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

Quoting skyway (https://www.forexfactory.com/showthread.php?p=12337958#post12337958)
You'll see funky multi coloured charts that changes parameters each post. ------- moodybot https://www.forexfactory.com/showthr...8#post12337758 (https://www.forexfactory.com/showthread.php?p=12337758#post12337758) No parameter change required. Same parameter used for GU is used for AU and everything else. Thanks to the coders creations on this thread. Go down the timeframes for extra details. Traders have to acquire solid market structure knowledge to use it effectively. GBPUSD {image} {image} {image}

About "funky multi coloured charts that changes parameters each post. " and Envelopes Calibration for Lazy ignorant Traders!

Fractalization and autosimilarity in action for Lazy traders

Envelopes Calibration Parisboylike is very simple. Even lazy mediocre coders can program it easyly.

And on this thread there is no mediocre coder.

Why lazy mediocre coders can program it ? because the proposed system does not require high skills and rocketscience mathematics, but only the use of simple arithmetical tools : the multiplication by 2 and the division by 2

We use GBPUSD as example 1 Day / 1 minute chart

you will notice that the existing parameters to calculate the Amplitude of the Envelope(s) are 0,0015625 / 0,0078125 / 0,00390625 and that the results seen on the previous chart are already very good for Analysis : you show clearly 3 differents Trends at work withn Price Action TimeFrame and you have a (very) god approximation of Potential Swings Amplitude.

From the trading point of view you can without difficulties identify "spikes poking their heads outside the Envelopes" and playing reversals when Price Action reenters the Envelopes or turns.

Bonus for lazy traders you can use Envelopes Limits as successive Candidates Support, Resistance and Target Price.

Advanced Lazy Traders can even use them to calculate some Risk Reward Ratio.

But some Lazy traders can consider that if the present parameters include "most of" Price Action , there is yet too much Price Action outside the biggest Envelope ( see the Red cartouches)

Then you just have to DOUBLE the parameters

Let's now use a 5 Days / 5 minutes chart with the previous 1 minute setting : 0,0015625 / 0,0078125 / 0,00390625

Not bad,isn't it ? We will keep it this way

Previous 1 and 5 mn parameters 0,0015625 / 0,0078125 / 0,00390625 do not work We have to DOUBLE.

Parameters 0,0015625 / 0,0078125 / 0,00390625 have been DOUBLED : 0,003125 / 0,0015625 / 0,0078125

Not bad but we can do better by DOUBLING again.

Then we DOUBLED again . Parameters become 0,00625 / 0,003125 / 0,0015625 / for a 1 Month / 30 minutes Chart

we DOUBLE these Parameters 0,00625 / 0,003125 / 0,00 15625 / for a 3 Months / 60 Minutes Chart : 0,0125 / 0,00625 / 0,003125 /

We DOUBLE again these parameters for a 6 Months / 120 Minutes Chart : 0,025 / 0,0125 / 0,00625 /

Electronically in spite of the distance I feel that @Robots4me become slightly nervous. He has to sip the information. But you have the general idea. A kind of edge would say @Robots4me

PS Do not mix the kind of Envelope(s) you use and the Calibrated Amplitude you give them. It is 2 different things.

The only requirement to benefit from this system is to use fixed-width Envelopes

Trading bands, envelopes channels etc were developed during the sixties by ignorant lazy conceptors and founders of Technical Analysis.

At this time, traders could not benefit from the lights of George for several reasons :

- George at this time had not yet spent thousands of hours of screen studies, moreover screens did not exist in the sixties
- George could not illuminate the trading life of family "members" because Skype did not existed, there was only expensive long distance communications
- George could not also criticize useless indicators because there was almost no indicators too

Envelopes history from John Bollinger book

The history of trading bands, envelopes, channels,etc., is long and interesting. Only the highlights are covered here,enough to provide you with an idea of the origins of the craft and a sense of perspective.

Perhaps it is best to start with definitions.

Trading bands are bands constructed above and below some measure of central tendency—for example,a moving average shifted up and down by some percentage of itself.

Bands need not be symmetrical, but they do reference some central point.

Envelopes are constructed around the price structure, above a moving average of the highs and below a moving average of the lows, for example.
Envelopes may be symmetrical, but most often they are asymmetrical and do not refer to a central point.

Channels are parallel lines drawn around prices such that the channels touch the price structure at key points.

The earliest citation we have uncovered comes from Wilfrid LeDoux,who copyrighted in 1960 the Twin-Line Chart (Figure 6.1).

A simple but elegant approach,it called for connecting the monthly highs with a black line and the monthly lows with a red line. Several rules were given, the clearest of which called for a buy when the red line (monthly lows) exceeded a trough made by the black line (monthly highs) by two points.

