Extracted Thread (per thread starter's request)

This has been a fun week, reworking my settings with the new indicator - I know I said I wouldn't change them for a 100 days. Hard not to when I have more experience under my belt and something new to play with. I have stayed true to having fewer pairs I am following and spending more time focused on how price acts coming out of a cz. Actually I didn't change my settings all that much. The only setting I did change often was the auto reduce one. I just found that a fixed setting would lower the number of Consecutive losses. I think sometimes the cz can get so tight that regular market noise becomes a breakout but its not a true breakout its a market noise breakout.

I have also found that the anti-martingale setting is changing how I approach the market. The pips are about the same as martingale but the risk is so much less in the end. I am still working on my r multiples. What is so interesting about the antim is that I can start with a little larger position than when I was using the martingale. With the martingale I was using a total equity exposure over 4 trades of not losing more than 5% of my equity on a cz set. With martingale I had to then use fewer pips on the first trade and If the first couple of trades out of a cz didn't work by the 4th trade I was increasing my risk with nasty results if it didn't work out. The R-multiples were such that I was risking dollars to earn a few pennies. Which of course makes no sense and I found myself being grateful if the market just got to my target but impossible to go for more because of the fear of such a large loss if the market retraced after hitting the tp.

The anti martingale has let me start with more lots up front where I am now counting on my high first and second trade results more and am more willing to let my 3rd trade run beyond the TP. I am only using 2 trades per cz on my settings to force me to stay focused on the best cz's because I hate to trade at the mercy of the market, where all of my emotions come into play which is not fun. I find it easier to say enough and not force myself to be up all night baby sitting an over exposed CZ set praying that I get back to even.

Might as well end with a trade from last night. My target was the red line .

Hi all, I'm new to this thread too. I have read first 26 pages and have backtested 1 month GU @ 15min TF. And the results are stunning, despite the fact that I just started learning. Thanks forexhard for sharing his excellent system. I am with you, guys
P. S. Excuse me for my English. English is not my native language.

ah

I totally agree with you. I am not yet clear on all the possibilities with the new indicator and I don't think I have spoken particularly to that as yet except to express my amazement at some of the results I pulled up right at the outset. Quickly looking at what you have subsequently written below looks fascinating and I will be spending some time working through that.

I see the indicator and its functions as one part of the overall strategy and the MM as a wholly seperate issue. Hence I have tried to bring some attention to the use of compounding which in my experience too many people overlook and / or don't understand. If it was good enough for Einstein to consider as the eigth wonder of the world I suggest it is something that ALL traders need to look at. I have probably "done my dash" on MM. I have made my views on that clear over several months and finally given a link that anyone can check. Finally on this, compounding is not grandiose, using a conservative and an aggressive account is not grandiose. To me it maximises returns in the safest possible way.

Next now is to come to grips with this new indi and from here on in I will turn my forum focus to that. It is not a simple beast and examples such as you have shown are very enlightening. Now it is into my office for some experimentation.

AltosTrader, as the thread starter I have a much bigger sense of responsibility around here than you do. Every week dozens of people look to me for help, yourself included. You are speaking for 1, but I am speaking to thousands, and so the onus is on me to make sure that only the best, most responsible, and most realistic trading techniques are passed along inside my teaching thread, regardless of who posts them.

You have spent a great deal of effort tying my comments back to something you said about compounded interest and Einstein. But the trouble is, I never referenced Einstein or compounding. I have never once disputed "the power of compounding", or that Einstein was in favor of it, etc. What I did reference was your comment about turning 1K into millions (see your quote above), that's all. As OP I feel it is irresponsible to post these types of statements in an open forum. There are too many noobs cruising these boards that will misunderstand these kinds of statements, and there are too many trolls that are only too eager to try to paint me as an inexperienced trader -- or worse, as a bad teacher that leads people astray with wild trading fantasies. So it should be crystal clear by now that there are some types of statements that I simply can not leave alone, and the statements you have made are at the top of my cautionary list of things never to say in my open teaching forum, and which I must immediately address. And so I have.

