What do people think of this indicator?
I rarely use forums, I've traded for a number of years and experienced the usual ups and downs.
I'm a coder, I've spent years on my own crazy complex indicator - basically hundreds of calculations that boil down to a single line indicator. If it goes up, buy, if it goes down, sell.
For the most part, it's served me well. The losses always come from bad money management, over-confidence, etc. This confirms for me that no indicator can make you rich as it's how you trade with that indicator that makes or breaks a trader.
However, I'm confident in the work I've done but I'd like to see how other traders might use the indicator. I think there may be some insight from forum members that will result in:
NOTE: These indicators were written using MetaEditor/compiler build 509. If you want the .mq4 source to compile/run without errors, you'll need to do this first. Otherwise, download only the .ex4 files.
Two potential problems, as I see it:
1. Unless you're willing to share your indicator, you'd somehow need to supply fresh CSV files on an hourly basis, and there would need to be an automated process for downloading them into the correct MT4 folder on my computer, for this to be useful for live trading.
2. As a discretionary trader, unless I have at least a vague idea of the type of data that your indicator is plotting, I'm afraid I wouldn't have the confidence to use the data, when trading a real money account. I would be placing in my trust in a 'black box' that I effectively know nothing about.
How should we best proceed from here? Ideas, anybody?
Plot External Data.ex4
Plot External Data.mq4
Plot External Data (main chart).ex4
Plot External Data (main chart).mq4
ah, nice work.
I'll modify Plot External Data.mq4 to work in the latest build. But what's this for:
#include <hanover --- function header (np).mqh>
Anyway, I think I'll move on now, unless/until the two issues that I noted in my original reply are addressed.
Just before I disappear, however, I've made a couple of quick enhancements to the attached indicator:
YaxisValues: valid entries are now as follows:
Field is left blank: no (additional) Y-axis will be plotted
A series of up to 50 ascending (integer or decimal) values, separated by commas: these levels will be plotted on the chart. Example: -30,-20,-10,0,10,20,30
Four entries: an asterisk (*), followed by the starting/lowest level, step/increment, and ending/highest level, all separated by commas. Example: *,-30,10,30 would generate the same levels as in the previous example (start at -30, increase in steps of 10, end at +30)
A question mark (?), optionally followed by a positive integer, separated by a comma. Example: ?,5 will divide up the highest and lowest data values plotted into 5 equal intervals, calculate the step value across each interval, and plot a level at each step. For example if the highest data value is 50 and the lowest is -50, then ?,5 would plot levels at -50,-30,-10,+10,+30,+50
A question mark (?): same as the previous, although it will divide up the chart into the default value of 10 intervals, i.e. ? delivers the same result as ?,10
Note that you must press F8 and check 'Show object descriptions' on, if you want the Y-axis number values to print above the plotted horizontal lines (as shown in the screenshot).
YaxisSettings: new options are:
Leave the first entry blank: the line will start plotting at the left of the chart
Leave the second entry blank: the line will be plotted as a ray, extending to the far right of the chart. Any negative value will also cause a ray to be plotted
NOTE: This indicator was written using MetaEditor/compiler build 509. If you want the .mq4 source to compile/run without errors, you'll need to do this first. Otherwise, download only the .ex4 file.
Plot External Data (main chart).ex4
Plot External Data (main chart).mq4
I've modified Plot External Data.mq4:
See attached image (EURUSD) as example, and new MQL file.
I started my research into the financial markets in 2001 and specifically Forex in 2006. Although trading -- and occasionally tinkering with automated and semi-automated systems -- is really not much more than a hobby for me, I'm happy enough with my existing methodology (S/R, volume profiling, orderflow, and statistical analysis are all concepts that I find valuable also). However, when I saw that nobody had replied to your post, and I had a couple of 'CSV data plotting' indicators that I thought might be useful here, that was my main reason for replying.
Nonetheless, your indicator looks very interesting. Ability to anticipate bias can be useful for both entries and exits. From experience I know that it usually takes me 6-12 months to assimilate and test a new trading concept, to the point that I feel comfortable running with it on a live account. Hence I would need to decide whether it is worth the time and effort, given my current situation.
In the meantime, thank you very much for sharing, and I wish you all the best.
just subscribed until be hot this one
will try to use this indicator...
