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SRDC Episode II

  • #81
  • Nov 25, 2006 6:38pm Nov 25, 2006 6:38pm
Quoting Lou G
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]
Ok, you channel is correct, but it only covers thursday trade. Actually, thats my chart on early Friday, but GBP broke the trend extensivelly. We would expect a correction, hopefully it happens, unless momentum continue (as it has to come back to the channel).

But what happens when it doesnt? In this case a new channel must be drawn taking Thursday and Friday into account. I enclosed a Thursday & Friday channel as draw by SHI.

Say we draw Thursday only leaving Friday due to strong momentum, and monday comes, I wonder how will the EA calculate the position of the Friday's trade? Hmmm...

Do a channel that draws at least last 2 days minimum. What do you say?

Normaity will resume tommorow, I suppose. Damn Bird!!
Attached Image
Change Your Thinking. Change Your Life - JD
  • #82
  • Nov 25, 2006 7:09pm Nov 25, 2006 7:09pm
Where is Dollar taking the candles?

SRDC I/II Trader's Analysis:

- The Long Entry using Level I looks promising, however momentum may be weak, so it probably touch the top channel, but 5-10 pips look doable.

- SRDC I Sell entry looks a long way, unless the American are MAD and want to correct Thanks Giving Candle,

- Lets wait for the Sunday candles, and see what it says? Then Use Level II entry

- Could the dollar strengten? and push the candle to the lower channel?

Here is what I would DO (at your own risk)

I trade GBPUSD and candle is similar to EURUSD, but movement might be slightly different:

- I would inverse the Honey I bought 600Sl candle
- SL 50pips
- For LONG when sunday is (black), T1 is 1.9349 (Friday R), T2 1.9366 (H1 Median)
- For SHORT when sunday is (white), T1 is 1.9293 (20pips), T2 1.9239 (mid of T1/T3), T3 1.9186 (Daily Median)

- Should my Sl (50) got hit, I will reverse the trade.

Allocation of Lots on Exit

- LONG T1(50%), T2(50%)
- SHORT T1(50%), T2(30%), T3(20%)

The Illustration below is EURUSD and LouG drew his channel with this pair.
Attached Image
Change Your Thinking. Change Your Life - JD
  • #83
  • Nov 25, 2006 9:59pm Nov 25, 2006 9:59pm
Hi Master

I follow your system pretty well, but the following line from your last post
has me stumped.

"I would inverse the Honey I bought 600Sl candle"

when you get a chance could you explain what that means to and upcoming
jedi piper.

may the pips be with you.

Mr Smith
  • #84
  • Nov 25, 2006 10:09pm Nov 25, 2006 10:09pm
Quoting Mr Smith
Hi Master

I follow your system pretty well, but the following line from your last post
has me stumped.

"I would inverse the Honey I bought 600Sl candle"

when you get a chance could you explain what that means to and upcoming
jedi piper.

may the pips be with you.

Mr Smith

Well, if u read the post, he has just bought a 600SL Mercedes Benz and using that as humor..
The future depends on what we do in the present.
  • #85
  • Nov 25, 2006 11:12pm Nov 25, 2006 11:12pm
Jedi Roshan,

I am curious... in this kind of situation. How will u trade it ??

Example: How do u trade GBP using SRCD on 23rd Nov 06 ?
The future depends on what we do in the present.
  • #86
  • Nov 25, 2006 11:19pm Nov 25, 2006 11:19pm
thanks comp,
i read all the posts, didnt' quite pick up on it,
i guess im not in touch with the force yet.



Quoting compro99
Well, if u read the post, he has just bought a 600SL Mercedes Benz and using that as humor..
  • #87
  • Nov 26, 2006 12:57am Nov 26, 2006 12:57am
Quoting Mr Smith
Hi Master

I follow your system pretty well, but the following line from your last post
has me stumped.

"I would inverse the Honey I bought 600Sl candle"

when you get a chance could you explain what that means to and upcoming
jedi piper.

may the pips be with you.

Mr Smith
http://www.forexfactory.com/forexfor...0&postcount=54

LOL, im refering to the Sunday candle!!

Being a Jedi behaving serious and all is not easy. Thats why i taught the council a few humour.... take Yoda for instance, hes still young! Too serious makes him old and green...
Change Your Thinking. Change Your Life - JD
  • #88
  • Nov 26, 2006 1:05am Nov 26, 2006 1:05am
Quoting compro99
Jedi Roshan,

I am curious... in this kind of situation. How will u trade it ??

Example: How do u trade GBP using SRCD on 23rd Nov 06 ?
Pipastic Question!!