So can you live with that restriction AT, or are we going to have this talk again next week too?

George Soros is my father-in-law. This is exactly how he trades. Amazing, isn't it, the facts you can pick up on the web.

Oh, sorry it can be seen that way. There was no slight intended. All I have been trying to do is awaken people as to what they could/should think about after the first flush of success. I didn't realize I was tying anything derogatory to you although I don't feel anything about my viewpoint is grandiose.

I think you have done an amazing thing in developing this approach and xux99 in getting it into a workable code. I certainly never would have tumbled to its effectiveness despite having looked at it maybe a year ago - it didn't hit me. So I wholly applaud your insight and the subsequent development of a tool which will surely change many peoples lives, my own included.

So yes, I can live with what you say. I actually stated that above in reply to Jayf19. I had "done my dash" - maybe that is not an American expression. I meant I have said my piece. From here on in I will concentrate my efforts on the indicator and pray for the EA.

Onward and upward and thankyou.
Regards.

I been playing with the new indie on 1 hour time frame (which I mostly trade) interesting results below. Ignore the spread.

I have the new indi running on 8 pairs with cracking results so far. One thing that caught me out at first was the auto reduce feature, during the long consolidation in cable it prompted 5 losers as the swings grew slowly coming out of the consolidation. (I have seen cable do this before but usually 2 is the maximum number of fails. I changed the auto reduce to false and it left just one signal to go long which would have ultimately paid off.

I have one pair that I call old reliable as I get a box a day with a 35 pip tp and the stats are 86.7% breakout, 100% recovery. (Breakout trade has risen from 82% in forward testing)

At the moment I am trading the new indi with 1 microlot (0.01) as I test it for 100 days before committing to it with a larger account. I have to say, it is an amazing tool. The number of times it takes profit at the peak or low of a move is astounding and a pleasure to behold. My sincere thanks to Forexhard for sharing this. Also for the way you shared it, if this had been handed on a plate I doubt any of us would understand what we were really doing.

I don't use the ema filter, it shows great results but I find the results of the basic breakout are good enough and this started with me moving boxes around charts. So simple it's hard, right?

The other day I had a few breakout trades go against me, it was ecb statement and the market had been going sideways for days. I guess I was bored and since I was in my micro account I thought I'd try my hand at guessing what came next. Slapped on a few trendlines, plotted some SR lines. 20 minutes later I had nearly annihilated my practice account.

All the failed cz trades from that day came good on recovery 1. Even the ones that signaled on the top of a HUGE breakout candle. Astounding!

Like I said, an awesome tool. I now have a post it note on my screen that says 'trade only the boxes'. I look forward to going live with this (and my newly punished self-discipline) when I have final results in a few months.

I only have 1 pair that breaks the original trade parameters, that is my eur/usd which I find is better on the 30m timeframe. Everything else is under 30 pips, over 30 bars, no filter, no auto reduce. So far I have been successful within 3 trades on all pairs. (except the cable debacle) My targets range from 20 to 70 pips. Buffers range from 1 pip to 4.5, closed bars from 0 to 3. It took me ages to get it set up but my sweet spots seem to be working like charms for now. I will keep updates coming and will post charts.

One thing I tried was trading a double lot and closing 1 at tp to let the other run with a b/e sl. It is surprising how many of these failed. I find it to be a distraction. I stick to the rules religiously now and the rules work.

Thanks again forexhard and xux for this great system.

I think that a CZ on M15 can also be seen as a demand or supply level on H1 or H4.

FH, please bud in if you think I'm going the wrong way about it, but as per the two charts below I think this is an early entry from demand and supply levels instead of waiting for price to return and then to enter as many traders do on the higher time frames. This is like the edge over those traders.

Maybe you can explain it better.

