Developing a system #8 (Three line break fofo strategy)
Submitted by Edward Revy on November 5, 2008 - 11:51.
Submitted by dr.fawwaz
A simple but powerful strategy but needs improvement for exit and take profit, sometimes it will have losses(very few) but all in all u will always be in profit, I'll describe it here and lets all improve it and beat the brokers together, here it is:
It's called the three line break fofo strategy (i made it my self).
Open a 15 min chart eur/jpy (u can use other currencies also but i like this currency) then let your chart type be THREE LINES BREAK INSTEAD OF CANDLESTICKS, that's all what u need, no indicators at all just the plain chart.
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how to make metastock formula to portray your 3 line break n base stoc?
I don't know much about programming, but thought may be this general info about 3linebreak construction can be of some help:
3lpb.pdf
Regards,
Edward
For those interested still interested in 3 line break, I found a review of that system's performance (along with a few other trend following systems) at x-charts.com/downloads
They say the 3LB is not "that" good. There's an awful weekly DJIA chart showing that the losses take back all the profits... I've manually backtested 3LB myself using MT4 and it seems a "OK" TS, but that Dow chart bugged me. I've been testing filters on MT4 to improve the performance but nothing seems to work and I just gave up of 3LB.
this strategy is simply buying and selling after a certain trend has startted. In consequence, this strategy will work well in trending markets and will lose money in sideways markets.
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