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MTF Stochastics

  • #581
  • May 4, 2007 5:03am May 4, 2007 5:03am
Hi Spud

I think you are on to a good thing here
I have played with these two stoch settings before
& they never worked
but I had a brain storm last night - to add a cover chart
4 hours is too long
- 30 mins too short ( but I might do some more work with this one)
I tried the 1 hour (which is also basically a strong 3 hour stoch setting as well
- 14.3.3 on the hour is basically a very very strong 5.3.3 setting on the 3 hour)
& it worked great!!

again I set up on the hour chart -
which is also basically a 3 hour chart(1433 etc)
Attached Image (click to enlarge)
Click to Enlarge Name: pict.1. gif.jpg Size: 62 KB

Eur/USD hour
- blue line is a clear in

then I moved to the 5 min chart which is also the 15 min ( 14.3.3 etc)
Attached Image (click to enlarge)
Click to Enlarge Name: pict.2. gif.jpg Size: 62 KB

5 min eur/Usd

The line is from the hour chart
arrows buys
"X" out

I will share this on my site as well
but wanted to give you the credit
for at least getting me thinking
I am sure you will work it the reverse to me

anyways good going

I had some very good trades here
& I did it with with the Usd/Jpy as well


thanks

TEB
  • #582
  • May 4, 2007 8:20am May 4, 2007 8:20am
Quoting TEB63
Hi Spud

I think you are on to a good thing here
I have played with these two stoch settings before
& they never worked
but I had a brain storm last night - to add a cover chart
4 hours is too long
- 30 mins too short ( but I might do some more work with this one)
I tried the 1 hour (which is also basically a strong 3 hour stoch setting as well
- 14.3.3 on the hour is basically a very very strong 5.3.3 setting on the 3 hour)
& it worked great!!

again I set up on the hour chart -
which is also basically a 3 hour chart(1433 etc)
Attachment
Eur/USD hour
- blue line is a clear in

then I moved to the 5 min chart which is also the 15 min ( 14.3.3 etc)
Attachment
5 min eur/Usd

The line is from the hour chart
arrows buys
"X" out

I will share this on my site as well
but wanted to give you the credit
for at least getting me thinking
I am sure you will work it the reverse to me

anyways good going

I had some very good trades here
& I did it with with the Usd/Jpy as well


thanks

TEB
Hehe...I'll ty and go the same way TEBS! Looks interesting...thanks for the weekend homework! Will study.
  • #583
  • May 4, 2007 11:37am May 4, 2007 11:37am
Teb,

If you remember a week ago or so I introduced the 15,5,5 stoch as a confirmation on the 1hr chart. This new addition of the 14,3,3 is the same thing just a different setting.

If you take a 1hr chart and look what happens when the 14,3,3 and 5,3,3 agree I think you will see almost all winning trades!

I'm thinking maybe we can develop something here using the 1hr 14,3,3 and 5,3,3 as the major direction of the trade and zoom into a smaller TF for entry/exits.

Bagovino
"Skills pay the bill's!"
  • #584
  • May 4, 2007 12:22pm May 4, 2007 12:22pm
Hey there spud! Nice thread, interesting experiments. I also started off with a very small account.

Try using 100, 10, 3 setting on your stochastic indicator, H4 charts. Superb statistical tool in my opinion.
Virtue finds and chooses the mean. Aristotle, Ethica Nichomachea
  • #585
  • May 4, 2007 3:09pm May 4, 2007 3:09pm
Quoting bagovino
Teb,

If you remember a week ago or so I introduced the 15,5,5 stoch as a confirmation on the 1hr chart. This new addition of the 14,3,3 is the same thing just a different setting.

If you take a 1hr chart and look what happens when the 14,3,3 and 5,3,3 agree I think you will see almost all winning trades!

I'm thinking maybe we can develop something here using the 1hr 14,3,3 and 5,3,3 as the major direction of the trade and zoom into a smaller TF for entry/exits.

Bagovino

What can I say you are right ..
I will give you credit too ..
you sowed some great seeds
sorry it takes sometime to work stuff into thick head!!

