Sharing my profitable and simple strategy

ok now I understand thanks!

Hi Nepul,

you mean EUR/JPY.

Opss yes , thanks you! corrected !

Ok fair enough, maybe for the people with brokers whose spread is a little higher perhaps stop loss can be set a little more. If the method is working for you I'm not one to say otherwise

you are welcome...

are you watching different timeframes for potential trade setup's, for your personal trading?
If yes what TF's are you watching?

Regards,
Forex Lion

I use also other timeframes, also use price action, but the entry is based on hunting stop, it always happen, but sometimes we can see it on 15 minchart , other time on 30 min, or 1h or 4h..
By the way remember risk remain the same, while profit can change, useless to say that higher timeframes like 4h are more convenient.

Risk 3 pips to earn 10 .
Probably it go down for at least 10 pips..

Hi Nepul, here's my first try, I only tried to code a BUY. The rules I used are:
- "strong" downbar, making a new minimum (of the last 10 bars)
- next bar breaks that minimum, but by no more then 4 pips
Still trying to understand your system, so forgive me if I did not interpret your comments correctly.
Below is the code I used. I ran it on Ninjatrader 4H bars, USDJPY.
The yellow arrow represents the "strong" downbar, making a new minimum.
The green arrow is when the bar breaks the min, just after the strong bar.
The green horizontal line would have been the entry level (buy limit) placed after the close of the bar marked with the green arrow.
Graph and code below.
Does this remotely simulate an entry according to your system?
if ( IsMomentumBar(50,5,30,1) == 2)
{
strongdownbar=true;
int PreviousBar=CurrentBar+1;
DrawArrowUp("My up arrow" + PreviousBar, false, 1, Low[1], Color.Yellow);
} else strongdownbar=false;
// did the momentumbar create a new min in the last 10 bars?
double myMin = MIN(Low, 10)[1]; // green min band
double myMax = MAX(High, 10)[1];
double pbl=Low[1];
if (strongdownbar && pbl==myMin)
{
DrawArrowUp("Mygreenarrow" + CurrentBar, false, 0, Low[0], Color.Lime);
downbarsetnewlow=true;
} else downbarsetnewlow=false;
// did the bar just break this lowlimit but by less then 4 pips?
if (downbarsetnewlow && Low[0]<Low[1]&& Low[0]>Low[1]-(4.0*valueofpip) )
{
DrawLine("lowlimit" + CurrentBar,10,pbl,0,pbl, Color.Lime);
}
}
int IsMomentumBar ( int factor1, int factor2, int factor3, int factor4) // defines what nepul calls "strong bar"
// returns 0=no momentumbar, 1=up momentumbar, 2=down momentum bar
{
bool strong=false;
bool smalltail=false;
if ( High[factor4]-Low[factor4] > 0.01*factor1*ATR(factor2)[factor4] ) strong=true; else strong=false;
if ( Math.Abs(Close[factor4]-Open[factor4]) > 0.01*factor3*(High[factor4]-Low[factor4]) ) smalltail=true; else smalltail=false;
if ( strong && smalltail && Close[factor4] > Open[factor4] ) return 1;
if ( strong && smalltail && Close[factor4] < Open[factor4] ) return 2;
return 0;
}

Thanks you very much Growthera for your time!
I think all the entry level are good, maybe only some the strong min are not good...at least the candles to be a min have to stay in the low part of bollinger bands, even if the candle doesn't close out from the band, but at least has to stay in the south part of bollinger band

it will be hard to EA this, there is a fair bit of discretion involved.. and what you see on the charts after the candle is finished, may not be what you traded whilst it was forming..

ok, what are the settings you use for Bollinger? I will see if I can code the SELL tomorrow.

the normal setting , 20 period

This is amazing Nepul. Instead of EA, have you just considered an Indicator with alerts for now. That way you scan scan multiple markets on 4 hour TF. I will see if my coding buddy can do it, if he has time.

Nepul what is TF of your system?

