Simple & almost naked. The dream date or the dream system?

You very welcome mate :slight_smile:

Hi Stock, i have a suggestion to the EA that I think will make a big difference in its performance. I think we will need your expertise again sir if you’re up for it.

Logic:

The problem is that for downward breakout of the trendline on a sell signal. the second confirmed dot needs to be higher that the first confirmed dot. The current EA doesn’t have that logic. The Ea takes sell trades even if the second dot is lower then the first dot. Ihave attached an image to Explain. If the second support dot is lower than the previous dot, this indicates that the trend is now going down. Instead what we need is a horizontal line at the second confirmed dot.

In the image, you will notice that the 3rd dot is lower than the second dot. Instead of the EA connecting these dots it should draw a horizontal dot at the last confirmed dot (#3).

Logic:

On a sell trade if the 2nd dot used in the trend line is LOWER than the first dot used, draw a horizontal dot at the last confirmed dot instead of connecting the 2 dots. If a candle breaks this horizontal dot, than a trade is entered.

The opposite is true for the buy trade. In order for an angled tredline to be valid, the second confirmed dot, must be lower than the first dot. If the second dot is higher, than a horizontal line is drawn by the EA and a buy is entered once a candle closes above this horizontal line.

I think this change will make a difference.


Here is why this will help. The current EA doesnt take advantage of a long trend because the trend-line is rarely broken. If the line is horizontal at dot #2 than the trade will be entered early and it will take advantage of the movement. Again, the horizontal dot is used when:

-On a sell trade, ifthe second dot is lower than the first dot, a horizontal trendline must be drawn at the second dot. If the second dot is higher, than the dots can be joined and the trend-line is valid for the sell break.

-On a buy trade, if the second dot is higher than the first dot, a horizontal trendline must be drawn at the second dot. If the second dot is lower, than the dots can be joined and the trend-line is valid for the buy break.

thanks


Very interesting Blizard, i never noticed that !

I have had a look over a number of charts and this does look very promising.

Blizard, should we be drawing this horizontal line instead of how we have been doing it currently or only when the 2nd dot is lower or higher than the first (depending if we are selling or buying).

With regards to fakeouts, does this new horizontal line strategy reduce fakeouts, i can see it can increase the profitability by quite a bit and i am guessing from what i can see reduce the chance of fakeouts.

Also i have been trading trades only in the direction of the daily trend, now this does reduce the chance the number of trades you can get (i am on 5Min, 4 minibars), but it has reduced the chance of fake trades for me.

Also for me i found the best times for trading was 0900 - 1600 GMT. I would get most fakeouts outside of these hours.

I have been running Stockneon’s EA on EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD, EUR/GBP and EUR/JPY.

Please note i have not been letting Stockneon’s EA enter/exit trades, i have been purely using it mark entry points so i can come back to my charts and study them to get and idea of what trades would work, not work, fakeouts etc.

This is my chart below.


I have a few indicators on there that i will most likely get rid of over the next week as they are not nessasary for this strategy (The TOR and MACD, STR, EMA indicators on the top). I want to keep this as close to Blizards as possible in simplicity.

Hi Sandy, yes we will ONLY draw the horizontal dot trendline when the second confirmed dot in the sequence is irregular for the original Trend reversal system rules.

We are in a down trend when we get lower lows and lower highs and the opposite for an uptrend.

This new rule will make sure that we will take advantage of a strong trend. The other original rules takes advantage of a trend reversal.

thanks

Here is a nice example of a strong up-trend. The current EA would join the last 2 dots and then wait for a break however, we can see here that we missed the entire up trend. The simple solution is that when your are in an up trend you get higher highs so there wont be a break. When you get higher highs , the second confirmed dot must have a horizontal support line drawn. Once this line is broken, we would enter the trade.

thanks


here is another example of a strong trend, horizontal support lines work best.


Your stop loss is still the last confirmed dot of the opposite color, however for horizontal breaks, the last dot may not be confirmed yet so there would need to be logic added for this. The SL would need to move to the last confirmed dot and trail up as the trend continues up. I really hope we can have this added to the EA but it seems complex to me.


Blizard i didnt think you could make this simple system even simpler lol, great worl :slight_smile:

I used LFH trade simulator EA to manually back test and trade yesterday 18th May EURUSD M1.

Only one Indicator: ZZ swing, set to 4. I took only a 6pip TP and some scary SL of sometimes 3x TP but only one bad trade through the system and one bad trade because of new rule above by Blizard. .


Last bad trade on graph does not count because it calls it a loss but it is really still open over weekend.

This is not to say that the new rule above from Blizard does not work because I think it does work. In a couple of instances it got me into trades that would have been missed.


A good day :stuck_out_tongue:

I have some definite ideas how to make this excellent system even more profitable…


Could you elobarote Madmkiv.

PS i didnt think it was possible lol to make this system even greater !!

I think from Blizards new rule, we would make more pips than we would lose from what i have been doing looking over past charts.

Would be good to hear everyone else’s take on Blizards new rule :slight_smile:

I think this will work well guys , im looking forward to trading this week. Until our EA can be adapted with this new rule (horizontal trend-lines), ill be drawing these lines manually and using the “lineexcutors_alert” EA. Basically the ea allows you to draw these trend lines ahead of time and enters the trade automatically once the trend line is broken so we dont need to stare at the charts all day.

Here is the description:

LINEXCUTORS - TrendLine Break EA

Here is the link to the EA:

LINEXCUTORS - TrendLine Break EA - Page 7

Just look at the chart and depending on the position of the last confirmed dot of both buy and sell trades, draw trend lines, name the trendlines , drag the EA on the chart and make sure the EA setting have the same name for upper and lower trendline. The EA also allows for bounces off the trend line but i will only be trading the breaks as per our strategy so I will disable Tradeinside and set to “false.” Set your SL and TP and off we go. Once the trade is entered maybe setup an email alert so you can come back to the chart and modify the SL to the last confirmed dot and the TP according to your risk to reward ratio.

thanks

Here is what the 1 hour EUR/USD looks like this past 1-2 weeks and the horizontal trendline break catches the big downward trend, while the reversal near the bottom is caught with the original reversal breakout trendline. I think if we combine these 2 rules the EA will fair much better. Any suggestions or feedback would be great.

This is a great system for 1 hour or 4 hour charts also.

thanks


Here are Fridays trades on the 5 min EUR/USD.

thanks


Personally I am not a fan of M5 (see pic) I think the system works on M1, H1 & H4 if you can be bothered to wait on the higher time frames. M1 works well, in fact it is one of the most consistent scalping strategies I have ever seen on this timeframe but it does need a lot of vigilance.


Cool, thanks for the input:57:

I am trying to clarify a definite set of rules for this system so it is clear in my head and hopefully clear for every one else following this thread.

‘Clutter’ has been mentioned before. When joining two dots if there has been previous breaks of this new trend line then I would avoid opening a trade on a new signal. (see pic) There generally has to be clear line of sight between two dots if I am to take a new signal breaking this line.


Also a good example is shown on when to sell on new lower dot via a horizontal trend line and not a diagonal trend line from the previous dot. I set the horizontal trend line on the bottom edge of the dot circle (size 5), when this breaks I enter a sell not waiting for the bar to close.

Thank madmkiv, great observations. Keep them coming and keep posting your setups.

thanks