Monday Zone Break Out EA

Post by **milanese** » Wed Feb 12, 2014 8:44 am

mattfx1 » Wed Feb 12, 2014 7:30 am wrote:Hi all,

I stumbled across this forum when looking for an EA to back test a strategy that I am currently employing, very similar to the parameters as described with this system.
I have manually back tested (yes, manually back tested by observing the bars....and recording the results, quite laborious yet very accurate)What I have been using instead, is a calculation of the previous week range (Hi-Lo) and then a multiple of this range say 30 to 40% of Hi LO to place orders for the new week both long and short from the open price. Once an order is hit the corresponding order is cancelled The stop loss is an additional 10% of this factor calculated. Trades are then closed on the following Monday, (those that have not been stopped), with some surprising results. I have tested on other crosses. Increasing the range multiple can decrease those trades that get entered by say a few pips for example, and then go straight to the SL. It is surprising however the good number of trades that never get stopped and end up well in profit the following week, for me not having to make a decision on entry is a real plus.
These are the results without TP levels and just closing whats left the following Monday for the USDJPY:

USDJPY last 80 trades analysed from 22-7-13 to last week
53% win probability with a R/R ratio of 1.89 and Max DD was 16%, I have been reading with great interest the placement TP and have been experimenting with this myself. 80 trades is probably not sufficient to bank on, I know, yet I am continuing the analysis across the crosses each week using a live money account, and continuing with past analysis when time allows.

An EA for back testing using the system described above could be useful ?
Hope to continue the conversation around the weekly breakout scenarios

Matt

Hi Matt,

welcome here and thank you for your post

Cheers

Tommaso

mattfx1 · Post by **mattfx1** » Thu Feb 13, 2014 10:19 am

Thanks for your welcome Tommaso,

It is good to find some like minded breakout traders! Maybe I should start a new thread ? just let me know if I get off topic, or should move to another thread? I'll take advice on that
Quite incredulous about finding an ECN broker recommended by your associates,through Globlal Prime, and yes read all the fine print regarding Morgan Stanley, opened an account immediately, fine print always sucks yet, my philosophy is that someone will always foot the bill when all else fails, yes that's you the client or the tax payer for that matter, the potential always exists and the GFC was yet just another reminder of the human condition multipled through globalisation, we are all party to everything are we not?. So not too much to worry about with the tax payer ready to bail out the flops

Anyway, thanks again for allowing me to join this forum, and I look forward to discussing and sharing where ever possible,

Cheers,

Matt

Post by **milanese** » Thu Feb 13, 2014 12:05 pm

Hi Matt,

you are very welcome, maybe you can too test the MondayBreakout EA and bring in some ideas for improvments..

Cheers

Tommaso

Post by **trader689** » Thu Feb 13, 2014 3:52 pm

my one hasnt taken a trade yet this week was running all through the weekend and into the open, 6x 15min charts. does this need to run on the latest build 600 / 604 as i still have an older Empty4 build running

if anyone could please give some advice thanks

Post by **milanese** » Thu Feb 13, 2014 3:55 pm

trader689 » Thu Feb 13, 2014 3:52 pm wrote:my one hasnt taken a trade yet this week was running all through the weekend and into the open, 6x 15min charts. does this need to run on the latest build 600 / 604 as i still have an older Empty4 build running

if anyone could please give some advice thanks

if you are using build 509 please use version I (you find it at first page), and better use it on H1 chart ( should not depend, but so you have a better view as it uses the first 8 candeles on manday for calculating the breakout zone)
and not forget to set the advertised spread (in pips) to a value that works with your broker!
Cheers

Tommaso

mattfx1 · Post by **mattfx1** » Wed Feb 19, 2014 1:16 pm

I guess we are looking for the "magic answer" through the use of the EA, and I believe that an EA unfortunately can be a "crutch" to lean on and a quick solution or "cure" for many. I was asked whether I could make any improvements to this system as it stands, I would like to contribute where I can to success for the trader.The theme appears to be universal, and that is, trade management of the ongoing trade and when to take profits. Yet don't get me wrong, I believe an EA can still be very useful when used with the correct data. Entering the trade is easy, when compared to managing the ongoing trade. I've always found this to be the most difficult part of trading, how to manage the trade. I've done it myself, as we all have no doubt, for example, pulling a trade too soon, generally mucking with a system that works historically and not trusting the previous results, I don't particularly trust the expert adviser, or any other adviser for that matter when the data is not accurate and has been manipulated. The bucket shops, with charts "re-painted" as they term the phrase, by their lackeys and so forth. I have actually spoken to lackeys that are paid to "re-paint" charts for a living, what a soul destroying occupation that must be, I can not contemplate! anyway I must turn my attention back to Sochi for the final days....and the medal tally.....

Cheers,

Matt

mirador · Post by **mirador** » Thu Feb 20, 2014 3:38 am

Hi group,

Here is a good backtest for EURJPY from june 2008 to december 2013 using ModTP3. 1.53 profit factor with only 7% DD: not bad.

I just realize that Tomasso as given us new tools to play with : TPX1 and TPX2. I will work on them as soon as I get some free time.

Have fun !

Post by **milanese** » Thu Feb 20, 2014 9:17 am

mirador » Thu Feb 20, 2014 3:38 am wrote:Hi group,

Here is a good backtest for EURJPY from june 2008 to december 2013 using ModTP3. 1.53 profit factor with only 7% DD: not bad.

I just realize that Tomasso as given us new tools to play with : TPX1 and TPX2. I will work on them as soon as I get some free time.

Have fun !

Thanks for sharing

Tommaso

mattfx1 · Post by **mattfx1** » Thu Feb 20, 2014 10:10 am

mirador » Thu Feb 20, 2014 1:38 pm wrote:Hi group,

Here is a good backtest for EURJPY from june 2008 to december 2013 using ModTP3. 1.53 profit factor with only 7% DD: not bad.

I just realize that Tomasso as given us new tools to play with : TPX1 and TPX2. I will work on them as soon as I get some free time.

Have fun !

Just out of curiosity, how long does your computer take to run the backtest tick for tick, over the time frame that you studied. My system doesn't appear to have enough under the bonnet, no optic, and many lagging servers in between. What would make it possible to complete in a (relative) short period of time ? any suggestions would be appreciated

Thanks,

Matt

mattfx1 · Post by **mattfx1** » Thu Feb 20, 2014 10:31 am

milanese » Thu Feb 20, 2014 7:17 pm wrote:
mirador » Thu Feb 20, 2014 3:38 am wrote:Hi group,

Here is a good backtest for EURJPY from june 2008 to december 2013 using ModTP3. 1.53 profit factor with only 7% DD: not bad.

I just realize that Tomasso as given us new tools to play with : TPX1 and TPX2. I will work on them as soon as I get some free time.

Have fun !
Thanks for sharing

Tommaso

Very interested to study your parameters for the EJ, such as setting s for the SetBEminPipTP3 to 120, and trail min10 to 155, etc, with ECN Crims= false ?, must be Global Prime ?.....You are obviously well up on the learning curve on which I have not embarked !