CatFx50 - page 97
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Euro long signal in the Europeansession. First Exit 1,2015 at the 38 Fibo Level (EMA & 38, 55, 89 Levels)
Hi zendo!
Do you use especial indicator in your charts in order to show fibo level , if it is, if you don't mind, upload it untill we can download it,
thanks
m217irr
the "PERFECT" exit rule
Hy to Nina and all others,
I would like to make a helpfull contribution to the question wich is been asked now for 97 pages...
What is the "PERFECT" exit rule ?..
I personnaly make now mecanical systems for over 9 years. That with a programm called metastock professional. It is a software programm were one can do toroughly and trustworthy backtesting. The kind off backtesting that one can do with this programm can not be compared with the dredfull backtesting off MT4.0.
My experiance with this program and mecanical backtesting and finding exit rules is that you will never find the "PERFECT" exit rule.
Why is that?...
One has to realize if in the set up and rules you have now, you would find the "PERFECT" exit rule that emmidiatly you would find the perfect entry who would be an other set up and set off rules for entry.
Imagine this: now the set up is that you take a position (long or short) when price is around the MA(50) so that means that you get in at an average or in the middle of a range. And you want to get out at a top or at the bottom. If you would find a rule that would get you out at these bottoms or tops that would give you emmidiatly the perfect entry to go long at this bottoms or to go short at this tops. And again that would change your complete entry rules.
So what do we do for example with metastock or Igorad with traderstation? We don't look for an exit rule but we look what this system does with stops.
That is the only way who will improve our results and who are cappable off locking in profit or preventing us to go in loss or loosing to much off our profit.
These stops are calculated in pips and are optimized over a long period off historical data (severall years).
For ex. Our backtesting results could come up with with an ideal profittarget off ex. 75pips. A test on stoploss would show us that the ideal stoploss would be 42 pips and a trailing stop off 50 pips. and all off those stops to be taken at the close off a bar (these kind off values would be given by the backtest because over severall years off data the programm calculates that for ex. 75 is an average profit that generates the biggest total profit over severall years)
Thinking that that a trailingstop could be smaller is a mistake because if for ex. you would expect a trailing stop on a 30min chart the smallest retracement will cause you to be stopt out and miss a big portion off future profits.
Thinking that larger profits are possible is also a mistake because you would missout to many smaller movements.
Thinking off smaller stoplosses is again the same problem, you would get stopted out to many times were a possible profit is still waiting.
So if you are cappable off doing these kind off test you would see that you what not have a hit ratio of 90% not even 70%. Because lots off times you will see a profit off for ex. 30pips befor turning the other way and because the trailing stop +/- 50 pips you will go into loss. Loss because one has to wait till a bar is closed before you can react.
Maybe now you think: we react not on the close but during the bar. Then all examples that I gave 75-50-42 would be a lot bigger. Al testing on exit at price give greater values then exit at close off bar. So in that case you can react during a bar but you have to realize that you would not work with a 50pips trailing but maybe with a 65pips. Beleve me there is no other way to solve this.
So as long as those stops can not be toroughly tested, the only way to exit is true a discretionary way with indicators. And the disadvantage is that the rules for that can occure just 10 pips in profit and you exit and ones exited you see the price going an other 150 pips in your favor. If you use rules that would not make you exit that soon you will see that there are times that you are 50pips in profit and you'll end up with a loosing trade.
I hope I don't sound to negative, I'm here only to help you and to clear out some problems. Keep this in mind...finding a better rule to get OUT on tops and bottoms would make a better entry rule to get IN at these tops or bottoms
friendly greetings and keep up the good work ...iGoR..
PS1 the only one that I know, who could help you on those stops is Igorad. Because he can make stepstoch into Tradestation
PS2 What looks like a good exit to me is when stepstoc and stepMAstoc cross...(2 indicators to prevent exits on false retracements, so they both have to show the same thing)
please test and inform me
I update the EA and test a little ,it get the signal and go to trade and then manage lotage in order to get more pip and money management, please test and inform me for optimizing via pm or mail me at m217ir[at]yahoo.com
m217ir
Zendo,
How many lots did u close in this first exit, and did you move inmediately after first exit your stoploss to breakeven?
thanks.
Zendo,
How many lots did u close in this first exit, and did you move inmediately after first exit your stoploss to breakeven?
thanks.For the moment i try 3 lots for the 38 - 55 and 89 level.
After 38 level is reached i took the stoploss to entry.
The levels are no indicator! You can add the levels under the EMA50 properties.
For the moment i try 3 lots for the 38 - 55 and 89 level.
After 38 level is reached i took the stoploss to entry.
The levels are no indicator! You can add the levels under the EMA50 properties.Not shure it ws clear explained:
I sell the first lot at the 38 Level, the second lot at the 55 level and the third if i get it at 89 level. In the evening i take what the market gives me if i still have positions.
very clear, thanks a lot.
I like the idea of using fibos for exit
Not shure it ws clear explained: I sell the first lot at the 38 Level, the second lot at the 55 level and the third if i get it at 89 level. In the evening i take what the market gives me if i still have positions.
Did I miss something? What are all those curves on your price window?
Did I miss something? What are all those curves on your price window?
FibLevels added to the EMA. They are dynamic because they change with the EMA50. You can ad them under the properties of the EMA50.
FibLevels added to the EMA. They are dynamic because they change with the EMA50. You can ad them under the properties of the EMA50.
Thank you very much. You know, I am a newbie. I know very little about MT4. Anyway I am learning and hope soon I can write some sophisticated codes for you guys.
BTW, which broker is good? I know OANDA is the #1, but it doesn't support MT4 at all.