Verbtheory's Day Break System v1.0

verbtheory · #1 (**permalink**) 04-07-2009, 11:11 PM

Update 04-12-2009 at the bottom!
Please only do DEMO until you are comfortable. Thank you!

Hey folks, I have decided to start this thread as I have been trading a style that I think everyone can do here. Plus, others have been asking me to detail it, so here we are. FYI, this system produced +400 pips last week and +200 pips last 2 days.

Interested now? Read to succeed....!

It takes perhaps 20 minutes of your time per day and then you get to do whatever you want...

So let's start off like this:

This can be done with any financial instrument HOWEVER it's best to start with EURUSD and GBPUSD for volume and spread purposes.

Manual, code and template attached!

The sister thread where I track all my trades interactively is below:
http://www.manualforextrader.com/for...wforum.php?f=4
http://forexnirvana.com/showthread.php?t=303

I can also be reached on skype in Max's room here (you need Skype3.8 to access tho):
Max's Stealth Solution

Happy Trading to all!

Ciao!

04-12-2009 UpdateUpdated trade rules are coming at the end of the month but if you wish you can do a implement adjustments being optimized for the next version of rules.
v1.1 preview
----------------
Rule Updates:
1 - Stop Loss Rule: 30 pip stop. Go into MTP34 and adjust max loss to 40.
2 - Cancel pending orders that have not been triggered.
3 - 3 pip offset instead of 10.

Rule Additions:
1 - Trailing Stop: add a 10 pip trailing stop. In Metatrader4, as soon as the market triggers your order then add a 10 pip trailing stop in the terminal. Looking to code trailing stop into MTP34. Or use the attached trailing stop EA on a separate chart. Make sure to turn off move stops in MTP34!!!

Make sure to turn off move stops in MTP34!!!

It will kick in as soon as the order gets in to profit and trail it by 10 pips. The setting above is 10 pips on a 5 digit broker, if you want to trail it larger simple change it and a zero.

verbtheory · #2 (**permalink**) 04-07-2009, 11:12 PM

FAQ

Q: Hey verb, I'm using micro-lots how do I make sure the EA manages my order correctly?
A: hit F7 on the chart and change the lots to your lowest lot size. For micro accounts, use 0.01. For mini-accounts, use 0.1.
Q: Hey verb, when you say previous day high & low, do you really mean today's high and low?
A: Yes, I'm actually referring to today's high & low at 23:30 GMT, then of course 30minutes later, it's now the previous day!.
Q: What do I enter for stop loss?
A: Stop loss is the other side of the candle for v1.0. Basically for your pending high order, it's the previous day low and vice-versa for the pending low.
Q: How long do we keep the orders in place?
A: We keep them in place and dont change them. No tampering of orders. It's the rules for v1.0.
Q: Ok, I'm totally lost what do I enter for the pending orders?
A: You can use the spreadsheet, I've attached to calculate the orders and keep a trade log as a bonus. It works for both 4 and 5 digit brokers. It is attached in the first post.
Q: Verb, is it too late to enter the order? It's already past 23:30 GMT...!
A: Yes if price has not exceeded the high or the low, you may enter your orders safely. No if price has exceeded the high or the low orders. You may proceed at your own risk but you will be out of call.
Q: Verb, what the hell? the stops are so big, why?
A: Well its part of the version 1.0 system. You will enjoy big runs and wins in this system with relative ease but if you strangle the trade it's possible that you wont. In v1.0, we keep the stop at the other end of the candle. If price reverses all the way back, your other pending order will trigger and provides a light hedge. This is an area of improvement in the system which I have a breakthrough idea on but will take some time as manually executing the hedging strategy will be arduous. So basically wait for 1.1. For now stick to the method and master it.
A: Update: added a 10 pip trailing stop see first post for v1.1 updates coming at the end of the month which you can implement now.
Q: Hey Verb, is this system profitable??
A: Tally of trades is updated in this post every week at least. I'll let you decide.
Q: Hey Verb, what do you mean by 3 positions and a pending order??
A: In metatrader, you can enter a pending order that will be triggered by the market when price hits that level. 3 positions basically refers to the size of the trade. It all depends on your money management but for a micro account that would be a trade with 0.03 in the lot size section. For a mini account, it would 0.3. For a standard, 1.0 and so on. Below is an example for you:
Q: Hey Verb, what gives? It's beginning of May and no DBS v1.1? Are you going to release soon?
A: Yes, a new version is imminent, I'm starting the official forward test now and you can see below the stats. Let's watch it and see if it's worth releasing.

New Trading Results Started for DBS v1.1! (not released yet)

Old Trading Results of DBS v1.0 as of 4/19/2009

RESERVERD

Man, I am really being lazy about producing this video.... lol

:P

Ciao for now!

thesecret · #3 (**permalink**) 04-08-2009, 02:25 AM

Simple, yet effective. Will test....

Miksa · #4 (**permalink**) 04-08-2009, 08:46 PM

hi verbtheory, this is an interesting theory. and i wonder if it is profitable in practice

do you have any back and forward test results to see what annual return and drawdown are?

verbtheory · #5 (**permalink**) 04-08-2009, 09:44 PM

Hey G, you should just come join us anyway in skype, sometimes some of us are still awake!

Miksa, check out my other thread and you will see forward trades (its in the first post). Backtesting is easy, you just have to look at charts, then dive into what happened to price when it met the previous day's high or low.

Look at that first then come back and tell me what you saw...

Trading continues in this very BORING system. =)

thesecret · #6 (**permalink**) 04-09-2009, 03:08 AM

Some one should make an EA.

Ganglion · #7 (**permalink**) 04-09-2009, 03:48 AM

Quote:

Originally Posted by verbtheory

Hey G, you should just come join us anyway in skype, sometimes some of us are still awake!

Well, I have no doubt you will be awake, but it will be a time you are going to school or work... (Hong Kong is GMT+8)

^eagle^ · #8 (**permalink**) 04-09-2009, 04:05 AM

I will give this a try.

Until Ninjatrader comes out with programmable hotkeys.

I cannot develope a good scalping style without hotkeys AND one second/tic chart.

In actuality this system here is very similar to what I want to develope at the 1 sec TF.

Straddle and bank.

very boring and effective.

Unfortunately no platform exists where I can do it the way I want to do it.

So I guess I have to move up to the higher TFs for now.