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Remember you are speculating on the reward. The only thing you can control almost surely is your risk. With that in mind you have some options. Do the last 100 day study to get you average breakout ranges (initial break and 2nd al least) and let your results act as a TP filter tool. EX. if your average breakout from CZ is 30 pip you operate within that range. If your trigger sucks 10 pips away from that range you may want to skip that trade or adjust TP and trade management plan accordingly. Think on it! Follow currency strength – maybe you see strength in you trade direction that will give a higher probability that your target will be met 1:1 regardless of filter mentioned above. Once trade is triggered in direction of strength you adjust your target to match your risk. Stop 25 target 25 and such Stop loss is always the other side of the CZ it’s the target that get’s adjusted or not. Trade management is triggered based on your plan Stairstep=trend trend =Stairstep. No trend= No stairs Martingaling or not.
Billyon,
Many thanks for your post! very helpful information, I too believe that the stoploss is always on the opposite side of the CZ zone so irrespective if a bar closes outside the zone but 10 or 20pips the SL will not change but rather the TP should be adjusted to ensure 1:1.
Either that or I will pass on trades that breakout out 10+ pips outside the box.
Cheers again!
Now back to my original question- I have spent 2 years studying this system and all I want to know is how to actually implement the 1:1 risk reward ratio given that we wait for the one bar close outside the CZ zone as some of the closes can 5-10pips outside the box do we still set stop loss on the opposite side of the box regardless?
Just a thought..
I don t know if you are planing to use a robot or do you trade manualy. But a good way to increase R:R is to ADD to the winer. Of course it s more stresfull and
you have to manage your risk (trailing?), but think about it…1 good trade with multiple positions pays of for 5, 10,…even more bad ones. As i understand it, this system takes advantage of consolidation brakeouts, which brings plenty of good runners suitable for stacking positions..
Danny- Agreed. Apologies to you also who got dragged into this. Now back to my original question- I have spent 2 years studying this system and all I want to know is how to actually implement the 1:1 risk reward ratio given that we wait for the one bar close outside the CZ zone as some of the closes can 5-10pips outside the box do we still set stop loss on the opposite side of the box regardless? Still need to implement the rossbot- I have fiddled with it but does not seem to pick up any zones..
Have you tried my suggestion from post #11933 ?
Danny- Agreed. Apologies to you also who got dragged into this. Now back to my original question- I have spent 2 years studying this system and all I want to know is how to actually implement the 1:1 risk reward ratio given that we wait for the one bar close outside the CZ zone as some of the closes can 5-10pips outside the box do we still set stop loss on the opposite side of the box regardless? Still need to implement the rossbot- I have fiddled with it but does not seem to pick up any zones..
Have you tried my suggestion from post #11933 ?
Not quite sure how to use the rossbot- do I just add the rossbot onto the dynamic ssbo indicator- nothing shows on the chart.
Now back to my original question- I have spent 2 years studying this system and all I want to know is how to actually implement the 1:1 risk reward ratio given that we wait for the one bar close outside the CZ zone as some of the closes can 5-10pips outside the box do we still set stop loss on the opposite side of the box regardless?
Just a thought.. I don t know if you are planing to use a robot or do you trade manualy. But a good way to increase R:R is to ADD to the winer. Of course it s more stresfull and you have to manage your risk (trailing?), but think about it…1 good trade with multiple positions pays of for 5, 10,…even more bad ones. As i understand it, this system takes advantage of consolidation brakeouts, which brings plenty of good runners suitable for stacking positions..
Mak please expand on this, I am not quite sure what you mean, but its something about trailing stop with multiple positions?
Trailing stop is just to protect your risk. You can do it manualy.
Let s say your risk for first entry is on the other side of the brakeout box (x pips). You enter, and the trade goes in your direction. You soon(the sooner, the better) add another entry, which means you have to move your SL to keep original risk. Imagine as if your moving the BO CZ box behind the price, keeping original risk as the price goes in to your favor with multiple positions.
I didn t study this system, but as i understand it you have tools, which enable you to statisticaly forecast % hit and average travel distance of winners. Lets say (pesimisticaly) that you have a 50% hit rate with average SL of 30 pips and average TP of 30 pips. Take 10 trades sample and put in to this sample only one successful trade with multiple positions, increassing TP for that trade by x2,x3,x5 (depends on the number of stacks), which means that the hit rate is not important any more, because your R:R increases.
