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SRDC Episode II

  • #61
  • Nov 24, 2006 9:30am Nov 24, 2006 9:30am
were those trades loosers or near loosers because pending on stop entries were made only in one direction?

is it better to enter in both directions with stop loss in place?
  • #62
  • Nov 24, 2006 9:38am Nov 24, 2006 9:38am
Quoting rojam
were those trades loosers or near loosers because pending on stop entries were made only in one direction?

is it better to enter in both directions with stop loss in place?
Good Questions:

1 is a definite loser but with SRDC Level I, you can still catch that. The other one is also a near loser, but with T1 at yesterday's lows at 50% and the other T2 at your desire pips, It is still a winner!!

This is why in Level 1 I taught traders of cathing 5 pips, this is to be use in defensive trading SRDC way.

Regarding placing 2 trades in opposite direction that my other system your are talking about HDC, Hedging The Daily candles which i wont have time to teach here, One at a time. But 2 trades can be placed:

1) Following the inverse pattern (90%)
2) Upon T1, a new trade is open based on SRDC level 1.

Hope that may pip your accountS!!!
Change Your Thinking. Change Your Life - JD
  • #63
  • Nov 24, 2006 9:41am Nov 24, 2006 9:41am
Quoting jest1081
GOD! Hell yeah your so freakin right! this soooooo GRAIL STUFF!!!

Well thanks for the daily SHI. Good area to guage resistance yeah! Now thats channel trading!
Right on Jest!!

I met Jabba the other day, and he too confess that the Monday candle is inverse of the Sundays'. He said,"bugga predict giggu wakka loss rose wikki balu money". Translated, "He wont allow anyone bet on it, he will lose money coz its too predictable!"

well..... Thats Life... told him not to gamble.....
Change Your Thinking. Change Your Life - JD
  • #64
  • Nov 24, 2006 9:52am Nov 24, 2006 9:52am
Quoting OrangeRoshan
Right on Jest!!

I met Jabba the other day, and he too confess that the Monday candle is inverse of the Sundays'. He said,"bugga predict giggu wakka loss rose wikki balu money". Translated, "He wont allow anyone bet on it, he will lose money coz its too predictable!"

well..... Thats Life... told him not to gamble.....

Jedi Roshan,

Do u mind doing a full run down example of the trade with a pic example.

With 3 Take Profit, we need so called 3 'units' of entering market.

I think yr above example is based on reversal of candles for 2 days but what if it carrys on the same trend ? That would be a slight different scenario and Take Profit..???
The future depends on what we do in the present.
  • #65
  • Nov 24, 2006 12:43pm Nov 24, 2006 12:43pm
I'm using sbfx and have no weekend candles. I've searched the options and it doesn't seem to be something that can be selected/changed as it can be on
OANDA. Do I need to change MT4 providers?

Thanks OrangeRoshan - I will be many long hours digesting all this new information and modifying my EA to use it.

Lou
Old Benjamin was right
  • #66
  • Nov 24, 2006 1:23pm Nov 24, 2006 1:23pm
Quoting compro99
Jedi Roshan,

Do u mind doing a full run down example of the trade with a pic example.

With 3 Take Profit, we need so called 3 'units' of entering market.

I think yr above example is based on reversal of candles for 2 days but what if it carrys on the same trend ? That would be a slight different scenario and Take Profit..???
Jedi Compro99

Below are your Jedily request on Entry and exits. Study it and I hope it pips.

This level and the previous level teaches Exiting on the same day. However swinging it on to the next day is another story. These are sets of rules that will be disclose on Level 2 Part 2.

I sincerely hope this pips!
Attached Image
Change Your Thinking. Change Your Life - JD
  • #67
  • Nov 24, 2006 1:27pm Nov 24, 2006 1:27pm
Quoting Lou G
I'm using sbfx and have no weekend candles. I've searched the options and it doesn't seem to be something that can be selected/changed as it can be on
OANDA. Do I need to change MT4 providers?

Thanks OrangeRoshan - I will be many long hours digesting all this new information and modifying my EA to use it.

Lou
I dont want to be Bias, but its better to open a demo on IBFX and trade based on that signal manually.

