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LFX Trading Proverbs

  • #501
  • Aug 9, 2020 1:22pm Aug 9, 2020 1:22pm
What's up everyone!

I recently came across this thread and I have been experimenting with the methodology. The information shared here by Dk is priceless and it has changed the way I view and use indicators when trading futures. I have been trying the experiments with tick charts instead of time charts. My thinking is that since the market periods are all fractals of each other, behavior should be similar although faster or slower depending on what period you use. Tick charts just seem to be a lot smoother than time based charts to me. Has anyone nibbled at using indicators with non time frame periods such as renko, range, tick, and volume?

Thanks and stay well!
  • #502
  • Aug 11, 2020 11:59am Aug 11, 2020 11:59am
New attempt...
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  • #503
  • Aug 12, 2020 6:09am Aug 12, 2020 6:09am
Very first test ...

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  • #504
  • Aug 12, 2020 10:51pm Aug 12, 2020 10:51pm
Quoting BlackNapkins
Very first test ...
It is interesting and I suppose as long as it is profitable you can do it like that. I say that because you are not identifying the target candle, nor the apex. You are targeting your equilibrium instead. As long as the ranges/trends are deep enough, you might profit doing that.
You cannot be extraordinary by being normal
  • #505
  • Aug 13, 2020 4:25am Aug 13, 2020 4:25am
Quoting dkrock
{quote} you are not identifying the target candle, nor the apex. You are targeting your equilibrium instead. As long as the ranges/trends are deep enough, you might profit doing that.
Bolded frase is result of all of my attempts so far.
Including latest one. So, I am aware of this.
There is no reason to go deeper and spend more time on indicator if is not fulfilling basic expectations.
That's why I am not playing with apex or target candle (btw I do not grasp your target candle concept fully).
I present here maybe 1/10 of my attempt just to provoke you or somebody else to say something to comment something.
I believe some of visitors of this thread manage this puzzle. You have 191 followers, where are they?
They appear only when you post something … what means, I myself, and 190 other did not find answers …
Do they work or do they wait for gifts? If they work why they do not present anything…
And what is more funny, you have 80 opponents… it is an evidence that is smart to pay attention to what you are talking about.
Will dig further, at the moment almost like blind mole, but even blind mole is finding tasty treats if he is in right environment…
Stay Well
  • #506
  • Aug 13, 2020 10:28am Aug 13, 2020 10:28am
Quoting BlackNapkins
{quote} Bolded frase is result of all of my attempts so far. Including latest one. So, I am aware of this. There is no reason to go deeper and spend more time on indicator if is not fulfilling basic expectations. That's why I am not playing with apex or target candle (btw I do not grasp your target candle concept fully). I present here maybe 1/10 of my attempt just to provoke you or somebody else to say something to comment something. I believe some of visitors of this thread manage this puzzle. You have 191 followers, where are they? They appear...

What's up BN! Hope all is well!

I am still somewhat new to this methodology, but my experiments using this methodology have been profitable. Mind you I am trading futures with tick charts, so quite a bit different to what the forex peeps are doing lol! However, I think that just shows how well the ideas can transfer over to different markets. A key point that DK mentions frequently is sample size. For me trading ticks, having an equilibrium of say a 20 MA does not make sense, as ticks go by very fast. I have to use a MA that cuts the markets into buyers and sellers; this from what I have found does not need to be exactly precise to be profitable. For ticks the MA can be quite large. Once you find that MA, then go hunting for the indi that tracks price traveling to and from the equilibrium MA. The 0 or 50 line on the indi should match where price crosses your equilibrium MA. As DK says an oscillator works best. I basically took all of the oscillator indi's on my platform and set them up with the same settings. They all will probably show the same thing, but some will be smoother and show less faking. Once you pick the oscillator then the real work comes of finding MA factors that you apply to the oscillator indi. These factors will align to your trade plan of how tight or loosely you track price. DK mentions the factors usually being 1/2, 2x, etc... of your oscillator which is set to track price around your equilibrium MA. The factors will show your where the apexes are (your entry/exits). Once you find a combo that works for your pair/instrument than your avg. winners will be larger than your avg. losers. Most losses tend to be very small by design as your oscillator will show you when to enter and exit from apex to apex. Consolidation or horizontal price movement as DK calls it will be where you tend to have more losses and breakevens. You will see consolidation on your indi as price will hover around your 0 or 50 line. You can try to trade the consolidation which will result in small loss/profit or breakeven depending on how tight your MA factors are or you can go play basketball lol! You can trade the MA factor crosses (oscillator crosses the MA factor) which are medium probability trades or you can trade the higher/safe probability 0/50 line crosses (oscillator crosses your 0/50 line, exit when the oscillator crosses your MA factor). There are also other entries you can use if your are creative. The whole process takes quite a bit of work and all of the different settings can make your brain fall out of your ear. In my experience, more than once lol! The research is a lot of effort, which is why most people do not succeed in trading endeavors. Don't get discouraged and keep trying. I used a small whiteboard to keep track of different setting I had used and it kept me focused. It might be of help to have a way to track what setting you are using, it keeps everything organized for you to see. As a final note, don't be greedy. For me this methodology works better when you don't try to catch the exact high/low. Better to aim your MA factors to just after the apex. The statistics video DK posted is a good example of this. This also helps a lot especially when price starts trending. I hope this was somewhat helpful and I apologize for the long post.

