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Breakout Strategy

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Re: Breakout Strategy

Postby hawk31003 » Wed Dec 29, 2010 4:10 am

edit: is there any way possible to make the stop and limit work with fifo??
Last edited by hawk31003 on Sat Jan 01, 2011 3:47 am, edited 1 time in total.
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Re: Breakout Strategy

Postby GBitaly » Sat Jan 01, 2011 3:31 am

The problem of "time type" is not fixet.Instead of LOCAL TIME I use TRADING DAY TIME adding 1 hour !! I ask,if it is possible, two think more. The chanche to limit to only 1 operation a day REMOVING the reverse.Connect the value of stop and profit to a % of ATR.For example using 15min I would set Stop 25% of ATR(200) and Profit 50% of ATR(200)
thanks in advance
guido
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Re: Breakout Strategy

Postby Nikolay.Gekht » Sat Jan 01, 2011 1:07 pm

hawk31003 wrote:edit: is there any way possible to make the stop and limit work with fifo??

Not the "pure" stops and limits as for non-FIFO accounts, but "ELS orders" - i.e. entry orders in opposite direction which will never open a position but only close an existing. Works pretty good with two exceptions:
1) If trade size is changed - the orders will remains in full until at least one position still exist.
2) They close the oldest of trade, not the trade they are created for
both are depending on NFA FIFO rule.

ELS orders are available in upcoming release.
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Re: Breakout Strategy

Postby hawk31003 » Sun Jan 02, 2011 1:50 am

sounds good. if it works out the way i think it should with all the right parameters plugged in, you will be driving in your complimentary gift ferrari within 3 years from now lol. im looking forward to it
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Re: Breakout Strategy

Postby Building » Mon Jan 10, 2011 6:03 pm

I like this strategy but feel it could be improved if the following change was made - instead of setting a stop in number of pips, let the user choose the stop to be the breakout level (minus the spread). That way, if the price breaks out upwards by 100 pips and the candle closes, reverses 50 pips then keeps heading up you don't get stopped out if you had a 40 pip stop. The alternative would be to have entry based on tick and not close but that is obviously more risky and implies you are using the strategy on a tick timeframe and not M15 or H1.

The advantage of having the stop as the breakeven is highlighted with an example of the opposite described above: if price breaks out upwards by 10 pips then falls back 30 pips and price heads downwards you are stopped out with an unncessary 30 pip loss. If it breaks out again then simply re enter the trade again by choosing multiple times a day.
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Re: Breakout Strategy

Postby Building » Fri Jan 14, 2011 12:12 pm

I have been testing what I wrote in the above post on live data by using a combination of the breakout strategy and the breakeven price strategy. I think now that what I said was wrong. If the position is closed after falling to the breakeven breakout level then that stop is effectively too aggressive. Either you choose to enter positions only after the candlestick has closed, which leads to the problem of the candlestick leaving a large shadow but nonetheless moving in the direction of the breakout (leading you to having closed too early) or you enter based on tick data which can get your potential profits eaten up by the spread.

I still think entering on candlestick closes is the right way to go but such a strategy relies on the small losses you make on spreads to be more than made up for by the profits you gain on capturing good breakouts. Perhaps something more like 20 pip stop, 60 pip limit. However, being able to set the stop and limit in terms of the ATR would be ideal for this.
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Re: Breakout Strategy

Postby taroblaro » Tue Feb 01, 2011 8:07 pm

Forgive me if this is posted to the wrong board. The breakout strategy is close to what I would like to have, but I have no programming ability. Even the lua programming manual is way out of my league.

What I would like to have is a strategy in which entry is based on the open price. There is a range above and below the open set by a predetermined number of pips. Buy when the ask crosses above the range. Sell when the bid crosses below the range.

Optionally, sell at the close of the bar. This would be more useful on a longer time frame--daily, or even weekly (maybe shorter). Closing the trade at the close is my preference since that protects from gaps in the wrong direction.

Also, a trailing stop might help on those bars when there's movement but the open and close are close together.

Is any of this possible with this strategy?
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Re: Breakout Strategy

Postby Apprentice » Wed Feb 02, 2011 4:58 am

It is possible. The person who will work on the problem may ask you a few questions.
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Re: Breakout Strategy

Postby lucky777 » Thu Feb 03, 2011 10:38 am

Hi,
Could you please explain when I down load break out strategy Why Err is coming. Am I doinig some thing wrong. Other indicator are working fine.
Thanks
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Re: Breakout Strategy

Postby Apprentice » Thu Feb 03, 2011 11:08 am

We discovered a bug.

Developers already fixed this issue, and the fix will be submitted in
the next release.

Actually, there is a way to resolve the problem right now. The users
should just restart the Trading Station. After this, the error
shouldn't appear.
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