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| EURSIAN breakout strategy https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=271 |
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| Author: | GT3RS [ Thu Jan 19, 2012 7:35 pm ] |
| Post subject: | EURSIAN breakout strategy |
Hi all, Here's something I've been working on for a while, and it's about time I gave something back to the forex community - and I can't think of a better place to do it than this! Steve kindly coded a bot some time ago for me, but I have still been working trying to refine the strategy. Inspiration/refinement has come recently from Aussiedoc's DUCKS strategy on this forum for the use of RSI. This isn't included in Steve's code. Basically, it's a breakout strategy with a slight difference. This strategy is specifically designed to capture the move which starts during the overlap of the European session and the Asian session. Hence, the name EURSIAN. The only pair we trade this on is EURJPY. Please be aware that I have modified the strategy since Steve did his coding. OK. So, how does it work? EURJPY H1 chart RSI 8 with levels at 45 and 55. At 7:00am UK time, I draw 3 lines on my chart: 1st line is at the OPEN of the 7:00am candle. 2nd line is 10 pips above the first line. 3rd line is 10 pips below the first line. The 2nd and 3rd lines create our channel. Then I want a 1 hour candle to CLOSE above the channel or CLOSE below the channel. [IMPORTANT NOTE: The way Steve wrote the bot for me was to have a 1 hour candle to OPEN and CLOSE above the channel or OPEN and CLOSE below the channel. This may still be a viable method and needs investigating - but not just yet!!] SHORT: Candle closes BELOW the channel and RSI below 45. Enter short on start of next candle. SL is just at the MIDDLE line of the channel (i.e. the start of the 7am candle) - don't forget to account for spread. Open 2 positions. Close one when profit reaches 25 pips and move SL to break even. When profit gets to 50 pips, move SL to +25. When profit gets to 75 pips, move SL to +25 pips. When price gets to 100 pips, move SL to +75 pips, etc etc. I think the technical way of describing this is a 25 pip SL with a 25 pip step!!?? LONG: Candle closes ABOVE channel and RSI above 55. Enter long on start of next candle. SL is just at the MIDDLE line of the channel (i.e. the start of the 7am candle) - no need to account for spread on longs. I've posted a couple of charts below to show what I'm waffling on about!! I've also put Steve's script and bot on there as well. Hopefully, someone will be willing to pick up the reins on this one, as the bot is half coded and it is such a mechanical strategy it's perfect to run as a bot. Any questions, please shoot!! Many thanks, Rob PS. Steve created a script to draw the channel lines each day, but maybe it would be better if this could be done automatically with an indicator? Or from within the bot itself? |
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| Author: | mieloo [ Fri Jan 20, 2012 7:22 am ] |
| Post subject: | Re: EURSIAN breakout strategy |
hi, why use it only on eurjpy? and if it doesn't go down usually it goes up. why not opening another trade if the first one it's a loss, maybe using the same conditions? |
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| Author: | GT3RS [ Fri Jan 20, 2012 9:05 am ] |
| Post subject: | Re: EURSIAN breakout strategy |
Hi mate, EURJPY because my thinking was that this pair relates to both EUR and Asian session overlap and it's what I've done my testing on. And as for opening another position in the opposite direction, that's certainly something for consideration, as an option. I'm just hoping one of our coders will pick this up and help develop the bot, and the other traders on here can help develop the strategy itself. Cheers, Rob |
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| Author: | GT3RS [ Fri Jan 20, 2012 9:33 am ] |
| Post subject: | Re: EURSIAN breakout strategy |
The original rules were: H1 candle must OPEN and CLOSE outside the range. Then you enter in direction of breakout with your SL at the middle of the range - i.e. the open of the 7am UK time candle. RSI was not included. Target 25 pips and out. The R is poor, as your SL is invariably bigger than your target. This is what Steve's previous work was based on. Would be good to have this as a separate bot for testing, maybe with the trailing stop outlined above to catch he bigger moves? |
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