Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

Money management: Capital needed per 0.07 USD per microlot 0 replies

The Volume Detective 411 replies

Attachments: (binned per thread starter’s request) MM (Money Maker) Detective
Exit Attachments

(binned per thread starter’s request) MM (Money Maker) Detective

Quoting robots4me
There was something else I was debating whether to mention or not, but @moodybot keeps pushing the buttons. Just like @George et al keep track of what I write about here, I also like reading about how things are going over on @George's thread. @moodybot just uploaded another post -- for the sole purpose of mocking me. Here's the link: https://www.forexfactory.com/showthread.php?p=12326488#post12326488 Readers over on @George's thread are asking questions and request help -- but @George and @moodybot say they are too busy. But, I guess...
Now that's interesting, I like EA's very much, but you already know that

The tricky bit will be those dam SL's
Some people say I'm lucky, but the more I practice the luckier I get
Quoting Robot Trader
{quote} Now that's interesting, I like EA's very much, but you already know that The tricky bit will be those dam SL's
@Robot Trader -- the first version will be simple -- using M1 TMA signal generation and momentum filtering, we'll prove that @George's amazing theory really does work.

Until now I've declined offers to adapt the indicator to an existing EA with more sophisticated money management features. I agree that using SL / TP works only so-so. Maybe I'll say okay to the next offer.

As I stated, my preference is for them to go away -- not so much @George, but @moodybot and @bluesteele. But a part of me is also curious how a competing EA might fit in with their plans. I mean, of course they would trash it -- but then they would be trashing @George's theory. Also, how could they trash my EA when at the same time they keep theirs private? Maybe people would take them to task for not also making their EA public. I mean, what's the big deal? What are they afraid of? Their EA averages $150 / day, so they say (though @George seems to get Pips and Points mixed up). Is the MM going to change it's algorithm because of @moodybot's EA? Seems they may have an inflated sense of self importance -- I don't know.
https://www.forexfactory.com/showthread.php?p=12323853#post12323853
Quoting robots4me
{quote} @Robot Trader -- the first version will be simple -- using M1 TMA signal generation and momentum filtering, we'll prove that @George's amazing theory really does work. Until now I've declined offers to adapt the indicator to an existing EA with more sophisticated money management features. I agree that using SL / TP works only so-so. Maybe I'll say okay to the next offer. As I stated, my preference is for them to go away -- not so much @George, but @moodybot and @bluesteele. But a part of me is also curious how a competing EA might fit in...
If they want to prove their EA works all they have to do is put it on a live account with say a $1K starting balance and provide a link, so then every man and his dog can view the results.

Otherwise a few random results flashed on their thread are meaningless.
Some people say I'm lucky, but the more I practice the luckier I get
Quoting Robot Trader
{quote} Now that's interesting, I like EA's very much, but you already know that The tricky bit will be those dam SL's
TP & SL are quite tricky.

However, given the current approach, you may try the following:

- First is to grid the trades as the filtered signals show
- Look to exit as soon as price touches either the opposite band or total pip count of trade baskets reaches say 40-50% of ADR.
- Using these rules alone, all the trade sets in your last post are winners.
Quoting bishopdotun
{quote} TP & SL are quite tricky. However, given the current approach, you may try the following: - First is to grid the trades as the filtered signals show - Look to exit as soon as price touches either the opposite band or total pip count of trade baskets reaches say 40-50% of ADR. - Using these rules alone, all the trade sets in your last post are winners.
Hi bishopdotun,

Yes, I agree with what you are saying, but I would look to go much further, however best to see the success rate with just a single trade.

This is R4M work that he is sharing and he will have his own ideas and will not want to be a slave to all of what we might think works best.

I do have an old EA with lots of code that might be useful, but lets see how things progress.

