Morning Breeze Strategy

[rolange]

Hi all

I'm a bit confused about this strategy!
1. Is it for index futures or FX futures or both?

Also the strategy in the transcript is different from the strat in the doc, one uses previous day's high/low from 7pm ET and the latter uses the 9:15 - 9:30 H/L before market open.

My other question is fills. Is there any experience about slippage and bad fills?

thanx

rolange

[Reaver]

Wow, nice idea. I am gonna do some backtesting. I really like it.Thanks Raul, that's very unselfish of you. You've definitely given me some great ideas between this and forex. So, thanks again.

[MrPaul]

	Quote:	rolange
	Hi all I'm a bit confused about this strategy! 1. Is it for index futures or FX futures or both? Also the strategy in the transcript is different from the strat in the doc, one uses previous day's high/low from 7pm ET and the latter uses the 9:15 - 9:30 H/L before market open. My other question is fills. Is there any experience about slippage and bad fills? thanx rolange

Hi rolange,

This strategy as I know of it is used on index futures. The 7pm EST strategy I believe is for Forex.

In my experience slippage is not bad and I have never had a bad fill.

Hope I was able to answer your questons

[rolange]

Thanks

Is AUD/USD now not recommended for of the FX trades? Which pairs do you trade if I may ask?

[MrPaul]

	Quote:	rolange
	Thanks Is AUD/USD now not recommended for of the FX trades? Which pairs do you trade if I may ask?

Wish i could help you out, but I don't trade forex. Torero might know, you could PM him. I only trade equities and index futures

[rolange]

I PM raoul himself a few days ago but no reply
Anybody else able to help?

I have a couple of questions about the currency future trading system you talk about in the transcript if I may.

1. You take the H and L at 7pm ET and then place an OCO order immediately?

2. I notice on some days the previous high and low are taken out so why not put two orders in?

3. I the trade breaks niether high nor low do you hold for the next session with the same targets?

4. Do you take profit with a market or limit order. As for entering a market order in my experience usually misses the desired price so do you put the market order in 1 or two pips below/above the desired entry point?

5. If you are trading 50 contracts are these really all filled everytime with no problems. If so perhaps you could tell me who your broker is!

6. Have you tried the strategy on JPY/USD, CHF/USD or CAD/USD?

[Lohr]

Rolange, good questions, I was wondering some of the same.

I believe from the links (from Soultrader) in the Forex Room to this strategy that it - morning breeze - is meant for Forex. Of course, in the document it states clearly that it is for indices only.

So perhaps not, perhaps use it just for the futures markets.

Yet then we have the chat indicating it is used for Forex! Oh, the confusion. I'm glad someone is figuring this out, making money. Maybe just not us, haha!

The time, again just my belief given it isn't clear in the document, is 930AM. It does not specify AM in the original document. HOwever, it says in "Target acheived. GPB/USD 11-13-2006" from the Forex Room that people meet to chat at 9AM. I'm guessing they don't gather to *only* chat. Also, he says that he is done by 10 AM EST in the original document. Aha!

As for the 7PM EST time, well, isn't that just for an "inside day" (not specified) and the S/R lines carry over from 6-5pm EST as a set-up? If he is saying to trade at the Asian open perhaps I missed it.

That would be nice if the Asian 7 PM EST was as reliable as the 930 AM EST trade. I'd like to know that one, too.

The TP is 5 pips it would seem from the chat transcript, as the chat is for Forex, along with the 20-25 pip stop... But it is " 1 ER2 point" from the strategy.

But he says in the strategy: "No bracket orders OCO orders or stop orders allowed."

Put the market entry order AT the S/R level, not before or after, seemingly.

Re 5, try Oanda. They can do 200k (money, not units or lots) for one order, just put in the units to get the dollar amount you want.

Maybe we can get a crystal clear version of the strategy clearly written for Forex?

[rolange]

Even if we could clarify the entry points the real concern with this strategy is the risk to reward element. Even though
the ratio of wins and and losses is very good - at least from manual backtesting, the present SL is too great to make it a viable strategy because one loss, a day with a SL of -25 pips wipes out five winning days. There must be another element that I have missed because it doesn't make sense to be trading this strategy with 50 contracts per trade as the transcrpt and results show. I wonder if raoul would be kind enough to enllghten us?

[Lohr]

I noticed that problem with the SL, too. That's a big hit for five days of work.

However, let's check out this program of action:

Deal a minimum of 2+ currency pairs. This decreases the likelihood of each and every pair being hit. Eg. Do 3 pairs, one hits SL of -25, 2 hit PT, you're only down -15.

If SL only happens once a week and you're running 3 pairs at an average of 3 PT hits per week per pair x 5 pips per week = 3 pairs x 3 PTs x 5 pips = 45 pips/week (it may be slightly higher than that, perhaps 60) and only one SL hit per week gives a total of 45 - 15 = 30 pips. 120/month.


All that being speculated I have no idea what to expect of SL/week or PTs per week. I think I'm close but maybe not bang on. Depends a bit on the pair, too. I presume that with GBP you can set a higher TP.

This isn't a big money maker but it's steady, I presume.

Anyway, here's a more detailed version of the Forex strategy without having to decode it on the chat:

http://www.traderslaboratory.com/for...highlight=srdc

The guy who wrote this on ForexFactory; OrangeRoshan.

I'll try this soon.

[Soultrader]

Raul's been missing lately. Hopefully he will come back with us and answer some of your questions regarding this strategy. I would hate to lose him.