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The Kill Zone Asian Breakout
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Author:  Dewey McG [ Tue Nov 05, 2013 9:14 am ]
Post subject:  Re: The Kill Zone Asian Breakout
The area where I think there is the biggest opportunity for improvement is exits. I think 5 is too tight and will get you out to early. I have been trying 7 but not sure if that is too tight as well.

Any experts out there on trailing stops who want to way in? I know there are several options: standard trailing stops hump stops, candlestick trailing stops. I saw the term "chandelier stops" but have no idea how that works.

Feedback appreciated.
Author:  milanese [ Tue Nov 05, 2013 9:27 am ]
Post subject:  Re: The Kill Zone Asian Breakout
Dewey McG wrote:The area where I think there is the biggest opportunity for improvement is exits. I think 5 is too tight and will get you out to early. I have been trying 7 but not sure if that is too tight as well.

Any experts out there on trailing stops who want to way in? I know there are several options: standard trailing stops hump stops, candlestick trailing stops. I saw the term "chandelier stops" but have no idea how that works.

Feedback appreciated.
The Chandelier Stop is a trailing stop that is based on the volatility of the market.



Formulas:
Long CS=HH-Factor*EMA(ATR, Period)
Short CS=LL+Factor*EMA(ATR, Period)


HH – the highest high since the indicator flipped from long to short
LL – the lowest low since the indicator flipped from short to long

Cheers :)

Tommaso
Author:  spotdespot [ Tue Nov 05, 2013 10:20 am ]
Post subject:  Re: The Kill Zone Asian Breakout
Dewey McG wrote:The area where I think there is the biggest opportunity for improvement is exits. I think 5 is too tight and will get you out to early. I have been trying 7 but not sure if that is too tight as well.

Any experts out there on trailing stops who want to way in? I know there are several options: standard trailing stops hump stops, candlestick trailing stops. I saw the term "chandelier stops" but have no idea how that works.

Feedback appreciated.
Hi Dewey - there are a couple of options that I have been looking at. They depend on your time availability at the screen though as one of them cannot be automated.

The problem with fixed pip trailing stops imo is that they don't take in to account the volatility of the pair in any way 5 pips for EURGBP is a lot more than 5 pips for EURNZD!! I don't know much about the chandelier trailing stop but from the way Tomasso explains it above that could be useful.

I trade on the M5 so you would need to adapt as necessary but try adding a 21 period Smoothed MA (SMMA) over the Gadi OBV (just drag on to the Gadi Obv window and set "Apply to" to "First inidactor's data"). When the Gadi OBV crosses the MA then exit. This is only after breakeven has been achieved.

The other option is just when price closes below a moving average - try the 27 period SMMA (used in the examples). These are lagging of course but it is irrelevant here as they are just a rough guide for exits. Getting a perfect exit is more difficult that getting a perfect entry imo, so we just need to find something that works consistently.

Examples below. This highlights the upside and downside. The upside being that you gain massively on decent moves. The downside is that you will get stopped out at BE more often and not gain those few pip moves here and there.

On another note - do you realize that on your charts, after the clock/broker time changes, that your GADI "channel" is running from 11 pm to 6 am London time. So your channel is ending 1 hour prior to Frankfurt open?

Cheers,
Dave.
Author:  orid [ Wed Nov 06, 2013 12:42 pm ]
Post subject:  Re: The Kill Zone Asian Breakout
Hi all , would someone mind checking if this looks correctly setup please?
Regards Peter
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Author:  spotdespot [ Wed Nov 06, 2013 12:57 pm ]
Post subject:  Re: The Kill Zone Asian Breakout
orid wrote:Hi all , would someone mind checking if this looks correctly setup please?
Regards Peter
The Gadi indicators look fine. The sessions on the session indicator on the chart are a bit unusual but I don't know what times you want them set for. For example you have the Asian session running from what looks like 03:00-11:00 (broker time), which is 01:00-09:00 GMT. Normally you would have the Asian session running from either Midnight GMT (Tokyo open) or Sydney open/NY close @ 22:00 GMT - so add 2 hours for broker time (with Global Prime) - until Frankfurt open or London open (07:00/08:00 GMT).