Regards

RT
Some people say I'm lucky, but the more I practice the luckier I get
Quoting Nih98
{quote} Hi Bro @Anrod, just want to inform you that this 'centered' version is 'intended repainting' TMA bands version. If you want to change it to NRP version, then you should replace the centered MA module with, NRP MA module inside the code main loop. Regards NIH
Thanks, i will look into it!
Hi
Today on GJ.
We entered the bands on M15 (also signaled on the right by the exhaustion of tma true all tf in red)
Attached Image (click to enlarge)
Click to Enlarge Name: exhaustion1GJ.png Size: 50 KB

and the rebound was also to the pips on the fractal support line of H1 (smFractallevel_3j)
Attached Image (click to enlarge)
Click to Enlarge Name: fractalLevel.png Size: 35 KB

And the rebound
Attached Image (click to enlarge)
Click to Enlarge Name: GJrebound_001.png Size: 80 KB

For those interested in the tma true all tf panel i put it hereunder (robots4me tell me if you want it removed)
Attached File
File Type: ex4 Monitor_Signal_Tma_True_Scalper.ex4   29 KB | 287 downloads

Attached File
File Type: ex4 TMA slope true Scalper.ex4   46 KB | 290 downloads
Attached Image (click to enlarge)
Click to Enlarge Name: IRUTM -signals-filters.png Size: 39 KB
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD 55 13 JUIN 2019.gif Size: 61 KB
First I want to say thank you for all the work being done here. Some of these indicators have helped trained my eyes for what im looking for.

Second I want to ask if someone can add a mobile alert to "MMDetective-MTF-HLF" indicator? Specifically for an alert when a new 'Level-3 TOP/BOTTOM' forms.

Thanks.
Very disturbing.... Looks like another poor devotee has got malleted over on Comedy Central
MM FX RSI Momentum Indicator

I've uploaded a new indicator -- MM-FXRSI-MomentumIndi.ex4. It is bundled in a zip file along with the other indicators and can be downloaded from the other thread "Custom Indicators for TMA-ADR Reversal Trading and BBMA" (https://www.forexfactory.com/showthread.php?t=920925).


The MM-FXRSI-MomentumIndi.ex4 indicator is based on @Nih98's FX RSI indicator (https://www.forexfactory.com/showthread.php?t=915096).

Attached Image (click to enlarge)
Click to Enlarge Name: FXRSI-Momentum-Filter.png Size: 120 KB


The FXRSI Momentum indicator is intended to be used as a filter -- that is, to distinguish between true and false reversal signals, and is used within the IRUTM indicator. I thought it could be useful for other purposes and, so, decided to create a standalone version that you could overlay on a chart.

I'll explain how it works. In the screen shot above the IRUTM indicator is attached to the main window, @Nih98's FX RSI indicator to the first subwindow, and MM-FXRSI-MomentumIndi.ex4 to the second subwindow.

On the left-hand side I've marked a Bullish reversal -- in the main window you see the signal (blue dot), in the first subwindow you see the slope of the aqua-colored line is upwards AND below the pink MA, and in the second subwindow the MM-FXRSI-MomentumIndi shows a blue dot -- indicating upward momentum. So -- all three indicators are consistent with one another.

On the right-hand side I've marked a Bearish reversal -- in the main window you see the signal (purple dot), in the first subwindow you see the slow of the aqua-colored line is downwards AND above the pink MA, and in the second subwindow the MM-FXRSI-MomentumIndi shows a purple dot -- indicating downward momentum. Again, all three indicators are consistent with one another.

Elsewhere I've discussed how (most) all trading strategies can be broken down into signals and filters -- and here it is again. The main chart shows a signal and the subwindow uses a (momentum) filter to confirm the signal.

A couple additional notes:
1. The vertical lines are drawn by the MM-FXRSI-MomentumIndi and can be toggled ON / OFF.
2. My interpretation of how to use @Nih98's FX RSI indicator may be different than you might expect -- this is because we are trading reversals, rather than trends. Also, note that the MM-FXRSI-MomentumIndi makes use the of slow, pink MA. When the aqua-colored line is above the slow MA then we are only looking for downward momentum, and when the aqua-colored line is below the slow MA then we are only looking for upward momentum. Again, this is because we are trading reversals. This may be obvious, but I think it is important to understand.
SIGNALS AND FILTERS (continued from the other day)

Attached Image (click to enlarge)
Click to Enlarge Name: epiphany-moment-2.png Size: 379 KB


While working on the IRUTM indicator I had an "aha" moment. This signal and filter thing is becoming much clearer to me and, in fact, it seems so simple that now I'm concerned I may be dwelling on the obvious. But I'll proceed anyways.

But first a few caveats:
1. I'm talking about reversal trading, but I think this also applies to trend-following and any other type of trading strategy.
2. This applies whether or not you use indicators. If you use indicators then there is code that generates signals, and there is code that applies filter(s). If you don't use indicators then the signals and filters are steps you perform in your brain. In other words, even though you may not see them on a chart, you are still performing these steps.
3. I might be wrong.

