The Kill Zone Asian Breakout

[Dewey McG]

Hindsight is always 20/20, but I wanted to show the other pairs just to help demonstrate which trades to take and which ones to skip. Hope this helps.

[SWG123]

Trades from Thursday and Friday--not my best. I am thinking I should not take as many different trades across somewhat correlated pairs and take solid signals so I am managing less at one time. Some of the pairs had bigger moves in the Asian session so no trade anyways.


Thursday should have been a BE + 1 but I actually took a small loss for hanging on too long. Friday I was lucky--not supposed to be trading Fridays per rules, but I look to see if there are strong signals. I hit the sell button too early but it worked out and I hit TP anyways.

Hi Dewey,

Thanks for starting this, it looks really interesting (and major props of course to gg53). Nice to see something a bit different which can be used standalone and also be incorporated into other strategies.

One observation - in the second chart, was the trade taken before the London open and whipsawed by the Frankie fake-out? Strictly by the rules, should trades only be taken after LO?

What do you think of the recommended money management? Given the tightness of the trailing SL, there must be a hell of a lot of stopouts at BE+1 to BE+"a few" pips. But if equity preservation is the priority, this isn't necessarily a bad thing. For sure there should be plenty of trading opportunities so we won't have to wait too long before another one presents itself.

Cheers,
Steve

[Dewey McG]

Hi Dewey,

Thanks for starting this, it looks really interesting (and major props of course to gg53). Nice to see something a bit different which can be used standalone and also be incorporated into other strategies.

One observation - in the second chart, was the trade taken before the London open and whipsawed by the Frankie fake-out? Strictly by the rules, should trades only be taken after LO?

Thanks. I am really enjoying this method. Almost all wins and the losses are small. The hardest thing for me is the hours as I am EST.

No—we can take a trade as soon as the Asian session ends. The idea behind the Killing Zone is that we avoid taking any trades while the Gadi_OBV is still in that channel. Some times the breakout occurs almost immediately and other times it will be a while. If the signal is there and there is confirmation I am taking the trade.

What do you think of the recommended money management? Given the tightness of the trailing SL, there must be a hell of a lot of stopouts at BE+1 to BE+"a few" pips. But if equity preservation is the priority, this isn't necessarily a bad thing. For sure there should be plenty of trading opportunities so we won't have to wait too long before another one presents itself.

Cheers,
Steve

I will move to BE +1 after 7-8 pips as per the system rules, but I don't use the trailing stop unless I am going away from the keyboard. Frankly I think I must be screwing up trailing stops because they never seem to work well for me.

I should probably spend some serious time on demo playing more with Steve's MPMM and test different approaches (jumping stop etc.). If there are any “experts” on best ways to trail I am all ears.

And yes, capital preservation is key. There are plenty of trading opportunities with this method.

GG53 suggested using the Gadi Currencies to find the best pairs to trade each session and then just go with those.

[forexren]

hi, Dewey, very nice system, many thanks to you and GG.
i got one question, you said GG53 suggested using the Gadi Currencies to find the best pairs to trade each session and then just go with those. could you give more info about how to select best pairs by using Gadi Currencies?

thank you.

Ren

[Dewey McG]

See GG53's explanation here: http://www.forexfactory.com/showthread. ... ost7051472

Ideally we want to trade currencies which are going in opposite directions

[Dewey McG]

I am not going to keep showing all my trades, but will show some that help explain the system.


I wanted to show how using the Gadi_Currencies will help pick the best trades. The PIC with all the currencies shows which pairs are going up and which ones are going down. Ideally we want to see if we can catch a signal when they are heading in opposite directions. We can see when our trading session opens that AUD and NZD are heading up and that CHF and GBP are heading down. I used the 5 min charts on a couple trades to make the PICS to show where the signal occurred since we don't wait for the close of bar.

This system is simple and it works.

[spotdespot]

Thanks very much for posting all this Dewey & thanks GG53 of course! I looked at that thread on FF when it first started (and asked a few questions if I remember rightly) but was distracted by something else - all too common

Anyway it looks like it's come a long was since then in terms of refinement and indi's to help (as has my trading) and the Gadi OBV is very complimentary with the shorter timescale strategy I am currently using.

It sometime seems like the channel breakout is getting us in a bit late (Vs PA reads) but it really doesn't matter when we have such clear momentum with the trade.

I really like the way Gadi's currencies works too - it gives a different read from the others used here. I just wish we had the MQ4 or a way of reducing the number of bars processed as it is pretty CPU intensive and Empty4 doesn't cope too well if there are too many charts open as it is restricted to one CPU core!!

Cheers,
Dave.

[emiko]

Thanks for this system it look pretty good as trap, lay for catch, much thank 4 compiler cheers.

[Dewey McG]

I used the indicator Killian made which shows arrows to do a visual back test. I used the following rules:

TVI slope must confirm

close trade after 4 candles if not in profit

Initial SL is last swing high for a sell or low for a buy (probably average around 25 pips)

Initial TP is 2* SL

set BE +1 after 7 pips profit

after 10 pips trail by 7 pips

I used close of bar since we can't tell exactly when the gadi_OBV broke the channel.

As you can see, the results were impressive. 317 pips. Please remember visual back tests are not perfect, but the indicators do not repaint so you can see this is pretty good.

[orid]

thanks dewey for posting this system and thanks also to GG53 and everyone else involved in the development , seems really worthwhile ,
I will definately give it a good run and will post some charts if thats ok later on'
I'm fairly new so can't offer much imput at the mo but hope to learn from you all ,. thanks again Peter