MR. Mechanical method
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Thread: MR. Mechanical method

  1. #1
    Note: This system was conceived of using the GBP/USD, it might or might not operate on additional pairs.

    For this particular system, you use 4HR charts. Each day at 8:00 GMT you set your transactions.

    We are using the price range of this 4:00 GMT pub as the foundation from which to set our transactions.

    Every day you set your transactions in the close of this 4:00 GMT 4HR pub, which will be at 8:00 GMT, which can be 4:00'm EST..

    Buy a break of the high of the 4:00 pub, Sell a break of the low. Stop is another side of this pub.
    Utilize a 10 pip buffer to consider a transaction triggered! lt;--KEY POINT!

    One Stop and Reverse order is permitted per day (at your discretion). Consequently, if your stop is hit, you may if you like start a new order from another way.

    There are 6 four-hour periods a day. You shut out 1/6th of this transaction after each 4HR pub closes, so finishing up every day the next day as you are opening a new commerce.

    If you wind up getting a great move early, shut out more harshly.

    If you become triggered later in the afternoon, with state just 2-4 bars left, be certain to have closed out the commerce entirely at the end of this 6th 4HR pub.

    Always start the next day fresh!

  2. #2
    Have you backtested this particular system? If so, what were your results?

  3. #3
    Past performance is not indiive of future outcomes . I will post current commerce charts on the and beyond as time allows. It is quite straightforward to backtest it yourself, though. Twist back to any part on the 4H chart, loe the bar that was 4:00 GMT, determine it's highs and lows, then handle the transaction as per the first post. There are times that KILL, although some days are going to be a break-even affair, some will be declines. Just test it out on your own. Of course, you need to money handle, and you have to be consistent in your efforts, but this has much promise as a system. Part of what makes this unique is the fact your exit technique is constant and predetermined. If you find yourself with a huge move 16, you close out 1/6th every four hours. There is a touch of discretion in real implementation, but the theory is mechanical. See how you'd have behaved in each scenario and the best thing to do would be to backtest your self. It is the way you handle them that make you successful, although there'll be shedding days. I believe what's there from the very first article for you to be prosperous at the long-run, but it will take training and experience for you (and me) to know how to squeeze every last profitable drop from the market. I hope someone here in these forums may add some input about how best to make this method even more profitable...

  4. #4
    Could we use it to pairs ?

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  5. #5
    Your thought of scaling out is very well thought of. But is is really a good idea to reverse on precisely the day? From other systems I've seen stop and reverse position for a single day trades does more damage than good. No gripe here from my testing I'm of the opinion its system. I'm just hoping you can tell us about the resulys you've had with stop and reverse versus simply stop out (one entry a day)

    Thank you very much for posting here, we appreciate your valuable contributuion.

  6. #6
    This has only been attempted on the G/U so much, it may work on other pairs.

    I'm attaching now's 4H chart up to now. It is possible to see the 4HR bar was bracketed by me together with the green lines, 10 pips above the top and 10 pips below the non. The very first bar remained an inside bar. The bar triggered long.

    Now, since the very first bar didn't start a trade, that just leaves us with 5 bars left daily. So instead of closing 1/6th for 6 bars, we'd now shut 1/5th for 5 bars.

    The second candle of this day closed 12 pips in profit - close 1/5th.

    The third candle of now is well in profit, about 80 pips. This is profit for a day, therefore I would suggest closing at this stage out 2/5th's, leaving 2/5th's still on the table. Move stop and come back in four hours and then shut out the other 1/5th. There's no hard and fast rule about closing out, other than to get closed out the trade completely before the following day. As I mentioned in the very first post, when you have got profit, shut.

    As for the question concerning the stop and reverse, it is a good one. I really don't have a firm response. You can do as you said and just let a stop out happen and await the following day, or when you want, take the direction. There's no right or wrong here provided that cash management and your position sizes are proper.

  7. #7
    Quote Originally Posted by ;
    This has only been tried on the G/U so much, it might work on other pairs.

    I am minding now's 4H chart so far. It is possible to see I bracketed the 4HR bar together with the dashed green lines, 10 pips over the top and 10 pips below the reduced. The first bar remained an inside bar. The bar triggered long.

    Now, because the first bar didn't open a transaction, that only leaves us with 5 bars left in the day. So instead of closing 1/5th would now shut for 5 bars.

    The second candle of the day closed 12 pips in profit - near 1/5th.

    The...
    Hi,
    One of the systems I exchange live is similar to this, only I place the trades in 08:00 London time (currently at 07:00 GMT). Now therefore I took a hit.
    I also shoot for a larger TP (approx 110 pips unless I chicken out before that).
    Anyhow, I have discovered (for my system) that by far the best day for G/U is Monday, and this G/J works on both Monday and Friday - but with a more compact TP on Friday than on Monday.

    Food for thought?

    Ian

  8. #8
    This might be a really dumb question. My apologies ahead .

    My broker functions on GMT 3, so, should I chart at 4 hours, I still will not have the ability to see the four hour GMT bar, since there is an hour offset in the center. Example, if I look at my 8:00 hour bar, I'll be taking a look at a bar that begins at 5:00 GMT. Is there any way I can achieve this? I am considering the chart for that period of time, but the thought has been writing an EA.

    Thanks,
    Max

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