you are probably right about the trailing stops and locking in profit if you are able to watch the market and make those changes. as posted, this method was designed for those who cannot look in on the markets because of other demands on their attention.
i do have another thread where different exit methods may be used with the daybreak system. check it out: 301 Moved Permanently
Hi all
I only posted my first comment really to thank Pipwoof for coming up with what I thought was a brilliant system.
But Ill try to answer the questions posed. I use 9am GMT [10am my time ]as thats when I have access to the computer, and Im not asleep. When I enter a trade I place a 25 pip stoploss and no take profit. If I get stopped out of any individual
trade I increase my 50 pip basket target by 25 pips to compensate. I use 12 because often with only4 there is no action , 12 brings action every day. I use the 30 minute chart to monitor my progress toward my 50 pip target.
The 12 I use are simply the 12 with the lowest spread as presumably they are the most liquid.
I cant remember which individual pairs I tested, I just took a random 4 from the 12 on the screen. I must confess I didnt check every single day, it was so laborious matching up each pair on any given day that if it looked flat I skipped it.
All the ones I did check came out winners. I didnt do Mondays as I think it unreliable Today however I did a quick check using high/low from 9am friday, and GB/US and US/JPY came in around 3 oclockish with plenty of pips .They were the only 2 to break through [one long one short] so if I only did 4 there probably wouldn`t have been any action today .
I hope that answers the queries.
Does anyone have a really good broker based in UK I have tried several, but even just on demo they seem somewhat dubious. Suffering from one or two problems. Slippage is one time difference another too wide a spread etc., I would be grateful for advice before I go live.
Thankyou
Peter
Hi Peter - Thanks for your reply. Very helpful.
I am in the US but I use FXCM and I know they are in the UK. Their spreads are sort of high but they are reputable.
I also use OANDA and I do not know if they are in UK - Their spreads seem low and they are reputable.
Good luck and thanks for your help in this thread.
Tom
july 16, today we are:
g/j short @ 123.15, close 123.16, -1
a/u short @ 1.0218, close 1.0239, -21
e/u short @ 1.2233, close 1.2265, -32
u/j short @ 79.00, close 78.82, +18
total: -36
fyi, using triple threat exits, +218. if you can keep an eye on the market…
Read more: 301 Moved Permanently
Pipwoof.
I have coded an EA (attached) to run your rules. I’ve modified them slightly to run on an H1 timeframe. Basically what it does in at the beginning of the day sets two levels; the lower breakout and the upper breakout based on the last 24 1 hour candles of the last trading day. From that point the user can set a window of what time they would like the EA to monitor the breakouts from. I have done some back testing on the AUDUSD setting the EA to trade from London open to an hour before the New York close. From the 1 Jan 2011 to today it made a 50% ROI on a 1000 dollar account only risking 2% per trade. I have attached the equity curve below.
The settings for the EA are as follows:
MagicNumber - 12 (set as whatever you like)
BeginSetTime - 00:00 (this is your broker time at the first 1 hour candle of the day)
EndSetTime - 00:15 (15 minutes after the above setting)
BeginResetTime - 23:00 (this is the time of day you would like the breakout reange to delete itself. I suggest 1 hour before the end of your broker trading day)
EndResetTime - 23:15 (15 minutes after the above setting)
BeginTime - 10:00 (The broker time of day that you would like to start the execution of the trade from. I have tested using the London open which on my broker is 10:00)
EndTime - 23:00 (The time at which you end the trading. I’ve just made this the same as BeginResetTime)
DynamicLotSize - True (this is if you would like the EA to use money management based on account size. This should work for major pairs however will not worked for cross pair or any Jen pairs etc.)
