Forex Trading Strategies..

[Doji3333]

Hi all,

I'm curious as to what types of trading strategies others have developed for forex trading?? I'm working on something that looks interesting and shows positive results in a backtest, but I know the forex markets can be tricky..

If anyone would be interested in discussing forex trading strategies, please post here. I'll try to have some samples of my stuff in the next week or so..

B

[buzzhorton]

I trade the crossover of the previous day's candle's midpoint.

Put this code on your daily chart and you'll see just how profitable it is.

/**********************************************
TRO_Middle_Bg   20060723  COLORS BACKGROUND ABOVE/BELOW PREVIOUS DAYS MIDDLE


Programmer:  Avery T. Horton, Jr.  aka *************, 


                 
*******************************************/

var Mid = null;

function preMain() {
    setPriceStudy(true);
    setStudyTitle("TRO_Middle_Bg ");
    setCursorLabelName("Prev Middle", 0);
    setCursorLabelName("Middle", 1);
    setDefaultBarFgColor(Color.black, 0);
    setDefaultBarFgColor(Color.white, 1);
    setDefaultBarThickness(1,0);
    setDefaultBarThickness(1,1);
    setPlotType(PLOTTYPE_FLATLINES,0);   
    setPlotType(PLOTTYPE_FLATLINES,1);           

}

askForInput();

    var iColorTop = new FunctionParameter("iColorTop", FunctionParameter.COLOR);
        iColorTop.setDefault( Color.black );

    var iColorBottom = new FunctionParameter("iColorBottom", FunctionParameter.COLOR);
        iColorBottom.setDefault( Color.white );

function main(iColorTop , iColorBottom ) {
   
var xHHD = high(inv("D") ); //this creates the series object of the daily high

var xLLD  = low(inv("D")  ); //this creates the series object of the daily low

var  HHD  = formatPriceNumber(xHHD)*1 ; 

var  LLD  = formatPriceNumber(xLLD)*1 ; 

var xMidDPoint = 0.5*( HHD + LLD  )  ; // Average of High and Low

Mid = formatPriceNumber( xMidDPoint) *1   ; // Average of High and Low
   

var xPrevHiD = xHHD.getValue(-1) ;
var xPrevLoD = xLLD.getValue(-1) ;

var PrevHiD = formatPriceNumber( xPrevHiD ) *1   ;
var PrevLoD = formatPriceNumber( xPrevLoD ) *1   ;


var xPrevMidD = 0.5*( xHHD.getValue(-1) + xLLD.getValue(-1) )  ; // Average of High and Low

PrevMidD = formatPriceNumber( xPrevMidD )*1   ; // Average of High and Low

setBarBgColor(iColorTop ,0, PrevMidD, null );

setBarBgColor(iColorBottom, 1, null, PrevMidD );

    
return new Array ( PrevMidD , Mid );

} 

[Doji3333]

Interesting...

When I loaded up your code, I have to fix one little bug with the comments at the top of the file, but this is interesting??

Do you trade EOD Closes above/below the midpoint of the previous day? Or are you daytrading the flipping above/below the midpoint?

My proposed system is a bit different.. I'm using a theory I created about ranges (kinda like you, but not using the midpoints - although I might investigate that option)..

My tested results are as follows (on a single traded pair)..

Feb 06 -$2330 on 3 trades
Mar 06 +3240 on 7 trades
Apr 06 +4810 on 7 trades
May 06 -$1170 on 7 trades
Jun 06 +4340 on 10 trades
July 06 +2660 on 7 trades

$11,550 the new way (without less SPREAD costs). My concept is to try to catch major trends and forget about the minor trends. I'm using a 60 minute chart...

B

[buzzhorton]

Sorry about the comment bug... have to get use to posting here.
It's been years...LOL!

Well you know FOREX only closes on Friday.

So you take the trade when it crosses.

Does that answer your question?

[Doji3333]

Thanks..

I wanted to thank you for your post..

