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Attachments: Daily and H4 engulfing price action
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Daily and H4 engulfing price action

  • #81
  • Jun 11, 2013 3:23am Jun 11, 2013 3:23am
Quoting Dezil
I've tested this system with EA and wining rate is about 50% with RR 1:1.
Hello Dezil, thanks for your interest and work with the EA. This seems a little bit disappointing, given the manual backtest however, what period did you use, on which pairs, what rules for engulfing bar, SL position, did it make pips overall, etc?

I would be keen to receive a copy of the EA if you are willing to share. If not thats ok - I understand.

Cheers
AndyG
  • #82
  • Jun 11, 2013 4:18am Jun 11, 2013 4:18am
Quoting AndyG
{quote} Hello Dezil, thanks for your interest and work with the EA. This seems a little bit disappointing, given the manual backtest however, what period did you use, on which pairs, what rules for engulfing bar, SL position, did it make pips overall, etc? I would be keen to receive a copy of the EA if you are willing to share. If not thats ok - I understand. Cheers AndyG
Hi, AndyG. I've made EA last night and did not have much time to check for errors. I tested eur/usd and gbp/usd from 2006. I'll post my EA here later in order you can check it. From my experience on daily charts you can have 70-80 win ratio for one year and after "some" day system starts to loose and never ever makes profit. So it's vital to make long run tests.
  • #83
  • Jun 11, 2013 2:02pm Jun 11, 2013 2:02pm
Here we are. Try this EA. You need to download history data for D1 and H4 before testing. You can use "Control point mode" to test. Run tests on Daily timeframe
Attached File(s)
File Type: ex4 DailyEngalf.ex4   156 KB | 590 downloads
  • #84
  • Jun 11, 2013 2:20pm Jun 11, 2013 2:20pm
Quoting Dezil
Here we are. Try this EA. You need to download history data for D1 and H4 before testing. You can use "Control point mode" to test. Run tests on Daily timeframe {file}
Thanks Dezil, I will have a look and see.
AndyG
  • #85
  • Jun 12, 2013 5:29am Jun 12, 2013 5:29am
Hi chaps, forever learning and i have something i would like to share with regards to daily and H4 engulfing

I like Heiken Ashi bars, they let the trend stand out, albeit short at times

I suggest after a daily engulfing, and h4 closes beyond high/ low (see orange dotted line in image below)
then wait for price to retrace and change colour, then wait for the colour to change back to the intended direction.
Entry was the small HA bar with yellow arrow below
This is rather different to current methods, what do you think
Attached Image (click to enlarge)
Click to Enlarge Name: 12.6.2013 - GBPCHF H4.GIF Size: 20 KB
  • #86
  • Jun 12, 2013 8:55am Jun 12, 2013 8:55am
In regards to JayPipin suggestion what you can also do is: If you are going to change things a little, I would suggest once it breaks out, you put a fib on extremes (this changes real time so you have to watch it a little) and let it retrace to the 50% line then enter on a pending order. You will find you get in on some good trend reversals on the abcd or 123 (or whatever people call reversals) setups. Lock in 1:1 then let it run... Works very well on the 4hr and 1hr setups during UK times and leading into the US opening.
"Even if you fall down face first, you still went forward."
  • #87
  • Jun 12, 2013 12:52pm Jun 12, 2013 12:52pm
Quoting Dezil
Here we are. Try this EA. You need to download history data for D1 and H4 before testing. You can use "Control point mode" to test. Run tests on Daily timeframe {file}
Thank you Dezil
I was just backtesting the ea and i noticed that it changes the lot size to accommodate with the sl/tp width
I think for this system it is better to have a fixed lot size irrespective, can you modify this detail please? Thank you a lot
  • #88
  • Jun 12, 2013 1:15pm Jun 12, 2013 1:15pm
Quoting AhmadYt
{quote} Thank you Dezil I was just backtesting the ea and i noticed that it changes the lot size to accommodate with the sl/tp width I think for this system it is better to have a fixed lot size irrespective, can you modify this detail please? Thank you a lot
Hi, in EA settings you can change LotSize from 0 to any value and EA will use this lot LotSize.
  • #89
  • Jun 12, 2013 1:20pm Jun 12, 2013 1:20pm
Quoting Dezil
{quote} Hi, in EA settings you can change LotSize from 0 to any value and EA will use this lot LotSize.
Roger that sir
  • #90
  • Jun 12, 2013 5:37pm Jun 12, 2013 5:37pm
Hey guys, how are backtests going?
  • #91
  • Jun 12, 2013 6:15pm Jun 12, 2013 6:15pm
Quoting z1p
{quote} Hi Erebus, interesting how is the system called do you have a link? thanks
Not so much a system, there is no EA, it is a Technical Analysis method as I have already shown you