That makes more sense, and indicator that can make an alert sound, or send an email or sms

Yeah, but the guy never said he is compounding. As you may know, there is a certain emotion involved in dealing with amounts of money. Making even a 100% consistently is not that much of a task, which of course depends on the quality of your method also, but I have to see yet (including me, I discovered much to my dismay) the trader that just as easily trades $100 as $100000 or more. On the contrary, if you master this, please enlighten us. On the other hand, then you would have bought the country already

Hi, here is my update. I also coded the SELL signal. Right now it just acts as an indicator that tries to emulate the correct entry level.
It seems to generate very few signals. On USDJPY, from July1st 2010 to July1st 2014, 21 signals were generated. Of these 21 maybe half would been triggered, as when the conditions was detected, the price already moved on and did not come back to the open limit. So we should find a way to generate more signals.
Below is the code from NT7, and some screenshots.
To move forward, a lot of questions would need to get answered, like for example:
- once this condition detected, when exactly is the order entered? Type of order? SL,TP?
- how long would that order remain valid if it is a limit or stop order?
From a practical point of view, I don't think I can test with 4 pip stops. Simulation software will just make too many same bar close approximation errors.
From here on it will become complicated and very time consuming. I am OK to pursue, but only if people (and most importantly Nepul himself of course) are REALLY interested.

lowerBoll = Bollinger (20,2).Lower[0];
upperBoll = Bollinger (20,2).Upper[0];
myATR = ATR (20)[0];
// condition1: did we have a "strong" bar 1 bars ago?
if ( IsMomentumBar(50,5,30,1) == 2)
{
strongdownbar=true;
DrawArrowUp("My up arrow" + CurrentBar, false, 1, Low[1], Color.Yellow);
} else strongdownbar=false;
if ( IsMomentumBar(50,5,30,1) == 1)
{
strongupbar=true;
DrawArrowDown("My down arrow" + CurrentBar, false, 1, High[1], Color.Yellow);
} else strongupbar=false;


// condition2: did the momentumbar create a new min in the last 10 bars?(or new max)
double myMin = MIN(Low, 10)[1]; // green min band
double myMax = MAX(High, 10)[1];
double pbl=Low[1];
double pbh=High[1];
if (strongdownbar && pbl==myMin)
{
DrawArrowUp("Mygreenuparrow" + CurrentBar, false, 0, Low[0], Color.Lime);
downbarsetnewlow=true;
} else downbarsetnewlow=false;
if (strongupbar && pbh==myMax)
{
DrawArrowDown("Mygreendownarrow" + CurrentBar, false,0,High[0], Color.Red);
upbarsetnewhigh=true;
} else upbarsetnewhigh=false;

// did the current bar just break this lowlimit(or highlimit) but by less then 4 (or optimize1) pips?
if (downbarsetnewlow && Low[0]<pbl && Low[0]>pbl-(optimize1*valueofpip) )
{
if (Low[0]<lowerBoll+0.2*myATR)
{
signalcounter++;
DrawLine("lowlimit" + CurrentBar,false,10,pbl,0,pbl, Color.Green, DashStyle.Solid, 3);
DrawText("counter"+signalcounter,signalcounter.ToString(),3,pbl+4*valueofpip,Color.Black);
}
}
if (upbarsetnewhigh && High[0]>pbh && High[0]<pbh+(optimize1*valueofpip) )
{
if (High[0]>upperBoll-0.2*myATR)
{
signalcounter++;
DrawLine("highlimit"+ CurrentBar,false,10,pbh,0,pbh, Color.Red, DashStyle.Solid, 3);
DrawText("counter"+signalcounter,signalcounter.ToString(),3,pbh+4*valueofpip,Color.Black);
}
}
}


}
int IsMomentumBar ( int factor1, int factor2, int factor3, int factor4) // defines what nepul calls "strong bar"
// returns 0=no momentumbar, 1=up momentumbar, 2=down momentum bar
{
bool strong=false;
bool smalltail=false;
if ( High[factor4]-Low[factor4] > 0.01*factor1*ATR(factor2)[factor4] ) strong=true; else strong=false;
if ( Math.Abs(Close[factor4]-Open[factor4]) > 0.01*factor3*(High[factor4]-Low[factor4]) ) smalltail=true; else smalltail=false;
if ( strong && smalltail && Close[factor4] > Open[factor4] ) return 1;
if ( strong && smalltail && Close[factor4] < Open[factor4] ) return 2;
return 0;
}

Intresting kind of view !
You take the priceacrion by itself ..
Count me in

Guido

Nepul, i hope you continue sharing your live trade for the mean time. You said you teach us how to filter trade.

Sry to say , but I don´t like that kind of indicator !
It gives much too many arrows .. so it´s not clear how to handle it !
The strategy was simple and easy to understand , well explained by its developer .
By the way : Thank you Nepul for sharing this simple strat !
I prefer keep it simple and do not mess a chart with fancy indicators .
Guido