THE BUY ZONE - TheRumpledOne
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JTrader
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To be fair, the buyzone is pretty s**t hot 
for someone who knows how to use it correctly without being greedy and taking a profit when it is available. No squiggly lines, and simple to interpret.
Another issue is the broker/scalping/fixed spread issue, which shouldn't be an issue using an ECN.
Also, lets remember that it can be used on a different timeframe than M5 - say M610, M6 etc, and we can customize the distance of the long and short lines from the Hourly open line.
These modifications will also enable us to customise to an extent the likely number of trades that can be done in an hour/session etc.
Therefore this demonstrates that we CAN personalise the buyzone to our personal preferences, and ensure that it suits us, rather than using TRO's default M5 settings all the time :idea:.
for someone who knows how to use it correctly without being greedy and taking a profit when it is available. No squiggly lines, and simple to interpret.Another issue is the broker/scalping/fixed spread issue, which shouldn't be an issue using an ECN.
Also, lets remember that it can be used on a different timeframe than M5 - say M610, M6 etc, and we can customize the distance of the long and short lines from the Hourly open line.
These modifications will also enable us to customise to an extent the likely number of trades that can be done in an hour/session etc.
Therefore this demonstrates that we CAN personalise the buyzone to our personal preferences, and ensure that it suits us, rather than using TRO's default M5 settings all the time :idea:.
To be fair, the buyzone is pretty s**t hot
Another issue is the broker/scalping/fixed spread issue, which shouldn't be an issue using an ECN.
Also, lets remember that it can be used on a different timeframe than M5 - say M610, M6 etc, and we can customize the distance of the long and short lines from the Hourly open line.
These modifications will also enable us to customise to an extent the likely number of trades that can be done in an hour/session etc.
Therefore this demonstrates that we CAN personalise the buyzone to our personal preferences, and ensure that it suits us, rather than using TRO's default M5 settings all the time :idea:.
hi,
i actually don't use tro's set-up, i trade it using a 610 tick chart but it's not time frame dependant so don't really matter what timeframe chart you use. I also use a different stop and profit target as discussed on craig audios thread over at kreslik.....i also don't currently trade forex (but looking to), and only trade e-minis so don't have to worry about the spread issue.
it worked great today, take a look at that thread i mentioned above, they have some good ideas on the buyzone from which i now use in my trading.
jason
TheRumpledOne
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JTrader
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You don't really need a broker and datafeed who's price match exactly IMO. They are all prety close anyway, perhaps for the odd news spike.
You may find that using one MT4 brokers charts and trading with a different broker actually wokrs to your advantage - in that you get out of each trade (winning & losing trades) say an average of one (or slightly more 1.5 pips) pip better off than you would have done if you had been trading from charts that used your brokers datafeed
. I believe TRO has also made refernce to this phenomenon on kreslik. As you can imagine, when only targetting a small number of pips profit in scalping, this would be a very valuable bonus.It may require quick reactions on the mouse clicks, as we are talking fractions of seconds differences between the changes in prices of your charts and brokers prices, but it can be done.
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TheBramble
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I don't scalp, but if I did, and I was using an automated or indicator driven scalping method, I'd say you absolutely need to be placing your orders on the prices upon which the method is based.
wasp
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I agree and another reason I changed brokers but FYI, alpari was very close and a lot of the times near perfect with EFX.
Trader333
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That is what I am doing, I have orders set up to take me into a trade at exactly the mid price of the Buy Zone and they automatically recalculate at the start of every hour.
Paul
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You'd think so wouldn't you, and matching datafeed/broker was my prefered option b4 i tried it. But in my experience on around 1000 very short term trades or so, with a seperate broker/datafeed combination, i found that i was making an average of 1.2 pips extra per trade than i should have been. Therefore if you are gaining from this setup overall, why would you NOT want to take advantage of this
:?:If scalping the BUYZONE on M5 chart, i'd maybe expect to be doing 15 trades in an 8 hour session. If a broker/datafeed combination existed that enabled me to make 15-18 more pips than i should have done, I certainly want to take advantage of this.
It does maybe require ongoing monitoring, to make sure you are still getting the extra 1 pip, and NOT making -1 pip on each trade. But a pip is a pip, and its worth trying IMO. Afterall, I've made around 1200 extra pips than i should have done as a result of this phenomenon :|.
Cheers.
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JTrader
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You'd think so wouldn't you, and matching datafeed/broker was my prefered option b4 i tried it. But in my experience on around 1000 very short term trades or so, with a seperate broker/datafeed combination, i found that i was making an average of 1.2 pips extra per trade than i should have been. Therefore if you are gaining from this setup overall, why would you NOT want to take advantage of this
If scalping the BUYZONE on M5 chart, i'd maybe expect to be doing 15 trades in an 8 hour session. If a broker/datafeed combination existed that enabled me to make 15-18 more pips than i should have done, I certainly want to take advantage of this.
It does maybe require ongoing monitoring, to make sure you are still getting the extra 1 pip, and NOT making -1 pip on each trade. But a pip is a pip, and its worth trying IMO. Afterall, I've made around 1200 extra pips than i should have done as a result of this phenomenon :|.
Cheers.