So, in the context of reversal trading what is being used to generate signals and what is being used as a filter?

Signal Generators:
A price extreme (spike) poking its head above or below a TMA band, a Murrey Math line, a Keltner-ATR channel, a MA-Fibonacci channel, one of @parisboy's envelopes, and who knows what else. It's all about a price poking its head above or below some algebraically computed, moving average-related band. That's it. Now -- some may work better than others, right? But how do you tell? Well, there are two types of signals -- true signals and false positives. By 'true signal' I mean a signal where some kind of reversal actually occurs, and by 'false positive' I'm referring to the situation where the price does not retrace but continues in the same direction. Let me throw in the term "signal quality" to refer to the ratio of true signals and false positives generated by a signal generator. The signal quality may differ with the different types of algebraic bands. The signal quality may differ from pair-to-pair. The signal quality may differ depending on market conditions and patterns. In other words we don't know which is the best type of band to use. Traders may have a preference, but I've never seen evidence that one works better than another. The IRUTM indicator uses M1 TMA and I don't have any plans to move away from it, but it's clear to me that other channel-type indicators could be used in its place since all we are looking for are extreme prices that we expect to reverse.

An important point about Signal Generators -- they must use the current price. If you have any question whether an indicator (or analytical step you perform in your head) is a signal or filter, simply ask yourself if it is based on the current price.

Attached Image (click to enlarge)
Click to Enlarge Name: naked-spikes.png Size: 84 KB


In the image above there are two charts -- one naked and one with @Nih98's TMA bands. Looking at the upper, naked chart, would anyone have trouble picking out the extreme prices (i.e. spikes)? Probably not. So, why do we need indicators like TMA bands? So that we can create rules that a computer can understand and thereby automate signal generation. A computer program -- an algorithm -- requires specific rules. By using TMA bands, our algorithm (i.e. rule, recipe) for detecting extreme prices becomes simple -- check if the price is above or below a band. It's no longer a subjective decision -- that is, by using simple algebra we can apply consistent and reproducible rules that lead to automating decision making.


Filters:
Filters are indicators (or analytical steps you perform in your head) used to distinguish between the true signals and false positives created by signal generators. That's it -- decide whether or not it is a good signal.

Examples:
* @Nih98's FX RSI indicator -- which I use as a momentum filter
* TOPS / BOTTOMS target levels
* Liquidity Gaps

... to be continued
Quoting robots4me
MM FX RSI Momentum Indicator I've uploaded a new indicator -- MM-FXRSI-MomentumIndi.ex4. It is bundled in a zip file along with the other indicators and can be downloaded from the other thread "Custom Indicators for TMA-ADR Reversal Trading and BBMA" (https://www.forexfactory.com/showthread.php?t=920925). The MM-FXRSI-MomentumIndi.ex4 indicator is based on @Nih98's FX RSI indicator (https://www.forexfactory.com/showthread.php?t=915096). {image} The FXRSI Momentum indicator is intended to be used as a filter -- that is, to distinguish...
Hey Steve,

Short question, do the arrows actually repaint because they seem to give some very good signals? And where can I download the @Nih98's FX RSI indicator from? I can't really find it in his thread.

Amazing work once again Steve, extremely appreciated!

Wim
Quoting LongBTC
{quote} Hey Steve, Short question, do the arrows actually repaint because they seem to give some very good signals? And where can I download the @Nih98's FX RSI indicator from? I can't really find it in his thread. Amazing work once again Steve, extremely appreciated! Wim
Hi Bro, FX-RSI is just standard RSI that 'calibrate' for Forex, as you know that default RSI setting design for stock market.
If you download my TMA zip file from my journal post 1, and load the template to your chart then you will get FX-RSI that could work 'as general' tool. While you also need to 'calibrate' again if you want to use it on special purpose.