Have a good one!
  • #507
  • Aug 13, 2020 11:51am Aug 13, 2020 11:51am
Quoting Raini
{quote} What's up BN! Hope all is well! I am still somewhat new to this methodology, but my experiments using this methodology have been profitable. Mind you I am trading futures with tick charts, so quite a bit different to what the forex peeps are doing lol! However, I think that just shows how well the ideas can transfer over to different markets. A key point that DK mentions frequently is sample size. For me trading ticks, having an equilibrium of say a 20 MA does not make sense, as ticks go by very fast. I have to use a MA that cuts the markets...
Great post and I'm glad it's been profitable for you !

Unfortunately, I couldn't find a combination of the listed elements that would yield consistent trades...

Moreover, there are the control limits that come into play, which I guess are depicted in the form of Bbands or static levels on the oscillator. Dkrock had an interesting post about Bbands,MAs and how they tie with horizontal levels but unfortunately he deleted it.

If you think about it, you need to somehow introduce the bell curve to this whole setup (because you need to somehow depict probability) and I believe this can be done via the Bbands.
  • #508
  • Edited 12:52pm Aug 13, 2020 12:28pm | Edited 12:52pm
Hi Raini,
Nice post thank you very much… let me please make some comment,
First of all, I am not trader … in my understanding trading is a person which make his living by trading markets, then we have amateurs, profitable person but not living trading and finally I am. And perhaps few others…
I am very much aware about what you have written down, is good someone remind and collect all this basic knowledge in one condensed post…
As I understand equilibrium line can be any MA it only depends how big portion of data we grasp to make our trades, it can be SMA 6 or SMA 60 with consequences of time duration and range of our trades… what we do is optimization to our needs, time lasting on market and TF we want to trade. Or I am wrong…
The problem with oscillators they are cheating … often shows sell when price is rising… so called “divergency” … oscillators lying often… Found few indicator mirroring price behaviour nicely but happens they diverge form price sometimes badly. Can’t lay on them only in decision making.
I am thinking about second set of indicators confirming right trade direction. Everything is time consuming, I am not brilliant mind or genius, and English is not my mother tongue. It makes all this even more difficult.
Time is a factor
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  • #509
  • Edited Aug 14, 2020 8:26am Aug 13, 2020 1:18pm | Edited Aug 14, 2020 8:26am
DKRock congratulations on the experience and thanks for sharing your knowledge, sorry for the mistakes in the writing, English is not my language, in the end I believe that if all 1st line traders read your content, they would be great consistently in the market. Your sayings are really brave, the first, I identify myself very important, because it uses reason, Newton Isaac's law of physics, and everything that goes back and forth, everything that goes up, down, who gives, receives ... If people stopped to comply with the law Be enlightened by God
  • #510
  • Aug 13, 2020 1:47pm Aug 13, 2020 1:47pm
Quoting BlackNapkins
Hi Raini, Nice post thank you very much… let me please make some comment, First of all, I am not trader … in my understanding trading is a person which make his living by trading markets, then we have amateurs, profitable person but not living trading and finally I am. And perhaps few others… I am very much aware about what you have written down, is good someone remind and collect all this basic knowledge in one condensed post… As I understand equilibrium line can be any MA it only depends how big portion of data we grasp to make our trades, it...
