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

The Volume Detective 411 replies

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

  • #5,681
  • Aug 9, 2019 7:50am Aug 9, 2019 7:50am
Quoting robots4me
{quote} @parisboy -- very nice. I don't know about the brown moving average lines, but your blue-ish envelope with the Heiken Bands inside looks very similar to where we are headed. And if the offset from the midline is anywhere near the ADR then we are definitely on the same page. I know, I know -- the offset is some power of 2 -- like 8, 16, 32, 64, 128, 256 something... {quote} I like it. {quote} @parisboy -- what are we missing?
@Robots4me the "brown moving average lines " is the Envelope 256 TU (Time Unit)

This envelope is built on the Centered Moving Average 256 Time Units +/- the corresponding Gann Octave = in short 1/8 of the Price Range = the offset

the amplitude of the Envelope256 TU (brown) is (roughly) = 1/4 of the Price Range

your blue-ish envelope with the Heiken Bands inside looks very similar to where we are headed.

The blue-ish Envelope is the Envelope 32 Time Unit

This envelope is built on the Centered Moving Average 32 Time Units +/- 1/4 of the corresponding Gann Octave = in short 1/8 of the Price Range = the offset

the amplitude of the Envelope 32 TU (blue) is (roughly) = 1/16 of the Price Range
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  • #5,682
  • Aug 9, 2019 7:51am Aug 9, 2019 7:51am
The new indicator looks very interesting and it is working...thanks R4M/bishopdotun ! BTW...the HA colours are a relief for my eyes !

As always first testing on LTF:
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I never lose - either I win or I learn...
  • #5,683
  • Aug 9, 2019 8:15am Aug 9, 2019 8:15am
Theoretical Post Mortem IF we do not trade the Envelope 32 Time Units (blue)
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  • #5,684
  • Aug 9, 2019 10:17am Aug 9, 2019 10:17am
R4M Nice to see you still going strong. You are running your thread very well. I take my hat off to you. dont know how you do it .
Your time and effort is well appreciated. Your a gentlemen and a scholar.

With the spirit of paris boys lazy traders way.......... I have been experimenting with this set up for some time now. I am using three channels as can be seen on the chart. I am using Ni98 centered multi bands indi. for all three channels. I use it on the 4H and D1 TF . It works on the lower TF as well but Not as accurate. Now-- I hesitated to show this set up till now for I had to put at least 4K hours attention on it to be valid. and of course with a 80 to 98% accuracy rate. -- Just kidding around. something more for you to think about. Keep on rocking the free world.

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Live today like theres no tomorrow-- Prioritize like you will die today
  • #5,685
  • Aug 9, 2019 10:49am Aug 9, 2019 10:49am
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  • #5,686
  • Aug 9, 2019 10:54am Aug 9, 2019 10:54am
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  • #5,687
  • Aug 9, 2019 12:45pm Aug 9, 2019 12:45pm
EURUSD Cyclicity : 3 Weeks Cycles on a 1 Year Period
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  • #5,688
  • Aug 9, 2019 1:44pm Aug 9, 2019 1:44pm
Quoting iamsovereign
R4M Nice to see you still going strong. You are running your thread very well. I take my hat off to you. dont know how you do it . Your time and effort is well appreciated. Your a gentlemen and a scholar. With the spirit of paris boys lazy traders way.......... I have been experimenting with this set up for some time now. I am using three channels as can be seen on the chart. I am using Ni98 centered multi bands indi. for all three channels. I use it on the 4H and D1 TF . It works on the lower TF as well but Not as accurate. Now-- I hesitated to...
@iamsovereign -- thanks for the good word.

Yes -- we should all appreciate @parisboy's tireless effort to bring hopelessly lazy, rookie traders from the depths of darkness to the light of day

So -- I had a question. How do you trade with 3 channels? Do you make a discretionary decision whether or not to enter a trade based on which channel was pierced by the price? Do you always apply the same rule, or does it also depend on something else -- e.g. the ADR? And if it also depends on the ADR then which do you give priority to -- the ADR or which channel was pierced?
  • #5,689
  • Aug 9, 2019 1:51pm Aug 9, 2019 1:51pm
Quoting parisboy
{image}
@parisboy -- nice screen shot. And please further enlighten this hopelessly lazy, rookie trader. How do you trade this -- what are your Entries and Exits. I assume reversal Entries when price breaks above / below the blue band. What about Exits -- do you follow the Heiken Ashi transitions?

