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Follow the BIG Candle

  • #121
  • Mar 10, 2014 7:19am Mar 10, 2014 7:19am
Hello Check this.

Just get a alarm for the big candle on GBPUSD 100 pips,but the alarm never stop so if somebody can modify for have only once alarm will be better.



Regards
Attached File(s)
File Type: mq4 Waddah_Attar_Explosion.mq4   8 KB | 482 downloads
  • #122
  • Mar 10, 2014 7:39am Mar 10, 2014 7:39am
Hello,check also this i dont know EA but i think is what you are searching...maybe

Attached File(s)
File Type: mq4 TIMING_SYSTEM_EA.mq4   35 KB | 643 downloads


Attached File(s)
File Type: mq4 T-foREX-Follower-v01.mq4   33 KB | 649 downloads


Attached File(s)
File Type: mq4 Price acceleration EA.mq4   5 KB | 628 downloads


Regards

If you dont like i post some indi and EA let me know i will stop
  • #123
  • Mar 10, 2014 7:49am Mar 10, 2014 7:49am
Quoting howa61
Hello,check also this i dont know EA but i think is what you are searching...maybe {file} {file} {file} Regards If you dont like i post some indi and EA let me know i will stop

Thanks. But I am looking for ideas rather than indicators or EAs.

You may stop now.
No guts, no glory
  • #124
  • Mar 10, 2014 7:59am Mar 10, 2014 7:59am
Quoting abokwaik
{quote} Thanks. But I am looking for ideas rather than indicators or EAs. You may stop now.
I understand. But maybe the idea is inside the EA i post (i cna not read EA) you can.Also last check this threadhttp://www.forexfactory.com/showthread.php?t=6854No more i promise lol
  • #125
  • Mar 10, 2014 8:00am Mar 10, 2014 8:00am
Quoting abokwaik
{quote} Thanks. But I am looking for ideas rather than indicators or EAs. You may stop now.
I understand. But maybe the idea is inside the EA i post (i can not read EA) you can.Also last check this threadhttp://www.forexfactory.com/showthread.php?t=6854No more i promise lol
  • #126
  • Mar 10, 2014 10:27am Mar 10, 2014 10:27am
No trades for today so far. As EA is currently looking for the below candle sizes on each pair:

  1. GBP/USD 74 pips
  2. EUR/USD 44 pips
  3. USD/JPY 42 pips
  4. AUD/USD 49 pips
  5. EUR/JPY 80 pips
  6. GBP/JPY 103 pips

I attached an updated version of the latest EA (same as the one in post#88), the only difference is that it shows the candle size its waiting for on each pair, in Pips (for 4-digit brokers) and in Points (for 5-digit brokers).

Attached File(s)
File Type: ex4 Big_Candle_04.ex4   26 KB | 658 downloads
No guts, no glory
  • #127
  • Mar 10, 2014 10:34am Mar 10, 2014 10:34am
For the people who like forward test the EA on multiple pairs:

  1. If you will use the same settings for all pairs, you can attached the same EA to the charts your are interested in.
  2. If you will use different settings for each pair, I think you need to make a different file copy for each pair. for example make a copy named Big_Candle_04_GU for GBP/USD and so on for each pair.

No guts, no glory
  • #128
  • Mar 10, 2014 10:34am Mar 10, 2014 10:34am
is it will be good that use on H1 candle, sir?
  • #129
  • Mar 10, 2014 10:46am Mar 10, 2014 10:46am
Quoting xptitan
is it will be good that use on H1 candle, sir?
You can use it on any time frame, although I prefer larger time frames. However you need to change the settings to suite each time frame.

For example : One might consider a candle of 20 pips BIG for a M5 time frame, but certainly not big for H1 time frame. Also a candle size that is BIG for EUR/USD might not be BIG for GBP/AUD.

