Forums Trading Systems Discussion GG53 "Killing Zone" Rebirth

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  • #13171
    Joakim
    Participant

      First of all, please forgive me for my poor English knowledge.

      Hi Guys. In 2012 member of forexfactory with name jusiur created thread which was explained by GG53.

      As I understood the main idea of the system was that Volume always leads. We marked the “Killing zone” (flat) and than we mark the same zone on Gadi_Obv indicator, after we’ll wait when OBV break the marked zone. The system I think is very simple and very profitable.

      But I have a little problem with mark that “Killing zones” on the chart, than our brother GG told us that we can trade Asian breakout, as we know that on Asian session volatility is very low.

      GG’s advices about trade managment:

      Trading hours – London Open till London close+2.
      Don’t trade on Friday.
      Don’t trade 30 minutes before major news. If you have open trades – close them.
      For BUY:
      SL = Previous CLOSE (if too close then previous LOW). TP = SL*2
      When 7-8 pips profit – move SL to BE+1, remove TP, and Apply Trailing-Stop ~5 pips.
      For Sell:
      SL = Previous Open (if too close then previous HIGH). TP = SL*2
      When 7-8 pips profit – move SL to BE+1, remove TP, and Apply Trailing-Stop ~5 pips.
      Important !!
      If not in profit within 4 bars – close the trade (no matter what).
      Reason: We are not in a business of guesswork…
      Our signal was either false or something new happend in the market.
      Waive your ego and don’t trade hopes.

      Exapmle: USDJPY Breakout

      So I hope someone want to test and share with results… :whistle:

      Link to the thread : The GG53 “Killing Zone”

      P.S. In attached indicator for drawing right Asian zone, please set hours from 00:00 till Frankfurt open

      Also attached GG’s explanation of marking “Killing zone”

       

      BIG THANKS TO GG AND ALL CREDITS GO HIM. THANK YOU BROTHER

      Best regards

      Joakim

      • This topic was modified 7 years, 10 months ago by Joakim.
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      #13177
      simplex
      Moderator

        As I understood the main idea of the system was that Volume always leads.

        IMO, using the term ‘always’ is ‘always’ dangerous when it comes to Forex trading. Sometimes volume seems to be leading price, sometimes it seems to be the other way round.

        Prices reflect the battle of contradictory views on the market and different interests of the major players. If the current balance of these views and interests changes, major price moves can follow. And if this happens, volume might explode creating self-fulfilling prophecies.

        It’s the old story of hen and egg: which one was first?

        Look at the pic attached and those 3 yellow lines:

        • Left: OBV and price are perfectly in sync, while volume starts to decrease while the downswing is in full force.
        • Center: a major volume burst due to USD high impact news. Huge volume, while price is going nowhere. Trades would be closed according to your rules.
        • Right: Price clearly starts moving up, while OBV stays low and starts moving 20 bars later, when volume is starting to increase.

        You can easily find examples for volume leading, as well as price leading. In the end, it’s a question of probabilities: if somebody shows me a statistical analysis, based on a relevant amount of data and a sound methodical approach, showing that volume is leading in a major number of cases, the whole case gets really interesting.

        But until now, I’ve only seen dogmas about this case, and not a single statistical proof.

        s.

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        A good trader is a realist who wants to grab a chunk from the body of a trend, leaving top- and bottom-fishing to people on an ego trip. (Dr. Alexander Elder)

        #13179
        Joakim
        Participant

          Hi Brother. Of course we can’t be sure 100 percent on that business. But, GG in the thread on forexfactory told that we should use only Gadi_OBV, because algorithm of his indicator is different than standart OBV, there are many examples of using, and main idea of this system: that volume leads price. Maybe as you told when price leads volume, in that situations we get our loss :yes:

          best regards

          Joakim

          #13180
          simplex
          Moderator

            When a ‘different’ OBV is based on a strictly causal algorithm, the answer to the question ‘Who is leading?’ will basically not change.

            You can easily add some kind of extrapolation to speed up the original OBV algorithm, but this will lead to additional uncertainties.

            In the end, only statistics will tell the naked truth, turning dogmas into facts or dumping them in the dogmas’ trash bin.

            If you’d like to give it a try working out these statistics, I’d be happy to assist and discuss it. Any further discussion on this topic without such an analysis would be pure guesswork.

            s.

            A good trader is a realist who wants to grab a chunk from the body of a trend, leaving top- and bottom-fishing to people on an ego trip. (Dr. Alexander Elder)

            #13295
            joshuayip
            Participant

              Hi, I rip the FF thread (link used as size hit attachment limit) using the rb script I got here, in case someone wants to read the full thread. Just want to contribute back. This is just the HTML. The images will be loaded when you have internet.

               

               

              https://drive.google.com/open?id=0B81qmHYwwo0mSUlBSS05Tk1qX1U

              • This reply was modified 7 years, 9 months ago by joshuayip.
              #13301
              Saver0
              Moderator

                This is interesting.. A close friend of mine’s dad actually has been trading now for over 2+yrs successfully and he retired in the beginning of the year and trading full-time now (he is extremely disciplined). I saw his strategy and its very similar to what you outlined actually. He uses slope lines in multiple time-frames and he also LOVES OBV. He trades only for 2-3 hours during highest volatility in the direction of the trend.

                Just thought I should add.. keep this up  :good:

                Focus, Patience, Determination & Order in chaos

                #13696
                thomas
                Participant

                  Hi,

                  Any body know about ForexGT_FE  indicator ? What is the logic behind it ? Is there similar one @Killing Zone thread (may be with other name) ?

                  Tom

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