stevehopwoodforex.com • Engulfing Outside bar

Author:

gaheitman [ Mon Dec 19, 2011 8:37 am ]

Post subject:

Re: Engulfing Outside bar

smilee89 wrote:
garyfritz wrote:
smilee89 wrote:I don't know what is your goal in trading, but when I open a trade my goal is to have a winner (both long and short) and not closing a loser.
My goal in trading is to show a healthy profit in my account. I don't care whether a particular trade is a winner or a loser if the net profit is the same.

Given that, I cannot see any difference between "long 1 at A, short 1 at B" and "long 1 at A, exit long at B." No difference whatsoever. As long as you hold both the long and the short open, your net profits are unchanged. It is the same as if you had no open positions. If you then closed your long at C, you would be net short from B. I would accomplish that by opening a short at C. The profits on the trades would be identical, and you would avoid any hedging problems with US crims.

I've never understood the need for all these hedging trades. If I have a trade going bad, I don't want to cover it up with a hedge, hoping it will get better some day. If the trade went bad, I want to cut my losses and move on to a new trade with a clear mind.

Other people may well be different, and they may find hedging to be a useful tool. If they have no restrictions on hedging there's certainly no reason not to, except it makes it difficult for your colleagues in the US.

You have quite an impressive (and confusing!) tangle of trades in your first screen shot!! It must be a bit of a challenge to keep track of all of those.
Forex goes in waves. Up and down. This method can catch winners both sides even if some may go with a floating DD on their way to the profit target, and when I backtest it I see that most of the trades are closed in profit.

Do you use any kind of emergency SL, or do you just let it ride? I see a real danger in buying tops and selling bottoms. For example, it looks like you should still be in a EURUSD / 4H buy from 11/09, which is around 900 pips ago.

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Author:	garyfritz [ Mon Dec 19, 2011 5:31 am ]
Post subject:	Re: Engulfing Outside bar
smilee89 wrote:I don't know what is your goal in trading, but when I open a trade my goal is to have a winner (both long and short) and not closing a loser. My goal in trading is to show a healthy profit in my account. I don't care whether a particular trade is a winner or a loser if the net profit is the same. Given that, I cannot see any difference between "long 1 at A, short 1 at B" and "long 1 at A, exit long at B." No difference whatsoever. As long as you hold both the long and the short open, your net profits are unchanged. It is the same as if you had no open positions. If you then closed your long at C, you would be net short from B. I would accomplish that by opening a short at C. The profits on the trades would be identical, and you would avoid any hedging problems with US crims. I've never understood the need for all these hedging trades. If I have a trade going bad, I don't want to cover it up with a hedge, hoping it will get better some day. If the trade went bad, I want to cut my losses and move on to a new trade with a clear mind. Other people may well be different, and they may find hedging to be a useful tool. If they have no restrictions on hedging there's certainly no reason not to, except it makes it difficult for your colleagues in the US. You have quite an impressive (and confusing!) tangle of trades in your first screen shot!! It must be a bit of a challenge to keep track of all of those.

Author:	smilee89 [ Mon Dec 19, 2011 5:42 am ]
Post subject:	Re: Engulfing Outside bar
gaheitman wrote: smilee89 wrote:Yes. My "X" pips buffer above/below the high/low > then my TP? I attach a short parallel to long picture. OK, I can visualize it now. What makes you get out early on some of the trades? Trailing stop.

Author:	smilee89 [ Mon Dec 19, 2011 5:46 am ]
Post subject:	Re: Engulfing Outside bar
garyfritz wrote: smilee89 wrote:I don't know what is your goal in trading, but when I open a trade my goal is to have a winner (both long and short) and not closing a loser. My goal in trading is to show a healthy profit in my account. I don't care whether a particular trade is a winner or a loser if the net profit is the same. Given that, I cannot see any difference between "long 1 at A, short 1 at B" and "long 1 at A, exit long at B." No difference whatsoever. As long as you hold both the long and the short open, your net profits are unchanged. It is the same as if you had no open positions. If you then closed your long at C, you would be net short from B. I would accomplish that by opening a short at C. The profits on the trades would be identical, and you would avoid any hedging problems with US crims. I've never understood the need for all these hedging trades. If I have a trade going bad, I don't want to cover it up with a hedge, hoping it will get better some day. If the trade went bad, I want to cut my losses and move on to a new trade with a clear mind. Other people may well be different, and they may find hedging to be a useful tool. If they have no restrictions on hedging there's certainly no reason not to, except it makes it difficult for your colleagues in the US. You have quite an impressive (and confusing!) tangle of trades in your first screen shot!! It must be a bit of a challenge to keep track of all of those. Forex goes in waves. Up and down. This method can catch winners both sides even if some may go with a floating DD on their way to the profit target, and when I backtest it I see that most of the trades are closed in profit.

Author:	smilee89 [ Mon Dec 19, 2011 9:23 am ]
Post subject:	Re: Engulfing Outside bar
No emergency SL. There is no open trade at EU 4h from 11/09.

Author:	smilee89 [ Mon Dec 19, 2011 11:37 am ]
Post subject:	Re: Engulfing Outside bar
As long as I trade the lower time frame, my profit graph is more choppy.

Author:	DING [ Mon Dec 19, 2011 3:16 pm ]
Post subject:	Re: Engulfing Outside bar
smilee89 wrote: GU - 30 MIN AU - 60 MIN AU - 4H EJ - 4H EJ - 60 MIN EU - 4H EU - 1H (not the best statement) Hi smilee89, could you share , how to setting the tp/sl for these timeframes/currencies? thanks a lot.

Author:	garyfritz [ Mon Dec 19, 2011 3:45 pm ]
Post subject:	Re: Engulfing Outside bar
smilee89 wrote:As long as I trade the lower time frame, my profit graph is more choppy. If you combined all those equity curves by trading all timeframes simultaneously, it would be a beautiful thing! However: I am NOT an Empty4 backtesting expert, but it's my understanding that any backtest modeling quality below 90% was totally useless and should not be trusted, and even 90% was suspect. Your backtests all show 56% or less. I would be very careful about assuming anything based on those results.

Author:	smilee89 [ Mon Dec 19, 2011 4:07 pm ]
Post subject:	Re: Engulfing Outside bar
No worry. I compared my results with other results from other computer (not mine) and its look the same more or less.

Author:	vijayanscbe [ Thu Dec 22, 2011 4:41 pm ]
Post subject:	Re: Engulfing Outside bar
i hav backtested smile89 1st simple EA and shell version EA. In tf hourly for the period 1/12 -21/12. both the results r not same even i turn all option in shell version EA to false . i have doubt is the formula is correctly applied as per smile's method r am doing any mistake . i hav attached both the results.

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