Well, the goal isn't to be a contrarian indicator but it looks like that I agree. I tend to avoid any labels at all with life in general, and therefore my trading. I just do whatever the statistical and other analysis indicates, and if that results in what people call "contrarian", then faire enough.
Keep in mind that the algorithms running will naturally adapt to different currencies and market conditions. So it may seem "contrarian" on that particular chart, and that particular time but that doesn't mean it'll always be like that.
If you're looking at my buy and sell trades on the chart, keep in mind that my sells were based on the indicator but I entered way too early. As I mentioned in my first post, it's my psychology / entry / exit / etc that needs improving. I actually think the indicator is great. I'm the problem So my buy trades on that chart are putting me into a hedge.
As of today (Monday 8th), the EURUSD indicator is definitely telling me to sell. Except I'm already in 3 sell positions so I'm not going to open another, although I'm sure I'll regret not opening another! So, this is why I'm finally opening up my indicator to the public. I need help using my own indicator!... and I think people will definitely benefit from it (but then again, everyone who posts here thinks they have something fantastic to offer lol)
ForeverNewb, I'm actually not too sure what your markups on my charts mean. I thought maybe they were pointing to the trades I had open but looking again I don't think that's the case.
Just to confirm... A "sell signal" is either when the line quickly moves down, or is clearly in the negative. The opposite for a "buy signal"
ForeverNewb... ah, now I see what you're doing. Well, it does appear that just as the line crosses from positive to negative, it would have been a good time to BUY, even though going into negative actually is a SELL signal.
That's an interesting observation though. I would never enter a SELL just as the line crosses into negative; I'd wait until it's clearly sitting in the negative and continuing to go down, but I do tend to enter too early. So perhaps my indicator is picking up the strength or weakness too early, and therefore perhaps it's worth me looking at using the "crossover points" as potential trades... so, for example, when it goes from a "clearly" positive position for a "while" and drops down and just touches into the negative, I should BUY, knowing that it's about "mid-trend", and then close that position and SELL if / when the line continues further into the negative.
"clearly" and "while" would need to be defined.
i wish i know how to code
I've modified my indicator to show the buy line, sell line, and then the final line (= buy minus sell).
This helps to show the reason why, for example, the final line is in negative... is it because of lack of buy signal? lack of sell signal? maybe it's a combination of buy and sell signal? etc.
New MQ4 file and CSV files attached. I'll update the previous posts with the latest files to assist new readers to the thread.
8 currencies v3.zip
Plot External Data.mq4
Updates (all previous files in previous comments have been updated):
apologies for the unclear message, it seems I f*k up somehow with the image attachment and lost part of the message... although I am an avid reader of this forum, I am a little poster (so much to read ..duhh) and that may well be only the second image I post. As the preview didn't show the image as full but only as "downloadable", tried a few things, and lost some of my writing in the process... I ll try to remember for next time
In short, I was pointing to your 1st message in which you said:
That is also something that stroked me when I saw your single line, it didn't look better than more common oscillators (overlooking the contrarian stuff).
Now with your three lines, that is getting very interesting (conceptually) because that is something I never made on lower than daily TF, so I am very curious about which data you are using (though I may have an idea, likely wrong, but not something I could code to test anyway). I think I finally need to download your data to try out more stuff
In conclusion, I am wondering if your indi is working well for you (as you say "For the most part, it's served me well") simply because somehow you trust/understand it more than more common oscillators (you put so much effort into it, you know what it is based on, etc.. you say yourself, you are confident in the work you've done), not because it is intrinsically better than a MACD for ex.
But that is based only on a few images so far and my little experience, so don't take my word for it ( I took your message as seeking constructive criticism, so that is what I am trying to do) .
Thanks for your comments ForeverNewb,
Unlike an indicator which is calculated purely on price action and volume (as that's the only data available to MT4), my indicator uses data not available within MT4. Therefore, while it may look like an oscillator, and you may well find an oscillator that is close to the line that we've been using in our example screen shots (EURUSD, going back 2 months), I can assure you this indicator will deviate from any correlation you find between this indicator and an oscillator indicator.