Are the charts you post to make a point and show certain patterns, or are they also tradeable? I suppose I could read your thread to learn more, but then I wouldn't be lazy anymore.
  • #5,690
  • Aug 9, 2019 1:57pm Aug 9, 2019 1:57pm
Quoting jdva
The new indicator looks very interesting and it is working...thanks R4M/bishopdotun ! BTW...the HA colours are a relief for my eyes ! As always first testing on LTF: {image}

@jdva -- thanks for your great effort with testing. Even though I knock LTF, I hope you understand my inclination is to exaggerate to make a point. Although my preference now is not to trade LTF, I do use it a lot for testing purposes -- because it generates many more signals and does a better job of "exercising" the code and unmasking bugs -- as you've pointed out a number of times.
  • #5,691
  • Edited 2:45pm Aug 9, 2019 2:31pm | Edited 2:45pm
Quoting parisboy
{quote} @Robots4me as you are a Lazy Rookie Trader and a coder who jumps on coding everything which shine , you never spend enough time to read and understand (your own words) the RATIONAL SYSTEM I use Bishop's strategy and mine are very similar, because Band Strategy is Band Strategy whatever kind of Band, Envelope, Channels etc you use There are only 2 possibilities described by Jim Hurst in 1970 : The Edge-Band Strategy - Reversal in the vicinity of the Lower or the Upper Limit of the Band The Mid-Band Strategy - Reversal on the vicinity...
Quote
you never spend enough time to read and understand (your own words)
@parisboy -- are you kidding? Who has time to read and understand?

Quote
the RATIONAL SYSTEM I use Bishop's strategy and mine are very similar
This is very encouraging to learn. I suppose I would have learned this earlier if I spent more time reading and understanding.

Quote
because Band Strategy is Band Strategy whatever kind of Band, Envelope, Channels etc you use
I'm glad to hear you say it so succinctly. I know you've implied it many times in previous posts -- but to see it stated in one sentence is nice.

Quote
Bands are CURVILINEAR and not HORIZONTAL that is the Weakness of the ADR Strategy
Perhaps "yes", perhaps "no". This could be an interesting discussion. Clearly I appreciate the curvilinear nature of bands, and in one line of code I could change the BD strategy to use interpolated (curvilinear) bands instead of horizontal ones. So, it's not that I'm taking a lazy approach. @bishopdotun understands this well and his choice of horizontal bands (versus curvilinear) is very clever and results in a real benefit to traders.

Until @bishopdotun arrived I was using curvilinear bands -- that's what everyone uses and they look more natural. Furthermore, it requires additional coding to interpolate a HTF band and draw it on a lower time frame chart so that it appears curvilinear. Since it requires additional coding then it must be better, right? Wrong. When using a curvilinear band to detect spikes then you typically see only one or two bars pierce a band -- so, your window of opportunity for trading is very narrow. That is, if you don't open your reverse trade right away then you've missed the reversal -- or, so it seems. But when you use a horizontal band then it is often revealed there are more than one or two bars available for reversal trading -- i.e. your window of opportunity isn't as narrow as the curvilinear band seemed to suggest. Furthermore, and this is critical, since your trading window is wider then you also have the luxury to expend a bar or two to confirm the direction (and not get caught in a waterfall).

Now when I look at bands (envelopes, channels) I can imagine an aerial view of a winding river. The distance from one bank to the other remains approximately the same. And I see that in your screen shots. Bands, envelopes, channels that maintain roughly the same distance from one bank to the other will always repaint when implemented in code. People often complain that bands repaint -- and to a certain extent they do. But everything comes down to making tradeoffs. I've experimented with non-repainting bands and, in fact, included them in the Spike Hunter indicator I was working on prior to the BD strategy. Non-repainting bands do NOT maintain an equidistance from bank to bank -- and I consider that a big weakness when it comes to trading a reversal band strategy. Just as a river flows, the price will always tend to revert to a "fair value" or equilibrium. And in order for that to happen the banks must be equidistance. And in order to implement that in algebra it follows the algorithm will need to repaint -- at least a little bit.
  • #5,692
  • Aug 9, 2019 2:58pm Aug 9, 2019 2:58pm
Quoting robots4me
New Indicator -- R4M-BDX-ADR, where the 'X' stands for Xtra accurate... The past week I've referred a few times to the use of Heiken Ashi candles as emergency exits. @bishopdotun and I both like Heiken Ashi candles and he found they can be used for accurately generating both Entries and Exits. Their main advantage is they include both a position and a direction -- what I'll call a "transition". Using Heiken Ashi bullish and bearish transitions we can generate better Entries and Exits than the "Original Recipe" currently being used by the BD Strategy....
@R4M
I have a simple question due to language misinterpretation.
What do you mean for transition (I didn't understood properly) ?
Is it a heiken ashi candle changing color?
Cheers
  • #5,693
  • Aug 9, 2019 3:16pm Aug 9, 2019 3:16pm
Quoting Merka
{quote} @R4M I have a simple question due to language misinterpretation. What do you mean for transition (I didn't understood properly) ? Is it a heiken ashi candle changing color? Cheers
Quote
Is it a heiken ashi candle changing color?
Hi @Merka -- yes. When it changes color from red-to-white (bearish-to-bullish) or vice versa. I'll also use "transition" or "directionality" interchangeably.

This additional information comes at a cost -- e.g. a one- or two-bar delay. But @bishipdotun feels that additional confirmation is worth it, and I would agree.