When it is a concerned of EA, then use brokers that speak the same language (when you know what I mean).

I would like to test your EA on this when it is available. I can help to include some variables to make it even more profitable.

Piping the Galaxy
Change Your Thinking. Change Your Life - JD
  • #68
  • Nov 24, 2006 3:00pm Nov 24, 2006 3:00pm
Master Roshan,

If I use IBFX as my server my new candle will not start until 7pm est in the U.S. Is that a problem?


Thank You


Quoting OrangeRoshan
I dont want to be Bias, but its better to open a demo on IBFX and trade based on that signal manually.

When it is a concerned of EA, then use brokers that speak the same language (when you know what I mean).

I would like to test your EA on this when it is available. I can help to include some variables to make it even more profitable.

Piping the Galaxy
All 4 1 and 1 4 All
  • #69
  • Nov 24, 2006 3:10pm Nov 24, 2006 3:10pm
Quoting 4rex
Master Roshan,

If I use IBFX as my server my new candle will not start until 7pm est in the U.S. Is that a problem?


Thank You
No. The Same candle appear to all of us when using the same broker no matter where we stayed.

A piping question.
Change Your Thinking. Change Your Life - JD
  • #70
  • Nov 24, 2006 3:27pm Nov 24, 2006 3:27pm
Quoting OrangeRoshan
No. The Same candle appear to all of us when using the same broker no matter where we stayed.

A piping question.
Orange,

I have nothing to contribute at this point, but want to thank you for your contribution. I like to read and digest, then practice.

- Dan (Jedi in training)
  • #71
  • Nov 25, 2006 2:01am Nov 25, 2006 2:01am
I emailed a very popular website yesterday and told them that I didnt usually use stoploss. As expected, they replied me with 2 words, "GOOD LUCK". I of course smile and understand why they said that.

As a further understanding to those who wants to know about stoploss, here are a summary of it from the trading room of OrangeRoshan:

STOPLOSS

It has many definitions. Generally, as the name suggested, to stop your loss.

The reason why I said it has many definitions are because, different methods have different techniques of reapping pips. Here are examples and definitions of Stoploss.

1. To Minimise losses on a losing trade

As professional and as good trader you can be, there are times when your trade is totally hopeless A stoploss is set to minimise or move to minimise to a new price where further loss is minimal.

Eg: Say you are in a trade, with a normal fix stoploss. But, the trade is going against you, and fundamentals shows, its not favouring your trade, but a slim chance says it will. Rather than exiting a trade, a trader will tightenen his/her Stoploss, hoping should a trend change to his/her favour, the trade will become a winning trade. But on the otherhand, should the losing trade continue (most probable), it will be out of a trade sooner than schedule, thus minimising loss. This is also called, "Managing loss".

2. To set a win/loss ratio

Many times traders went into a trade with a proper win/loss ratio. The idea is even when you lose more, you still keep positive pips. This is because, your winning pips are higher than your losing pips, which is in this case, the Stoploss.

Eg: a 3:1 ratio. Meaning 3 loss is equal to 1 win. Say TP is 60, therefore SL is 20. When this trader wins twice and lost 5 times, he/she will still keep 20pips profits. This is a classic. Many traders out there thinks this is the only right way to enter a trade. I jedily disagree.

3. To keep a winning trade a winner

In defensive trading, when a trader is in a winning trade. A trader may do the followings:

a) Exit part of the lot, say 50% and move stoploss to breakeven. This way, when the trade turned against you and touch the new stoploss, the trade will be exited and harvested certain pips with half lot size. The remaining lot (50%) is at breakeven.

b) Same like above but instead of moving stoploss into breakeven, the trader move the stoploss into a few pips higher than breakeven. The stoploss is now change to Profit lock. In most platform the profit lock can trail the moving profits hence the word, Trailock. Should the trade goes against you, the remaining 50% still harvest positive pips rather than breakeven.

4. To guard a trade against temporary Dip or bounce

In this type of trading, A stoploss is usually not in good ratio. A losing trade can cost a trader 2 or more winning trades to recover a single losing one. A wide stoploss will be use to catch a trend not propotioned to the winning target pips. A stoploss is use here to guard a traders from a massive sudden trend change only. So, in this case a stoploss is positioned to keep a losing trade open until the trade becomes a profitable one. This is usually practiced with proven method systems and very experience traders. A high winning ratio, like you know what....

