Finally after 3 months, today EA Pipscola_Y02 again suffered big losses. And once again this happens when the DST on / off is applied. In accordance with the schedule, began on March 13, 2011 the United States to apply the Daylight Saving Time (DST)and then to be followed by European countries on the last Monday in March.
I do not want to blame the time as the cause of this loss. Because even if I change the trading time 1 hour earlier, it's still could not prevent me from the loss. But at least I already have a conclusion about what to do when there is change in time zones.
Adjust Trading Time with the U.S. Time Zone
When the application of Daylight Saving Time (DST)ends, I have an opinion about what should be done. And I think that right now I have to do the same. We must adjust the time trading with the time zone used on the American market. Actually the logic is very simple, because we transact after closing the American market. It's only natural if we follow the time zone used by the U.S. market.
It is different if you run a trading system that deal only in the European Market. Either simultaneously with the Asian market or not, but before the U.S. markets open. In this case, you do not need to change trading time.
Finally, for the moment I change the trading time of Pipscola EA to 22-0 (GMT +1).
Get Back Your Money
Friday, March 18, 2011
Tuesday, March 8, 2011
Variations of Range Breakout Strategy
N-Bar Range Breakout
Range breakout is a very simple trading system that is very easy to learn for beginner traders. Observe the highest/lowest in 1 or more bars. Put a limit order a few pips away from that highest/lowest. This is the classic N-bar breakout strategy.
Session Range Breakout
This is just a variation of classic N-Bar range breakout strategy. The main difference of this system with N-Bar range breakout is the bar(s) that was observed to be static and associated with the time. Although the session in the forex is often associated with time zones (Asia, Europe and America), but in this case does not always mean that. Because they are static, the rules of this system : "Observe the highest/lowest of the HH:MM to HH:MM".
Opening Range Breakout
I think this system is still a variation of classic N-Bar range breakout. This system is an adaptation of the stock trading system called the Early Morning Breakout System.
This term is actually less suitable in Forex. This is because every Forex broker uses a different time zone.
Bar 0(GMT +1) Range Breakout
Now it's up to you want to call what this breakout kind of. Observations made on H1 timeframe. And probably only suitable for the USDJPY pair. I didn't test it yet on other pair.
For more details, I make an EA to test this system. I arranged to take buy position when price penetrates the high (bar 0 gmt +1) + 10 pips. And vice versa on the sell position. I do not use a limit order and let the EA work in stop and reversal mode. But I do not restrict to just open a trade position. If yesterday's EA took a buy position, and if today prices penetrate the high (bar 0 gmt +1)+10 pips, EA will add a new buy position.
Range breakout is a very simple trading system that is very easy to learn for beginner traders. Observe the highest/lowest in 1 or more bars. Put a limit order a few pips away from that highest/lowest. This is the classic N-bar breakout strategy.
Session Range Breakout
This is just a variation of classic N-Bar range breakout strategy. The main difference of this system with N-Bar range breakout is the bar(s) that was observed to be static and associated with the time. Although the session in the forex is often associated with time zones (Asia, Europe and America), but in this case does not always mean that. Because they are static, the rules of this system : "Observe the highest/lowest of the HH:MM to HH:MM".
Opening Range Breakout
I think this system is still a variation of classic N-Bar range breakout. This system is an adaptation of the stock trading system called the Early Morning Breakout System.
This term is actually less suitable in Forex. This is because every Forex broker uses a different time zone.
Bar 0(GMT +1) Range Breakout
Now it's up to you want to call what this breakout kind of. Observations made on H1 timeframe. And probably only suitable for the USDJPY pair. I didn't test it yet on other pair.
For more details, I make an EA to test this system. I arranged to take buy position when price penetrates the high (bar 0 gmt +1) + 10 pips. And vice versa on the sell position. I do not use a limit order and let the EA work in stop and reversal mode. But I do not restrict to just open a trade position. If yesterday's EA took a buy position, and if today prices penetrate the high (bar 0 gmt +1)+10 pips, EA will add a new buy position.