As mentioned in previous posts, about 30% of the calculations is based on volume (tick volume, huge data stores), 30% on news and other fundamental data that can be analysed, and then a whole range of basic trading principals, again with a focus on statistical analysis of those principals rather than the principals themselves... SR, some price action, pivot points, price density histograms, etc.
It's interesting that the "contrarian" concept came up simply because my goal is to follow smart money (lots of VSA stuff going on in that indicator), and smart money is obviously contrarian (because they're the ones making money while everyone else isn't). So, VSA combined with my other calculations (about 100 of them)... if that's showing a contrarian indicator then great
But that's not to say it'll always present itself that way. I have no fixed trading strategy. But this indicator is the "boiling down" of a huge array of considerations I would like to make before considering any trade... I seem to have boiled it down to a single line - something I didn't expect I'd do, but here I am.
So yes, the indicator is working well - because it's an indicator, not a trading strategy. My trading strategy is up and down, usually because I get too confident, enter too early and then have to deal with the consequences For that reason, I'm wondering who might be interested in testing out my indicator without me (at this stage) revealing all the details of my many years of calculations. Insights from people here may help me with my trading strategy.
I did a few tests.
Unfortunately I am not on PC, and being seriously retarded computer-wise, I couldn't open the csv in MT4, so tried through excel, then some math prog.
What I did is test EU and AU, multiply your data (the resultant single curve, not the buy and sell; in red in graphs below) by -1 (for convenience wrt contrarian stuff) and tried to scale it with corresponding close price (by eyeballing, so not optimum fit) (in black in graphs below; haven't tried more exotic prices which may fit better) (the green line is the zero line of the indicator):
without knowing what is in your indicator and the logic behind it, it is difficult to tell more than: you have found a complex way to reproduce a price oscillator.
You picked two charts that happened to have a high correlation over the last couple of months.
I added a plot of correlation (white line) to EURUSD and yes, for all of November the indicator line, when inverted is closely correlated to the price. But... from about 12th Dec correlation shifts drastically.
AUDUSD is a similar story.
Had you picked another chart, e.g.: GBPUSD, you would see far less correlation.
And I also uploaded a screen shot for USDJPY correlation which when eyeballed, appears correlated but in fact isn't when we calculate the correlation (white line).
And it makes sense there's correlation (inversely) because there are many VSA calculations in my algorithm and, for example, identifying weakness in a downtrend, and buying into it, is very much a VSA concept... a contrarian concept.
But even with common inverse correlation, I think it's easy to overlay the inverse of the indicator on the price chart and figure that it's just a price oscillator and conclude that the indicator is simply saying, "if the price goes up, then sell, and if it goes down, then buy, and the more it goes up or down is a stronger signal to buy or sell."
But the interest is whether the indicator line is in positive (buy signal) or negative (sell signal). See attached "trade points EURUSD.png". I've highlighted 2 places where I would have entered a buy, and 2 for a sell.
So my point is that even when there's inverse correlation (the price goes up, and the indicator line goes down), the indicator going down doesn't mean sell. The indicator with a negative value means sell. The more negative it goes, the more confident I can be that selling is a good move. If the indicator line is in the negative, and it jumps up a bit (but still is in the negative), then it often represents a scalping opportunity - just some short term strength, even through the indicator is showing an overall sell signal.
Good morning truelifeajf,
thanks for the additional explanations, it is clearer now how you read the indi.
I guess my point is: does your indi perform better than less complex indi? If it does, what do you care what other people think of the indi? if it doesn't, then it is just another line. But not knowing the logic of the indi makes it hard/impossible to really provide an evaluation.
And of course, as you already mentioned, the indi is one thing, the trading is another.
For ex, here is a simple contrarian PO indi I made quite some time ago. no hard/tight SL (just one far incase of the unthinkable happens), 50 pips targets, 8 out of 8 winners for the same EU period you show. Yet I never got the balls to trade it, still working on my iron cast... the wide security stop is something I can't sleep with.
What do people think about this indicator?...
In other words, how do you benefit from the complex calculation of your indi? As I said in my earlier post, I believe (obviously may be wrong) it is simply the confidence it gives you because you know the indi and it makes sense to you. You can give all the examples you want, if you don't explain the logic of the indi, difficult to go beyond beliefs. Don't get me wrong, I am not asking you to disclose your work in public (though I am very curious about it). But maybe you should rethink the question you are asking.
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