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Lazy Boy Day Chart Strategy

  • #1
  • First Post: Edited 4:09pm Aug 17, 2012 2:07pm | Edited 4:09pm
Most of us that visit FF regularly might not be millionaire yet and might still have a day job. If this is you, below strategy might be for you.


1.At the end of day look at your daily closed candle, If it closed up and has candle body more than 50 pips, open a buy position with SL 50pips and TP 100 pips. If it closed down open a sell position with SL 50 pips and TP 100 pips.
2.Come back next day, repeat step 1. If next day candle body less than 50 pips do not open new position. If market moved in your favor for more than 50 pips and less than 100pips, move your SL up/or down 50 pips for previous opened positions. Once your positions is BE, remove TP and let your profit run.
3.Repeat step 1 & 2 until your bank cannot handle your cash any more.
Follow me to the Promised Land
  • #2
  • Aug 17, 2012 2:12pm Aug 17, 2012 2:12pm
Quoting xlitang
Most of us that visit FF regularly might not be millionaire yet and might still have a day job. If this is you, below strategy might be for you.


1. At the end of day look at your daily closed candle, If it closed up and has candle body more than 50 pips, open a buy position with SL 50pips and TP 100 pips. If it closed down open a sell position with SL 50 pips and TP 100 pips.
2. Come back next day, repeat step 1. If next day candle body less than 50 pips do not open new position. If market moved in your favor for more than 50 pips, move...
On the face of it that's a stupid idea but I can't help feeling sometimes this sort of simple system does have some merit. Have you done any backtesting?
  • #3
  • Aug 17, 2012 2:36pm Aug 17, 2012 2:36pm
Quoting xlitang
Most of us that visit FF regularly might not be millionaire yet and might still have a day job. If this is you, below strategy might be for you.


1. At the end of day look at your daily closed candle, If it closed up and has candle body more than 50 pips, open a buy position with SL 50pips and TP 100 pips. If it closed down open a sell position with SL 50 pips and TP 100 pips.
2. Come back next day, repeat step 1. If next day candle body less than 50 pips do not open new position. If market moved in your favor for more than 50 pips, move...
it is funny that you put a TP and then remove it once at BE, why that all hard work???
  • #4
  • Aug 17, 2012 3:12pm Aug 17, 2012 3:12pm
Quoting Saintsurfer
it is funny that you put a TP and then remove it once at BE, why that all hard work???
Why confuse?? If it moved in your favor by 50 Pips the first time, then you are at BE. If it then move another 50 PIPS, then you move your SL up 50 PIPS and remove TP..... by then if market goes against you, then you profit 50 pips... If it continue move in your favor by 50X pips, and move against you 50 Pips, then you profit 50x-50 pips

But i dont think it would work since market keeps retrace and you are at BE most of the times while SL hits frequently.
  • #5
  • Aug 17, 2012 3:41pm Aug 17, 2012 3:41pm
If you catch these up and down trends, image how much cash you can make with added positions. That is why remove TP when position is BE.
Attached Image (click to enlarge)
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Follow me to the Promised Land
  • #6
  • Aug 17, 2012 3:47pm Aug 17, 2012 3:47pm
Quoting xlitang
Most of us that visit FF regularly might not be millionaire yet and might still have a day job. If this is you, below strategy might be for you.


1. At the end of day look at your daily closed candle, If it closed up and has candle body more than 50 pips, open a buy position with SL 50pips and TP 100 pips. If it closed down open a sell position with SL 50 pips and TP 100 pips.
2. Come back next day, repeat step 1. If next day candle body less than 50 pips do not open new position. If market moved in your favor for more than 50 pips, move...
I dont understand what you mean on Step 2 when you say "If market moved in your favor for more than 50 pips..." If the market moved in your favor 50 pips, then the Take Profit would have been hit. Am I missing something here?
  • #7
  • Aug 17, 2012 3:50pm Aug 17, 2012 3:50pm
Our initial TP is 100pips. I should say market moved in our favor more than 50 pips but less than 100pips.
Follow me to the Promised Land
  • #8
  • Aug 17, 2012 3:54pm Aug 17, 2012 3:54pm
Quoting SmartGXL
I dont understand what you mean on Step 2 when you say "If market moved in your favor for more than 50 pips..." If the market moved in your favor 50 pips, then the Take Profit would have been hit. Am I missing something here?
Yea, for the Take Profit to be hit, the market needed move at least 100 pips, not 50.

xlitang, that sounds like a sensible method to trade. Enter after big momentum, then if the market moves at steady pace, let the winner grow. If it booms your way, collect profits to avoid pullbacks. I like it.

P.S. Ooops, too slow.
  • #9
  • Aug 17, 2012 4:26pm Aug 17, 2012 4:26pm
Quoting xlitang
Our initial TP is 100pips. I should say market moved in our favor more than 50 pips but less than 100pips.
Ah ok, sorry, I had read it backwards.
  • #10
  • Aug 17, 2012 10:25pm Aug 17, 2012 10:25pm
Quoting xlitang
If you catch these up and down trends, image how much cash you can make with added positions. That is why remove TP when position is BE.
Yes it looks great on a chart but have you done any backtesting?