5. No Stoploss?

As crazy as it sounds, there are professional and significant traders out there who seldom use stoploss when entering a trade. There are reason to this:

a) Their WINNING method gives very high probable of winning compared to losing. A stoploss will probably get this trader out of a trade sooner before the trade change to a profitable one. However this proves very unpopular and requires a big equity. It is often critised and not very duplicable. I would'nt try this at home, Itsssss berrrrryyyy.. dangeraus...... Unless you are in the Jedi council, of course.

b) In a carry trade, such as buying GBPJPY. It gives a very profitable swaps and the pair moves in a very predictable trend. A stoploss will usually becomes a nuisance as a trader will have make more money in swaps rather than in pips. Keeping the trade open for a considerable amount of time will even guard the trade from negative pips.

Imagine a Trader buys GBPJPY since April 1995 (over 10,000 pips) or Sept 2000 (over 7000 pips). Why would he want to put a stoploss? The Swaps alone accumulated over the years is worth 10 times of the pips he accumulated!! A day swap is worth more than a couple of pips!

-----------------

Now, after that brief explaination, i think it is quiet clear what a stoploss is. Therefore, dont be suprised when you see a trader that has funny takeprofits or funny stoploss. It all depends on the methods used and level of experienced that traders has.

Coming back to SRDC, since we are trading the daily candle, a combination of the many definitions can be utilised to fit our objectives. Mastering Taking profits techniques will definitelly be a must when professional trading is part of the goal. Until then, please use a proper stoploss.

Messa think, message too long...
Change Your Thinking. Change Your Life - JD
  • #72
  • Nov 25, 2006 4:29am Nov 25, 2006 4:29am
Master Orange,

1) If my observations are correct, Level 2 is based on the relationship of the
daily candle to the channel lines (Bottom, Middle, Top).

But, what happens if we have some candles in "no man's land"?

By that I mean, for example, candle is above median on the way to the top
channel line, however it takes three days (three daily candles) to get there.

My point is, should we wait until a new candle touches any of the channel lines
and see the reaction at that level?

Therefore, no Level 2 trade for three days or use SRDC rules to enter trades
until price touches any channel line?

From there we fine tune our entry with the one hour chart?

2) When you follow the one hour chart... is that the SHI channel 60m or do you
draw the daily channel in the one hour and see the reaction of one hour candles to
the daily channel lines?

Hope my questions are clear. I'm in the middle of a galactic battle, shooting my
laser gun with one hand and typing with the other.

Henry
  • #73
  • Nov 25, 2006 8:17am Nov 25, 2006 8:17am
Quoting OrangeRoshan
I dont want to be Bias, but its better to open a demo on IBFX and trade based on that signal manually.

When it is a concerned of EA, then use brokers that speak the same language (when you know what I mean).

I would like to test your EA on this when it is available. I can help to include some variables to make it even more profitable.

Piping the Galaxy
The EA for this will take some time - SHI_Channel indicator is not coded to be easily referenced externally and will need to be re-structured. I will keep you posted.

One question - would SHI_Channel suit your purpose better if it did not redraw during the current day? Think about it and let me know - easy change to make while I am modifying the indicator anyway...

Best,
Lou
Old Benjamin was right
  • #74
  • Nov 25, 2006 8:54am Nov 25, 2006 8:54am
Quoting hensch
Master Orange,

1) If my observations are correct, Level 2 is based on the relationship of the
daily candle to the channel lines (Bottom, Middle, Top).

But, what happens if we have some candles in "no man's land"? Switch to 1hr and from that period perspective

By that I mean, for example, candle is above median on the way to the top
channel line, however it takes three days (three daily candles) to get there.

My point is, should we wait until a new candle touches any of the channel lines
and see the reaction at that level?

Therefore, no Level 2 trade for three days or use SRDC rules to enter trades
until price touches any channel line? Use other time periods

From there we fine tune our entry with the one hour chart?