As a side note -- from initial testing it looks like the net balance for the BDX strategy could be a bit lower than for the BD strategy. But the draw-down is really, really low. And my preference now (and I think @bishopdotun feels the same way) is we prefer the low draw-down. And the reason is this -- my goal is to be able to launch an automated trading system that trades 28 pairs and be able to walk away knowing that if I check it only once a week my account will still be there. I want something that I don't have to baby-sit -- I have other strategies that require more attention.
  • #5,694
  • Aug 9, 2019 4:01pm Aug 9, 2019 4:01pm
Quoting robots4me
{quote} {quote} Hi @Merka -- yes. When it changes color from red-to-white (bearish-to-bullish) or vice versa. I'll also use "transition" or "directionality" interchangeably. This additional information comes at a cost -- e.g. a one- or two-bar delay. But @bishipdotun feels that additional confirmation is worth it, and I would agree. As a side note -- from initial testing it looks like the net balance for the BDX strategy could be a bit lower than for the BD strategy. But the draw-down is really, really low. And my preference now (and I think @bishopdotun...
Thanks for explaining.
Cheers
  • #5,695
  • Aug 9, 2019 4:10pm Aug 9, 2019 4:10pm
Quoting robots4me
{quote} @benjun9 -- okay -- I understand what is happening. It's "sort of" a bug, but the EA is still doing the right thing. When "Auto Exit" is disabled, then the text changes, right? But when "Auto Exit" is enabled, then I've hard-coded the auto exit condition to always use midline crossing. The reason I chose to do it that way is because the dashboard is just a fancy way of manually trading. The dashboard EA is not making any trading decisions -- you are. So, let's say you push the BUY button to open a new trade. And then let's say the price...
Thanks for letting us know.

And good luck on your new bdx system. I'm excited for the release of the eas so that I could at least help by testing and looking for bugs.
  • #5,696
  • Aug 9, 2019 4:25pm Aug 9, 2019 4:25pm
Quoting robots4me
{quote} {quote} This additional information comes at a cost -- e.g. a one- or two-bar delay. But @bishipdotun feels that additional confirmation is worth it, and I would agree.
Yes , couldn`t agree more.

This week EA 19214 had a couple of up waterfalls with Gold and was hitting the SL hard. Out of the 5 Gold trades 2 hit the SL (1.8 ADR).
I`m very glad you take this to the next level with the Heiken and I need to find the balance between S/L and T/P ADR values for me.

@parisboy , thanx for the beautifull picture of the river flow and banks a while back, its an eyeopener for people like me who are searching for THE way .
This is not the end, its the end of the beginning. W.C 1942
  • #5,697
  • Aug 9, 2019 6:23pm Aug 9, 2019 6:23pm
im confused about the exit signals. i thought maybe the first or second HA bar color change would generate an exit signal if the trend broke after an entry signal?
the fourth circle i drew has an entry and exit signal same bar, why?
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  • #5,698
  • Aug 9, 2019 6:32pm Aug 9, 2019 6:32pm
Quoting parisboy
EURUSD Cyclicity : 3 Weeks Cycles on a 1 Year Period {image}
Brilliant, cycles. Parisboy, I think people under estimate you.These cycles do they naturally occur on all instruments ? I would assume they do but they are not all 3 weeks. For example some instruments like oil would have seasonal cycles based on seasonal supply and demand. But the concept of cycles is universal . This makes trading so much easier on higher time frames. So what is the easiest way to detect the start and end of cycles for all instruments?.
  • #5,699
  • Aug 9, 2019 6:51pm Aug 9, 2019 6:51pm
Quoting alblive
im confused about the exit signals. i thought maybe the first or second HA bar color change would generate an exit signal if the trend broke after an entry signal? the fourth circle i drew has an entry and exit signal same bar, why? {image}
@alblive -- Very good eyes. Since you brought it up I'll explain a bit more. I'm using two types of Heiken Ashi -- standard and "smoothed". The standard Heiken Ashi is used for Entries and the Smoothed Heiken Ashi for Exits. In this particular case the standard Heiken Ashi generated an Entry, while the Smoothed Heiken Ashi generated an Exit.

The Smoothed Heiken Ashi is accurate, but delayed 2 bars. In the (rare) case where they occur on the same bar then we want the Exit to take priority -- just to be on the safe side.
  • #5,700
  • Aug 9, 2019 6:54pm Aug 9, 2019 6:54pm
Quoting Pip-Miner
{quote} Brilliant, cycles. Parisboy, I think people under estimate you.These cycles do they naturally occur on all instruments ? I would assume they do but they are not all 3 weeks. For example some instruments like oil would have seasonal cycles based on seasonal supply and demand. But the concept of cycles is universal . This makes trading so much easier on higher time frames. So what is the easiest way to detect the start and end of cycles for all instruments?.

@Pip-Miner -- Good question. I think I've asked this before but I forget the answer. I think the cycles are drawn by hand -- in hindsight, but I'm not sure. I'm also curious how @parisboy answers this.
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