The lights just went on last night

I have played with the 2 stochs on the same chart
- many settings - many times
I just never thought of two charts before
I find with just the two on one chart it works great for a while
then you get hit in chop or the big "D"
but with the cover chart ... its looks great
I did some back testing.....

I am intersted to see what Stud says
He is kinda like Ginger Rodger - to my Fred Astaire
... He does everything I do but backwords & in high heals

so if he also can make it work it might be something
anyways it was fun today

TEB
  • #586
  • May 4, 2007 4:06pm May 4, 2007 4:06pm
Quoting TEB63
What can I say you are right ..
I will give you credit too ..
you sowed some great seeds
sorry it takes sometime to work stuff into thick head!!

The lights just went on last night

I have played with the 2 stochs on the same chart
- many settings - many times
I just never thought of two charts before
I find with just the two on one chart it works great for a while
then you get hit in chop or the big "D"
but with the cover chart ... its looks great
I did some back testing.....

I am intersted to see what Stud says
He is kinda like Ginger Rodger - to my Fred Astaire
... He does everything I do but backwords & in high heals

so if he also can make it work it might be something
anyways it was fun today

TEB
I'm Fred...you are Ginger!
  • #587
  • May 4, 2007 5:00pm May 4, 2007 5:00pm
Quoting Spudfyre
I'm Fred...you are Ginger!

LOL!
Our IMAGINATION is the true holy grail!
  • #588
  • May 4, 2007 6:44pm May 4, 2007 6:44pm
Spud,
WOW! Thanx!
  • #589
  • May 4, 2007 6:53pm May 4, 2007 6:53pm
Excellent work, Spud.

THANK YOU!!
  • #590
  • May 5, 2007 12:56am May 5, 2007 12:56am
Spud's quote: "To refine entry and exit you can switch to a 5 min chart and do the same thing after getting an indication on the hour chart. This will improve pip profit but use the 1H TF for the anchor on buy/sell indications for 80/20 rule. In otherwords....let the 1H show you the entry/exit in the hour...but refine that hour with the 5Min."

Like I stated... Use the 1 hr as the main chart. Zoom in and take the entry/exit from a smaller time frame. This is how I've been trading both Teb's and Spud's system from day 1. Look at Tebs thread. I brought up using 14,3,3, or 15,5,5 on the 1 hr TF as a main signal.

I hope I contributed to Spud and Teb's system with this advancement.

Bagovino
"Skills pay the bill's!"
  • #591
  • May 5, 2007 12:58am May 5, 2007 12:58am
Quoting bagovino
Teb,

If you remember a week ago or so I introduced the 15,5,5 stoch as a confirmation on the 1hr chart. This new addition of the 14,3,3 is the same thing just a different setting.

If you take a 1hr chart and look what happens when the 14,3,3 and 5,3,3 agree I think you will see almost all winning trades!

I'm thinking maybe we can develop something here using the 1hr 14,3,3 and 5,3,3 as the major direction of the trade and zoom into a smaller TF for entry/exits.

Bagovino
By the way, Here was the original on this thread.

B,
"Skills pay the bill's!"
  • #592
  • May 5, 2007 12:59am May 5, 2007 12:59am
Quoting TEB63
What can I say you are right ..
I will give you credit too ..
you sowed some great seeds
sorry it takes sometime to work stuff into thick head!!

The lights just went on last night

I have played with the 2 stochs on the same chart
- many settings - many times
I just never thought of two charts before
I find with just the two on one chart it works great for a while
then you get hit in chop or the big "D"
but with the cover chart ... its looks great
I did some back testing.....

I am intersted to see what Stud says
He is kinda like Ginger Rodger - to my Fred Astaire
... He does everything I do but backwords & in high heals

so if he also can make it work it might be something
anyways it was fun today

TEB
Enuff said!!!!!

