Daybreak

[wenlong76]

Which 12 pairs are you using?

Hi Pipwoof,

I`m a newbie at all this , but I love the simplicity.
I`ve used it on my demo account for a few days , with a slight twist ,
I`ve used a basket of 12 pairs and when the overall profit is 50 pips [why be greedy] I exit.
The reasoning behind this is that it relies on the impetus of breaking yesterdays highs/lows but perhaps won`t last till the end of the day.
So far results have been 100% I thank you so much for this system. I can`t believe it will fail.

Peter

[pipwoof]

wenlong, when peter was asked this question before, he answered just the twelve with lowest spreads, assuming those were the most active pairs. if he monitors the thread, maybe he can be more specific for us. i like basket trading, but won't do it with any big money without some kind of stop loss. best wishes for your trading.

[wenlong76]

Ok. thanks for the reply.

By the way, one thing to clarify. When you mention previous day, which day are you taking with reference to in GMT time? Because my yesterday time period (in Singapore) may be different from UK or US yesterday time period. To simplify, can I start the 24-hour trading day with reference from Monday's FIRST trading hour?

wenlong, when peter was asked this question before, he answered just the twelve with lowest spreads, assuming those were the most active pairs. if he monitors the thread, maybe he can be more specific for us. i like basket trading, but won't do it with any big money without some kind of stop loss. best wishes for your trading.

[pipwoof]

Ok. thanks for the reply.

By the way, one thing to clarify. When you mention previous day, which day are you taking with reference to in GMT time? Because my yesterday time period (in Singapore) may be different from UK or US yesterday time period. To simplify, can I start the 24-hour trading day with reference from Monday's FIRST trading hour?

wenlong, below is something i prepared just today for a similar question on my triple threat thread. i don't know about using just one hour as a basis for entry. here's how i handle monday trades with ibfx. the broker starts datafeeding only a couple of hours before monday 00:00, their platform time. i usually get two, sometimes only one hour bar before they start the new day. monday is a little dicey to trade anyway, so i require +/- 11 to enter. that extra spread is just to give a little time to settle down. i have also mentioned that there may be some merit to using the open +/- some spread of pips, maybe 12 to 20, but i have not checked that out for sure.

from triple threat thread:

the issue of what to call a "day" has come up before and this is a good opportunity for me try to get a thorough explanation all in one place. a discreet data set called "day" is defined by each broker according to their platform. in hourly bars, you will see the day start and a new bar begin to build at 00:00, platform time. in an hour, we will see 1:00, then 2:00, etc. but, depending on where you live and who your broker is, that 00:00 could be any time for you. i trade with oanda and ibfx. oanda's platform is on eastern time. since i am in the central time zone, oanda's day for me is 11pm to 10pm. the ibfx day is on gmt and that is 7pm to 6pm for me. in other words, if i am trading ibfx, their day will conclude as, my time, the 6:00 pm one-hour bar or the 6:59 pm one-minute bar finishes. at 7:00 pm, my time, they will begin their 00:00 (new day) bar and that is when i will be at the charts to enter buy/sell stop orders, assuming i want to trade ibfx and use their definition of day for my orders.

to keep some consistency and point of reference, i use ibfx data and their platform day for all results reporting to this thread. the high of the day is the high between their platform time 00:00 and 23:59, and so on. conveniently, the platform allows me to select "show period separators" which, on a one-hour chart, draws a vertical line at 00:00, the beginning of the day. unless the close yesterday just happens to be very close to the high or low for the day, we should have plenty of time to place our entry stops soon after the 00:00 bar begins.

take note that, unless your broker happens to be on the same time as mine, you will come up with different entries and exits. just like if i use oanda instead of ibfx, i get different numbers. sometimes the different brokers end up pretty close together on a day's data, sometimes not. i have used a utility program called vitrite which can make a chart transparent. select an oanda daily chart, place the ibfx chart on top and make it transparent, line them up and you visually see the differences. for example, eur/usd, june 29, 2012, oanda's high for the day was 1.2692, low 1.2252, range 140. same day, ibfx high 1.2691, low 1.2431, range 260. this was a profitable day for the method. trading ibfx, eur/usd +25, +75, +75. trading oanda, +45, +25, +25. you can see that, while both platforms were profitable, the differences may get to be significant. i have not done exhaustive studies to determine just how much difference platform times may make and will recommend that you study some time period for your platform and compare results to what i've posted here.

now, could you define "day" as any 24 hour period that happened to be convenient for you to trade and would that be profitable? all i can say is, probably. are you going to miss some significant moves if you aren't willing to set alerts to wake you up or otherwise be available to your computer during the london session? yes. will we ever have an ea that takes care of all this while we sleep? you'll have to ask someone with more programming knowledge than me. would i have the nerve to use it if we actually had it? no.

could you also use the ibfx timeframe to place orders on a different platform, i.e., enter orders at 7:00 pm central time no matter what your broker's time is and come very close to replicating results shown here? yes. back to vitrite and we see that when we match up bars using transparent charts, the broker feeds are within a few pips of one another on virtually every bar. in this case, we would be entering oanda trades on the 20:00 bar, which is the 00:00 bar for ibfx, 7:00 pm central. if you were doing this, you would have to enter all orders one at a time by hand and would not be able to use the very handy order entry ea built for us by rpotor which enters orders based on the prior bar.



