Sunday Breakout Strategy

[phil838]

I think MT4 has some calculations errors, the following should show up the same values, but they are not.

double a = 1.1111;
double b;

b = a + 0.0001;
a = a + (10/10000);

Print (DoubleToStr(a,4) + " " + DoubleToStr(b, 4) );

Output = 1.1111, 1.1112

Excellent job on the indicator!! Much better than I could have done. I say we make you the official Sunday Breakout programmer.

How that you’re the official programmer can you make one that will display the info on the chart instead of emailing it??

And I think the calculation problem is that (10/10000) is not 0.0001. 10/10000 is 0.001.

[phil838]

I forgot to mention that what I like about this strategy too is there are no indicators, it’s purely price action. I think many will agree with me on that?

Absolutely! I think indicators are evil and completely worthless.

That’s just my opinion though, other people use them and if it works for them then great! I’ve just never liked them myself.

[phil838]

I think I may give this one a try as well. Aside from the fact that it is a profitable strategy, I think a system with a high loss rate might actually help me get better at accepting losing trades.

Hey phil838, I know you trade this system and Nick B’s scalp lines, are there other systems you use as well? Thanks for all your input on these forums. You’ve helped me a good bit for sure.

I don’t use any other “systems”. All my other trades are based on S+R lines, trendlines, candlesticks, chart patterns, etc. I wouldn’t call it a system since there aren’t any real rules to it, just general analysis of the charts.

Before last October I also traded the other aspects of Nick’s system; S+R breaks, reversals, etc. But since GBP/JPY bottomed out and there were no historical S+R lines around I haven’t been able to trade them. But now that price is moving back up I’ll start trading them again soon.

[phil838]

Here are the numbers for this week’s trades…

Long Entry: 1.5984
Short Entry: 1.5926

The stoploss this week is 48 pips, and the profit target is 248.

Let’s hope we have another winner like last week!

[s050399b]

And I think the calculation problem is that (10/10000) is not 0.0001. 10/10000 is 0.001.

OMG!!! I was working up to 3am just trying to find out why!!! I must have been too tired…

[s050399b]

EA Version is located here with some other tools:
http://forums.babypips.com/133505-post986.html

Version 2 - 2009.06.15

• option to email and sound alert (for the move SL to BE when profit = twice of SL)
• to draw the 8 lines on screen
• remove displaying of the values on screen (too messy)
• added “move SL to BE when profit = twice of SL”

Version 1

• email
• display on screen
• will not go into infinite loop
• it will only work within this time frame Monday GMT 00:00:00 to GMT 04:00:00

This is the money management module, but I haven’t integrate into this, you can use it - it’s heavily documented, so it’s quite easy to use.

indicators.zip (6.73 KB)

indicators v2.zip (9.04 KB)

[phil838]

ETA:
Bloody hell!! when a type is double, it doesn’t know how to calculate integer types!!

so it will work only if I do this:
double OSP_Buy;
OSP_Buy = 1.0/5.0;

Yeah, that’s the way it is in all programming languages, not just MT4. It’s annoying, but you get use to it.

[s050399b]

Yeah, that’s the way it is in all programming languages, not just MT4. It’s annoying, but you get use to it.

hmmm, I think I used C or C++ or VB before, but it didn’t have the problem. hmmmmm,

[s050399b]

My broker trigger my long breakout, but didn’t trigger my short breakout…
what’s going on?

[maxximuz]

I was triggered with short at 1.5926.

from my understanding, it is becoz of the spread that triggered your long entry. From my chart, current H4 bar high is 1.5979 (3mins+ to go), if the spread is 8pips, then it will hit your Long EP when bid price is 1.5975

Am I correct to say that?

Earlier I enter buy stop at 1.5987 (1.5983+spread), where my broker’s spread for GU is 4pips. Hence, long entry did not trigger.

Btw, Phil838, do you take the spread into consideration when you place your pending order to enter and exit?

thanks

[s050399b]

if that’s the case, should we add spread to OSP_Buy and OSP_Sell price? SL and TP too?

My broker is still doing 8 pips spread, what broker are you using?

Don’t we use half of spread with stop price?

[phil838]

I was triggered with short at 1.5926.

from my understanding, it is becoz of the spread that triggered your long entry. From my chart, current H4 bar high is 1.5979 (3mins+ to go), if the spread is 8pips, then it will hit your Long EP when bid price is 1.5975

Am I correct to say that?

Earlier I enter buy stop at 1.5987 (1.5983+spread), where my broker’s spread for GU is 4pips. Hence, long entry did not trigger.

