Other Systems, Tools, Indicators, etc.

[AlexPali]

Other Enhancements, Potential Trading Systems to be automated, etc.

[AlexPali]

Could the 4H Box Breakout be valuable enhancement to Pip-Hunter robot?

The below information was found at FXAW forum. The feedback so far is incredibly good. Supposedly it should be an easy system to follow and to automate respectively. Possibly this method is worth to be automated as a stand-alone robot with the option to integrate it into Pip-Hunter system as another long-term strategy.  

Here are some inspiring quotes:

4H Box Breakout
http://fxaw.activeboard.com/forum.spark?forumID=117707&p=35

Joewudly wrote:
“Last week a link was posted that deals with the 4H Box Breakout system.
http://www.forexfactory.com/showthread.php?t=168161

I have manually back tested the G/J data back to about a year and a half and the results are very good.  Its a long term weekly method that takes up to 2 trades a week and very easy to setup.  I would like to work on creating an EA for this but want to know if anyone else has done any testing or has data before I do.”

Nubchai wrote:
“The 4H Breakout System looks very promising. One challenge is that Ace sometimes changes the details of the system.   But JDSim's contribution is to provide a method to determine the trend before taking the trade.  He uses nonlagMA and a grid system.  I'm currently looking at JD's system as a separate 4 Hours trading method.  In trading it on demo it's had some nice results.  JD won't take a trade if the nonlagMA is red and it's crossing the blue portion of the grid or vice versa.  If you look at some charts that does give up a lot of pips.  But he estimates his success rate at 60 to 70% by following the trend and re entering after pullbacks.
http://www.forexfactory.com/showthread.php?t=168161&page=28
Sandy”


Joewudly wrote:
“I have tried the methods of exiting you mentioned and totally agree with you. My conclusion is 1 position, exiting at the TP2 is the best way to go. Though from the data I have gathered it seems that 2 positions might be better if you exit as follows. The 1st with an exit at TP2. When TP2 is hit move position 2 to break even. Close it TP4 or on Friday.

I am ONLY testing with FXDD since the entry is built around the 1st bar created with this broker. I will not test other broker data because it will be way to tome consuming to re-measure all of this data for 20 other brokers. We can always use FXDD to take our signals from and execute them on another broker anyway.

But to keep the system simple TP2 is the way to go. Using G/J data from 6/1/08 to 6/2/09 I calculated 5082 pips gain not counting spread just using TP2 and a lot size of .1.

I also tested using the same TP2 method but increased/decrease the lot size by .1 for every 1000 pips of profit/loss and got a total of 15422 pips gain not counting spread.

I also tested using the same TP2 method but increased/decrease the lot size by .1 for every win/loss after first reaching +1000 pips of profit and got a total of 24369 pips gain not counting spread.

I also tested using the same TP2 method but increased the lot size by .1 every 2 trades after first reaching +1000 pips of profit and got a total of 47180 pips gain not counting spread.

I also tested using the same TP2 method but increased the lot size by .1 every 1 trades after first reaching +1000 pips of profit and got a total of 82179 pips gain not counting spread. Though this method made a large profit, the lot sizes increased quickly and were a bit to large in 2 instances.

I also tested using the same TP2 method but increased the lot size by .1 every 3 trades after first reaching +1000 pips of profit and got a total of 31937 pips gain not counting spread.

This testing only covers 1 year and resulted in 79 trades. I will need to do this for a total of 3 years to get a better picture. Its a bit time consuming though. =) I also want to try with the 2 position idea i had earlier and see what i get. Some week G/J runs on for hundreds of pips and it happens pretty often. My hope is those larger gains will of set the more frequent losses and break evens.

Well, more to come as I keep testing.”

[AlexPali]

Here is another one; Noddy manual trading strategy

http://fxaw.activeboard.com/forum.spark?forumID=117707&p=3&topicID=28558638
Hepsibah wrote:

"OK, here goes.  I am not pretending there is anything ground-breaking in this strategy, it is just one that I have been using recently that has made money - and that is rather rare for me.  If someone feels motivated to code it, that would be great as it could easily be backtested and then we could see if it has just been luck that has made it successful recently.

Noddy
Noddy was the name of a children's book in the UK when I was young (it's apparently considered to be non-politically correct these days but didn't seem to do us any harm!).  Anyway, this strategy is so simple that I have named it after the children's book.

Rationale
The strategy is based around the fact that price will tend to move towards the Pivot value except in times of high volatility/strong trending markets.

Timing
You can choose any time that is convenient to you to trade this strategy.  The trade, SL and TP are all entered at the same time and there is no need to watch the screen afterwards.  I tend to use it most days before the London open (around 6 or 7am London time) and sometimes in the afternoon before the US open.

Setup
Use Camarilla historical pivot lines with only the Pivot, H4 and L4 lines visible (indicator and template at the bottom of the post).  I use it on EURUSD, GBPUSD and USDJPY.   I do not think that it is suited to more volatile crosses like GBPJPY.

When you are ready to make a trade, set the GMT shift value to correspond to the closest hour to the current time so that new pivot lines will be drawn.  For example, if I am up around 6am London time, I will set the GMT value to 7 (I use Alpari UK which is GMT + 1).

Trade Conditions
Check the value of the current period's Pivot line (P) with the value of the previous period's H4 and L4 lines.  If prev H4 > P > prev. L4 then you have a potential trade setup.  If P > prev H4 or if P < prev L4 there is no trade (this usually signifies high volatility/strong trending situations).

If you have a valid trade setup, check the current price in relation to P.  If current price is less than P, enter long, set TP to the value of P and SL to the value of the current period's L4.  If current price is greater than P, enter short, set TP to the value of P and SL to the current period's H4.

I usually also use two further checks.  Firstly, I make sure that the current price is at least 15 pips away from P and secondly, I check that the SL is not more than 60 pips away.  I have to admit that I do not have any scientific reasons for these numbers and it is something that could usefully be checked with backtesting.

Files
Indicator and template attached below.
Noddy.mq4 (8.1 kb)
noddy.tpl (2.7 kb)
..................... "

[xux99]

4H Box Breakout strategy seems profitable and can be easily coded into an expert advisor.