Advanced system #5 (Trend Lines Breakout System)

[szgy74]

However, I do see 2 observations.

1. On EURUSD, I see that upward line is formed with in the 5 candles working range. The first candle of the working range is connected to 2nd candle of the working range. Is this correct ? Should it not be connected to previous candles low outside of the working range ?
1. On GBPUSD, upward line is not formed. Is it because none of the candles are lower than the previous candels in that 5 candle range?

Your observations are correct. It is because the trendlines adjust themselves as time goes on.
As I undertand the strategy uses the most recent trendline in the 5 bar range, but after that I think there is no need to adjust them.
I am not sure what to do with the older trendlines when new price data formes new ones. Good question, how long are these valid.
(Edward wrote he waits until NY close.) Surely I will soon modify this version to keep the original lines.

[szgy74]

I have made the mentioned changes, will post the new version after testing tomorrow.

[cpr]

Ok. Will look forward for your new update.

[szgy74]

Ok. Will look forward for your new update.

Here is the new version:

Trendlines2_H1-breakout_v2.mq4

(13.64 KiB) Downloaded 767 times

Now the trendlines are the same until next days range is reached. Thank you for pointing out this!

I have made some little modification:
- The alert is now more friendly. The popup window appears only once in a price bar.
If price retraces in the same price bar below/above the trendline a new popup alert is displayed.
- I have implemented a simplified version based on "Magnified Market Price".
Instead of not so easy readable comment lines data may be put on screen using "disp_comment = false" setting (this is the default).
Font color, size and display corner are all adjustable.
After TL break, the stop info displayed is always the _current_ pricebars high/low value and distance from TL.
You need this info only to set stop when the breakout happens.

A notice, with the two screenshot illustrated: The trendlines are established when the next price bar after the swing high is closed.
Only then can we know for sure that the swing high is really swing high. Same for lows.
Keeping this in mind, the first trendlines may appear at 7:01 GMT, and the last will be in place by 11:01 GMT.

Feel free to write if you have any problem, question.

Regards,
Gyula

[cpr]

Thank you very much for the update. I have not looked at the setup today since my computer is not working.. I am responding from my company laptop.. Hopefully I will get my computer ready by tonight.

Are you still on demo on this setup or you trading on real account ? Thank you once again for the update.

[szgy74]

I fixed the another bug, so this is capable of handling ranges on different days, for example from 22:00-02:00.
The main difference is you must set only starting time (rfbt) and range_length in the parameters. range end time is not needed.
time length according to the strategy is always 5.

Please use this version, not the prevoius ones.

Trendlines2_H1-breakout_v3.mq4

(13.18 KiB) Downloaded 629 times

[szgy74]

Thank you very much for the update. I have not looked at the setup today since my computer is not working.. I am responding from my company laptop.. Hopefully I will get my computer ready by tonight.

Are you still on demo on this setup or you trading on real account ? Thank you once again for the update.

That depends on the day... If my day is busy or hectic, I usually just look the prices and lines and curves and do not trade real. On quiet days when I have the time to watch carefully I trade on real account.

I think this strategy does not need continuous "watchguarding", but I am not so comfortable yet with letting the trade run and lot look almost always. I think it will take some more time to get used to that...

[cpr]

Ok. Well. I will not be watching this pair tomorrow also since my computer will only be coming tomorrow..

Can this strategy be automated, I mean can we build an EA for it ?

[szgy74]

Ok. Well. I will not be watching this pair tomorrow also since my computer will only be coming tomorrow..

Can this strategy be automated, I mean can we build an EA for it ?

Surely

In the end this will be an EA if everything will work fine. I am now programming pivot lines for targets. I also work on some kind of "programmed confirmation" based on "true and false trendline breakouts", and other additional little things, just as nearby S/R levels and superior (H4, D1) trendlines. I also built a little automatic data refresh module, because you may see wrong (old) trendline until new price data is loaded.

Generally, I think of an EA that places stop orders above/below the trendlines and moves them every hour. And then the triggered orders will be closed when reaching TP or SL - that needs no EA, but closing after 3 hours does.

There are some freely available order manager EAs. I will not program again if I find a good one that can be set/modified to work together with this strategy.

[cpr]

Interesting.. and Thank you for your continued conversation.

I love this conversation to achieve common objectives.

I am not sure how much data is enough to say that this strategy can be automated. Becuase in the changed economic scenarios, lot of things could happen.

May be at least we need 3 months of data consistently - at least 100 trades .. if the win ratio is aboe 75% and R:R ratio is greater than or equal to 1:2 , then we can say .. with some certainity this can be automated..

I am not sure how much data you have now with you now to justify building an EA.