Cheers,
Dave.
Author:  orid [ Wed Nov 06, 2013 1:13 pm ]
Post subject:  Re: The Kill Zone Asian Breakout
spotdespot wrote:
orid wrote:Hi all , would someone mind checking if this looks correctly setup please?
Regards Peter
The Gadi indicators look fine. The sessions on the session indicator on the chart are a bit unusual but I don't know what times you want them set for. For example you have the Asian session running from what looks like 03:00-11:00 (broker time), which is 01:00-09:00 GMT. Normally you would have the Asian session running from either Midnight GMT (Tokyo open) or Sydney open/NY close @ 22:00 GMT - so add 2 hours for broker time (with Global Prime) - until Frankfurt open or London open (07:00/08:00 GMT).

Cheers,
Dave.
Thanks very much Dave The Gadi was the one I was worried about , ill reset ths sessions
Regards peter
Author:  Dewey McG [ Wed Nov 06, 2013 11:44 pm ]
Post subject:  Re: The Kill Zone Asian Breakout
I received a number of suggestions--and thanks! Here is a PIC showing a trade last night and the different suggestions. One trade is not enough to make a determination. Each one will need some chart time to see if one does better over a period of time:

1. Chandelier stop (this would have netted the highest number of pips

2. Trailng Stop (this is what I did use).

3. Stoch crossover (looks like it would have been about the same as my trailing stop)

4. 27 period SMMA (around break even if you closed the trade as soon as the MA was broken, a loser if you waited until close of the candle)

5. 21 period Smoothed MA (SMMA) over the Gadi OBV (close when Gadi crosses the MA--small loss)

I can't complain as long as I continue to keep making pips every day but I am just trying to find the best way to squeeze the most out of each trade at the lowest possible risk. Yes, I know I am being greedy.
Author:  orid [ Thu Nov 07, 2013 6:20 am ]
Post subject:  Re: The Kill Zone Asian Breakout
Dewey McG wrote:I received a number of suggestions--and thanks! Here is a PIC showing a trade last night and the different suggestions. One trade is not enough to make a determination. Each one will need some chart time to see if one does better over a period of time:

1. Chandelier stop (this would have netted the highest number of pips

2. Trailng Stop (this is what I did use).

3. Stoch crossover (looks like it would have been about the same as my trailing stop)

4. 27 period SMMA (around break even if you closed the trade as soon as the MA was broken, a loser if you waited until close of the candle)

5. 21 period Smoothed MA (SMMA) over the Gadi OBV (close when Gadi crosses the MA--small loss)

I can't complain as long as I continue to keep making pips every day but I am just trying to find the best way to squeeze the most out of each trade at the lowest possible risk. Yes, I know I am being greedy.
Hi Dewey , this may be a silly idea , and you can kick my backside if so , but I use Heiken ashi candles to keep me in a trade. look to exit when colour change , (manual trading) don't know weather that can be incorporated into a stoploss system, but it has kept me in some really long runs on the 15 min charts
Author:  spotdespot [ Thu Nov 07, 2013 7:15 am ]
Post subject:  Re: The Kill Zone Asian Breakout
Dewey - I agree - one trade doesn't mean a great deal. If I were you I would just get a feel for the methods and then go back over your last month's trades and add up the results for the ones that you felt most comfortable with.

Although I suggested the SMMA options I have looked at Chandelier stops and variations since reading the thread and some of them are very good imo - some better than other too.

Even though "free" I don't think it is right to post it here but if you are a member at forex-tsd do a search for VoltyChannel_Stop_v2.1.mq4 - it is a chandelier type stop created by a guy called Igorad (who is one of those rare Indicator geniuses!)and I think it is pretty good. I changed the Kv parameter to 3 and the alert mode to 1 fwiw. EDIT: Still looking at Kv - maybe better as default (4.0)

Cheers,
Dave.
Author:  Dewey McG [ Thu Nov 07, 2013 9:19 am ]
Post subject:  Re: The Kill Zone Asian Breakout
Thanks. I will have a look at that as well.

I was just trying to show different methods so others could do research as well. I will be spending some time looking at these.
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