Fractal Breakout Strategy RE-DESIGNED part 1

[t20trader]

Excellent video. Where are the next parts ....... ? Cheers.

[gutrp]

good video. but it would be interested to see also in range bound market

[ExpertTrading]

@gutrp thanks, yeah the simple version of the strategy really eats into any gains in a range bound market.

[SilverShamrock71]

How about using an intraday short term time frame for triggers, 5 or 15 minute, but building in parameters from longer time frames (eg. only taking triggers if they line up with the longer term trend on the 4 hour and daily), you could also build in time of day parameters (eg. London open break out and usual morning trend etc. etc.), just kicking around a few ideas... Also of course there is the need to identify trending or range bound conditions...

[ExpertTrading]

@SilverShamrock71 excellent idea. I think incorporating the different time frames will be essential to improving the results of this strategy. I will keep that in mind for my next video.

[SilverShamrock71]

@ExpertTrading great, as you yourself mentioned due to the current volatile nature of the forex market I think false signals is one of the biggest problems with the system, building in a requirement for multi-time frame confluence could be a way of filtering false signals and reducing their impact on overall system performance. I look forward to your next video.

[787bud1]

Question: Why not trade the actual fractal signals in the opposite direction...e.g., trade the upper fractal signal as a short trade until you hit a bottom fractal signal and vise versa?

[mattc941]

Many trading systems/plans/techniques look brilliant in hindsight and they are all over youtube. How many successful traders would take the time to put they system for the public? ... worthless. Heres a hint, without volume, you are wasting your time.

[ExpertTrading]

@mattc941 you don't always have to look at volume. I know at least 7 professional traders (including myself) who never look at volume. Every trader trades differently. Some use volume, some use stochastic, MACD etc... some don't use any and just look at price action. I know a trader who has been in the game since 1979 and has never even glanced at volume.

You cannot look at any trading tools in isolation. What works for you may not work for someone else.

[Eagledives]

Peter, the video is very simple and easy to understand but the strategy lacks and does not have sufficient wins : from Oct 1, 2010 to Mar 30, 2011 ( the first period shown on the video) - Loss trades : 5 Wins : 8 or 61.5% , Max Consecutive Wins : 3 Cons Loss : 2. The stop loss is too far away.

[ExpertTrading]

@Eagledives thanks for your feedback. The strategy is TOO simple at the moment. In the next few videos I will add different tools and test them all out to optimise it. The results for the three years are nearly complete, then I will share it with you.

[onlyme05]

awesome keep it up! I cant wait for the next video.

[ExpertTrading]

@onlyme05 thanks!

[MrHroark]

Nice video.

I have found the fractal, in one form another, an excellent foundation for several strategies.

[ExpertTrading]

@MrHroark Yeah I think you are right. What do you think of the alligator indicator? Do you reckon its a good indicator of the trend?

[MrHroark]

@ExpertTrading Good morning. Not a whole lot of personal experience with the alligator...it reminds me of some of the rainbow and Guppy strategies....a bit.

From what I know though, its real benefit is to help someone know quickly whether they are in a trending or ranging market, and act accordingly. That is a VERY good thing...for, as you know, THAT is one place where the money is lost.

[fxmatics]

I love all kind of Bill William's indicators. I made some EA with them. ;-)

[ExpertTrading]

@fxmatics really? an EA? Is it working well? Hopefully this video series can help you in some way. Any feedback would be greatly appreciated.

[fxmatics]

@ExpertTrading It is good for swing trading. I'm using some breakout strategies in some EA to manage accounts. Personally, I love it...

I'll post a video response showing you the fractal breakout back test soon. ;-)

I will edit my existing fractal breakout EA accordance to your fractal breakout strategy detail.

[ChaosTrader63]

Very good video! I use or rather customised the fractal breakout strategy to work in my own system without the alligator indicator or MACD. I use just 100 and 200 SMA and S & R along with candle formations and Fibs. Keep us updated on your progress. Thanks!

[ExpertTrading]

@ChaosTrader63 I think you are spot on. Trading is all about developing your own style and adjusting tools out there to work for you. I will post the next video in a week or so, where I will make some tweaks to it.

[wellerdr]

Liked this video -- keep them coming!

[ExpertTrading]

@wellerdr thanks! I am recording myself doing the backtesting and will do the first tweak in the next week or so. Watch this space