I only got 20+ pips that day, quiet a dissapointment. T1 was 1.9166. All the other Ts were carried forward to 24th and made almost 200pips. Thats more like it!!

This is the beauty of SRDC, be it Trending or Ranging or even Holidying, it still pips. The motto is,'Dont leave any pips behind"

I open a LONG trade at 1.9142 using Level 3&4 strategies (Yes, thats right, SRDC level 4 actually open a trade on the 1st tick of the day!!).

One of my Padawan from Hong Kong like to say,"Iinsssssssaneeeeeee....!!". Damn right!!

May the Pips be with you, Always!!
Change Your Thinking. Change Your Life - JD
  • #89
  • Nov 26, 2006 1:25am Nov 26, 2006 1:25am
Quoting OrangeRoshan
Pipastic Question!!

I only got 20+ pips that day, quiet a dissapointment. T1 was 1.9166. All the other Ts were carried forward to 24th and made almost 200pips. Thats more like it!!

This is the beauty of SRDC, be it Trending or Ranging or even Holidying, it still pips. The motto is,'Dont leave any pips behind"

I open a LONG trade at 1.9142 using Level 3&4 strategies (Yes, thats right, SRDC level 4 actually open a trade on the 1st tick of the day!!).

One of my Padawan from Hong Kong like to say,"Iinsssssssaneeeeeee....!!". Damn right!!

May the Pips be with you, Always!!

According to yr experience in SRCD, do u always let trade rollover to next day when target is not met ??

Personal qns, u have so many padawan overseas, do u own a hedge fund or know lot of bank traders worldwide ??

I'm also from GMT +8... singapore
The future depends on what we do in the present.
  • #90
  • Nov 26, 2006 1:48am Nov 26, 2006 1:48am
Quoting compro99
According to yr experience in SRCD, do u always let trade rollover to next day when target is not met ??

Personal qns, u have so many padawan overseas, do u own a hedge fund or know lot of bank traders worldwide ??

I'm also from GMT +8... singapore
In my discreationery trading, it all depends on the fundamentals & Technicals. When it says, the trend will continue, i will let it ride to the next galaxy. But my EA (Commercial puposes) will end some trades on GMT 17:00, where the candles is usually at its peak!

Yes, Im a Fund Manager since the 90s and also know a lot of bank traders in the Milkyway. I managed certain percentage of their funds (trust me, you dont want to kno). My investment empire is Invisible to protect my clients from their clients. Its hit your elbow to elbow thingy!!

Many has become good friends to me and also we learn from each other. Im a simple man with simple trading method that works.

Hope that pips in your pants! sorry I mean pockets!! LOL
Change Your Thinking. Change Your Life - JD
  • #91
  • Nov 26, 2006 4:49am Nov 26, 2006 4:49am
Jedi Roshan,

With yr credential as a fund mgr, i think alot of people will sit up and take a good look into the mind of a great speculator. I always sit straight up 90 degrees when reading yr post... with interest. Ok.. enough of polishing yr boots... haha. Let the Jedi saga continues... i meant the training.
The future depends on what we do in the present.
  • #92
  • Nov 26, 2006 4:59am Nov 26, 2006 4:59am
Quoting compro99
Jedi Roshan,

With yr credential as a fund mgr, i think alot of people will sit up and take a good look into the mind of a great speculator. I always sit straight up 90 degrees when reading yr post... with interest. Ok.. enough of polishing yr boots... haha. Let the Jedi saga continues... i meant the training.
Take it from me. Its no big deal. Anyone of your can make it too and probably bigger than me. Im the poorest amongst them.

Discipline is everything!

"Its not what we know thats makes us successful, Its what we do with what we know, that will make us successful" - Doug Wead (Economic Advisor to the Oval Office).
Change Your Thinking. Change Your Life - JD
  • #93
  • Nov 26, 2006 6:02am Nov 26, 2006 6:02am
Quoting OrangeRoshan
Take it from me. Its no big deal. Anyone of your can make it too and probably bigger than me. Im the poorest amongst them.

Discipline is everything!

"Its not what we know thats makes us successful, Its what we do with what we know, that will make us successful" - Doug Wead (Economic Advisor to the Oval Office).

Just curious, do u trade just FX only ??

What kinda strategies does the other fund mgrs employed ? All based on daily candles ?? Just curious... because i have nvr been in professional trading settings.
The future depends on what we do in the present.
  • #94
  • Nov 26, 2006 6:13am Nov 26, 2006 6:13am
Quoting compro99
Just curious, do u trade just FX only ??

What kinda strategies does the other fund mgrs employed ? All based on daily candles ?? Just curious... because i have nvr been in professional trading settings.
I traded Commodities as well. Things like Gold, Nasdaq, Crude, ETC....
Just in case we go back to the gold standard again.

