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Pheniox · #**284** (**permalink**) 11-19-2008, 02:31 PM

Quote:

Originally Posted by newbestco

Hi Bernard,

1. Yes, I totally agree with you that working on daily chart, the profit and loss potential is much more than on M15 and M30. It's up to the users/traders who decide how much he/she is willing to suffer a loss in case such thing happens in future.

You can have 2 versions: 1 is used for intraday trading, and used on M15 or
M30 (I think H1 can catch the strongest trend for intraday, while M15 can sometimes catch FALSE Breakout); and 2 is used for long-term trading, and used on H4 or Daily.

So, please keep up the testing on daily chart. I am supporting you mentally.
If you need anything to forward-test the version used on daily chart, I am willing to do it. Please send me that version, and instructions.

2. 4 majors: I also quite agree with you that for the first final version, Excalibur should be limitedly used for 4 major pairs, and that's fine. Along the way, we will improve, and use it on other pairs as well.

3. I just have one more idea for your consideration: Is it possible to have 3 trades, but not at the same price, but each trade will have around 20 - 30 pips away from another.

For example, if first trade buys eurusd at 1.2620, then, second trade buys at 1.2640/1.2650, and third trade at 1.2660/1.2670.
The logic behind this is: 1st trade is used to test if it is the real or false breakout. If it is false breakout, then we only have 1 losing trade (first trade). If it is a real breakout, then, 2nd and 3rd pending trades will be hit afterwards, and the trend will run into direction of the 1st, 2nd, 3rd trades.

Exit strategies will be based on your own exit rule/on indicator's signal to exit all 3 trades.

When the indicator signals to exit, then all 3 trades will exit, and 1st trade will have most profit, followed by 2nd trade, and 3rd trade will have the least profit.

Of course, this rule will make us lose some portion of the profit, but at the same time, it can help us to avoid false breakout caused by the market indecision.

This rule, I think, is helpful if we use Excalibur EA on 4h or daily chart, but if then, 40 - 50 pips away from 1st trade, 2nd trade, and 3rd trade is better to avoid false breakout / marker volatility exhaustion.

This rule is especially very good if used on the strong volatile pairs such as: Gbpjpy, Eurjpy, and Gbpusd.

I hope you will finish your final version soon.

Thanks and regards,
James

James

As usual you are always thinking . Thank you.

You mentioned:
3. I just have one more idea for your consideration: Is it possible to have 3 trades, but not at the same price, but each trade will have around 20 - 30 pips away from another.

Tired this feature on the original Excalibur V2 and it proved to be a disaster. What happened more often than not was that it took the first trade and made a profit, hit the second trade and sometimes made a profit, hit the third trade and reversed on us. We ended up losing more than we made. Your concept is good, and I have though about this issue and may program it in after the final version is released to see what it will do, for the daily charts only as I am sure it will not work properly on the 15 m and 30 m charts.

You mentioned:
When the indicator signals to exit.

Interesting as I have already programmed a different version that takes the exit signal from the indicator instead of a stop loss and it is working fine, but have not had time to test this one out properly.In theory, this should do better than the version we are working on here. Will release this different version sometime soon and a select few beta testers that I know can keep the different tests separate and apart from each other. Do not need to get too confused on different data here.

To Success
Bernard