I trade in similar fashion. It took me like 7 years on and off, one blown $10k account, about a 50,000 template and MA variations to clearly understand, and after that it was still hard to make rules. No one is going to tell you what settings, indicators, and SMAs to use. Unfortunately it takes a lot of time, but you'll be better off for it if you stick it out. This thread is filled with tips.
  • #511
  • Aug 13, 2020 1:51pm Aug 13, 2020 1:51pm
Quoting adrwcav
{quote} I trade in similar fashion. It took me like 7 years on and off, one blown $10k account, about a 50,000 template and MA variations to clearly understand, and after that it was still hard to make rules. No one is going to tell you what settings, indicators, and SMAs to use. Unfortunately it takes a lot of time, but you'll be better off for it if you stick it out. This thread is filled with tips.
Don't make it sound as if he asked for indicator settings, I just read his post again after reading yours and couldn't find where he asked for settings. Congrats on figuring it out, I know it takes time.
Market moves up or down
  • #512
  • Aug 13, 2020 1:53pm Aug 13, 2020 1:53pm
Quoting Raini
{quote} What's up BN! Hope all is well! I am still somewhat new to this methodology, but my experiments using this methodology have been profitable. Mind you I am trading futures with tick charts, so quite a bit different to what the forex peeps are doing lol! However, I think that just shows how well the ideas can transfer over to different markets. A key point that DK mentions frequently is sample size. For me trading ticks, having an equilibrium of say a 20 MA does not make sense, as ticks go by very fast. I have to use a MA that cuts the markets...
Very helpful Raini. The longer, the better sometimes
Market moves up or down
  • #513
  • Aug 13, 2020 1:55pm Aug 13, 2020 1:55pm
Quoting adrwcav
{quote} I trade in similar fashion. It took me like 7 years on and off, one blown $10k account, about a 50,000 template and MA variations to clearly understand, and after that it was still hard to make rules. No one is going to tell you what settings, indicators, and SMAs to use. Unfortunately it takes a lot of time, but you'll be better off for it if you stick it out. This thread is filled with tips.

Hey man I thought noone had figured out how to emulate what dkrock does. congrats on that because I know it took you thousands of hours to do...

Would you care to comment on my last paragraph ? (on my reply above)
  • #514
  • Aug 13, 2020 2:00pm Aug 13, 2020 2:00pm
Quoting David0
{quote} Don't make it sound as if he asked for indicator settings, I just read his post again after reading yours and couldn't find where he asked for settings. Congrats on figuring it out, I know it takes time.
Wasn't trying to. Sounded like he was seeing the headache of SMAs possibly being 6 or 60. I'm just confirming yes, it is a huge headache LOL
  • #515
  • Aug 13, 2020 2:07pm Aug 13, 2020 2:07pm
Quoting argosgate7
{quote} Hey man I thought noone had figured out how to emulate what dkrock does. congrats on that because I know it took you thousands of hours to do... Would you care to comment on my last paragraph ? (on my reply above)
Haha i'm no DK I wouldn't really be able to expand on anything. Just wanted to peep in and say none of this sh*t is easy lol. Peace!
  • #516
  • Aug 13, 2020 7:00pm Aug 13, 2020 7:00pm
Quoting David0
{quote} Very helpful Raini. The longer, the better sometimes

Hi David, hope your doing well sir!