I guess it would be fairly simple for someone to code an ea. If a daily candle has a real body of at least 50 pips then open a trade in the direction of the candle. I'd use ATR for the stop loss and tp, something like 1 or 1.5 atr for the stop and 2 or 3 for the take profit. Then you need to finalise the rules for adding on and trailing. I'd trail all trades by the atr stop loss every day.
  • #11
  • Aug 18, 2012 12:15am Aug 18, 2012 12:15am
I think this is a simple and possibly an effective strategy. There's no fancy schmancy indicators to complicate the system, just pure price.

I'm sure the guru coders here can whip up an EA in no time for this strategy. Several years of manual backtesting would be a pain in the ass. An EA would confirm the efficacy of this strategy....
  • #12
  • Aug 18, 2012 1:14am Aug 18, 2012 1:14am
Quoting Schminner
I think this is a simple and possibly an effective strategy. There's no fancy schmancy indicators to complicate the system, just pure price.

I'm sure the guru coders here can whip up an EA in no time for this strategy. Several years of manual backtesting would be a pain in the ass. An EA would confirm the efficacy of this strategy....
The strategy, as it is, cannot be fully automated because of the trades that are left at break-even. I've coded similar EAs myself and I can tell you exactly what the results are going to be - the EA is going to lose money at a slow pace until a big move comes. Then it will accumulate considerable profits quickly, until the market reverses. Then, because there is no exit rule to be coded, it will just leave the positions to be stopped out on break-even. Hugh suggested using trailing stops, however, that's a bit different strategy, which will tend to be stopped out earlier. Personally, I like the non-trailing version better. It requires you to monitor the markets and manage trades manually, but the potential reward is higher. If you're interested, I could write a simple EA that automates the entries.

Sincerely,
Barbossa
  • #13
  • Aug 18, 2012 1:21am Aug 18, 2012 1:21am
Quoting Barbossa
The strategy, as it is, cannot be fully automated because of the trades that are left at break-even. I've coded similar EAs myself and I can tell you exactly what the results are going to be - the EA is going to lose money at a slow pace until a big move comes. Then it will accumulate considerable profits quickly, until the market reverses. Then, because there is no exit rule to be coded, it will just leave the positions to be stopped out on break-even. Hugh suggested using trailing stops, however, that's a bit different strategy, which will tend...
Barb, thank you for your insight into this strategy. It sounds like you already know the likely outcome of this strategy in the long run.

Definitely, I'm interested in the simple EA. Perhaps, other members here can suggest other useful functions/features to add to the EA. Thanks.
  • #14
  • Aug 18, 2012 3:16am Aug 18, 2012 3:16am
There you go, attach to D1 chart and have fun.
Attached File(s)
File Type: mq4 LazyBoy.mq4   3 KB | 1,025 downloads
  • #15
  • Aug 18, 2012 4:23am Aug 18, 2012 4:23am
Jumping stop of 50 pips would do the trick
"Is that a real ROLEX? Yes! Same, same but different!"
  • #16
  • Aug 18, 2012 6:07am Aug 18, 2012 6:07am
Where did the 50 pip come from ? What pair, did you back test to get the 50 pip


Quoting xlitang
Most of us that visit FF regularly might not be millionaire yet and might still have a day job. If this is you, below strategy might be for you.


1.At the end of day look at your daily closed candle, If it closed up and has candle body more than 50 pips, open a buy position with SL 50pips and TP 100 pips. If it closed down open a sell position with SL 50 pips and TP 100 pips.
2.Come back next day, repeat step 1. If next day candle body less than 50 pips do not open new position. If market moved in your favor for more than 50 pips and less...
  • #17
  • Aug 18, 2012 6:09am Aug 18, 2012 6:09am
Thanks Barb, I'll try it out.
  • #18
  • Aug 18, 2012 7:21am Aug 18, 2012 7:21am
Good work Barbossa.

I wonder if you could set a ridgid 50SL and 150TP and let things play out? Or if something like that can be added that people can play with.

JT

Sorry, of course it can be set already. Thanks
"Even if you fall down face first, you still went forward."
  • #19
  • Aug 18, 2012 8:00am Aug 18, 2012 8:00am
No offence, I think the system may not work, because I think thread starter did not provide more informations on his system.

The system does not provide a specific candle close time for others to trade as everyone are on different broker platform, and results may varies.

I work on similar system like this and I did manual forward and backtest on daily candles.

Eg:
- System A work well on candle close GMT 0, but doesn't work on other times.
- System A able to capture easy X pips at candle close GMT 0 but not on other close times. [No matter whats the R:R, the easy pips are hit nearly 100% without hitting SL, so result in high winning percentage even its a low pips profits]
- System A able to capture 50 pips at candle close GMT 12, but not other times. [R:R better, Winning percentage lower, but still bank in good pips profit]

To conclude, a same system have to tweak accordingly on TP/SL[MM] to accommodate different open/closure time to maximize possible profits instead of possible pips.
The only winner is the one who survive the longest...
  • #20
  • Aug 18, 2012 8:05am Aug 18, 2012 8:05am
Quoting kinspk
The system does not provide a specific candle close time for others to trade as everyone are on different broker platform, and results may varies.
Where is the problem ?

Once the best GMT time found, just adjust the time to trade on others brokers instead trading strictly the candle.
MT4/MT5 EAs/Indicators/Alerts coder
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