Hi, Rei
Iāve been reading along with you on this thread, although I havenāt been posting here for some time.
For the past couple of months, I have been developing a different version of the Sunday Breakout Strategy, which I might bring to the Forum in the future, if it tests out.
Regarding Philās Sunday Breakout Strategy, which you and several others are still trading, I wanted to address the issue you raised in your last post here, last Wednesday evening. That was the issue of which candles to use at which times of the year.
Actually, there are two separate issues here.
B[/B] When Phil introduced this strategy, he said that the period on which the analysis is based (letās call this the āboxā) is 8pm-midnight London time. He called this 20:00-00:00 GMT (although we know that London time is GMT+1 during the summer). Iāll get back to daylight saving time in a moment.
Phil referred to the 20:00-00:00 GMT box, because his IBFX platform labeled the 4-hour candle on Sunday that way. But, as we have discussed on this thread, his platform was actually including only 1 hour of price data in that ā4-hourā candle.
So, regardless of what Phil said, he was actually trading the HIGH and LOW of the 1-hour period 23:00-00:00 GMT. In other words, 11pm-midnight London time was the actual box that Phil was trading.
That leaves us with a choice: should we trade what Phil said the box period was, or should we trade the period he was actually trading?
As I indicated previously on this thread, I think itās clear that we should do what Phil did, not what Phil said. That is, we should use the 1-hour period from 11pm to midnight, London time, to determine the HIGH and the LOW for this strategy.
We can get the HIGH and LOW from the 1-hour chart, or from any lower-time-frame chart. When I was trading this strategy, I used the 5-minute chart to find the HIGH and LOW of the period, because I wanted to see details of the price action within that 1-hour period. But, other traders might have different preferences.
Itās certainly confusing to have a strategy which uses a 1-hour box, but calls it a 4-hour box. But, thatās what weāre left with.
B[/B] The time-zone question hasnāt been adequately addressed, and thatās my fault. On this forum, we have members in most of the 24 time zones around the world, some of whom go onto and off of daylight saving time at various times in the spring and fall. I wonāt try to answer this question for all of those time zones. But, I will answer it for your time zone.
You are in Sydney, which is currently on (southern hemisphere) daylight saving time. Your time zone, currently AEDT (Australian Eastern Daylight Time) is GMT + 11 hours. London is currently on standard time, which for London means GMT.
Therefore, the 11pm-midnight Sunday (London time) box, which Iām strongly urging you to use, is 10am-11am Monday, your time.
If you have access to price data for the time period 8pm-midnight Sunday (London time), and choose to use that time period for your box ā which I do not recommend ā the equivalent time in Sydney would be 7am-11am Monday.
Having said all that, now hereās the bad news: between now and April 4, these times will change twice for you guys in Australia, once when London goes onto daylight saving time, and once (a week later) when your part of Australia returns to standard time.
What that means for your time conversions is this:
[ul]
[li]until March 28, 11pm-midnight GMT (London standard time) = 10am-11am AEDT (Sydney daylight saving time)
[/li]
[li]from March 28 - April 4, 11pm-midnight BST (London daylight saving time) = 9am-10am AEDT (Sydney)
[/li]
[li]from April 4 until sometime in October, 11pm-midnight BST (London) = 8am-9am AEST (Sydney standard time)
[/li][/ul]
I hope this helps to answer your questions.
Clint