Pin Bar System

[Splitlink]

Not too hard, my main concern is a solid definition of the pin bar.

I think that it is the trader who has to define, to himself, what his idea of what a pinbar is. I am clear, in my own mind, about that point. What it should be used with, reduces the number of pins that can be traded. That helps develop an edge. Those on this thread use pivots.

 

[ramirezfx]

Not too hard, my main concern is a solid definition of the pin bar.

Pin-Bar:
Open AND Low are in the upper third OR lower third of a candle...

Hope that helps...

Cheers

 

[megamuel]

How easy is it to learn how to program the EAs? I've never used metatrader but if it was worth doing I could switch my account over to smartlivemarkets.

I don't know how to program them myself. I normally go to a website called freelancer.com and post the project up there. You will then get programmers bidding on your project and you can select one based on their bid and reviews. A lot of the programmers are from poor developing countries so will pretty much do anything for $30!!! Once you choose a bid you can go into more detail about the system privately with the programmer. For me, I'd rather just do it that way than learn how to program but I can see the advantages of learning how to program them.

Anyway, I'm running the backtest on GBP/USD now with the settings that performed best on EUR/USD and the results are awful. It loses money... Lots of it!!!

Sam.

 

[MajorDutch]

I think that it is the trader who has to define, to himself, what his idea of what a pinbar is. I am clear, in my own mind, about that point. What it should be used with, reduces the number of pins that can be traded. That helps develop an edge. Those on this thread use pivots.

Hey Split

This is spot on. If you use a strict definition of pin bar and choose carefully which pins to take in relation to pivot points you will reduce the number of signals. You will see the expected value and hit rate of the edge increase.

 

[DDI]

Hey Split

This is spot on. If you use a strict definition of pin bar and choose carefully which pins to take in relation to pivot points you will reduce the number of signals. You will see the expected value and hit rate of the edge increase.

I think if one wants to improve results, its better to use other factors (proceeding bars, indicators etc), than seeing whether which pivot to use or if the bar is a perfect pin or not.

For eg the wti trade attached was a perfect pin but one that I ignored as I didnt like the proceeding crash and macd and stochs were bearish.

But the dax set up (sorry if chart is unclear), the pin is not perfect but other factors looked good.

However if we want to introduce other factors, there is an endless list and pocrels system will lose its simplicity.

 

[MajorDutch]

I think if one wants to improve results, its better to use other factors (proceeding bars, indicators etc), than seeing whether which pivot to use or if the bar is a perfect pin or not.

For eg the wti trade attached was a perfect pin but one that I ignored as I didnt like the proceeding crash and macd and stochs were bearish.

But the dax set up (sorry if chart is unclear), the pin is not perfect but other factors looked good.

However if we want to introduce other factors, there is an endless list and pocrels system will lose its simplicity.

good points well made.

 

[pocrel]

I have also added a filter that allows a maximum number of bars before the pin is broken and so far it appears that allowing 2 bars after the pin beats 1 and 3 bars which I thought was quite interesting. In other words, if the pin is not broken in the next 2 bars then don't trade it. Only done testing on EUR/USD so far though.

Sam.[/QUOTE]

Hope everyone had a great easter?
i have not traded for about 2 weeks just back from hols and just kind of catching up with some of the post thanks to everyone for adding, sounds like people are trying to over complicate things 😀

keep it simple thats all i can advise, i have been doing this for a while now and i have tried most things and what i do work really well

if your looking to take profits you really need to be getting your risk reduce as quickly as possible thats why i use 1 to1 for taking half off, the hit rate is very high

but its nice to leave that other half rise and see how it gets on, its a free trade

as for your point Sam one of the filters is to cancel any order is if the pin is not broken after 2 bar, thats an important rule, really we are looking for a quick reaction after the pin

i am not sure if i am trading tomorrow but i am live on tue and wed form 830👍

 

[pocrel]

been doing some stats on this system. since my sample size has reached 100 trades, thought I put down some results:

50 winners (hit next pivot level or 2:1 R/R)
18 trades that hit the 1:1 R/R
32 losers.

this is impressive. even if u just take all profits at 1:1, for every 1 loser you would've had just more than 2 winners.

Breaking the results down into 4 separate markets:

FX: 54% winners, 15% 1:1, 31% losers

oil: 48% winners, 26% 1:1, 26% losers

indices: 50% winners, 12% 1:1, 38% losers

silver/gold: 38% winners, 24% 1:1, 38% losers

so if u just traded oil, AND took all profits at 1:1, for every loser you would've had 3 winners!👍

thanks for adding the test stuff ddi, results are very good and i think alot of people can see the potential of it, 1.5/1 sounds about right but you can always get a bit more 🙂

 

[pocrel]

morning, not trading today as the wife wont let me 🙂

but just looking over the chart there was alot of signals around not sure if anyone is trading today? but please post charts if you have taken any

i am going to post some signals that i have seen this morning winners and losers

going to trade fully tomorrow till thursday afternoon when i have to go to work

 

[pocrel]

Currency trades

cable

1 to 1 r/r met, stoped out of second half


usdjpy

1 to 1 r/r met, trade still on going


eurjpy

loss on that one


audusd

1 to 1 r/r met trade still on going

 

[pocrel]

index trades:

dax

it nealy made the 1 point lower for entry not sure if we would have got an entry

great looking setup




cac

winner, all targets met

 

[pocrel]

commodities

gold

trade still on going, nearly got to 1 to 1


brent

not sure if i would have taken this bar easier to say i would after the event


wti

all targets met

 

[pocrel]

there is a trade alert from eur/gbp long and a short on gold so keep an eye on them

 

[pocrel]

there is a trade alert from eur/gbp long and a short on gold so keep an eye on them

eurgbp setup chart


gold setup

 

[pocrel]

eurgbp setup chart
View attachment 112756

gold setup
View attachment 112758

gold breaking up so setup invalidated


eurgbp has taken off like a rocket :cheesy:

 

[DDI]

good stuff. was gonna ignore fx today as london closed. also a short on cable that has already hit 1:1

missed wti and gold alert cancelled as pin was broken up

 

[maq]

signing up🙂

 

[geewcee]

Missed all these opportunities, just presumed it would be a very slow day today.
Ah well, thanks for posting the charts pocrel, helps keep everyone fresh on your system!

 

[pocrel]

Well market drawing to a close for the day and from the trades i pointed out today these are the results of what you would of made if you let the positions ride to the pivot points
with my strategy i take half off at 1 to 1and try to let the other half ride to the pivot level so here is what i would have made if i had traded today

wins:

cac +10 on half +10 on other half so +10 full position
gold +48 on half +170 on other half so +109 full position
brent +65 on half +94 on other half so +79.5 full position
wti +45 on half +69 on other half so +57 full position
usdjpy +11 on half +20 on other half so +15.5 full position
eur/gbp+8 on half +19 on other half so +13,5 full position

breakeven
cable +0 first half hit target 1 to 1 second half hit stop loss so +0 on trade
audusd+0 same as cable

losses
dax-15 full points
eurjpy -15 fullpoints

totals: trades 10

+284.5 points -30

+254.5 points for today if you had traded the system

 

[glyder]

Well done Pocrel,
Thats pretty gobsmacking!