Sunday Breakout Strategy

[mumpips]

Originally Posted by Rei

I think contingent orders are pending orders which get activated if another order activates. This other order is sometimes called the parent order.

Yea this week was a double loss Better luck next week.

I have checked with live chat and they said Parent & Contingent order work as pending order with S/L & P/T in GFT platform.

Interesting!

[mumpips]

Hi Phil,

Can I know what is OSP buy and OSP sell?
Can you explain again on ATR which you posted before, you said something like "if you use up this week ATR value, you will not enter trade. Your entry will base on the balance of ATR of this week??? Sorry, I tried to find your previous post but failed, hope you understand what I am trying to say here.

Thanks a lot

[phil838]

Originally Posted by mumpips

Hi Phil,

Can I know what is OSP buy and OSP sell?
Can you explain again on ATR which you posted before, you said something like "if you use up this week ATR value, you will not enter trade. Your entry will base on the balance of ATR of this week??? Sorry, I tried to find your previous post but failed, hope you understand what I am trying to say here.

Thanks a lot

I have no idea what OSP stands for. It's something S050399b came up with. I knew what he meant so I didn't bother wondering what it stood for.

What I meant with the ATR is this. Imagine the current ATR is 500 pips, which would make our profit target for the week 250. If the short trade gets triggered, moves down 225 pips, and then reverses and ends up losing would you enter the long trade??

Of course not! Because if the average range of the pair is 500 pips per week, and we've already "used up" 225 of that on the downside then there's only around 275 "free" for the long trade to go. Since our profit target is 250 that's cutting it way to close (it is an average, after all), so we'd skip the long trade for the week.

I hope that makes sense... It's hard to explain.

[mumpips]

Originally Posted by phil838

I have no idea what OSP stands for. It's something S050399b came up with. I knew what he meant so I didn't bother wondering what it stood for.

What I meant with the ATR is this. Imagine the current ATR is 500 pips, which would make our profit target for the week 250. If the short trade gets triggered, moves down 225 pips, and then reverses and ends up losing would you enter the long trade??

Of course not! Because if the average range of the pair is 500 pips per week, and we've already "used up" 225 of that on the downside then there's only around 275 "free" for the long trade to go. Since our profit target is 250 that's cutting it way to close (it is an average, after all), so we'd skip the long trade for the week.

I hope that makes sense... It's hard to explain.

Yeah it make sense to me and will be careful on this ATR so that I will not overtrade.

Thanks

[weijen]

Hi phil, i was just thinking about this when you replied below. would you be further testing this strategy to optimally pick when to take the week's second trade? I guess conservatively, i would pick it only if we had 15-25% of the ATR used up...?

Originally Posted by phil838

I have no idea what OSP stands for. It's something S050399b came up with. I knew what he meant so I didn't bother wondering what it stood for.

What I meant with the ATR is this. Imagine the current ATR is 500 pips, which would make our profit target for the week 250. If the short trade gets triggered, moves down 225 pips, and then reverses and ends up losing would you enter the long trade??

Of course not! Because if the average range of the pair is 500 pips per week, and we've already "used up" 225 of that on the downside then there's only around 275 "free" for the long trade to go. Since our profit target is 250 that's cutting it way to close (it is an average, after all), so we'd skip the long trade for the week.

I hope that makes sense... It's hard to explain.

[phil838]

Originally Posted by weijen

Hi phil, i was just thinking about this when you replied below. would you be further testing this strategy to optimally pick when to take the week's second trade? I guess conservatively, i would pick it only if we had 15-25% of the ATR used up...?

I don't have any plans to backtest it, I just judge it based on the situation.

I also take the day of the week into consideration. If only 15% of the ATR was used up, but it took till Wednesday to do it, I wouldn't take the other trade because the market is ranging to much.

[weijen]

Thanks, and thanks also for sharing this great idea.

I think many entrepreneurs will find this very similar to doing a business - you have fixed costs running all the time (weekly small losses), and waiting for an order to come in (the jackpot).....personally, i really like this!

Originally Posted by phil838

I don't have any plans to backtest it, I just judge it based on the situation.

I also take the day of the week into consideration. If only 15% of the ATR was used up, but it took till Wednesday to do it, I wouldn't take the other trade because the market is ranging to much.

[s050399b]

OSP = On Stop Price

I think buy stop order is the official word....

[mumpips]

Originally Posted by s050399b

OSP = On Stop Price

I think buy stop order is the official word....

Thanks for the reply

[nutrader]

I was away in japan this week & being about 9 hours time difference from home it was a real effort to do this weeks trades, in a way i wish i didnt as they were both losers, but on the other hand i realise it is very important to take every trade when trading a mechanical system like this one as i have found out the hard way that if you miss one winning trade it takes a long time recoup the losses.

My results since trading this for the last 3 weeks are 4 losing trades & 1 BE the one trade i missed on the first week would of been a winner for me according to my feed. therefore that win was the difference to being in profit and being in drawdown teritory.

However this is all part of trading, we have to accept the losses and hope that the profits will outpeform in the longrun

good luck next week everyone