Out of my tests on GBP/USD, below are different time frames and suitable size in terms of ATR multiples:

  1. M30 : 8xATR (this is what I am using now in the trade explorer for the six pairs)
  2. H1: 6xATR
  3. H4:4 to 5xATR
  4. D1:2 to 3xATR

Now for the other parameters, its advisable to use as follows:

  1. SL_ATR (Stop Loss) = 2xATR multiples (for example, and taking the numbers above, if your are running on H1 and set ATR multiples to 6, SL should be 12)
  2. TP_ATR:10xATR Multiples (so for H1 will be 60) -- we put High TP to keep the profit trades running until stopped by the trailing stop.
  3. TS_ATR(Trailing Stop) = 1 to 2 xATR Multiples (so for H1 = 8 or 10)
  4. TP_ATR(Partial Take Profit) = 1 to 2 x ATR multiples (so for H1 = 8 or 10)
  5. BE_ATR(Break Even) = 1 x ATR Multiples (so for H1 = 6)

I hope this is clear.

No guts, no glory
  • #130
  • Mar 10, 2014 12:18pm Mar 10, 2014 12:18pm
Quoting abokwaik
{quote} You can use it on any time frame, although I prefer larger time frames. However you need to change the settings to suite each time frame. For example : One might consider a candle of 20 pips BIG for a M5 time frame, but certainly not big for H1 time frame. Also a candle size that is BIG for EUR/USD might not be BIG for GBP/AUD. Out of my tests on GBP/USD, below are different time frames and suitable size in terms of ATR multiples: M30 : 8xATR (this is what I am using now in the trade explorer for the six pairs) H1: 6xATR H4:4 to 5xATR D1:2...
Hi,

Thanks for this EA. I´m testing it too on my demo account. I´ll let you know about new positions.
  • #131
  • Mar 10, 2014 7:30pm Mar 10, 2014 7:30pm
Hello and thank you for sharing this,

Meta Trader is not working for me here, so I am on VT Trader, hence can not use the script. Would you mind explaining the basic principle to me so I can try to execute it in VT? Simple words please.

When I set ATR to 8 days on 30m GBP/USD graph, most candle appear to be higher then ATR. But If i would take on a trade on them I would loose since they returned back on the next candle.

Or if you could take a snapshot of your desktop with explanation of few trades. Thank you.
  • #132
  • Mar 11, 2014 6:03am Mar 11, 2014 6:03am
Quoting masterok
Hello and thank you for sharing this, Meta Trader ...
@masterok

> Meta Trader is not working for me here, so I am on VT Trader, hence can not use the script.

I am sure you will try it on demo account not live. In this case you can check the "Brokers" Tab in Forex Facory and open an MT4 Demo for testing and visualizing the concept.

> Would you mind explaining the basic principle to me so I can try to execute it in VT? Simple words please.

Since you asked, I think many others still confused with the strategy. So I am going to Explain the strategy in Detail with Charts, Won and Lost deals. This will be useful for the people who like to trade it Manually, and for people who like to develop it on different platforms.

> When I set ATR to 8 days on 30m GBP/USD graph, most candle appear to be higher then ATR. But If i would take on a trade on them I would loose since they returned back on the next candle.

When you set the period in ATR indicator to 8 on M30 time frames, it means 8 M30 candles not 8 Days. However, we are not trading any candle that is higher than ATR, We use ATR Multiples. So if ATR(8) on M30 was reading 12 pips (0.0012) and we set our EA ATR_Multiple parameter to 5, this means that we are trading only the "BIG" candle that is greater than 5x12 (60 pips).
No guts, no glory
  • #133
  • Mar 11, 2014 6:30am Mar 11, 2014 6:30am
Big Candle Trading Strategy


1. Origin :

The idea originally came from my many mistakes, and many losses trying to fade the big candles as most of us might do.
I was thinking that since price rose for 100 pips in 30 minutes or one hour, then it has to rest and retrace a 30 or 50 pips before continuing up, or if I was lucky it will reverse completely and let me make a fortune.

But I was wrong. Most of the time it will continue up, and force you out, before going down.

