little trades lost and a few big wins is really adverse.

If you want to experiment something similar also in these situations the settings need to be differet.

ICHI 3-9-12
S/L 5/-2/3 or more (5/-2/5)
BEJS -2/-4/1 or more (-2/-5/1)

In any case never use this method if macd is totally flat.

unimak, seller9 and All,

Thanks for the hard work in developing this EA
May be we can avoid trading during the bound range period and concentrate on taking trades on trending market by using iTrend indicator (attached).

If interested I have the methodology and code on how this has been implemented in other EA.

Sorry I haven't been keeping up with this forum as I should. I just saw your posts and they look very interesting. I will study it some more this weekend and see if I can make some code changes to the EA and see what happens. I kind of get the idea of what you want to do, but if you have time could you put it down in a kind of a point by point explanation so I don't miss anything. This way Maybe I can just create a special EA based exactly on your idea.

Edit: Forgot one thing, you mentioned clean candle, do you mean it in the same respect as it is now being used? At this time the way the EA uses it is as follows.

1) First candle closes inside the cloud.
2) Second candle closes outside the cloud. (Above/Below)
3) We then wait for the Third Candle to close outside the cloud (Above/Below) and High or Low does not touch the cloud.
4) Then when fourth candle opens a trade is triggered.

This is what triggers a Long or Short Trade now.
Should I use the Wicks (High or Low) as part of the clean candle or just the Open/Close?

Thanks

Dear Seller, thank you very much for your interest. I really appreciate it.
Looking at the current ea logic, if we want to use a fast ichi method we need to improve the following procedure:

1) First candle closes inside the cloud*.
between 1-2 the last position if yet opened need to be closed
2) Second candle closes outside the cloud. (Above/Below).. and suddenly a trade is triggered also in the same direction of the precedent one.

As you see, in this kind of rapid possible inversion of price the main goal is to ensure a minimal loss in the case of a moment of price consolidation near the kumo when a possible longer sequence of inversions could happen. And, most of all, ensure that the last one entry (the one getting possible good profit at the end of consolidation) is triggered.

*Obviously, as you have already implemented in your last ea version, all this needs to be assured also if the "change" from red and green candle is direct through a very thin kumo.

So what we need?

1. an hidden fixed s/l suddenly created when the trade opens (this need to be freely adjustable depending on the ichi settings)
2. a first safety "broker" s/l suddenly created at the minimal (for the broker imposition) possible distance from the price (i.e. 10 pips and not at the top of the kumo).
3. a rapid movement to a new minimal (i.e. 5 pips) of the "broker" s/l when a new candle starts. This will be assured if the "broker" s/l is following the second level kumo at zero distance but..
4. the "broker" s/l movement needs to be assured for any new starting candle so, in the case of rapid movement of the price we need the creation of a second hidden s/l capable to "emulate" the broker s/l if it doesn't work.

How about wicks?
I think it's preferable to use a rb kumo without wicks. In this way the broker s/l could follow kumo in a more "geometrical" path.

Why I'm using ichi 2-2-12-0?

I think there are more "secure" settings, for example 3-9-12. Those help you to avoid a great number of inversions in consolidation times. But with slower ichis if you loose a trade you have not the possibility to reopen untill a long waiting time. So, an idea is to let the ea work only in some profitable condition:

 

1. not working outside London time
2. not working if "macd zero lag" is flat (under a certain level)
3. not working in a very hard range market (implementing a good settable indicator in the ea)

Thank you very much for your attention.

Thank you ^Sam, this seems to be what we were searching for ( I mean the possibility to implement such an indicator in the Seller9 ea)

We need to s the parameters: some ideas on a rb3?

Considering we're working with range bars, volumes are very important and using a standard volume indicator we can make the following considerations:

1. if the last candle* before breakout produced a volume of opposite sentiment and this volume is high: do not entry
2. if the last candle before breakout produced a volume of opposite sentiment and this volume is low: entry
3. if the volume of the precedent candle is high it means indecision also if of the same sentiment of the breakout: do not entry

These are intuitive considerations and the target is evaluate the dimension of volumes to establish how to consider them high or low. At a firs look a value of 100 could be considered high. Te fact is that the more the volume the more the indecision and the time passed during the creation of our range bar and both of these two factors are adverse for our very near s/l.

To have a confirmation of this reasoning have a look to London close time. Obviously you'll find heavy volumes in every candles.

I think all this could easily implemented in the ea.

*last candle means the candle closing outside the kumo

If we want to use iTrend indicator to confirm our trading signal and avoid range bound periods, then all the signal should be confirmed by the indicator. The conditions should be as follows:

 

1. For a sell signal to be valid, the tick of iTrend indicator should be in red color and above zero i.e. the red tick should be above the gold color tick.
2. For a buy signal to be valid the iTrend gold color tick should be above zero.
3. The signals should be fully confirmed if the above mentioned iTrend tick value is more than a certain value let us call it iTrend_Value.
4. The iTrend_Value will depend on the pair and the RB and should be adjusted looking at certain number of historical bars.
5. For testing purpose the iTrend_Value can be considered as 0.0013 for EURUSD, 0.0015 for USDCHF, 0.0017 for GBPUSD and 0.15 for USDJPY.

As I mentioned in my previous post, this methodology of confirming a trade signal by iTrend is adapted from another Trading Strategy and I have the code for implementing it in an EA if required.


^Sam

Edit:

This methodology will inter the trades late in the move but it will catch the big moves and avoid the small ones in range bound. I believe this methodology is not in line with the way Lock is describing.

