LFX Trading Proverbs | Page 28 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Day Trading vs. Swing Trading vs. Position Trading 86 replies

15m-5m-1m - Insainty's LFX Trading System 11 replies

Attachments: LFX Trading Proverbs
Exit Attachments

LFX Trading Proverbs

  • #541
  • Dec 24, 2020 1:00am Dec 24, 2020 1:00am
Attached Image (click to enlarge)
Click to Enlarge Name: Merry-Christmas.png Size: 556 KB
  • #542
  • Jan 11, 2021 2:35pm Jan 11, 2021 2:35pm
Inserted Video
You cannot be extraordinary by being normal
  • #543
  • Jan 15, 2021 12:12pm Jan 15, 2021 12:12pm
Quoting dkrock
Meanwhile, those of you who want to use the "computing" power of your computer need to sort through various oscillating indicators to find the ones that use their ranges the most effectively. The 0 line, or the 50 line, represents the midpoint of your range. To find the best range period, you need to know the equilibrium moving average of the market you are trading. Think of the market as a yoyo. The yoyo moves to the end of the string, then returns to your hand. Find the yoyo on your chart and use that value in your indicator.
Hi dk,

I know, this is a rather old post of yours from the beginning of the thread. However, please allow me to ask/ponder on that statement ...

A few years ago I maybe had a similar thought tha you: "What if I'd identify some kind of average, hidden market period length?" That way I could just use the Stochastic (or almost any other range-bounde indicator) without having it hanging in the "oversold" or "overbought" area. The idea I approached this was quite simple: Assume you'd plot SMAs with periods starting from 2, 3, ... up to ... maybe 5000. Now we could calculate the mean increment of all those MAs (for the last 2x candles, where x is the period used). That MA whose mean increment is smallest (that's the SMA which appears flattest over the last x bars) should represent the true cycle period (I think Old_Dog described it best in his post). This is what I found:
Attached Image (click to enlarge)
Click to Enlarge Name: 9c5c79da04a10c91a529029d9d10fef9.png Size: 52 KB

Unfortunatley I've realized that it can't be done that way. Yes, the cycle period of the market seems to be more or less stable most of the time. However, from time to time the best period increases rapidly (cf. "spike" in bottom row).

Well, you are the 3rd person I've heard talking about about some sort of characteristic MA ... Thus, I wonder how you'd approach that task. How often do you "update" your "MA"?
  • #544
  • Jan 16, 2021 1:41am Jan 16, 2021 1:41am
Quoting dkrock
{quote} I do not update my MA. What good would an MA be on a blacked-out chart? I am not sure what your research is about, but I do not think it has much to do with me. I think your research relies on an MA for entries and exits. Yes? That is why you have inconsistent results. There is no magic MA. It would great if there was one simple equation to trade the market. You could write the EA, let it go to work, and be super rich. There are a few other patterns to consider though, lol. That is not how I trade. I think you have missed the concept of...
Well, thought this in line with your idea ... The idea was to identify the "average" cycle period of the market to use this number in indicators. Let's look at the image of Old_Dog again, which is contained in the post I linked to yesterday. Let's say we are going to trade the price action using a stochastic indicator. If we would just use an arbitrary number (e.g. %K = 50) without knowing the underlying market period, we would get eventually a lot of fake signals. However, if we'd use %K = 100 our stochastic would give the right signals at the right time (all of the time). But maybe I've misinterpret your post, but that's what I thought you're talking about ...
  • #545
  • Jan 26, 2021 1:10pm Jan 26, 2021 1:10pm
Hi dkrock, AntiCre

I was reading through this thread for last few weeks and had same question - what period of MA would be best to use... As you mentioned first post, I made this simple indi some time ago to show what I thought dk wanted to say. Zero is your hand, yoyo is orange line. It just tracks 30SMA from apex to apex. In the end, it will always come back to your hand, no matter what period will be used (same as any other oscilator). It looks nice when big move occurs but most often it fails - definitely can't be used alone. Here MTF analysis comes handy.

How to find good enough equilibrium and what type of MA to use is a question. If we want to really split buyers and sellers, then something like VWAP would be best imo. But then, what period? Curve-fitting and brute-forcing parameters is one way to go, although missing any logic.

With type of MA i mean SMA, EMA, LWMA, some custom MAs like NonLagMa. Someone can say that FX is non-linear making me think EMA would be better choice. On the other hand, statistics and probabilities are using simple MA, median. Lot of choices for equilibrium
Attached Image (click to enlarge)
Click to Enlarge Name: MA30.png Size: 57 KB
  • #546
  • Feb 5, 2021 7:03am Feb 5, 2021 7:03am
Hi dkrock. when system is more profitable in particular pair , is my approach correct? Should I change value per pair or not? .
When trading two pair who have high correlation, do you choose two or just one? I am choosing daily ma
  • #547
  • Edited 8:12am Feb 11, 2021 5:17am | Edited 8:12am
Hello Traders,

I am a trader from İstanbul, Turkey. I am reading this thread for quite a long time and asked some questions to Dkrock via PM. He was so kind to reply. I want to thank him for his kindness and helpfulness.

