Adding OS1 to the calculation:
http://i61.tinypic.com/17zfgh.jpg
Keep in mind, this is not showing you how an entire trading system works. This showing you how one indicator works with the influence of another pulling in the exact opposite direction. What do you do when you have two indicators pulling in opposite directions? Do you give up and quit - call it a day? Or, do you get creative?
For the novice traders out there, if you are going to use multiple indicators in your trading, then you are going to have to take the time to learn how to integrate inputs from multiple sourced into your signal logic. Trade system development comes down to having good reliable indicators AND having the ability to design quality Trade Logic. It takes time, study and experience to make consistently good trade logic. Here we have two inputs pulling against each other. The reason behind going with OS1 to the upside and not B2i to the down side, is not because B2i all of a sudden became worthless. It is because OS1 was designed on purpose to have a longer event horizon. That means that price will ALWAYS return back to the level where OS1 exists and it will ALWAYS do it within a 24 hour period.
So, I could have targeted smaller pips going with B2i, but the Risk Level was too high considering the condition of the OS1 indicator (which I have not gone into any detail explaining). Basically, OS1 is a Double MA design using absurdly large Periods and a small algorithmic tweak that plots the line on the chart.
OS1 is in the Stabilizer Class of Indicators within the broader trading system. I have indicators in different Classes, similar in concept to the way an OOP coder would recognize different "Class" types in programming. All of my Indicators fit into one of four different Classes that include: Timing, Direction, Magnitude and Probability. When you start getting into Systems Theory, you will recognize the need to have indicators that take care of different aspects of Market Behavior. This helps you optimize the system and make better decisions.
http://i61.tinypic.com/17zfgh.jpg
Keep in mind, this is not showing you how an entire trading system works. This showing you how one indicator works with the influence of another pulling in the exact opposite direction. What do you do when you have two indicators pulling in opposite directions? Do you give up and quit - call it a day? Or, do you get creative?
For the novice traders out there, if you are going to use multiple indicators in your trading, then you are going to have to take the time to learn how to integrate inputs from multiple sourced into your signal logic. Trade system development comes down to having good reliable indicators AND having the ability to design quality Trade Logic. It takes time, study and experience to make consistently good trade logic. Here we have two inputs pulling against each other. The reason behind going with OS1 to the upside and not B2i to the down side, is not because B2i all of a sudden became worthless. It is because OS1 was designed on purpose to have a longer event horizon. That means that price will ALWAYS return back to the level where OS1 exists and it will ALWAYS do it within a 24 hour period.
So, I could have targeted smaller pips going with B2i, but the Risk Level was too high considering the condition of the OS1 indicator (which I have not gone into any detail explaining). Basically, OS1 is a Double MA design using absurdly large Periods and a small algorithmic tweak that plots the line on the chart.
OS1 is in the Stabilizer Class of Indicators within the broader trading system. I have indicators in different Classes, similar in concept to the way an OOP coder would recognize different "Class" types in programming. All of my Indicators fit into one of four different Classes that include: Timing, Direction, Magnitude and Probability. When you start getting into Systems Theory, you will recognize the need to have indicators that take care of different aspects of Market Behavior. This helps you optimize the system and make better decisions.
F-X-C-M | A Classic Retail Bucket Shop Scam Artist Who Manipulates Prices