1. Determine the trend by whatever method you use

2. At start of new day, draw the retracement

3. Watch for entry at 50%

4. Use stop loss at 75%

5. Adjust position size to your risk management profile

6. Take profit at 2:1
It takes a lot for me to IGNORE you, but you can try.
  • #92
  • Jun 12, 2013 9:49pm Jun 12, 2013 9:49pm
I just realized what I wrote is what you basically wrote Erebus. Funny how watching price move for so long made us go to the same place.

jt
"Even if you fall down face first, you still went forward."
  • #93
  • Jun 15, 2013 1:41pm Jun 15, 2013 1:41pm
Quoting Dezil
Here we are. Try this EA. You need to download history data for D1 and H4 before testing. You can use "Control point mode" to test. Run tests on Daily timeframe {file}
Dezil, thanks again for your work on the EA you attached earlier. I have done some testing with it on a number of pairs going back a number of years and the results do not seem to represent the trades taken in a manual. Can you confirm for me please that the entry is set at the H4 close past the daily engulfing high/low with the SL set at the daily engulfing H/L and TP=SL (same as backtest rules)?
AndyG
  • #94
  • Jun 15, 2013 1:44pm Jun 15, 2013 1:44pm
Quoting JayPipin
Hi chaps, forever learning and i have something i would like to share with regards to daily and H4 engulfing I like Heiken Ashi bars, they let the trend stand out, albeit short at times I suggest after a daily engulfing, and h4 closes beyond high/ low (see orange dotted line in image below) then wait for price to retrace and change colour, then wait for the colour to change back to the intended direction. Entry was the small HA bar with yellow arrow below This is rather different to current methods, what do you think {image}
Hello JayPipin, this could work although you would get into trades sooner and may encounter some resistance at the daily high/low. The idea with my method is to use the engulfing action of the daily engulf and the continuing momentum indicated by the H4 close to help fuel the trade.
AndyG
  • #95
  • Jun 15, 2013 1:48pm Jun 15, 2013 1:48pm
Quoting lucariga
Hey guys, how are backtests going?
Hello, lucariga

I am not sure if the criteria in the EA are exactly what I was using in my manual backtest so the results of the EA testing has been a little bit disappointing so far. Hopefully Dezil will confirm his EA settings and we can take it from there. (probably something I'm doing wrong or a useless idea in the first place!).
AndyG
  • #96
  • Jun 15, 2013 2:02pm Jun 15, 2013 2:02pm
Hello folks,

I have put together a short 8min video of the method used to backtest this idea, as described in earlier posts. I hope the video adds something to what has already been written. (Be gentle with me - this is my first video upload and I wasn't sure of the volume setting!)

Cheers

AndyG
Inserted Video
  • #97
  • Jun 15, 2013 2:44pm Jun 15, 2013 2:44pm
Hi, Andy. The rules are exact as you stated before. We wait for daily engulf bar. Then we wait during 2 days if H4 candle closes above/below engalf bar high/low and then enter. SL=high/low of engalf bar, SL=TP
Do you have all history data fo testing pair and period? Show me some examples when EA places wrong trades. This would be easy way to fix possible errors
  • #98
  • Jun 15, 2013 3:49pm Jun 15, 2013 3:49pm
Quoting Dezil
Hi, Andy. The rules are exact as you stated before. We wait for daily engulf bar. Then we wait during 2 days if H4 candle closes above/below engalf bar high/low and then enter. SL=high/low of engalf bar, SL=TP Do you have all history data fo testing pair and period? Show me some examples when EA places wrong trades. This would be easy way to fix possible errors
Hi Dezil, I am not fully up to speed with testing data etc. but I think there is a slight difference with the entry, please see charts below. The EA seems to set the entry approx. 7 or 8 pips later than my backtest entry position, and this would also slightly alter the TP position. However I don't think this has any bearing on the outcome of the trade in terms of win or loose. Also, in my backtest I did not stick rigidly to the 2 day rule after the engulfing, so there are differences there also. Please do not take this as a criticism of your work I am just interested to know where the differences occur. I have given charts of the first 3 trades in my backtest for your info.
AndyG
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusd trade 1.jpg Size: 249 KB
Click to Enlarge Name: eurusd trade 2.jpg Size: 246 KB
Click to Enlarge Name: eurusd trade 3.jpg Size: 230 KB
  • #99
  • Last Post: Jun 16, 2013 4:03am Jun 16, 2013 4:03am
Quoting AndyG
However, for the purposes of the backtest I discounted anything more than 2 days beyond the engulfing Daily bar. Hope that helps. AndyG
Thats why i incorporated 2 days rule in EA. Difference at entry points may heppens becaouse of history quality. Press F2 and download history for every timeftame of a tested currency then try to test in "every tick mode". For example try to test EURUSD in 2013. Do you get 90% modeling quality? Do you still have entry points difference?
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