Ok, so I have this idea. In fact, I have a programer from tradestation working on automating the strategy for me right now. I's excited about this one because in my mind it makes a lot of sense. It plays off some other strategies on this site that have proven themselves over time. Mainly forexhard's stairstep breakout strategy.
So this is it: (and this may not be real original)
So what we want to do is trade only around ROUND NUMBERS (1.30, 1.31, 1.32 etc). We then wait for consolidation within a range of the round number. For example once price crosses 1.30 it starts looking for X number of bars within the zone (Im thinking the zone will be .015-.085, so 1.3015 - 1.2985 for the example).
So if we are using a 5 min chart we wait for a cross of a round number, then wait for X number of bars to trade within the zone .0015-.0085 (So it would be a 30 pip breakout box that forms 15 pips above and below the round numbers.)
We then take all breakouts of the box with a target of .0050. Risk to reward make sense (risking 30 pips to make 35 pips).
I'm thinking 12 closes within the +-.15 round number zone using a 5 min chart make sense (1H).
I would like it to martingale also. The idea is that with the consolidation it will soon breakout to reach a target. Hopefully the number of losses back to back are manageable.
We can call the +-.15 of the round number the "round number kill zone". The only way it starts to countdown the "closes within the round number kill zone" is after a prior target was hit and a new round number has been crossed.
I'm hoping forexhard or some others from that thread can code some stuff up. Its much like what they are doing over there but with some added price rules. A time of day filter might be needed also but I'm not sure.
Let see if this has legs..... If it doest I'll share the tradestation code with anyone willing to help with metatrader code for EA's and indicators.
GAME ON!
So this is it: (and this may not be real original)
So what we want to do is trade only around ROUND NUMBERS (1.30, 1.31, 1.32 etc). We then wait for consolidation within a range of the round number. For example once price crosses 1.30 it starts looking for X number of bars within the zone (Im thinking the zone will be .015-.085, so 1.3015 - 1.2985 for the example).
So if we are using a 5 min chart we wait for a cross of a round number, then wait for X number of bars to trade within the zone .0015-.0085 (So it would be a 30 pip breakout box that forms 15 pips above and below the round numbers.)
We then take all breakouts of the box with a target of .0050. Risk to reward make sense (risking 30 pips to make 35 pips).
I'm thinking 12 closes within the +-.15 round number zone using a 5 min chart make sense (1H).
I would like it to martingale also. The idea is that with the consolidation it will soon breakout to reach a target. Hopefully the number of losses back to back are manageable.
We can call the +-.15 of the round number the "round number kill zone". The only way it starts to countdown the "closes within the round number kill zone" is after a prior target was hit and a new round number has been crossed.
I'm hoping forexhard or some others from that thread can code some stuff up. Its much like what they are doing over there but with some added price rules. A time of day filter might be needed also but I'm not sure.
Let see if this has legs..... If it doest I'll share the tradestation code with anyone willing to help with metatrader code for EA's and indicators.
GAME ON!