Still, different people have different preferences. And wwhen trading via an ECN where partial fills and slippage can be a phenomenon, perhaps one may prefer to use the EXACT same chart datafeed and broker combination = easier to keep track of.
I was gaining this (extra +1.2 pips per trade) with a fixed spread broker. ALthough you do not get slippage per se, you do sometimes see one price, think you are clicking on it, but in trhe split second invetween, ther price changes (for better or for worse). Therefore this is pretty mjuch the same thing as slippage when trading via an ECN. It can go for you or against you.
At lease via an ECN like EFX, like T333 says, you can use limit orders to protect against a non-favourable (price) fill.
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TheRumpledOne
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If you had been in my TWO PERCENT CLUB a few minutes ago you could have been making pips with us:
(8:06 AM) zeller4: +3
(8:06 AM) fcg0lfer: yup +11
(8:06 AM) slptrade: beautiful call Avery
(8:06 AM) Dcpip: +11
(8:06 AM) scottei_1: yes
(8:06 AM) Dcpip: ty
(8:06 AM) CMEHH: 2 trades, 23 pips
(8:07 AM) sgoldney: i got a few. first news play so i need some practice at that
(8:07 AM) Rsimp: nice work peops
(8:07 AM) slptrade: +9 and i was late
(8:07 AM) davidb_12: 18
(8:07 AM) scottei_1: +7p out quik
(8:07 AM) CMEHH: great call TRO
(8:06 AM) zeller4: +3
(8:06 AM) fcg0lfer: yup +11
(8:06 AM) slptrade: beautiful call Avery
(8:06 AM) Dcpip: +11
(8:06 AM) scottei_1: yes
(8:06 AM) Dcpip: ty
(8:06 AM) CMEHH: 2 trades, 23 pips
(8:07 AM) sgoldney: i got a few. first news play so i need some practice at that
(8:07 AM) Rsimp: nice work peops
(8:07 AM) slptrade: +9 and i was late
(8:07 AM) davidb_12: 18
(8:07 AM) scottei_1: +7p out quik
(8:07 AM) CMEHH: great call TRO
what about me, the er2 only been open 45 mins and 3 trades,1 wrong 2 right and im done for the day...........love it.
jason
Trader333
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hi paul, just recently changed them infact as discussed over at craig audio thread at kreslik.
Buyzone Parameters:
Trigger Long: Open Price + 11 ticks
Trigger Short: Open Price - 11 ticks
Target: 10 ticks
Stop Loss: 12 ticks
i know the stop is larger than the target but it seems to do ok and a guy called ed over at kreslik has been trading these parameters above for alot longer than me and he is making consistent money.....he tells me that he has averaged $100 a day trading 4 contracts overall, that is inclusive of all losing days and winning days, basically this figure is his average profit..........anyway what he plans to do and i plan to do is to up contracts when we have compounded enough profit.
regards,
jason
today i got one wrong and actually closed it out at 8 tick loss, 2 right at 10 each, so nett for the day = 12 ticks...........so $106.20 profit today.......i could have gone for more easily and maybe i should but im happy with $100 a day if i can get it, ill just up size when im ready................what do you think?
TheRumpledOne
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I don't know if I would be risking real money trading the BUY ZONE. There are people saying it doesn't work in backtest, it's nothing new or original, it's a scam, if won't work in real trading, etc....
MEANWHILE, the rest of us BUY ZONE PIRATES are plundering and pillaging the markets around the world!
PRICE MUST LEAVE THE BUY ZONE AND WHEN IT DOES THE PIRATES WILL BE THERE!
MEANWHILE, the rest of us BUY ZONE PIRATES are plundering and pillaging the markets around the world!
PRICE MUST LEAVE THE BUY ZONE AND WHEN IT DOES THE PIRATES WILL BE THERE!
TheRumpledOne
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JTrader
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Having an SL & PT of evenish size (risk:reward = 1:1) is all well and good if you can achieve maybe 75% winners. Anything less, and after a loser or 2, you are struggling to break even.
I can see how the buyzone would work well if on the trades where 20+ pips present themselves, you gain a bigger slice of the pie than the current default 5-7p PT. But if people hold out for more than 5-7 pips profit, they will sometimes be wrong and end up not making any, or even worse - making losing trades.
Therefore the winners that went on to make more than the +5-7p PT, create an illusion of greater success with this strat than what we would achieve. In reality, if following TRO's stated rules, we would have been out of the trade long before the +10p_ +30p etc. potential profit materialised.
SO while the charts may look t present good opportunities, i can see that persisting with the small profit targets and 1:1 risk:reward, a lot of people using this plan may find it difficult to break even at times due to a series of whip-sawing entries/losers..
Therefore in summary, i don't believe it is as easy to trade this buyzone plan profitably, as we would like :|.
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you are right, and i've had exactly the same concerns and everyone i ask just avoids this or does not know or says don't backtest, i don't backtest and would not know how, i prefer to test in a simulator.......... i just want to know if i can be profitable in the long run, that's all i want to know with proof of course............im trading it right now and making money, alot the times my winning trades took off on a trend and i got points instead of ticks but your right what you are saying, it's not as straight forward as tro is saying........i love it though and really hope i can continue as it just suits my style, it's simple like me i guess.......... but i know deep down im gonna have to confront the issues you have just raised if im to continue being profitable overall, or do i??
jason