Trailing stop is just to protect your risk. You can do it manualy. Let s say your risk for first entry is on the other side of the brakeout box (x pips). You enter, and the trade goes in your direction. You soon(the sooner, the better) add another entry, which means you have to move your SL to keep original risk. Imagine as if your moving the BO CZ box behind the price, keeping original risk as the price goes in to your favor with multiple positions. I didn t study this system, but as i understand it you have tools, which enable you to statisticaly forecast % hit and average travel distance of winners. Lets say (pesimisticaly) that you have a 50% hit rate with average SL of 30 pips and average TP of 30 pips. Take 10 trades sample and put in to this sample only one successful trade with multiple positions, increassing TP for that trade by x2,x3,x5 (depends on the number of stacks), which means that the hit rate is not important any more, because your R:R increases.
Mak, definitely makes sense to some extent. So when a trade moves in our favour we just put aTrailing Stop like 5-10pips behind it so even if it hits we only use 10pips or whatever the TS is. I think this is one way alot of the traders here mitigate risk and earn lots of pips.
This is something I will now consider in my trades!!
Mak, definitely makes sense to some extent. So when a trade moves in our favour we just put aTrailing Stop like 5-10pips behind it so even if it hits we only use 10pips or whatever the TS is. I think this is one way alot of the traders here mitigate risk and earn lots of pips.
This is something I will now consider in my trades!!
No, you just move your original SL line with the price.You don t follow the price with SL line closely behind, because that will cut your winners.
If you predict that you will have 5/10 winners and that your winners will net you x pips on average, you take advantage of this information and try to increase the winners. In this scenario 1 winner with multiple positions will increase you R:R by a lot. Trailing winners closely behind the price will do the oposite of that, because it will cut your average winner.
Mak, definitely makes sense to some extent. So when a trade moves in our favour we just put aTrailing Stop like 5-10pips behind it so even if it hits we only use 10pips or whatever the TS is. I think this is one way alot of the traders here mitigate risk and earn lots of pips. This is something I will now consider in my trades!!
No, you just move your original SL line with the price.You don t follow the price with SL line closely behind, because that will cut your winners. If you predict that you will have 5/10 winners and that your winners will net you x pips on average, you take advantage of this information and try to increase the winners. In this scenario 1 winner with multiple positions will increase you R:R by a lot. Trailing winners closely behind the price will do the oposite of that, because it will cut your average winner.
Ok you’ve lost me here.
Would it not make sense put a trailing stop on the orders? so when price is moving in our direction the trailing stop moves 5-10pips behind it reducing the risk of a big loss.
By adjusting the stop loss everytime the trade moves is more or less the same thing but just doing it manually right?
Also will the stop loss always be set on the opposite side of the CZ box regardless of how much the trade moves in our direction
Would it not make sense put a trailing stop on the orders? so when price is moving in our direction the trailing stop moves 5-10pips behind it reducing the risk of a big loss.
What big loss? The risk is defined BEFORE you even make an entry, you accept it and it s the SAME throught out the whole trade, because you move the SL line WITH the price. When you add another entry the SL line moves. Let s say your original SL is 30 pips, so your defined risk. If you double your position size on the first entry and want to keep same risk, your SL halves right? So it s 15 pips. If the trade goes against you from the start, you loose 30 pips with original size. If you add to the position latter and than the trade goes against you loose….yes same 30 pips.
Tight trailing would cut your winners short, it would lower your R:R. You don t want to do that right? You have tools with which you can produce statistical data and take advantage of the facts.
Like i said, i don t know if you plan to trade this manualy or with the EA. I was searching for adding/stacking EA/script and this is the best i could find:
Where would you move your original SL to then? below the second position when you open or the first one?
So let me get this right, you open a normal trade that meets your criteria, for example a one bar close outside the CZ zone. You then open another one straight after, but for both trades the SL is still the opposite side of the box? That means you will either make 30 pips or lose 30 pips so risk to reward is 1:1 just like normal.
Am I missing something here?
Can anyone expand on this method too if its good for the SSBO system?
Yes you are missing the whole point, perhaps it s the language barrier.
If you make 30 pips with 1st lot and 15 pips with second and perhaps 10 with third lot, thats….55 pips, while SL remains the same…30 pips.
Perhaps i could better explain with risk in currency unit,…
Your risk is 10 usd (translates in to 30 pips before 1st entry) You keep this risk trough out the entire sequence of adding, which means your SL line moves with the price Regardless of how many positions you open, you keep original 10 usd risk. If you would opened 2 positions at the begining and wanted to keep your risk unit, your SL would halve to 15 pips right? Sou you add, when your trade gets in to +, so you have a flotaing profit cusion and your SL line is not to close behind the price.
The above linked basket manager automates this procedure, so you don t have to keep an eye on a floating basket +/-., but i would love to get my hands on a stacking script/ea never than less.
I get where you are coming from, at least slightly.
As I understand you would open multiple positions instead of just one and then keep the stop loss at the other end of the box for example 30pips. But then is that not the same as trading normally because you have a chance of winning more lots but if the trades go in the opposite direction you can lose all the trades too?
im not seeing the benefit. A trailing stop would be better suited because that way it will stop any losses occurring if price goes against us but then will cut wins short too if prices choose to come back to the box and shoot up or down again.
