THE BUY ZONE - TheRumpledOne

[JTrader]

custom M3 MT4 timeframe 18.1.8 0800-1600

Yes looking at yesterday EURUSD on M1 between 0800-1600 UK time, reveals....

15 trade signals (with 1 trade max per M1 bar).
11/15 hit the 7 pip green profit take line before a 6 pip SL was hit. See attached.

Therefore M1, M5, M15 and M30 all produced 13-15 trade signals between 0800-1600 on EURUSD 18/1/8.

On a custom M3 MT4 timeframe 18.1.8 0800-1600 with a maximum of 1 trade per M3 candle.

14 trade signals.
9/14 signals hit the 7 pip green profit line before a 6 pip SL was hit.

So regardless of timeframe, the number of trade signals per 0800-1600 period yesterday remained consistent.
However, please remember that my calculation for M1 & M3 were based on a maximum of 1 trade per candle. My calculations for M5, M15 & M30 were based on a possible 2 trade signals per candle (1 long 1 short).

 

[TheRumpledOne]

Thanks TRO.

one IMPORTANT question that i asked that you haven't answered related specifically to this is -

the long and short range is 3-4 pips from the open price. Is the buyzone trader expected to enter the trade when price hits the furthest line (4 pips) or the nearest line (3 pips) away from the open? Which line is entry on - 3 pip line OR the 4 pip line from the open?

If this parameter is based on statistics, as you say, then knowing whether entry should be 3 OR 4 pips from the open is VERY important to the buyzone trader.
Cheers.

I usually wait for the bid to reach the 4 pip trigger line. If you look at H1 charts, many times you'll see it touch the 3 pip line and reverse... and the nature of currencies is to oscillate a couple of pips... so you can usually pay your price.

 

[TheRumpledOne]

Fellow Traders:

1) KEEP IT SIMPLE.. DO NOT TRY TO COMPLICATE THE BUY ZONE... IT IS SIMPLE AND PROFITABLE OVER THE LONG HAUL

2) DO NOT OVER TRADE! If you can trade 10 full lots, all you need is ONE good trade a day and you make $1,000 - $2,000 in less than an hour! That's $250k a year! DON'T BE GREEDY

 

[JTrader]

0800-1425 UK time today - EURUSD M1 entries

Hhmm, Well having done a quick tally of todays entries (using + or - 4 pips from the open as the entry level) up until this moment from 0800 UK time, forgetting about an SL size for now (which will have to be more than 5 pips + the spread also), i see 23 entries.
Of these 23 entries, 9 of them hit the 5 pip profit target line (from which the spread has to be deducted to leave us with a net profit).

WITHOUT spreads & a possible commission, i can see that this approach will probably make more money than it loses over the long haul.
WITH spreads & commissions needing to be deducted from gross profits, I remain a skeptic that the buyzone is a dependable strategy that will work over the long haul.

Therefore I am going to take some convincing that the buyzone can/will make regular & consistent profits. It needs more monitoring for me.
:|

 

[brutusdog]

0800-1425 UK time today - EURUSD M1 entries

Hhmm, Well having done a quick tally of todays entries (using + or - 4 pips from the open as the entry level) up until this moment from 0800 UK time, forgetting about an SL size for now (which will have to be more than 5 pips + the spread also), i see 23 entries.
Of these 23 entries, 9 of them hit the 5 pip profit target line (from which the spread has to be deducted to leave us with a net profit).

WITHOUT spreads & a possible commission, i can see that this approach will probably make more money than it loses over the long haul.
WITH spreads & commissions needing to be deducted from gross profits, I remain a skeptic that the buyzone is a dependable strategy that will work over the long haul.

Therefore I am going to take some convincing that the buyzone can/will make regular & consistent profits. It needs more monitoring for me.
:|

one possibility might be to only take signals when the set up bar is an inside bar (nr4 / nr7) and look for a larger profit target. ?

 

[JTrader]

Random info regarding a strategy that uses a 1:1 risk/reward ratio -

A 1:1 Risk:reward ratio that achieves 80% winners, is the same as -
A 3:1 risk:reward ration that achieves 40% winners.

 

[JTrader]

one possibility might be to only take signals when the set up bar is an inside bar (nr4 / nr7) and look for a larger profit target. ?

And then it is no longer simple, as it is supposed to be.

 

[TheRumpledOne]

0800-1425 UK time today - EURUSD M1 entries

Hhmm, Well having done a quick tally of todays entries (using + or - 4 pips from the open as the entry level) up until this moment from 0800 UK time, forgetting about an SL size for now (which will have to be more than 5 pips + the spread also), i see 23 entries.
Of these 23 entries, 9 of them hit the 5 pip profit target line (from which the spread has to be deducted to leave us with a net profit).

WITHOUT spreads & a possible commission, i can see that this approach will probably make more money than it loses over the long haul.
WITH spreads & commissions needing to be deducted from gross profits, I remain a skeptic that the buyzone is a dependable strategy that will work over the long haul.

Therefore I am going to take some convincing that the buyzone can/will make regular & consistent profits. It needs more monitoring for me.
:|

Please take all the time you want to evalute the Buy Zone or any other system before you risk your money.