Hmmm... Most of them are Fundamentalist, and they know their stuff very very well. But, when they draw charts, its mostly Daily candles. I think this is also mostly due to previous practices where electronic charting softwares were not readily available yet.

Many professional Fund Managers do carry trades. They seldom have daily pip goals. Its more on buying on dip and at bounce after an exaustion of momentum. Well, the reason is probably, they are mostly working for reputable banks and govermnets! Not many like I do, Managed and own my own private Fund Practices.

Happy Pipping!
Change Your Thinking. Change Your Life - JD
  • #95
  • Nov 26, 2006 11:38am Nov 26, 2006 11:38am
Quoting OrangeRoshan
Ok, you channel is correct, but it only covers thursday trade. Actually, thats my chart on early Friday, but GBP broke the trend extensivelly. We would expect a correction, hopefully it happens, unless momentum continue (as it has to come back to the channel).

But what happens when it doesnt? In this case a new channel must be drawn taking Thursday and Friday into account. I enclosed a Thursday & Friday channel as draw by SHI.

Say we draw Thursday only leaving Friday due to strong momentum, and monday comes, I wonder how will the EA calculate the position of the Friday's trade? Hmmm...

Do a channel that draws at least last 2 days minimum. What do you say?

Normaity will resume tommorow, I suppose. Damn Bird!!
Yes, it is as it would have looked at the beginning of Friday. When the Sunday bars and the Monday open actually arrive (at about 7pm for me) I'm expecting the channel to look like your example (or, I will fix the indicator so it does - this is why I'm testing and it may take a few days to fine-tune).
Old Benjamin was right
  • #96
  • Nov 26, 2006 12:13pm Nov 26, 2006 12:13pm
I use North Finance for my charts and I don't get a Saturday or Sunday Candle... Why?
  • #97
  • Nov 26, 2006 12:13pm Nov 26, 2006 12:13pm
I've spent quite a few hours dissecting this indicator and trying to customize it very slightly for use with the SRDC method. For those who care, what this indicator is doing is this:

The indicator finds what I think of as mega-fractals. Standard fractals are turning points in price motion, usually based on a 5 to 9 bar pattern. The SHI indicator, in the case of the 1 hour chart, is looking for 24 bar fractals which are indicative of even more important turning points. When it finds them, they become the basis for the trend lines. The most recent mega-fractal sets the trend line direction.

This is an extremely clever indicator. Someone obviously put a lot of thought and research into its design, particularly in the number of fractal bars used in each time frame. What I'm attempting to do is create a version that will redraw only at midnight on the 1 hour timeframe so that it will not change direction during the trading day the way the standard indicator will. This will enable us to use the trend lines (and the median) as potential profit levels or entry pounts without having the channel change direction after trades are placed.

Hopefully, this will turn out to be useful (and profitable) and will make it much easier to develop an EA.

Best to all,
Lou
Old Benjamin was right
  • #98
  • Nov 26, 2006 5:07pm Nov 26, 2006 5:07pm
Quoting Lou G
I've spent quite a few hours dissecting this indicator and trying to customize it very slightly for use with the SRDC method. For those who care, what this indicator is doing is this:

The indicator finds what I think of as mega-fractals. Standard fractals are turning points in price motion, usually based on a 5 to 9 bar pattern. The SHI indicator, in the case of the 1 hour chart, is looking for 24 bar fractals which are indicative of even more important turning points. When it finds them, they become the basis for the trend lines. The most recent mega-fractal sets the trend line direction.

This is an extremely clever indicator. Someone obviously put a lot of thought and research into its design, particularly in the number of fractal bars used in each time frame. What I'm attempting to do is create a version that will redraw only at midnight on the 1 hour timeframe so that it will not change direction during the trading day the way the standard indicator will. This will enable us to use the trend lines (and the median) as potential profit levels or entry pounts without having the channel change direction after trades are placed.

Hopefully, this will turn out to be useful (and profitable) and will make it much easier to develop an EA.

Best to all,
Lou
Would you please post the formula. Thanks.
  • #99
  • Nov 26, 2006 5:44pm Nov 26, 2006 5:44pm
Master


Looks like there will be srdc 2, shorts, after sunay candle is a up candle,
any reason why this is not a valid entry to short?

may the pips be with you
  • #100
  • Nov 26, 2006 7:05pm Nov 26, 2006 7:05pm
Below see the Monday chart for Eurusd with the new channel drawn as of midnight. Looks good to me, how about you?

Best,
Lou
Attached Image
Old Benjamin was right
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