B.
"Skills pay the bill's!"
  • #593
  • May 5, 2007 4:21am May 5, 2007 4:21am
Thorough back testing through the night of my previous post was getting to many drawdowns. I have since removed that post...but working on refining the tool as it looks very promising but needs some wrenching to give the win ratio I like

So if you read that post, please disregard it...I'll be updating.
  • #594
  • May 5, 2007 5:09am May 5, 2007 5:09am
Quoting Spudfyre
Thorough back testing through the night of my previous post was getting to many drawdowns. I have since removed that post...but working on refining the tool as it looks very promising but needs some wrenching to give the win ratio I like

So if you read that post, please disregard it...I'll be updating.

you Always - Always - Always need atleast 3 stochs!!
with the 2 stochs on the 2 charts of the the "TEB2" system it does seem to work
- again from the Top down "Ginger"
(I thought about calling the new system the TEB.BS
but that would not be good for creditiblitiy so I will call it the TEB2)

TEB
  • #595
  • May 5, 2007 5:46am May 5, 2007 5:46am
While playing with the 5,3,3; 14,3,3; and 15,5,5 stochastics on the 1H chart I have noticed 3 traits that signal price moves.

1. Elasticity - this occurs prior to a price move where the 5,3,3 stretches away from the other 2 stochs and then snaps back. Elasticity periods seem to be points of lesser pip moves.

2. Tightness - this is where all 3 stochs are moving closely together (which would mean they are in agreement. Tightness usually follows an elasticity or convergence period and pretty much occurs as price moves. Tightness periods seem to be points of strong pip moves.

3. Convergence - this follows an elasticity period and the area of convergence usually signals the price reversal and entry point. Periods after convergence seem to equal price reversals and strong pip moves.

The 5,3,3 is the thick black line and measures elasticity
The 14,3,3 (red)/15,5,5(blue) are for convergence and tightness measurements with the 5,3,3.

This seems to play out as a very consistent pattern. Obiously it is easier to see the "big" elasticity periods and tight convergences.

Taking this information from the 1H and moving to lower time frames...like 5M will focus your entry point better and allow you to see convergences much better.

So to sum up:

Elasticity comes BEFORE a convergence.
Convergence of the stochs is the entry point.

Tightness is a good time to be in the trade.

Use multiple time frames to focus convergence periods and see the elastic cycles more clearly. When you see it all together it is quite clear.

Convergence is more an "area" then a single point. Nice when stochs all sit on top of each pother, but more often than not they will converge very closely to each other. The convergence area pip moves seem small in most cases from close to close so being too early or a little late shouldn't have huge effects on your pips or draw downs from what I can see so far.
Attached Image
  • #596
  • May 5, 2007 6:09am May 5, 2007 6:09am
Quoting Spudfyre
Thorough back testing through the night of my previous post was getting to many drawdowns. I have since removed that post...but working on refining the tool as it looks very promising but needs some wrenching to give the win ratio I like

So if you read that post, please disregard it...I'll be updating.
Are referring to your discussion about elasticity as needing more refining? If not what topic is it?
Thanks,
  • #597
  • May 5, 2007 6:17am May 5, 2007 6:17am
Quoting KudzuFX
Are referring to your discussion about elasticity as needing more refining? If not what topic is it?
Thanks,
Sorry I was referring to TEB's post and playing with the 5,3,3/14,3,3 stochs on the 1H/5M as well as Bag's 15,5,5 setting.


The elasticity part and tool holds true.
  • #598
  • May 5, 2007 6:21am May 5, 2007 6:21am
Spud,

Thanks for the most recent download from your brain.....

One question. Is the idea then to have the 1H window with the 3 stoch in, once a convergence pattern forms dow e then switch to the 5M window looking for the best entry point and disregard the 15 and 30 or look at all three to be lined up before taking the entry?

Thanks
  • #599
  • May 5, 2007 6:23am May 5, 2007 6:23am
Quoting Spudfyre
Sorry I was referring to TEB's post and playing with the 5,3,3/14,3,3 stochs on the 1H/5M as well as Bag's 15,5,5 setting.


The elasticity part and tool holds true.
You are using 3 of the 4 major Stoch settings
I wonder if adding the last one 8.3.3
would do anything to really see
that is going on in the market at anyone time frame?!

TEB
  • #600
  • May 5, 2007 6:37am May 5, 2007 6:37am
you know Stud
you might use the 8.3.3 as a base line stoch
let the other 3 play off it?
with your ideas - I think it might work
I am gone for the weekend

TEB
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