Btw, Phil838, do you take the spread into consideration when you place your pending order to enter and exit?

thanks

Maxximuz is right, you got caught by the spread. Whenever you place a long order you have to take the spread into consideration, not just with this system but anytime!

When you’re going long you’re buying on the ask price, not the bid price. The bid price is the one that’s showing on your MT4 charts, but the ask price is always bid+spread. You got triggered because the ask price did go above 1.5983.

Whenever you enter a pending order for a long trade you have to make sure and add in the spread to account for this. You don’t have to factor in the spread on short orders because everything is factored off the bid price on those.

Hope that made sense… It’s a confusing issue that all new traders have to get used to.

[phil838]

Here are the numbers for this week’s trades…

Long Entry: 1.5984
Short Entry: 1.5926

The stoploss this week is 48 pips, and the profit target is 248.

Let’s hope we have another winner like last week!

This weeks short trade ended up going +125 pips before turning around and getting stopped out at breakeven.

There’s still plenty of room in our weekly range for the long trade to be successful, so when it hits 1.5984 I’ll be going long.

[Revone]

Seems like a pretty sweet addition.

Phil are the RULES in your first post all valid? I’m going to copy them to a text file and try them out next week. I can’t view the Excel document you attached, which is fine.

Seems like a cool system, and simple to execute. Thanks.

[Revone]

This weeks short trade ended up going +125 pips before turning around and getting stopped out at breakeven.

There’s still plenty of room in our weekly range for the long trade to be successful, so when it hits 1.5984 I’ll be going long.

This is cool. Do you always do this?

I’ll keep an eye at the 1.5983-1.5984 level for a turn around to the upside. Although the GBP has been taking an ass kicking lately due to a few reasons. May fall a bit before it turns around, I suspect that happened yesterday.

Anyways, thanks. Cool system.

[phil838]

Seems like a pretty sweet addition.

Phil are the RULES in your first post all valid? I’m going to copy them to a text file and try them out next week. I can’t view the Excel document you attached, which is fine.

Seems like a cool system, and simple to execute. Thanks.

Yeah, all the rules are valid in the first post. I’ve been trading it the exact same way the whole 6 months I’ve been doing it live.

[phil838]

This is cool. Do you always do this?

It just depends on the situation. For example…

Say our profit target is 200 pips, and the first trade goes to +175 then turns around and gets stopped out. If last week’s range was only 300 pips, and we’ve already used up 175 this week, I won’t enter the second trade.

I also look at the average weekly range for the last couple months when making a decision. I don’t have any real “rules” for when to take or not take the second trade. I just use common sense.

[s050399b]

Whenever you enter a pending order for a long trade you have to make sure and add in the spread to account for this. You don’t have to factor in the spread on short orders because everything is factored off the bid price on those.

So I don’t have to add spread if I were to sell or short, only when I want to buy; okay~

But what’s the reason behind it? For the broker to add the full spread to the long side, and not half it between long and short side?

[phil838]

So I don’t have to add spread if I were to sell or short, only when I want to buy; okay~

But what’s the reason behind it? For the broker to add the full spread to the long side, and not half it between long and short side?

Try this and I think it will help you understand…

On MT4 right click anywhere on your chart and hit “Properties,” then hit the “Common” tab and check “Show Ask line.”

Now you can see both prices on your charts. You might have to zoom in or move to lower time frame to actually see them, since they are so close together.

It’s because the “spread” isn’t just a number the broker comes up with, it’s the difference in the two prices. When you go long you buy at the Ask price, and when you go short you sell at the Bid price. The default line on your chart is the Bid price, so that’s why you don’t have to account for anything else when you go short.

Does that make sense?? It’s a hard concept to explain…

[Revone]

It just depends on the situation. For example…

Say our profit target is 200 pips, and the first trade goes to +175 then turns around and gets stopped out. If last week’s range was only 300 pips, and we’ve already used up 175 this week, I won’t enter the second trade.

I also look at the average weekly range for the last couple months when making a decision. I don’t have any real “rules” for when to take or not take the second trade. I just use common sense.

I understand. It’s still interesting that you continue to keep an eye on that level, and how price reacts when it reaches there. Good idea.

If I hit any rifts with the overview of the method I’ll come ask in here but I’m going to go through the entire thread to pick up. I like stuff like this because I use a real basic system for my scalping method, with just the fundamentals you know, trend lines, s/r and price action. So this is a nice addition to start off the weeks.