Meanwhile, the rest of us will keep making money with the Buy Zone. You'll be welcome aboard if/when you decide to join us.

 

[JTrader]

This afternoon improved some -

 

[Trader333]

TRO,

I have a question which may be of relevance or not. Is there any specific reason why the Buy Zone resets on the hour ? Do you know if it is just as effective if it were to reset on the half hour, quarter hour or any other interval ?


Paul

 

[brutusdog]

And then it is no longer simple, as it is supposed to be.

well not as simple

merely pointing to a very effective system. especially on the larger t/fs.

as with any system its all to do with risk management.

 

[jayjay121]

it can be a 3/1 rr if you catch trends and just let trades run without a set profit target........trust me i've caught some good moves doing this..........also you lose out too some times.



jason

 

[tss42]

Does this thread explain somewhere how one decides where the lines should be in any given market? I searched but could not find.

Does one buy as soon as the price hits the buy zone and sell as soon as the price hits the sell zone? Or, as TRO's first post seems to suggest does one wait for a green candle in the buy zone and red candle in the sell zone, i.e wait till the close of the candle to see how it pans out and then sell on close?

Thanks.

 

[JTrader]

it can be a 3/1 rr if you catch trends and just let trades run without a set profit target........trust me i've caught some good moves doing this..........also you lose out too some times.



jason

I'd put that down to beginners luck to be on the safe side.
Doing this there will equally be times when you hold out for an extended run beyond a small PT and end back at zero .

 

[TheRumpledOne]

TRO,

I have a question which may be of relevance or not. Is there any specific reason why the Buy Zone resets on the hour ? Do you know if it is just as effective if it were to reset on the half hour, quarter hour or any other interval ?


Paul

I ran my stats on the hour not on the half hour.

I still find it amusing that some traders want to tinker with something that has been tweaked already.

The traders who come with an "empty mind" are the ones who learn it the quickest and make money.

 

[JTrader]

I ran my stats on the hour not on the half hour.

I still find it amusing that some traders want to tinker with something that has been tweaked already.

The traders who come with an "empty mind" are the ones who learn it the quickest and make money.

Hi TRO

Perhaps thats because some can see that it is a far from perfect "system" that warrants improvement. You only need to look at the M1 charts such as the ones that i have posted to see some real concerns with the BZ.

As for the statistics that you keep referring to. None of us have seen these stats, you could be making them up, to try & give credit to the BZ, (so that more people trade it, more people open EFX accounts and more people refer you, or so more people send you a gift in exchange for your non-free BZ for dummies indicator - anythings possible ) as you haven't posted them.

Please can you give us more information about these statistics?

I would think that using a trailing stop-loss or break-even stop-loss would be necessary to prevent maximum losses/losses.
Do you use a trailing stop-loss or break-even stop-loss with the BZ TRO? IF so, how many pips is your TSL and BESL?

Thanks a lot.

 

[tss42]

Perhaps thats because some can see that it is a far from perfect "system" that warrants improvement.

Or perhaps because the reasons behind chossing the levels have never been made clear and people are unwilling to blindly trade without understanding the rationale.

Can't blame them.

 

[Trader333]

I still find it amusing that some traders want to tinker with something that has been tweaked already.

That was not my intention. I was interested to know if there were any reasons either fundamental or technical that this method was traded on the hour every hour. If not then I would see no reason that it would perform worse to pick any arbitrary time (maybe 7 minutes past the hour) and trade at 7 minutes past the hour for every hour of trading.


Paul

 

[JTrader]

I ran my stats on the hour not on the half hour.

I still find it amusing that some traders want to tinker with something that has been tweaked already.

The traders who come with an "empty mind" are the ones who learn it the quickest and make money.

For me, the 5-7 PT, and 5-7 SL are not enough to make this trading framework into a winning strategy.

For me, this BZ is only a framework. Successful trading with BZ will likely depend on how well the individual discretionarily interprets the current price action - pauses in price action etc. and how and when this leads them to exit the trade. Simply having a 5-7p PT and 5-7p SL does not look profitable overall, as far as i can see.

 

[JTrader]

Hi TRO

Having now studied BZ on M1 EURUSD charts between 0800-1600 over many more historical days i can VERY confidently conclude for myself that -

When using the entry line of 4 pips from the open of the M60 price level, Simply using a +6 pip Profit Target (= +4 to +5p net profit after spread deduction), alongside a -5 pip Stop-Loss (Not including addition of 1-2 pip spread = -6-7 pip total Loss) WILL NOT make a net profit. But this set-up WILL make a net loss.




Therefore for this framework approach to be made into an overall profitable trading plan, requires more trade managment rules. So what extra Trade Management rules are needed in order to turn over a net profit:?:

TRO, I know you said that Profit Target is whatever you can get before the trade goes against you. But isn't this approach a bit hap-hazard, relying on intuition, instinct and luck - i.e. sometimes you will predict rightly and sometimes you will predict wrongly:?:
Doesn't this stated profit-taking policy in fact just give you license to say - well the system works for me, i made a profit, if you can't get out of a trade for a profit, thats your problem/lack of know-how! Thus freeing you from any "liability" for losses:?:

Thanks again.