Regards
NIH
Dog + Smile = Beautiful Day
Quoting robots4me
So, why do we need indicators like TMA bands? So that we can create rules that a computer can understand and thereby automate signal generation. A computer program -- an algorithm -- requires specific rules. By using TMA bands, our algorithm (i.e. rule, recipe) for detecting extreme prices becomes simple -- check if the price is above or below a band. It's no longer a subjective decision -- that is, by using simple algebra we can apply consistent and reproducible rules that lead to automating decision making.
@r4me, I'm very much enjoying your posts on this subject. In reference to you selection of TMA indicator, I have drifted to use the non-repainting version. The reason is that they are easier to back test visually as the values you see, are what was there when the bars were forming. The other versions that do repaint give a better visual aide at the right edge but the tops and bottoms of the extremes are different at the time due to how the TMA calculation works. I know you understand this. For me the non-repainting type is easier for EA development too and that is my main focus of signal generation with TMA and then applying filters.

After signal and filters comes management. I'm employing multi entry for a reverse, but if the reverse fails and moves into a continuation of trend, I hedge the first two entries and add another to gain from the trend move. When the trend is finished I'm attempting to close out with an overall profit. Work in progress.

In case no one has these this is a non-repainting TMA version. I have added slope to this as it is one of my filters. Useful for filtering a strong trend (>180 GBPJPY M15)

Attached File
File Type: ex4 LWMA_TrueTMAwithSlope.ex4   12 KB | 333 downloads

Attached File
File Type: mq4 LWMA_TrueTMAwithSlope.mq4   3 KB | 424 downloads
Quoting LongBTC
{quote} Hey Steve, Short question, do the arrows actually repaint because they seem to give some very good signals? And where can I download the @Nih98's FX RSI indicator from? I can't really find it in his thread. Amazing work once again Steve, extremely appreciated! Wim
Hello @LongBTC -- no, the dots do not repaint. If you are ever in doubt whether an indicator repaints, you can run it slowly in MT4's Strategy Tester and it would become very obvious if lines or arrows or dots are repainting. By the way, there is a difference between repainting and recalculating. Recalculating affects only the most recent bar and is usually okay.

@Nih98's FX RSI indicator is not a standalone indicator -- sorry for the confusion. It is actually composed of RSI plus two MAs. If you download his template from his post #1 (https://www.forexfactory.com/showthread.php?t=915096) you will then be able to discover the settings that he uses. For the RSI indicator, be sure to uncheck the 'Fixed minimum' and 'Fixed maximum' boxes.


EDIT: Sorry -- I posted this before seeing @Nih98's response above.

EDIT: As for using it for signals -- sure. But if you use if for that purpose you'll then need a way to distinguish which ones are good for trading and which are not. In other words, you'll need to apply another filter.
Quoting nigpig
{quote} @r4me, I'm very much enjoying your posts on this subject. In reference to you selection of TMA indicator, I have drifted to use the non-repainting version. The reason is that they are easier to back test visually as the values you see, are what was there when the bars were forming. The other versions that do repaint give a better visual aide at the right edge but the tops and bottoms of the extremes are different at the time due to how the TMA calculation works. I know you understand this. For me the non-repainting type is easier for EA...
@nigpig -- thanks very much for attaching your TMA versions. I am also using a non-repainting TMA.

If you don't mind -- could you explain further about how you use slope for filtering. Maybe even a screen shot?

Also, you say after signal and filters comes management -- which sounds interesting. I sort of get your explanation but wonder if you could post a screen shot or two. For example, you say "if the reverse fails" -- but at what point do you determine it has failed?

All very interesting -- thanks...
Steve and NIH thanks for clearing that out really fast! Amazing work from 2 amazing people.

Good luck all !
Many thanks for your constant efforts my friend...!

I'm using/testing the TDI as additional indi for confirmation/divergence and doing multiple entries. IMHO, reversal trading seems to be harder than trend following...

Attached Image (click to enlarge)
Click to Enlarge Name: TrutM GJ.png Size: 60 KB


Happy trading, jdva
I never lose - either I win or I learn...
Quoting robots4me
{quote} @nigpig -- thanks very much for attaching your TMA versions. I am also using a non-repainting TMA. If you don't mind -- could you explain further about how you use slope for filtering. Maybe even a screen shot? Also, you say after signal and filters comes management -- which sounds interesting. I sort of get your explanation but wonder if you could post a screen shot or two. For example, you say "if the reverse fails" -- but at what point do you determine it has failed? All very interesting -- thanks...
This is a simple example to illustrate the idea. The value of 180 is just taken after a visual scan and is nothing special. The value would change over a chart and different time frame and currency pair.

Attached Image (click to enlarge)
Click to Enlarge Name: GJM15-14062019 1144.png Size: 130 KB
0 traders viewing now