Brakeout of the monday's night

[phil_trade]

You have to simulate all of the trades with the SAME position size in order to accurately calculate the equity-curve-MA or the 6-weeks-profitable or whatever you're using.

Dropping down to 0.01 would mess up the equity curve calculations, unless you also kept track of the results from the 0.1-size trades. And if you're doing that anyway, you can drop to any size you want -- 0.01, or 0.00, or whatever.

I thought of a pips-equity curve

[SpiderX]

I thought of a pips-equity curve

That sounds nice !

Cheers

[garyfritz]

Yes, if you tracked the pips (or reversed the lot-size calcs as SpiderX suggested), that should do it... that essentially gives you a fixed lot size for your equity-curve calculations.

[spotdespot]

I have one idea : what if we set some size of range that is too much for setting the trade. For example lets say that zone must have range at most 200 pips, when it is bigger, we wont trade it. I am not saying 200 pips is that correct number it will probably vary, but might work as a good filter....

Thanks Phil

Just arrived here from Philippe's link from the Marylin thread.

I am not sure if this point above was ever taken in to consideration with the testing as I think it is pretty important. I trade manually from Frankfurt open onwards and I have a simple mental rule that if the "Asian" range (I define this as NY close to Frankfurt open) is greater than half the ADR then only take cast iron trades - basically don't trade that pair for the day unless a trade absolutely smacks you between the eyes The reason being that in my experience price often just bounces around, ranging with little clear direction and often presents dodgy setups that reverse against you.

I think this same principle would save this strategy some pain too. My "rule" is a mental one but I suspect there is no reason why a more mathematically solid % of ADR rule for the Asian session to prevent trading couldn't be tested?

Cheers,
Dave.

Hi Dave

as my English is what it is.... could you explain again with an example

Hi Philippe,

Your English is very good so I suspect it is my explanation that is bad!!

See below - the blue boxes are the "Asian" session (as defined above) with that range in pips in the top left hand corner of the box. The ADR(14) for EJ is around 100 pips right now. If you see the times when the Asian range was significantly greater than half of the ADR (50 pips) price doesn't move cleanly the following "day".

This isn't ALWAYS the case but it is so common that I just take very, very clean setups only on these days, but mostly I will just not trade that pair.

I hope that makes sense.

It may prove to be no use to this strategy as we are looking at the whole week, not just the following day, but Michal's comments sounded like a similar idea.

Cheers,
Dave,

[phil_trade]

I have one idea : what if we set some size of range that is too much for setting the trade. For example lets say that zone must have range at most 200 pips, when it is bigger, we wont trade it. I am not saying 200 pips is that correct number it will probably vary, but might work as a good filter....

Thanks Phil

Just arrived here from Philippe's link from the Marylin thread.

I am not sure if this point above was ever taken in to consideration with the testing as I think it is pretty important. I trade manually from Frankfurt open onwards and I have a simple mental rule that if the "Asian" range (I define this as NY close to Frankfurt open) is greater than half the ADR then only take cast iron trades - basically don't trade that pair for the day unless a trade absolutely smacks you between the eyes The reason being that in my experience price often just bounces around, ranging with little clear direction and often presents dodgy setups that reverse against you.

I think this same principle would save this strategy some pain too. My "rule" is a mental one but I suspect there is no reason why a more mathematically solid % of ADR rule for the Asian session to prevent trading couldn't be tested?

Cheers,
Dave.

Hi Dave

as my English is what it is.... could you explain again with an example

Hi Philippe,

Your English is very good so I suspect it is my explanation that is bad!!

See below - the blue boxes are the "Asian" session (as defined above) with that range in pips in the top left hand corner of the box. The ADR(14) for EJ is around 100 pips right now. If you see the times when the Asian range was significantly greater than half of the ADR (50 pips) price doesn't move cleanly the following "day".

This isn't ALWAYS the case but it is so common that I just take very, very clean setups only on these days, but mostly I will just not trade that pair.

I hope that makes sense.

It may prove to be no use to this strategy as we are looking at the whole week, not just the following day, but Michal's comments sounded like a similar idea.

Cheers,
Dave,

Last thing please : ADR(14) ?