2) When you follow the one hour chart... is that the SHI channel 60m or do you
draw the daily channel in the one hour and see the reaction of one hour candles to
the daily channel lines? Definitelly

Hope my questions are clear. I'm in the middle of a galactic battle, shooting my
laser gun with one hand and typing with the other.

Henry
Study the other periods, mainly the 1hr. As you know my way of teaching is step by step. Whe the Part 2 of Episode is introduce, it will become clearer.

Throw the mouse at him...........
Change Your Thinking. Change Your Life - JD
  • #75
  • Nov 25, 2006 8:58am Nov 25, 2006 8:58am
Quoting Lou G
The EA for this will take some time - SHI_Channel indicator is not coded to be easily referenced externally and will need to be re-structured. I will keep you posted.

One question - would SHI_Channel suit your purpose better if it did not redraw during the current day? Think about it and let me know - easy change to make while I am modifying the indicator anyway...

Best,
Lou
Yes make it draw once at the early hour (GMT 1). The adjustment will come only once a day. When ever the trend change, its better when the channel stays until the next day. This way we can see the candles are not obeying the channel hence, easy entry.

Hope that pips
Change Your Thinking. Change Your Life - JD
  • #76
  • Nov 25, 2006 9:27am Nov 25, 2006 9:27am
Quoting OrangeRoshan
Yes make it draw once at the early hour (GMT 1). The adjustment will come only once a day. When ever the trend change, its better when the channel stays until the next day. This way we can see the candles are not obeying the channel hence, easy entry.

Hope that pips
One more question, this time referring to the chart you sent me showing the difference between your hand-drawn channel and the shi channel - in that example your channel covered a period of about 4-5 days and appeared to be the correct one to me. As the indicator is working now, it will go back only one day on a 1 hour chart. Should it go back farther for best results?
Old Benjamin was right
  • #77
  • Nov 25, 2006 10:34am Nov 25, 2006 10:34am
Quoting Lou G
One more question, this time referring to the chart you sent me showing the difference between your hand-drawn channel and the shi channel - in that example your channel covered a period of about 4-5 days and appeared to be the correct one to me. As the indicator is working now, it will go back only one day on a 1 hour chart. Should it go back farther for best results?
The further the days it covered the better!! Usually 2-3 days is very accurate. What I mean is, instead of an indicator that draw every hour, it need to draw once a day. Next day it will read the new candles and draw a new one and doesnt change it until tommorw and so on.

This way, EA can read and determined point of entry easily. Otherwise our mighty computer will get confused and their point of reference keep changing every hour!!

What are your thoughts!!
Change Your Thinking. Change Your Life - JD
  • #78
  • Nov 25, 2006 10:44am Nov 25, 2006 10:44am
Quoting OrangeRoshan
The further the days it covered the better!! Usually 2-3 days is very accurate. What I mean is, instead of an indicator that draw every hour, it need to draw once a day. Next day it will read the new candles and draw a new one and doesnt change it until tommorw and so on.

This way, EA can read and determined point of entry easily. Otherwise our mighty computer will get confused and their point of reference keep changing every hour!!

What are your thoughts!!
Yes, I understand that only drawing a new channel at midnight makes the most sense - then it will not change during the current day and confuse us. As far as the number of hours to go back, the farther back, the wider the channel can become if the market is very volatile so care is needed - if the channel is too wide I think it is less useful. I'll try it at 2 days or so (and make the number of bars a variable that can be changed easily). You can examine it and see what looks best. I can find time to do this perhaps by Monday or so.
Old Benjamin was right
  • #79
  • Nov 25, 2006 11:42am Nov 25, 2006 11:42am
Here is how the modified channel would have looked at 00:00 on Friday 11/24 going back 2 days. If this is okay to you I will go ahead and start making the changes to have the indicator usable for an EA. (see attachment, my browser won't let me cut/paste and I don't want to take time to fix it now).

[img]file:///C:/Downloads/eurusd.gif[/img]
Attached Image
Old Benjamin was right
  • #80
  • Nov 25, 2006 11:43am Nov 25, 2006 11:43am
No attachment after all - got it to work correctly...
Old Benjamin was right
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