RangeBars - 24 (leave this as 24 on a 1 hour chart. It is the number of candles in the last trading day)
RangeBreakAddPips - 3 (number of pips away from line you would like to trade. I think your system is 1 pip however i’ve used 3 to allow for spread)
EquityPercent - 2 (% of account to risk)
FixedLotSize - 0.1 (if DynamicLotSize is False this will be the lot size)
StopLoss - 40 (speaks for itself)
TakeProfit - 40 (speaks for itself)
MoveBE1 - 20 (the EA will move the stop loss to break even when the trade has reached this many pips profit)
Slippage - 3 (Slippage allowed for order execution)
This EA is not intended for use on a Live account. Use it at your own risk. As stated above the money management feature will only work on some pairs (AUDUSD, GBPUSD, EURUSD).
DayBreakEA_JDog.zip (8.5 KB)
Just did a back test with StopLoss = 30 TakeProfit = 100 BE = 20. $1000 account truned into $2262 from 1 Jan 2011 to now. That seems to be about the limit. But that is just 1 pair AUDUSD risking only 2%.
And just to give you an idea. From 11 Jan 2011 (avoiding Xmas period) to now, risking 10% TP100 SL30 BE20 turned $1000 into $18k. Not bad ROI. Furthest it got down was $904 in the first week. After that was smooth sailing.
Markets can change very fast though.
Hi Peter, personally I swear on Oanda and IBFX, but I’m in US. If it must be UK, I would go with Alpari.
Which particular result did you want info on. 2% risk or 10% risk. Ill do it tomorrow. Im in. .Australia so off to bed.
Hi jdog,
This is my first post here, so excuse me if I´m asking something that have been asked before, but here it goes:
I will start using this ea very soon, I will be glad to share my results with you all.
And congrats for the good work and time puted to develop this tool.
Sorry, I was referring to the 10% risk result.
The EA every time the MT4 platform close and re-opens put new pending orders ( with the older ones). It would be nice if you can fix that.
I’m reffering to Daybreak v1.3 EA
jdog, thank you for all the work. i will try to learn what to do with it and see what i get.
with about an hour to go, i will post our entries and come back to add our results.
edited to include results:
g/j long 123.36, close 123.84, +48
a/u long 1.0259, close 1.0314, +55
e/u long 1.2289, close 1.2294, +5
u/j no trade
total: +108
i have posted closings at the end of the ibfx day. you should also note that all our closings are all near the high. this is a good time to either leave the trades open with tight stops or, if you close, require additional pips for a new long entry.
daybreak using triple threat exits was in the market only a short time and closed at +86.
No, only wrote it yesterday. So backtests only. Please forward test it on a Demo before you go live. With regards to brokers. No preference. The backtests were performed on Alpari UK only because of the amount of free data they have. I personally trade live with Axitrader from Australia due to the fact there time is based on New York close. So the Price Action on the larger TF’s correlates with this. i.e. more accurate for PA analysis.
[QUOTE=fxbreakz;373850]Sorry, I was referring to the 10% risk result.[/QUOTE]
fxbreakz
Backtest data attached.
Noted; will be fixed in v1.4.
This had an expectancy around 0.24, which is OK, anyway definitely very good results. About 23% risk would be the Kelly number. Thanks!
Hi pipwoof,
thanks for this great system. Have you considered no TP, just trailing lower lows/ higher highs on H1 tf? Let it make a cup (as in cup and handle) and once H1 candle closes over the cup line, move the SL 1 pip over the cup bottom. Also parabolic SAR maybe?
Another question: you mentioned that if it breaks one end, but doesn’t hit TP and then reverses, breaks in the opposite direction, most of the times it will hit that TP. What about if we focus on those entries only as a separate strategy?
fxbreakz, i have tried to keep daybreak useful for those who can’t watch the markets. there are, undoubtedly, many ways to improve performance for those who are able to keep an eye on their trades. you have some good ideas for doing that and i think those who are able to watch and move stops will have an advantage. but i want to keep daybreak as a “set and forget” method and let those who can watch come up with their own improvements.
my other thread 301 Moved Permanently couples the daybreak entries with an exit strategy that requires attention. farruk is on that thread working on an ea and trying to resolve some discrepancies we have in results.
i haven’t really done much with the idea of entering a second time, either on a reversal or a second attempt at same direction, i have only an observation that it seems to pay off. we would need time to go back and look at those situations.
