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The box


yamantaka

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Now that the resident teacher is no longer pontificating and minitrader's fledgling forum is abandoned, there is a hole here to share knowledge. I'm going to attempt to explain how the box can be used effectively in manual mode even though I use a an automated version, which is not for distribution under any conditions. I will be as forthright as I can and answer questions. Please don't expect me to pack this thread with posts ad nauseum with images that display how good I am while I belittle you for not being successful. Frankly, I think arrogance has no place here and my ego doesn't need to get messaged on a minute by minute basis, like others who's name I won't mention. This thread should be instructive to me and you and perhaps you can share your experiences, if any, on how you improve on my setups.

 

With respect to the box, there are a few boxlike products I'm aware of in the market. If you do a search, you'll know which one in particular I think has merit. For disclosure purposes, I don't encourage nor advocate using pirated, stolen, or hacked software. Always pay for other's products or use free ones that are open source and in the public domain. ;)

 

Is anyone interested in trading FDAX?

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Sorry, what is the box?

 

 

In essence, the box is a zone where price may break out in either direction. Some are based on volume, S/R, and volatility. Ninjacators and Prediction Point Trading market boxlike products. There are others out there as well. You don't necessarily need 3rd party tools to identify boxes, but these indicators are much more efficient and a better use of time than manual plotting and calculating.

Edited by yamantaka
typo
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Here are the inputs for trading FDAX. I say inputs because this is an autotrader for me but you can trade it manually with chart trader and an ATM with results close to mine if you can handle the timezone. These inputs have been computer tested and they produce the best results for maximum profit in scalp mode which includes 2 ticks of slippage on entry. FDAX is extremely volatile and thin, thus well suited to scalping (and slippage). Unfortunately, Ninja hasn't taken the time to convert dollars to euros, so the results in dollars are understated. That includes tick value. All trades were 1 contract (check with your broker for margins.)

 

Time frame: from 2:00- 4:00 a.m. EST.

Bar type: RJRS 5-1

Target: 4 ticks

Stop 9 ticks

Order type: Market

 

Actual trades to follow.

 

http://i57.tinypic.com/2evqeqr.jpg

Edited by yamantaka
typo
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Here a very basic example of a trade.

 

When a box forms, the indicator will produce a popup warning like the one when you get on NT error message. This is your alert to look for a trade. When a trade fires, you'll see a red or blue arrow paint--that is the signal bar and you should immediately take a market order if you wish to get into the trade with a bit of slippage. I have tried trading this manually with a limit and it isn't good. That's because price usually moves quickly when a bar CLOSES out of the box. FDAX, in particular, moves super fast during the indicated timezone and more often than not, the trade will already hit target before it comes back to your limit. Take a look at the performance summary and note the Avg. Time in Market is less than 1 minute! (That's a wonderful thing because the greater the time= greater risk.)

 

http://i60.tinypic.com/2m62um9.jpg

 

More to come.

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I have a few trades to show you in ZS--one of my favorite Box instruments. I'm a bit busy now trading (it's not easy to post in realtime) but I'll have it in a few minutes. It depicts ANOTHER step in trading the box. brb.

 

Here's the image. I'll have commentary soon, but pay attention to the second trade without a box.

 

http://i59.tinypic.com/dcvs6x.jpg

 

One of the nice features of the box is indicating when a bar has closed on the opposite side of the first box trade. In the above image, you see a short was taken when box "support" was broken. You don't have to take these trades--sometimes they work and other times they don't, but it's important to know why they popup in the absence of a box forming.

 

I can't stress enough you should have a daily PnL goal and then quit. Although the box has a good win/loss ratio, taking every trade will result in returning some of your profits or exacerbating your losses to Mr. Market.

Edited by yamantaka
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pm sent again, thanks yam! You try the box on CL or ES much?

I did test ES and found it is not great. The reason is ES is a back and fill market--it rarely has the explosive moves of some other instruments when a bar closes out of the box. I like to get in and out ASAP. For example, FDAX is in a trade for less than a minute. A winning trade makes 50 Euros! My money is working very productively in that scenario, much better than anything else I can think of with little risk.

 

CL is on my to do list. I'll report back when the testing is over.

Edited by yamantaka
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Since I posted a ZS trade, for the sake of transparency, I'll share the stats. Again, although this is an autotrader for me you can trade it manually with chart trader and an ATM with results close to mine. These inputs have been computer tested and they produce the best results for maximum profit in scalp mode which includes 2 ticks of slippage on entry. ZS is volatile and thus well suited to scalping (and slippage). All trades were 1 contract. I will soon increase the size by one contract for each $1K in additional profit.

 

Time frame: from 9:30- 11:00 a.m. EST.

Bar type: RJRS 4-1

Target: 9 ticks

Stop 9 ticks

Daily Max Loss: $175/contract

Daily Max Profit: None

Order type: Market

 

Trade blotter to follow.

 

http://i58.tinypic.com/i1k6d5.jpg

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Guest gavetso
Yamantaka im agree to help to develope a OPEN SOURCE BOX indicator and Strat for forum could you provideme the basic guidelines to begin to code with my team
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Hi Yamataka, Is the P@P@T indi modified much or did you just put an auto trader code in it? Those products are fast...it took me about 1.5 years to get used to the CL, and these seem even faster...I see why you need an auto to cath the breakout. Good Job...when time allows could you PM. Also, I could provide some free coding...let me know.-Nate
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