The idea of this technique was to clarify chart patterns that resulted in major swings to help time one’s operations in a given stock with maximum efficiency. We have not tested this technique, but the examples we have seen suggest it works admirably.

Mr. LeDoux commenced operations in 1918 and was wiped out by 1921, an unfortunate occurrence that led to his research. The first tools he employed, circa 1930, were his ROBOT charts, called Detectographs,which also focused on highs relative to lows and vice versa,though a technique we have been unable to uncover.

Unfortunately,we are also unable to discover the precise time he started deploying channels.

Suffice it to say that it had to be prior to the publication of the Twin-Line Chart in 1960. LeDoux’s use of monthly charts is quite striking. Clearly, this points to the long-term orientation that was more prevalent in his day. At that time,the terms overbought and oversold were used exclusively to refer to long-term, climactic tops and bottoms, exactly the types of events that one would be able to observe clearly on monthly charts. This is especially interesting in light of the broad use of these terms today to apply to the shortest possible time frames. The markets clearly do evolve.

Trading bands, envelopes channels etc were developed during the sixties by ignorant lazy conceptors and founders of Technical Analysis.

At this time, traders could not benefit from the lights of George for several reasons :

- George at this time had not yet spent thousands of hours of screen studies, moreover screens did not exist in the sixties
- George could not illuminate the trading life of family "members" because Skype did not existed, there was only expensive long distance communications by phone.
- George could not also criticize useless indicators because there was almost no indicators too

Keltner Channels

At about the same time LeDoux copyrighted his Twin-Line technique,Chester W. Keltner hinted at things to come when he published the Ten-Day Moving Average Rule in his 1960 book How to Make Money in Commodities (see Figure 6.2).




Keltner began by calculating the typical price—add the high,low ,and close for a given period and divide by three.2 He then took a 10-day moving average of the typical price and plotted it on the chart. Next he calculated a 10-day average of the daily range (high-low). In downtrends he calculated and plotted a line equal to the 10-day average of the typical price plus the 10-day average of the range.

This was the buying line,the line where you covered your short position and went long (reversing your position from short to long). In uptrends the average of the daily range was subtracted from the average of the typical price to produce a selling line.

When the price fell below the selling line,you closed any long positions and sold short (reversing your position from long to short). See Table 6.1 for a summary of Keltner’s formulas.



Keltner’s techniques are significant in several ways:

First, the use of the typical price was insightful. The typical price gives a better feel for the price where the majority of trading usually occurs than does the most commonly used price,the close or last. By including the opening price,the typical price also picks up some reference to the activity that occurred between sessions.

This is especially useful in today’s markets where the quote you get may not cover all the significant trading activity in that period.

For example,a quote on an NYSE stock will usually reflect the NYSE session,and may or may not include off-exchange or after-hours trading. In addition,significant activity occurs overseas, which may or may not overlap the primary session covered by your quote. For simplicity and clarity in this book,we will use the close,but we urge you to consider employing the typical price in your operations.

Second, Keltner ’s use of the daily range to determine the interval between the average and the band foreshadowed the more fully adaptive methods that were taken up later. The daily range also incorporates an aspect of volatility into the process,which we think is crucial to success.

Third, if both the buy and sell lines were projected simultaneously and continuously,rather than in Keltner’s checkerboard or alternating fashion,you would have what might have been the first example of a trading band (Figure 6.3) in the sense that became popular later.

Donchian Channels

In the 1960s Richard Donchian took the simple, but elegant, approach of letting the market set its own trading envelopes via his four-week rule.

The concept was simplicity itself. One bought when the 4-week high was exceeded and sold when the 4-week low was broken.

In a subsequent test of computerized trading systems,this rule was selected to be the best of many tested by Dunn & Hargitt,a well-respected commodity trading and analytics firm of the time.

The 4-week rule was soon turned into envelopes by drawing lines equal to the highest high of the past 4 weeks and the lowest low of the past 4 weeks.

This concept of setting the upper limit at the n-period high and the lower limit at the n-period low is often referred to today as a Donchian Channel
(Figure 6.4).

This concept is rumored to be at the heart of one of the more successful trading approaches in wide use today,that employed by the Turtles.

Valuation Envelopes

In 1966, Investment Quality Trends (IQT),an investment newsletter edited by Geraldine Weiss,introduced a new type of envelope,the valuation envelope (Figure 6.5).

Using an historical perspective, IQT presented monthly charts that included overvaluation and undervaluation lines based on dividend yield.