I'm still in the testing phase with my system.. I'm thinking of adding a "phase II" mechanism to it with a 20 pip target.. My system does a pretty good job of catching the major trends, so adding something that can SCALP in the direction of the trend might be a good thing (although - it might not - LOL)?

My system is somewhat similar. I'll post something soon to show you my system and how it works...

[Doji3333]

This is really cool..

Buzz,

I appreciate you helping me to discuss and evaluate trading systems. Mine are very much in a development stage. This is something that I've seen in the markets for MONTHS - but something just clicked and I started working on this theory about 2 weeks ago..

I've been giving some thought to a "built-in" scalping system. My current model it designed for longer term trading.. So, there is possibly some room to "scalp" a few short term trades in the direction of the longer term trend..

In my current code (long term) I'm still short from 1.2652 (7/23) on the EUR. We'll see what happens. The previous trade was..

7/19/06 Long @ 1.2570
7/23/06 Exit (reverse) @ 1.2652

82 pips - 6 pips spread = 76 pips.

My new "scalper" module would have added trades with 20 pip targets on..

7/19 @ 8:00 - 20 pip target hit same bar
7/20 @ 6:00 - 20 pip target hit @ 7am
7/20 @ 9:00 - 20 pip target hit @ 11am
7/20 @ 14:00 - 20 pip target hit @ 18:00
7/21 @ 0:00 - 20 pip target hit @ 1am
7/21 @ 2:00 - 20 pip target hit @ 3am
7/23 @ 12:00 - 20 pip LOSS hit @ 17:00

So, on top of the long term trade (76 pips), there would have been 5 additional winners of 20 pips each (14 actually) so another 70 pips. Total = 146 pips.

I think the trick with these scalp trades is to terminate them for the day after the first loss. Don't let it chase the market..

I'll be ready to show a bit more probably next week. I'm doing this inbetween client's work.. I'm also posting on the e-mini forum regarding a similar system for the ES, YM and NQ.. I might have found something here - who knows...???

[pmurraymc]

Buzz, Brad et al,

after seeing this thread I though I would try my latest strategy on Forex this morning (was going to eventually), results pictured.

Will be developing this strategy on my fileshare (Indicator Combinations), new members and reviews welcome.

Paul Murray

[Doji3333]

Nice work..

Paul,

Nice work. I can see you are skilled at EFS development. I too have been working on efs scripts for YEARS.. It seems the more you get into it, the more you find you want to do..

Have you done any work backtesting this? Or is this more of an indicator to help with "decision support"?

I should be posting something soon with my code. It does not look like much, but it does a good job of capturing profits and is fully-automatic. I've had it running now for a little over a week and it is firing orders just perfectly..

[buzzhorton]

What is " fileshare (Indicator Combinations)"?

[pmurraymc]

http://share.esignal.com/groupcontents.jsp?folder=&groupid=860

have a look,

Paul

[FX989231]

Brad

Long time since we last speak.

On what platform are you running the programme you are testing now?

Regards

[buzzhorton]

Ok, maybe I am a little "new" here, even though I have been using eSignal for years.

I clicked on the links and I see screenshots but no code.

What am I missing?

Originally posted by pmurraymc
http://share.esignal.com/groupconten...r=&groupid=860

have a look,

Paul

[pmurraymc]

Brad,

thanks for the kind words.

I have not got to grips with backtesting code yet - so no it is not backtested.

From just running it every day, the program works well in ranging markets, usually picks the start of most moves - depending on timeframe chosen.

Will post a chart with multiple instances of the code when I get the chance.

So best used in 'decision support' alongside another indicator for confirmation of a turn, especially in a trending market.

Look forward to seeing your work.

Paul.

p.s.

always on the lookout for more efs examples - are all 3 of your websites active again now

[pmurraymc]

Buzz,

you are not missing anything, most of the code is available on the bb, with some modifications added by me, some, where noted, have been purchased - so I cannot post the code.

Paul.

[Doji3333]

Update..

My system reversed LONG this AM @ 1.2627. Would have liked more profits in the last short trade, but I won't complain about 25+ pips.

More later