I wish successs to all who are trying to develop their own trading system. Creating a personal trading system is possibly the only way of being succesful in the Forex Market.

Dear Dkrock,

I took that screenshot of you from another thread. You were mentioning about the target candles.

I have 3 questions for that picture if you do not mind.

1. Have you prepared these lines for yourself to develop your own method so we can trust the certainity of these lines for reverse engineering or did you just make up some lines to show your point to the others?

2. Some lines are brighter than the others. Does it have a meaning or is it just a display issue?

3. Some lines are right at the top or at the bottom. Since we know that you are not trying to catch the exact bottoms or tops, how some of these exact tops or bottoms can be your target candles?

I'll appreciate if your could reply.

Thanks and Regards,

Hüseyin.
Attached Image (click to enlarge)
Click to Enlarge Name: Dkrock's target Candles.JPG Size: 174 KB
There are no weapons that will form against my financial prosperity.
  • #548
  • Feb 11, 2021 8:56pm Feb 11, 2021 8:56pm
Quoting birpinar
I have 3 questions for that picture if you do not mind.
1. Have you prepared these lines for yourself to develop your own method so we can trust the certainty of these lines for reverse engineering or did you just make up some lines to show your point to the others?

This is historical analysis, so I made these lines myself. These are the candles where a reverse in direction occurred. These would be the places where your oscillator would ideally signal an entry or exit.

2. Some lines are brighter than the others. Does it have a meaning or is it just a display issue?

Interesting. It is just a display issue. No hidden secret, lol.

3. Some lines are right at the top or at the bottom. Since we know that you are not trying to catch the exact bottoms or tops, how some of these exact tops or bottoms can be your target candles?

Again, it is historical analysis, so you can see which candle is the target candle. In some cases it comes early, in other cases, it comes late. When you are designing your oscillator signal, you need to take this into account. You can do this by using multiple moving average crossovers, level lines, and higher/lower time frames. I created the design using historical data first, then tested it on the live market until it was properly signaling entries/exits. The historical chart allows you to start with a baseline.
You cannot be extraordinary by being normal
  • #549
  • Feb 19, 2021 1:45am Feb 19, 2021 1:45am
If you are a weekend indicator junkie, I found this interesting free site. It is easy to download and they send you the mq4 files. They are in reverse alphabetic order and only a few per page, but you can change pages numbers in the url to speed things up, if you are looking for something more specific.

https://top-trading-indicators.com/
You cannot be extraordinary by being normal
  • #550
  • Apr 11, 2021 1:17am Apr 11, 2021 1:17am
something to do with trading?


Inserted Video
  • #551
  • May 25, 2021 8:54pm May 25, 2021 8:54pm
Quoting dkrock
If you are a weekend indicator junkie, I found this interesting free site. It is easy to download and they send you the mq4 files. They are in reverse alphabetic order and only a few per page, but you can change pages numbers in the url to speed things up, if you are looking for something more specific. https://top-trading-indicators.com/
Thank you Mr. DkRock Sir for sharing your insight and experience. I only demo the 1Min myself, but I fell in love with the lines since i first saw a 1tick chart. Reading your work has been a great inspiration and a treat. All those 1s and 0s get real scared when they venture to far from them lines You can feel the waves and fractals reverberate right through to yearly.

Thanks for sharing.

I find the PPO very helpful, even for a 1Minman...I don't have all day like you, not yet anywayz

Godbless!
Attached Image (click to enlarge)
Click to Enlarge Name: 260521.jpg Size: 759 KB
Attached File(s)
File Type: ex4 PPO.ex4   8 KB | 309 downloads
File Type: mq4 PPO.mq4   3 KB | 336 downloads
  • #552
  • Jun 14, 2021 10:46am Jun 14, 2021 10:46am
Hey dkrock, I have a burning question for you (or for anyone else here experiencing the same issue).

A little background: I created a system based on your ideas and it does work, covering most cases that the market throws at me. However, I have a little problem with choosing which currency pairs I should trade, as many are whipsawing left and right, not doing anything for the better part of the day, or are being too shallow for any substantial profit.

I am not asking you to give away your secret sauce, but could you give me some leads into what I should be looking for when picking currencies? I tried fundamentals and currency meters but nothing seems consistent apart from trial and error (e.g.: pick a currency, trade it, does it suck? yes? change it. no? keep it).

Thanks in advance.
  • #553
  • Jun 22, 2021 7:08am Jun 22, 2021 7:08am
Hi dkrock, I've seen that you replied but unfortunately cannot view it for some reason. Perhaps deleted it? Well, from the preview I got on my e-mail, seemed like valuable input, a shame really
  • #554
  • Oct 24, 2023 10:15am Oct 24, 2023 10:15am
anyone been in touch with DK lately?
  • #555
  • Last Post: Edited 3:07am Dec 6, 2023 2:44am | Edited 3:07am
Quoting adrwcav
anyone been in touch with DK lately?
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_1.png Size: 11 KB

Has not been seen ...
0 traders viewing now