So I though, why I do not try to follow the Big Candles instead of fighting it, and hence cam the idea. I ran some tests and it was profitable. Then I started to optimize the strategy for a better R:R ratio.
No guts, no glory
  • #134
  • Mar 11, 2014 6:37am Mar 11, 2014 6:37am
Big Candle Trading Strategy


2. Sample Charts :

This is the current chart of GBP/USD M30. Look at that big candle (highlighted in yellow), this was the NFP candle of latest Friday, however the EA didn't trade it as it was 3 pips less than the calculated size of the BIG candle at the moment using a setting of 8 ATR_Multiples. But its OK as we are going to miss some good trades along the way.

Now suppose that our setting was 7 ATR_Multiples and we traded that candle. The red line is our stoploss and the blueline is our breakeven and take profit on 50% of position, and rest of position will be trailed with 60 pips trailing stop.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdm30_mar_11.png Size: 25 KB
No guts, no glory
  • #135
  • Mar 11, 2014 7:07am Mar 11, 2014 7:07am
Thank you for the chart. However I still have a question:

ATR - is Average True Range, right? The value I set there is 8. The graph appears on the bottom of the chart and values are from 5 to 20 pips only so most of the candles fall in the range. Thats my confusion so far. Sorry for these, but I would like to get the basics of the system right before learning it further. I attached the screenshot. Thank you. For some reason I think the problem is with my indicator, me not setting it up correctly.
Attached Image (click to enlarge)
Click to Enlarge Name: Untitled-1.jpg Size: 232 KB
  • #136
  • Mar 11, 2014 7:15am Mar 11, 2014 7:15am
Big Candle Trading Strategy


2. Sample Charts (Continued):

This is a won trade taken by the EA (Big_Candle_04) with same setup running in Trade Explorer.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdrm30_1.png Size: 29 KB
No guts, no glory
  • #137
  • Mar 11, 2014 7:29am Mar 11, 2014 7:29am
Big Candle Trading Strategy


2. Sample Charts (Continued):

We have 2 trades here.

Note that the EA took partial profit and then closed the 1st trade at trailing stop.
Then opened a 2nd trade as another Big Candle appeared, took partial profit and stopped at the trailing stop.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdrm30_2.png Size: 30 KB
No guts, no glory
  • #138
  • Mar 11, 2014 7:40am Mar 11, 2014 7:40am
Big Candle Trading Strategy


2. Sample Charts (Continued):

This is an example of a Lost Trade [1]. Fortunately it was followed by a winning trade.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdrm30_3.png Size: 33 KB
No guts, no glory
  • #139
  • Mar 11, 2014 8:21am Mar 11, 2014 8:21am
Quoting masterok
Thank you for the chart. However I still have a question: ATR - is Average True Range, right? The value I set there is 8. The graph appears on the bottom of the chart and values are from 5 to 20 pips only so most of the candles fall in the range. Thats my confusion so far. Sorry for these, but I would like to get the basics of the system right before learning it further. I attached the screenshot. Thank you. For some reason I think the problem is with my indicator, me not setting it up correctly. {image}
The indicator is OK. But the Big Candle should be BIG, so it is not equal to ATR, it is equal to N x ATR, N is settable in the EA. for M30 on GBP/USD I used N=8. So if current ATR reading is 10 pips, the BIG candle should be of size >= N x ATR >= 8 x 10 >= 80 pips. Any candle less in size than 80 pips will not be traded.

ATR reading will change with each new candle, so suppose on the next candle the reading became 12, now EA will be waiting for candle of size >= 8 x 12 = 96 pip, ... and so on.

I hope its clear now.
No guts, no glory
  • #140
  • Mar 11, 2014 4:39pm Mar 11, 2014 4:39pm
Ok so how about this situation, you would have lost a trade here, wouldn't you?

Also how long do you expect to stay in the trade? Do you mostly trade during a day, or how often do you go long with this and for how long.
Attached Image (click to enlarge)
Click to Enlarge Name: Untitled-3.jpg Size: 236 KB
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