What I try to do is less risk bigger ratio to win. Here is my EU setup. Ignore the spread as it is weekend.
Also the trades are much less. Check also the individual trades loss and wins in a row as well as consecutive.
It gives me less than 2 trades per week average.

Going to do it this week with micro lots to test.

A nugget I found a few days ago but didn't pay much attention to it until now...

Per your platform, you can set the time frame to whatever you please; the indicator will still calculate the settings per what has been input in it.

For instance, you can can see how your M15 settings would behave on a higher time frame, such as H4, while not having to adjust anything (results will vary, though, based on the MinBarsClosed, among other things).

Looks fine to me. Nicely defined steps and few (or no) overlapping boxes is always a good sign that the parameters are set well.

Number47, I don't think you've had a proper welcome yet, but after that you definitely deserve one. I'm especially encouraged by your willingness to confront your own personal weaknesses, and to discuss them in public. Not everyone can do that, but the ones that can are the easiest to teach and the quickest to show positive results in their trading. So keep up the good work, and this week I'd like to see some charts!

The issue I have with this, is that you only saw this candle pattern 300 bars after the CZ had already been traded. There is absolutely no way this pattern could have been predicted at the time the CZ formed. If so, then you could mortgage your house and bet it all and be set for life in just a week of trading, right? So instead of worrying about missed opportunities, just keep focusing on the next CZ, and the one after that. This is a breakout system. Trade the breakout, bank your pips, and reset for the next opportunity...

I guess it pays to be up fairly early on a saturday looking at my trades from last week and getting ready for next week. I get to be one of the first to look for the changes. I have one I see already but need to confirm it.

By now, I think we all know how to identify the very best CZ and how to trade them; if not, we simply need to reread the thread as the subject matter is extensively covered.

FXH asked up to spill the beans lately, to show & tell our settings and how we make our pips. So, instead of just posting charts about entries and exits that I've been making the past couple of months, I'll start posting the sweet spots I find, along with my perspective as to how we can take advantage of them and what to watch out for.

I remember back in 2011 when Mer shared us his approach on T/P based off fibs with multiple lots and such, and then a few others shared their MM approach to using SSBO.

Now that our tool bag has grown bigger with the new indie features, I think we could share some really nice ideas as to how we trade successfully with SSBO. I'm not just talking about spotting a single SSBO and trading it, I'm talking more about the long term goodies and how we ultimately make it work.
So enough with the blabber, here's a sweet spot I have found on EU/H1 that I plan to take advantage by forward testing my results.

Settings not shown in picture :
Buffer : 3.5

Results using different approaches
AntiMGale : 1232.1 pips
2xMGale : 1452 pips
1:1 : 798 pips

My view: I would lean towards using AntiMGale using this type of setup as the difference between a 2x and Anti is negligible (their would't be any difference until the third trade anyways)... The augmented risk doesn't justify a better reward as of yet. Also, since I haven't forward tested these results, I would not be willing to go all out aggressive on this one. I think I would use that approach mainly when the R:R on individual trades doesn't offer a 1:1 or better ratio. In that case, I'd focus on the whole CZ.

On the other hand, when the CZ gets tighter, I would also consider an individual trade approach(no MGale) when R:R allows for something bigger than 1:1. The last trade set up using these settings gave me a chance to go for a QTP of 40 pips and a S/L of 26.2 pips (1.52 : 1.00), so according to the overall personality of the pair with this sweet spot, combined with the interesting R:R, I have opted for an individual trade approach on that one, focusing on the initial breakout.

Think we are on the same track check out my last post http://www.forexfactory.com/showthread.php?t=302007&page=350

Thank you XUX, great job, back to my charts. By the time I am through in putting all my settings again I will know them by heart. With all the information I know have in my noggin, I am seeing things I never thought about before come to light. 2 months to go on my forward test.

Time for another update. Nothing major, just another code tweak by Xux99.

All the same warnings about switching out the indis still applies.