Read more: Triple threat exit strategy

[wenlong76]

Thanks for your reply. I read from your previous posting that sometimes you post some trades recommendation according to your break day price action. For instance, on 16 July, you post the following:

july 16, today we are:

g/j short @ 123.15
a/u short @ 1.0218
e/u short @ 1.2233
u/j short @ 79.00

One thing I want to ask is that if I do not have the time to monitor the market the whole day to see if today market will break yesterday's high or yesterday low, can I place 2 trades per currency pair, that is, Long GBPJPY @ (Yesterday High + 1 Pip) and Short GBPJPY @ (Yesterday Low - 1 Pip). So when the market trigger either Long GBP or Short GBPJPY, the other trade will be closed. Can I place the 2 trades in this manner?

In any case, will you also place your trade alert (like what you have done in 16 July 2012) daily, so that it is easier for us to follow if we are doing the right thing? Thanks!

[pipwoof]

Thanks for your reply. I read from your previous posting that sometimes you post some trades recommendation according to your break day price action. For instance, on 16 July, you post the following:

july 16, today we are:

g/j short @ 123.15
a/u short @ 1.0218
e/u short @ 1.2233
u/j short @ 79.00

One thing I want to ask is that if I do not have the time to monitor the market the whole day to see if today market will break yesterday's high or yesterday low, can I place 2 trades per currency pair, that is, Long GBPJPY @ (Yesterday High + 1 Pip) and Short GBPJPY @ (Yesterday Low - 1 Pip). So when the market trigger either Long GBP or Short GBPJPY, the other trade will be closed. Can I place the 2 trades in this manner?

In any case, will you also place your trade alert (like what you have done in 16 July 2012) daily, so that it is easier for us to follow if we are doing the right thing? Thanks!

wenlong, the entries i provided were given after the fact. by the time i wrote those, we would have already been short g/j at 123.15, etc. these are actual positions that would have been entered using ibfx datafeed on my platform. i did that so those following the thread can have a few reference dates to understand the method and check their work. the real use of those numbers is so you can look at your own platform and ask what time you would have had to enter to approximate my entries. once you have done that, those numbers have served their purpose and the entries are simple enough to determine after that. the important thing, really, is for you to check your datafeed, determine it's definition of day, decide when the best time is for you to enter buy and sell stops, retrospectively follow as many trades as you have the patience for, and conclude if you would have been profitable.

regarding your entries. at the risk of telling you something you already know, there are many varieties of hedge positions. one kind of hedge is when you have entered both long and short on one pair. for our purposes, we are talking about this kind of hedge and a balanced hedge where you are long and short the same amount. in your case, where you have left resting entry stops on both sides of the market and run the risk of both being triggered. our studies on this are preliminary, but the advantage of having your loss limited to yesterday's range appears to be outweighed by taking a loss on only one side, so we are thinking to avoid the hedge.

in the united states, our regulators, in their infinite wisdom, have decided they will not permit hedges. in a perverse way, that actually helps us out a bit with our daybreak entries. at the open of a new day bar, we can place both sides of our orders, buy stops for three long positions if hit and sell for three short positions if hit. if, during the course of the day, one entry is triggered and we should be unfortunate enough that prices reverse all the way to the other entry, our second set of orders will elicit a pop-up window saying, "hedge not permitted," and those orders will not be filled. i don't know how it works where you live and you will need to check your broker's policies. here are some options.

if your broker operates as i just described, then you can follow the same procedure and place your resting stops without concern that you would end up in a hedge. another option is to place only one set of orders. in this case, you would probably want to place those closest to their entry point. it is also possible that your broker allows "oco" orders. most brokers in the united states don't allow these orders, but an oco is "one cancels the other" and it just means that if one side gets triggered, the other side orders go away. still another possibility is to locate an ea that serves a "kill" function. that is, when orders on one side are initiated, it kills the rest. the thing you would have to watch for here is to be sure it would allow all three orders on one side and not just allow one order and kill the other five. i don't know, but there may be one in the metatrader library or on one of the many fx forum sites.

one last comment. this is a fickle trading method and, historically, shows times when it just didn't work. if you trade it, keep a close eye on your equity curve and be ready to pull the plug if it starts losing. this is not the grail.

hope this helps. best wishes for your success.