Here is an example of the MA Factor. The first indicator window shows a factor of 1/2, while the second window has a factor of 2x. Keep in the mind the factor will be based on the equlibrium MA for you instrument/pair. The oscillator is the white line and the MA factor is the light blue line. I quickly threw something down for illustrative purposes, so no testing was done with the setting as shown by the very messy price tracking. I don't know what platform you use, so I decided to use the MACD as the example indi as I believe most platforms have it. Luckily the MACD has the MA Factor built in, so that saves us the step of applying a MA to the indi. The first two green lines show the entries if you are using the MA factor crosses. The green dashed line shows the exit if you are following the first MACD. The red line shows the exit if you are following the second MACD. Basically you want to aim the MA factor (light blue line) to align with just after the apexes happen of whatever equlibrium MA you are tracking. In this case, you would be better off using the first MACD setting for the picked trading example. Also notice how the MACD's are not tracking price correctly, that is due to not using a better suited equlibrium MA to track. How tight or loose the MA factor will be depends on what is in your trade plan. Having it too tight will cause you take too many trades when price starts trending, and having it too loose will cause you to lose out on potential profit and turn winners into losers. These situations will only occur after you find a suitable equilibrium MA to track. Without that you will be hip firing a bazooka, you won't know where price is likely to go lol. The balance is what you want, and where the brain falling out comes lol! A big breakthrough occurred with me when I starting learning more about what these oscillators are tracking and how they work. Once I better understood how these indi's were designed, I started manipulating them to find what tracks price the best. As many have mentioned it takes a lot of research to find what works, but don't get discouraged. DK has given all of us quite a large shortcut when it comes to tracking price with indi's. Imagine if we had to find out all of what has been shared by ourselves. I can guarantee many of us would never have gotten this far, myself included. I hope this clears some confusion and helps others who may have a similar question.

Take care!
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  • #517
  • Aug 14, 2020 12:22am Aug 14, 2020 12:22am
Quoting adrwcav
{quote} Wasn't trying to. Sounded like he was seeing the headache of SMAs possibly being 6 or 60. I'm just confirming yes, it is a huge headache LOL
Its my bad English we can blame that my message wasn't understood properly...
Just saying equilibrium line is not ONLY ONE possible period value.
  • #518
  • Aug 14, 2020 12:29am Aug 14, 2020 12:29am
I tried your strategy and like any other indicator it works sometimes, and doesn’t other times. The main problem is it’s impossible to tell which one is the equilibrium MA since it changes with time.

Since you say it’s a profitable strategy, do you have a managed fund? If you are accepting funds I’m willing to give you some because majority of your strategy is a secret anyway. You’re the only expert in the strategy and it makes no sense I spend time learning it. I’m happy to sacrifice 100% return for say 15% return with no effort of mine, only trust in your abilities
  • #519
  • Edited 8:45am Aug 14, 2020 8:08am | Edited 8:45am
[quote = nim1984; 13113317] I tried your strategy and, like any other indicator, it sometimes works and sometimes it doesn't. The main problem is that it is impossible to say what the equilibrium MA is, as it changes over time. Since you say it is a profitable strategy, do you have a managed fund? If you are accepting funds, I am willing to give you some because, anyway, most of your strategy is secret. You are the only expert in strategy and it makes no sense for me to waste time learning. I am happy to sacrifice 100% return for, say, 15% return without any effort on my part, just confidence ... [/ quote]

The mistake of every amateur or novice trader is to rely only on the indicator for decision making, any indicator that is right. Indicators are used to help you make decisions, but they are not a trigger. The trigger is applied based on your knowledge as a trader, never expect magic formulas and mind-blowing strategies that provide 100% gains, it does not exist. What will make you successful is learning to manage your assets, using the indicator as an "Aid" in incoming and outgoing decisions, but not using the trigger as a "TRIGGER" is essential to prevent the market from being against you at the moment of your entry, remember when your mother told you that When she returned to the market, would she buy? Would she say that when you ordered candy? She was teaching you how to market. The market is unpredictable, but predictable at the same time, predictable because we follow indicators, moving averages, etc. that give us the current price trend, this is important for you to enter the trend and be profitable, but it does not give the moment "Trigger" that I can call Trigger PULLBACK, maybe "trigger" is not a common term to understand. The price hits and returns, fluctuates between moving averages, crosses for a short time and crosses for a long time, so if you enter the market and be happy? No, it's not that simple, if you think you can use any indicator to trade in this way, then you can give up on this job
  • #520
  • Aug 14, 2020 9:12am Aug 14, 2020 9:12am
Your previous reply was better, less antagonistic and answered my questions, not sure why you deleted it. It’s almost like you have an alter ego or got your account hacked LOL

Not interested in learning about another path down the rabbit hole.
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