So open your entry and then open another one straight after but keep the same stop loss which is at the other end of the box? That’s more risk… Or are you saying keep adjusting stop as price goes up or down…
Other guys feel free to jump in, ideally we are trying to establish the best risk reward ratio for this strategy.
As I understand you would open multiple positions instead of just one and then keep the stop loss at the other end of the box for example 30pips. But then is that not the same as trading normally because you have a chance of winning more lots but if the trades go in the opposite direction you can lose all the trades too?
No, you don t understand. I keep telling you….you move your SL line behind the price, keeping the original risk, not few pips behind, but just enough to keep the same risk trough out the entire sequence. I never mentioned “keep SL at the other side of the box”. That would increase the risk, right?
Read again, carefully, i feel i explained it good enough.
Or are you saying keep adjusting stop as price goes up or down…
Thats much more close to what i m saying. The point is, to keep you original risk (in currency) regardless of how many positions you open, which means, that successfull trade brings you much more, than a loosing one.
Ok I think there is a huge language barrier here because we have contradicting statements.
So we simple open a trade and another one with it keeping exactly the same stop loss. If the risk is still the same then what is the point here? If both trades fail we lose 30 pips and if they hit our tp we then make 30.. Where is the reward ratio higher than the risk?
I slightly get what you are trying to say Maca but best way to explain would be just doing a step 1 to step 3 or 4 or whatever sequence to ascertain exactly the way you mean…
Normal way: You open 1 trade with 30 pips (10 USD) SL and 30 pips (10 USD) tp. You lose 10 usd or you win 10 usd.
Adding way: You open first trade with 30 pips (10 usd) SL, and 30 pips (10 usd) tp. The price goes in to your favor 10 pips, you than open 2nd position with 20 pips TP, meaning the target is the same for both positions.
Option 1: price goes against you 20 pips, you loose 10 usd, closing BOTH positions. 20 pips from 2nd, 10 pips from first.
Option 2: Price hits your TP-target, you win 16,6 USD. 10 usd (30pips) from 1st position and 6,6 usd (20 pips) from 2nd position.
Risk is the same through out the sequence. Reward is larger.
Example is deliberately simple and this is not a mechanical recipe. It s just an explanation of what adding is all about.
Ok,
so if you open a second trade after the first trade goes 10 pips in your favour let’s say your stop would then have to be larger right?.. For example first trade stop is 30pips which is the other side of the BO box. So if the first trade goes into our favour by 10 pips we are 40 pips from the SL line, opening a second trade would mean an SL of 40 pips and a tp of 20.
Secondly, if the second trade goes against us 20 pips we lose both positions? This isn’t possible if the stop of the second trade was 20 pips too but considering it’s not then how do we lose both trades?
The stop of the first trade is 30 pips, if we lose 20 the second trade might be a loss but not the first as there’s still 10 pips remaining?
Sorry about the questions just want to clear this up 😁
Hope you’re having a lovely weekend Mak and the others!!
Mak,
difficult to make sense because some posts you say you move the SL line as second trade progresses and then some posts you say you leave risk on both trades for 30pips.
will try to figure out!
RISK is not a static SL. Risk is how much money are you willing to loose in a trade or in this case in a basket of trades (adding). If you want to keep same risk, when you add positions, you must move SL line with the price.
Ideas/requests for Rossbot ea.
1. Close open trade time. (There is an option to close after X minutes. But would like to enter a specific time. e.g. ’23:45′ = basically the same as the Fridayclosehour / Fridayclosetrades features, but for everyday. )
2. Max number of czs/tradesets per session. (On lower timeframes it would enable limiting the damage on tight range days.)
Much respect.
Hi xux99
thx for sharing this EA
apologize if it has already been asnwered
what is the best pair/timeframe to try it out ?
would appreciate if anyone could share ea settings .
many thanks
Hi Guys,
Hope everyone had a lovely easter break!
Been away from the forum for awhile been experimenting.
I have one last mind boggling question which I think only xux99 can answer (anyone feel free to assist)
So I have been using the SSBO dynamic breakout box indicator for about two months now but what I want to know can we not trade the second or third trade of a set with the same Take Profit as the initial first breakout?
For example- a trade breaks out the box but hits stop, so doesnt hit our quickTP target, the second trade then is triggered when price goes outside the box again but this time it closes after making just the initial pips we lost back, obviously we double the lot size we lost on the first trade etc but do you advise to shoot for the quicktp target on the second trade too? or is it a gamble if the trade doesnt break 30 pips or x amount?
This way you would make so much money.. Any suggestions and input would be much appreciated guys….
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