As we understand it, IQT uses the high and low yields achieved during a strategic base period as benchmarks to project future overvaluation and undervaluation levels based on then-current dividends. For a stock with growing dividends this envelope resembles a rising megaphone—a cone that widens as time passes.

This was an early form of Rational Analysis, a concept we have defined as ‘‘the juncture of the sets of technical analysis and fundamental analysis.’’
Indeed, Ms. Weiss was a pioneer. At the time,few newsletters took a rigorous quantitative approach. It must have been a lot of work in the days before computer power was widely available.

@parisboy -- thank you for the amazing education on Envelopes. However, my eyes are beginning to roll back in my head -- so, let's please wrap it up. I want to release a new version of the IRUTM indicator, but I'm afraid my post will get buried by the Envelopes encyclopedia.

@Robots4me you are the culprit. You challenged me !

OK I press on the PAUSE button !

every lazy trader reading this thread has the right to study and evaluate quietly the last version of a useless indicator

@parisboy -- you are correct -- yes, I did! And I am now finishing my bowl of stewed crow.

Seriously -- though your presentation was over my head, I do now have a greater appreciation for Envelopes. And my take home lesson is this -- though not all Envelopes are created equal, when it comes to picking-off extreme prices they probably all have their advantages / disadvantages. Furthermore, some may work better with certain pairs and time frames than others. So there is no best Envelope. In the end there will always be false positives that need to be filtered.

Going forward I've settled on an "envelope" to use for signal generation and filters for distinguishing true signals from false positives (more on that shortly). Unless there is a compelling reason to swap one envelope algorithm for another, I prefer to keep moving forward rather than get bogged down testing envelopes -- especially since there really is no way to test them other than to create EAs for every possible combination and let them all run in separate accounts for a year or two -- and I'm not about to do that. So -- I've settled on a particular combination of signal generator and filters and using that as a baseline, we can move forward and continue to make refinements.

Speaking of envelopes, I highly recommend anyone reading this to grab a copy of @SwingMan's smLazyTMA Bands indicator (https://www.forexfactory.com/showthread.php?t=922947). I am not currently using it -- yet -- but I may in the future. @SwingMan's algorithm is far and away the best at picking-off extremes and it doesn't seem to require additional filtering. But it does repaint. With @Husky77's assistance I'm hoping that in combination with another one of @SwingMan's indicator as a filter, we can take advantage of his LazyTMA Band indicator.

Swingman's LazyTma signals is fantastic !!!
Filtered with your indicator, the combination is purfect for EA.

In light with the latest findings, I declare officially I have lost total interest interest in George contrarian reversal. It makes zero sense to continue with that pursuit. Good luck to the best trader in the world from Australia with his help traders project.

https://www.forexfactory.com/showthread.php?p=12339640#post12339640

I pity this guy and many such traders who are strung along with the hype. They have no idea what they are getting into. Thank you for providing liquidity to the market. That's a contradiction isn't it ?

https://www.forexfactory.com/showthread.php?t=874421&page=232
THIS PROJECT IS BASED ON 3 SIMPLE ANCHORS ,,,

1 PSYCHOLOGY ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,Which is 98% of the equation ,,
2 TARGETS ,,, TARGETS ,,, TARGETS ,,,,,,,,,,,,,,,
3 TMA TRADING ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

IT IS THAAAAAAAT SIMPLE ! ! !

@skyway -- I don't understand how you can turn away -- it's soooo simple!!

I really don't get the part where they say there are no Tops and Bottoms in the Market, but yet their TARGETS are only ever generated by the fact they use TOPS & BOTTOMS to find them. is this not a contradiction and very bizarre

1. Manual line drawing,
2. Religiously study the charts to identify potential targets,
3. Screen stare 24/5 awaiting price to enter m1 Tma pressure zone,
4. If there are multiple target close by in the zone call George or his inner family members for assistance,
5. If price overshoots target activate hedge,
6. When to unlock hedge is a mystery,
7. Profit taking is at your discretion, not within George expertise,
8. Demo trade for 6months if not profitable, reset cycle start from post#1,
9. 40,000 hrs to gain expert status,
10. Meantime insult yourself you lazy, ignorant, milk sucking amateur plus forum prostitute, save George the trouble to repeat himself,
10. Learn the vulgar vocabulary, and learn to write in colours to qualify yourself for the colour team.
11. Contact first stringer moodybot for prelimimary interview,
12. Have I missed out anything?
13. Don't ever forget to shower the best trader on the planet with your sweet praises to motivate him - the sweet nothing type when you want to root the gal,
14. Anymore...?

It's sooooooo simple ! ! !

Soooo simple my dog pester me to take him for a walk. I take his advice and he's mostly right.