New free profitable strategy, the Cevn Boxx

[waker240]

Hi Waker, thanks for the interest in the strategy..

I always trade the daily as that's the best timeframe to make money. I always employ a 100 pip stop loss.2..While this seems to be a large stop loss it is in fact quite sort for the daily timeframe as most pairs can move 100 pips up or down in less than a minute.
The problem with lower timeframes are they create a lot of noise which means more losses.

To show you how a bad noise can be to a trading strategy try deming the strategy on two different timeframes, say the 1 hour or 4 hour timefame with a stop loss of anywhere from 25 to 50 pips for either of these timeframes and use my settings for the daily timeframe and you will see just how good the daily timeframe is when compared to lower timeframes.

Thanks,
Fred

Thanks for the reply! I tried identifying Cevn boxx's on the charts and it seems really promising. And if you don't mind, I just have one more question.
I looked everywhere and could not find your exit strategy. I am guessing that the close of the 4th candle is your exit?
Since you are very experienced in trading this, I would like to know, in your opinion, what is the best exit strategy for Cevn Boxx's.
Thank you!
Waker240.

 

[Shevvy]

Hi Waker, I don't have an exit strategy I trade soley on what the charts tell me at that time.

In smalll trades I tend to use a percentage return of the total pips gained with a maximum return of 50% (depending on whether I'm with or against the trend. And also how sharp that trend is).

• if I get a small trade say that gained 10 pips against a sharp trend I always take about 5/6 pips. This generally covers the spread and gives me break even, a free trade.
• If I get a 10 pip trade that goes with the trend then I let it run and hopefully it picks up the following days.
• if the trade turns into a pinbar, where the candles goes up or down and produces a very long wick, say it gained 40 pips with or against the trend then I try to take anywhere from 20 to 30 pips depending on how sharp any trend against me is.
• Anything less than 10 pips I always let run regardless of whether it is with or against the trend.

Normally the one thing I try to do if at all possible is to let the candle run throughout it's session. Even if this means it goes negative.This allows me to be in a position to trade the next daily candle otherwise I'm just trading one candle at a time and that won't bring me the money I want!

A word of caution here, you can only trade this way if the entry strategy produces a consistantly high number of good entry points and high percentage of trades that produce 10 pips or more. This strategy manages to achieve the high ratio required.

AUDJPY shows why this is achievable. From Jan 2016 to date there have been, a total of 62 trades, of those only 10 trades failed to gain a minimum 10 pips, but went on to gain the 10+, leaving only 3 trades that failed completely and did not gain 10+ pips, thats 0.05% losing trades

Thanks
Fred

 

[barsantee]

Am I not understanding? Ur looking for 30-50 pips but ur stop is 100? Am I right?

 

[Shevvy]

Hi Barsantee, no that's not correct. The minimum amount of gains I use for a win is 10+ pips. I am able to use 100 pip stop-loss due to the high number of winning to losing trades.

What this means is that on the first candle (first day) only 10 trades from 62 gained less than 10 pips. The following day the trades were allowed to continue. Then 7 of the ten trades went on to gain more than 10+. If you check out the AUDJPY on the 27/3/17 you will see this in action.

A boxx was completed that failed to gain the 10+ pips required on the first day.
The next day priced went down around -30 pips but then recovered to finish 75 pips up in our favour.
The following 2 days saw price go up a further 60+ pips
The following day price turned and I closed the trade at 120 pips gained,

Thanks
Fred

 

[Nenad1971]

Looks interesting, is the stoploss 100 pip for every trade or for the enitre box?

 

[Shevvy]

Hi Nenad, no the 100 pips stop loss is just the maximum you allow. You have to use your trading skills to decide whether to let it run to the 100 or quit.

I have included a pic to hopefully help you understand. In this instance I took whatever I got on the day and ran. This turned out to be a lowly 9 pips. The reason I took whatever I could get rarther than let it run was because of the changes in the indicators during trading.

You will see that the momentum had started to rise days before, as shown by the red elipse and the white line below the candles also indicated prices was rising. Then on the day as the price went down momentum still rose. You will also notice that the yellow 20 day Moving Averages line also went from down to up. All these changes indicate that the trend may be reversing and extreme caution must be taken with the trade.

Even had I let it run I would not have let it get to -100 pips, I would have closed the trade around the 40/45 pip mark and thought I've just saved myself 50 pips.

I hope this helps you,
Fred

 

[Shevvy]

Hi Barsantee, no that's not correct. The minimum amount of gains I use for a win is 10+ pips. I am able to use 100 pip stop-loss due to the high number of winning to losing trades.

What this means is that on the first candle (first day) only 10 trades from 62 gained less than 10 pips. The following day the trades were allowed to continue. Then 7 of the ten trades went on to gain more than 10+. If you check out the AUDJPY on the 27/3/17 you will see this in action.

A boxx was completed that failed to gain the 10+ pips required on the first day.
The next day priced went down around -30 pips but then recovered to finish 75 pips up in our favour.
The following 2 days saw price go up a further 60+ pips
The following day price turned and I closed the trade at 120 pips gained,

Thanks
Fred

 

[Lavie]

Hi Waker,

Thank you very much for sharing with us this promising technique. Do you have any EA that employs this strategy?

Thank you in advance.

 

[Shevvy]

Hi Waker,

Thank you very much for sharing with us this promising technique. Do you have any EA that employs this strategy?

Thank you in advance.

Hi Waker, sorry but I cannot programme so am unable to create an EA. Perhaps, someone with the necassary skillset can create an EA for the traders on FPA.