[michalkraus]

I have one idea : what if we set some size of range that is too much for setting the trade. For example lets say that zone must have range at most 200 pips, when it is bigger, we wont trade it. I am not saying 200 pips is that correct number it will probably vary, but might work as a good filter....

Thanks Phil

Just arrived here from Philippe's link from the Marylin thread.

I am not sure if this point above was ever taken in to consideration with the testing as I think it is pretty important. I trade manually from Frankfurt open onwards and I have a simple mental rule that if the "Asian" range (I define this as NY close to Frankfurt open) is greater than half the ADR then only take cast iron trades - basically don't trade that pair for the day unless a trade absolutely smacks you between the eyes The reason being that in my experience price often just bounces around, ranging with little clear direction and often presents dodgy setups that reverse against you.

I think this same principle would save this strategy some pain too. My "rule" is a mental one but I suspect there is no reason why a more mathematically solid % of ADR rule for the Asian session to prevent trading couldn't be tested?

Cheers,
Dave.

Hi Dave

as my English is what it is.... could you explain again with an example

Hi Philippe,

Your English is very good so I suspect it is my explanation that is bad!!

See below - the blue boxes are the "Asian" session (as defined above) with that range in pips in the top left hand corner of the box. The ADR(14) for EJ is around 100 pips right now. If you see the times when the Asian range was significantly greater than half of the ADR (50 pips) price doesn't move cleanly the following "day".

This isn't ALWAYS the case but it is so common that I just take very, very clean setups only on these days, but mostly I will just not trade that pair.

I hope that makes sense.

It may prove to be no use to this strategy as we are looking at the whole week, not just the following day, but Michal's comments sounded like a similar idea.

Cheers,
Dave,

Last thing please : ADR(14) ?

Average daily range thx Phil for hard work

[spotdespot]

Last thing please : ADR(14) ?

Average daily range thx Phil for hard work

Yes - sorry - the (14) is just habit - it is the average daily range for the last 14 days. It doesn't have to be 14 - that's just what I use.

Cheers,
Dave.

[phil_trade]

I think this same principle would save this strategy some pain too. My "rule" is a mental one but I suspect there is no reason why a more mathematically solid % of ADR rule for the Asian session to prevent trading couldn't be tested?

That's clear now...I will add this rules ! Thanks

[phil_trade]

I have one idea : what if we set some size of range that is too much for setting the trade. For example lets say that zone must have range at most 200 pips, when it is bigger, we wont trade it. I am not saying 200 pips is that correct number it will probably vary, but might work as a good filter....

Thanks Phil

Just arrived here from Philippe's link from the Marylin thread.

I am not sure if this point above was ever taken in to consideration with the testing as I think it is pretty important. I trade manually from Frankfurt open onwards and I have a simple mental rule that if the "Asian" range (I define this as NY close to Frankfurt open) is greater than half the ADR then only take cast iron trades - basically don't trade that pair for the day unless a trade absolutely smacks you between the eyes The reason being that in my experience price often just bounces around, ranging with little clear direction and often presents dodgy setups that reverse against you.

I think this same principle would save this strategy some pain too. My "rule" is a mental one but I suspect there is no reason why a more mathematically solid % of ADR rule for the Asian session to prevent trading couldn't be tested?

Cheers,
Dave.

Hi Dave

as my English is what it is.... could you explain again with an example

Hi Philippe,

Your English is very good so I suspect it is my explanation that is bad!!

See below - the blue boxes are the "Asian" session (as defined above) with that range in pips in the top left hand corner of the box. The ADR(14) for EJ is around 100 pips right now. If you see the times when the Asian range was significantly greater than half of the ADR (50 pips) price doesn't move cleanly the following "day".

This isn't ALWAYS the case but it is so common that I just take very, very clean setups only on these days, but mostly I will just not trade that pair.

I hope that makes sense.

It may prove to be no use to this strategy as we are looking at the whole week, not just the following day, but Michal's comments sounded like a similar idea.

Cheers,
Dave,

Dave, do you apply this rules only for xxxJPY pairs ?

Philippe

[spotdespot]

Dave, do you apply this rules only for xxxJPY pairs ?

Philippe

Hi Philippe,

No - I use it for all pairs.

Cheers,
Dave.