Hi guys,

I have followed the original cloud breakout threat and have been studying and trading it with some success lately (with a little bit of a variation ill get into abit later) on EU, GU and GOLD.

I have been trying very hard to get a indicator to show the average TIME per bar. Sort of like a moving average but for the time it takes each range bar to form.

This I am hoping would give a great feel for momentum when trading. Might even be able to use it in the EA. Either to enter or exit trades maby when momentum picks up or slows down.

TradingFX has such a tool, but its not for sale. You can see how it works here:

Is there anybody here capable(and willing) to create such an indicator? Doubt it will be too complicated. Simple moving average of the time it takes each bar in minutes. Think it might benefit rangebar traders alot.

Thanks -C

Not exactly what you're looking for, but here is a rough guide. I've not used it so can't vouch for it, but it's written by zznbrm, a respected member. The guidelines are;

[Closing Time of the Bar] - [Opening Time of the Bar] <= 1 min then prompt a yellow bar

[Closing Time of the Bar] - [Opening Time of the Bar] >1 min or <=5mins then prompt a orange bar

[Closing Time of the Bar] - [Opening Time of the Bar] >5 min then prompt a red bar

Great!
That confirms time and volumes are fundamental parameters to open a trade. As you see, in today rb3 eurusd every single "big" price movement has these two condition:

1. close candle has never a volume>100
2. close candle has never a time>5'

That's really great!

So, at the moment we got all these parameters to be implemented in the ea:

1. condition 1: close candle after kumo
2. condition 2: volume of closed candle<100
3. condition 3: time of closed candle<=5'
4. condition 4: working time: during London session
5. condition 5: "broker" s/l at start point: -10
6. condition 6: hidden s/l at start point: -3/-4
7. condition 7: "broker" s/l following second level kumo at 0/-1
8. condition 8: hidden s/l moved to second level kumo at 0/-1 if condition 7 fails to happen

We can further study about times and volumes to calibrate better values. Perhaps we can open also on minor trades if we tune better these parameters. And, in those trades we can tell the ea to set a little T/P of, for example, 6 or 9 pips

note:

1. for any trades open with this method, considering the improvement coming from those new factors (volume and time) we can set hidden s/l with wider values.
2. for short trades we have to consider the different opening position of bid and ask

@^Sam

Actually it is not fitted for this kind of fast ichi. Anyway we must consider any possibility. Try to study a reliable setting for our special situation.

we can modify an EA to make it enter the order after closing above the Ichimoku

and close the trade after closing under the Ichimoku and open short

in the same terms

like that

The new modifications we're trying to implement are about very fast ichi. So, in this case we cannot wait for a close after the opposite breakout because in that manner we are going to loose a lot of pips.

But... Have a look to the last 2 days(avoiding London close). As you see every major trade (except only one) have the same characteristics:
volume<=136 (with a grat tendence to 0)
time<=300'' (with a great tendence to 60')
and edit: in the two long position with heavy volumes, those vol. are both of the same sentiment of the trades



Attachment

Thanks Brotyboy! Not exactly what I am looking for but it is pretty usefull. With the right settings its easy to spot when volatility starts. Will definitely be able to use it.

at least we can add a break even

mahanxiong: Do a search at forexfactory about "how to backtest range bars", or look back at this topic, someone posted a youtube video about the method, but unfortunately I don't have time now to search it now.

So the backtest and optimization finished on EURUSD. The interesting thing is that there is a bigger profit, if the BEJS is not used, only the takeprofit part.
So here are the settings for eu based on backtesting and strategy tester optimization:

Range bar size: 16 pips
Tenkan sen: 9
Kinjun sen: 5
Senkou span: 100
UseCleanCandleClose: false
UseBEJS: true (to use the takeprofit part)
Autobreakeven and profit pips are false
IchiBreakEvenPips: 55
IchiBreakevenProfitPips: 1
IchiJumpingStopPips: 1
TakeProfitPips: 55

The optimization for EURJPY will finish in a couple of hours. Here are the partial results:
Range bar size: 29 pips
Tenkan sen: 23
Kinjun sen: 29
Senkou span: 56

DAY REPORT time-volumes-macd method

So, here we are at the end of the London session. The following results comes from the hypothesis the ea could work with these implemented features:

Search for a kumo breakout signal

1. if break candle time is<180''
2. if break candle volume is<140
3. if break candle volume is not the opposite of price
4. if break candle MACD is not the opposite of price

Enter
Then also if only one of the above condition is not respected:
Do not entry
then:
Wait for the completion of a new candle
if this candle respects all the above parameters:
Enter
if also this second candle does not respect all the above parameters:
Do nothing and start waiting for a new breakout signal
IF THE TRADE IS OPENED do the following:

1. create broker S/L=-10
2. create hidden S/L=-4

if the price goes on in the right direction when the first candle closes:
move the broker S/L to the second level of the kumo at 0
if not possible for the short distance:
move the hidden S/L to the second level of the kumo at 0
if any S/L intercepted
CLOSE

DAY REPORT on ICHI 2-2-12-0

1. 7 "good trades" with profit
2. 8 "good trades" with losses
3. 24 "bad trades" avoided

As the image shows the profit doubles the losses for "absolute value" and this was a "bad-friday-heavy-range-without-news" day... so I think these implementations worth the effort of the coming weekend

Has anyone of you tried to use better volume chart bar break system. I am seeking volunteer/s here to help develop EA for defined entry and exit rules. It is simple method with lot of potential for pips. It shows what professional are doing. E.g. EU H1 chart I see reversal (now) of the long trend since morning. Not to say it will get short today or Monday but professionals have taken profits and exited the market.

Not trying to steal the show here but to request help. Pls. Thnakx