[Godwin Igili]

Spirit
Good day. I have been reading this thread aand the EA you coded for Daybreak. Thank you Pipwoof for the trading system and thanks to Spirit for his effort in coding the system. When will you fix the reopening of new order with the old ones when the platfor reopens?

[apfrezza]

I still have not understand one important thing. When should be placed the orders.

Assuming that I am living in Rome, at 23.00 the day close. Then should I place the orders immediately at 23.01 or should I wait?

Furthermore...at the end of the day all trade should be closed?

[pipwoof]

I still have not understand one important thing. When should be placed the orders.

Assumin that I am living in Rome, at 23.00 the day close. Then should I place the orders immediately at 23.01 or should I wait?

most of this information is from a previous post and i hope it will help answer your question. the issue of what to call a "day" and when to enter orders has come up before and this is a good opportunity for me try to get a thorough explanation all in one place. a discreet data set called "day" is defined by each broker according to their platform. in hourly bars, you will see the day start and a new bar begin to build at 00:00, platform time. in an hour, we will see 1:00, then 2:00, etc. but, depending on where you live and who your broker is, that 00:00 could be any time for you. i trade with oanda and ibfx. oanda's platform is on eastern time. since i am in the central time zone, oanda's day for me is 11pm to 10pm. the ibfx day is on gmt and that is 7pm to 6pm for me. in other words, if i am trading ibfx, their day will conclude as, my time, the 6:00 pm one-hour bar or the 6:59 pm one-minute bar finishes. at 7:00 pm, my time, they will begin their 00:00 (new day) bar and that is when i will be at the charts to enter buy/sell stop orders, assuming i want to trade ibfx and use their definition of day for my orders.

to keep some consistency and point of reference, i use ibfx data and their platform day for all results reporting to this thread. the high of the day is the high between their platform time 00:00 and 23:59, and so on. conveniently, the platform allows me to select "show period separators" which, on a one-hour chart, draws a vertical line at 00:00, the beginning of the day. unless the close yesterday just happens to be very close to the high or low for the day, we should have plenty of time to place our entry stops soon after the 00:00 bar begins.

take note that, unless your broker happens to be on the same time as mine, you will come up with different entries and exits. just like if i use oanda instead of ibfx, i get different numbers. sometimes the different brokers end up pretty close together on a day's data, sometimes not. i have used a utility program called vitrite which can make a chart transparent. select an oanda daily chart, place the ibfx chart on top and make it transparent, line them up and you visually see the differences. for example, eur/usd, june 29, 2012, oanda's high for the day was 1.2692, low 1.2252, range 140. same day, ibfx high 1.2691, low 1.2431, range 260. this was a profitable day for the method. trading ibfx, eur/usd +25, +75, +75. trading oanda, +45, +25, +25. you can see that, while both platforms were profitable, the differences may get to be significant. i have not done exhaustive studies to determine just how much difference platform times may make and will recommend that you study some time period for your platform and compare results to what i've posted here.

now, could you define "day" as any 24 hour period that happened to be convenient for you to trade and would that be profitable? all i can say is, probably. are you going to miss some significant moves if you aren't willing to set alerts to wake you up or otherwise be available to your computer during the london session? yes. will we ever have an ea that takes care of all this while we sleep? you'll have to ask someone with more programming knowledge than me. would i have the nerve to use it if we actually had it? no.

could you also use the ibfx timeframe to place orders on a different platform, i.e., enter orders at 7:00 pm central time no matter what your broker's time is and come very close to replicating results shown here? yes. back to vitrite and we see that when we match up bars using transparent charts, the broker feeds are within a few pips of one another on virtually every bar. in this case, we would be entering oanda trades on the 20:00 bar, which is the 00:00 bar for ibfx, 7:00 pm central. if you were doing this, you would have to enter all orders one at a time by hand and would not be able to use the very handy order entry ea built for us by rpotor which enters orders based on the prior bar. note that this ea was built for the triple threat application used as an adjunct to daybreak. it will provide all the order entries for daybreak, but you will have to manually change the stop losses.

apfrezza, if i understand correctly, you will currently be on central european summer time which means you are gmt +2. i am in the central time zone, so it is now 10:00 am here and 5:00 pm your time. i don't know what your platform time is, so you will need to determine that and do some extrapolating. i based results on ibfx and their platform time is gmt. i enter orders at gmt 00, which is 7:00 my time, but would be 2:00 am for you. it is the equivalent to me getting up for the london open. if your broker happened to define day as ending gmt -3, that might certainly be more convenient for you. best wishes.



Read more: Daybreak




Read more: Triple threat exit strategy

[apfrezza]

Thank you very much! Now I'd like to know if you close the order always when a day ends or you have a tp?