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AH, I talked to Dean several months ago and I asked the same question. He said that he enters a trade 'as the candle is forming'. I have been entering trades this way and it seems to work fine. As far as exiting, he did not have clear guidlines as far a open or closed candles. I have had the best luck by manually moving my stop and not closing the trade, there are alot of false exits. I have made more pips by just waiting, thx mike
Mike,
Thanks for the reply. Now I am new to this method but I have been studying it back on past price action and I have come to conclusion many times that the HA candle will spike out of the tunnel then close inside. If entering while the candle is forming, how do you filter these false movements? I know you said its been working fine for you so I'm just wondering how you do it? Thanks again.
Adam, sometimes the HA close will jump out of the channel and the green is not over the yellow and red, then of course you have to wait for all conditions to be met. See my #66 comment on pg 7 for how I have been using this. The most important things are, 1. Trade in the same trend as the 4hr chart and 2. Trade during active times (London & US sessions). When the market is slow the probability for good trades decreases. If you go back through the 15min chart looking for trades in the same trend as 4hr chart, you can see many good setups, usually at the beginning of these sessions.. Following these guidelines, I have had no problem with entering a trade as the candle forms.
Lastly, I usually move my stop to breakeven when the price moves the length of the price channel. This seems to be the point where the currency will decide to continue or reverse. I like the EUR/JPY, the typical price channel is 20- 25pips. thx mike
Based on Chris' post, I went back and ran some more tests. Although his seem to have the EURJPY a bit in front, all my tests have always pointed to the GBPUSD as being the leader.
So I loaded a number of currencies in my Velocity charts, and went back as far as it would download data. For H1 charts, I got:
Not terribly impressive, but ok. Interesting part is that one would probably consider only trading the top 4, and, if relying on these number, maybe just the GBP with more lots.
Since the pound was so far ahead, I ran tests just for it on other timeframes:
The M30 at 45 per week is a bit larger than the H1, possibly just because it does not go back as far in time, and there seems to be a commonality that it works better more recently. The M15 just seems to lose too much. All test I have tried with the M15 are not good.
But the one thing that I did confirm to my satisfaction is that Chris is right that turning UseSmallerExit off, and UseVolExpanding on works much better than the reverse.
Derk have you back tested it using the daily? I'm curious to what kind of results that would have. This might be just luck because it was my first using this strategy but there were a setup for the eur/cad I think maybe at 8:00 est when the new daily is formed on IBFX so I took it and deposited 211 pips friday before end of session. I'm not the most computer savy person in the world and to be honest do not know how to backtest a strategy or I would have already done so. Thanks for this info....Tim
Quote:
Originally Posted by DerkWehler
Greets:
Based on Chris' post, I went back and ran some more tests. Although his seem to have the EURJPY a bit in front, all my tests have always pointed to the GBPUSD as being the leader.
So I loaded a number of currencies in my Velocity charts, and went back as far as it would download data. For H1 charts, I got:
Not terribly impressive, but ok. Interesting part is that one would probably consider only trading the top 4, and, if relying on these number, maybe just the GBP with more lots.
Since the pound was so far ahead, I ran tests just for it on other timeframes:
The M30 at 45 per week is a bit larger than the H1, possibly just because it does not go back as far in time, and there seems to be a commonality that it works better more recently. The M15 just seems to lose too much. All test I have tried with the M15 are not good.
But the one thing that I did confirm to my satisfaction is that Chris is right that turning UseSmallerExit off, and UseVolExpanding on works much better than the reverse.
Working on the EA now.
-Derk
__________________
"Dictionary is the only place that success comes before work. Hard work is the price we must pay for success. I think you can accomplish anything if you're willing to pay the price." Vince Lombardi
It's funny how different backtesting can be. Unfortunately FXDD does not offer 1H candles for the years 2005 or 2006. They all start in May 2007 ...
But still these results look good. On the 1H chart, 480 bars are 1 month (24h * 20 days). That means ...
GBPUSD: ~ 160 pips per month (5646 pips / 16874 bars * 480)
EURJPY: ~ 104 pips per month
EURUSD: ~ 100 pips per month
GBPJPY: ~ 95 pips per month
USDCHF: ~ 85 pips per month
USDJPY: ~ 82 pips per month
CADJPY: ~ 75 pips per month
Trading those pairs brought you an average gain of ~ 700 pips per month in long-term backtesting. That's more than enough.
Quote:
Derek,
i found a good setting on the G/Y 4H
the results said 11560 pips for 13489 bars.
Mescalito, I still testing different time frames. But the results vary not much. Have a look at your result:
11560 pips / 13489 bars * 120 = ~ 102 pips per month (only 7 pips more than on the 1H timeframe)
But a higher timeframe always means a higher risk. Just remember that the haClose is important. In times of a volatile market you have bigger losses when you are trading the false direction. On the 1H timeframe you always get out earlier ...
Just have a look at the GBPUSD in August on the 4H timeframe: 2 very big losses: 123 pips and 116 pips. That's really hard to sit out. The biggest loss on the 1H timeframe was about 60 pips. That's still too much but better than on the 4H. I think the strategy is not made for bigger timeframes. Trading GBPUSD on a daily chart, for example, brings only ~ 65 pips per month.
I think it's better to reduce the losing trades with other indicators. I'm still busy with looking for the "Price Action Volatility" indicator. I haven't found it until now.
Derk have you back tested it using the daily? I'm curious to what kind of results that would have. This might be just luck because it was my first using this strategy but there were a setup for the eur/cad I think maybe at 8:00 est when the new daily is formed on IBFX so I took it and deposited 211 pips friday before end of session. I'm not the most computer savy person in the world and to be honest do not know how to backtest a strategy or I would have already done so. Thanks for this info....Tim
Question is could you do this with EURCAD every single week? If you have taken trades from 6/15 to 9/10, you would have generated a loss of around 565pips.
Question is could you do this with EURCAD every single week? If you have taken trades from 6/15 to 9/10, you would have generated a loss of around 565pips.
I think each month has different performance we should make it better at least 40 % or more ...using this system ...
Linear Mode
