Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

Simple Zigzag + Fibonacci Strategy 746 replies

Zigzag indicator with pip count? 9 replies

Creating an EA using a zigzag strategy 23 replies

Alert for zigzag? 1 reply

Attachments: Re-igniting Dancingphil's ZigZag strategy
Exit Attachments

Re-igniting Dancingphil's ZigZag strategy

Quoting d5400
{quote} I'm not sure what you're showing here. Are you drawing some lines?
SilentFather is one of the few on here that is always trying to innovate and come up with his own pioneering ideas to trade the markets successfully, always thinking outside the box, and I will always respect him for that.
Quoting venividivici
{quote} SilentFather is one of the few on here that is always trying to innovate and come up with his own pioneering ideas to trade the markets successfully, always thinking outside the box, and I will always respect him for that.
Yes, I followed SilentFather's work, last one with keltner channels was great. But these lines remain a mystery to me. Hopefully some light someday.
1.02^200
Quoting venividivici
{quote} SilentFather is one of the few on here that is always trying to innovate and come up with his own pioneering ideas to trade the markets successfully, always thinking outside the box, and I will always respect him for that.
Thank You venividivici. Always happier when someone really appreciate someones work. I'll definitely do my best.

Quoting d5400
{quote} Yes, I followed SilentFather's work, last one with keltner channels was great. But these lines remain a mystery to me. Hopefully some light someday.
True, those lines still do its job. For example we can do this
Attached Image (click to enlarge)
Click to Enlarge Name: emil_eu_m15.png Size: 35 KB

However, problem is, you need to create such "spiderweb" to trade what it really shows you. I'm trying to make much fewer lines. Hmm, we could try to trade this when we get high/low from ZigZag... As I'm looking on some of those signals. Or the way dancingphil said. Check picture, it might work... somehow.
please include indicators or how to draw the spiderweb, thank you
Quoting winarto.05g
please include indicators or how to draw the spiderweb, thank you
You can get my indicator from my thread, but please here bear with ZigZag by dancingphil. It's polite not to mix two threads together.

DancingPhil ZigZag strategy still rules btw.
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 18 KB
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 21 KB

What is interesting about that indicator for pullbacks, we can use it with "our" ZigZag idea. (Changed settings for pullbacks.. settings before was for trendlines)
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 31 KB

What I also like is sentiment. We all know most of the time people are in wrong positions. Always going against the trend. We can use this sentiment to make our win ratio even higher. Simply go against the crowd... But bear in mind that sometimes people are right with their positions. This happens mostly when trend is changing or mini trend changing. Check this for example.

Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 14 KB


As you see, people are correct with their positions but as price is going higher, people start selling. This means for US "BUY ON LOW". If we hold this trade from today, we would get simple 50 pips or so. This is very nice for doing such simple thing.

SF
Also guys check this weekly chart... Isn't this amazing? Well, it does not work all the time... But if you sometimes check on it, you can get some pretty nice trades with literally zero drawdown.

Price very often reverse like this. It's like when you look into a mirror. These would be amazing trades, problem is you will never find those unless you have those charts 24/7 opened and checking it daily.

SF
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 14 KB
Your system looks attractive and unique. I really hope it is also very profitable. so I'm really looking forward to a detailed explanation, step by step and some examples. thanks bro
Quoting winarto.05g
Your system looks attractive and unique. I really hope it is also very profitable. so I'm really looking forward to a detailed explanation, step by step and some examples. thanks bro
You mean how to trade zigzag?

SF
Hello SF,

the blue curve is given by what?

Thank,s
This is an interesting idea. Even though both ways could be traded. The reverse would be attempts on identifying tops and bottoms. Will be giving this a shot and see if it works well with my existing algos. I would pair this up with higher probability setups like basic stats.
Quoting venividivici
I would like to discuss a strategy Dancingphil spoke about casually but not many took notice, his zigzag scalping strategy in his own...
Quoting SilentFather
This thread needs more attention. Dancingphil was great...
Quoting jmn5611
I logged in because this deserved a response...Not sure if this is still possible now, as this was awhile ago...
Quoting birdland
oh i found this thread by accident! dancingphil was or is a legend...good venividivici that you opened this thread so that his knowledge is not lost!
Thank you for this thread and your contributions. Found it too late and only by chance, but the topic deserves it. Also @venividivici, thank you for the link to DP's post at the MQL forum. Didn't know that one.

ZigZag still works in a way DP described (trading with the direction of the ZZ lines).

(1) The most important thing to overcome are the shortcomings of the MT4 ZigZag indicator which is - excuse me - utter useless crap. Not only it repaints the last line (that's to be expected from Zigzag) but it also repaints the last found reversal point (ZigZag semaphore). Imho with such a flaw it's not possible to even start discussing ZZ systems. This problem was solved by me long ago. There's a thread of mine with a non-repainting ZigZag indicator suitable for automation.

(2) Some theory: The typical ZigZag internally uses a Donchian channel, and price crossing this channel is the core element of DP's system. Now my ZZ indicator not only visualizes channel and crossings but it also shows you before the fact where the crossing will happen (it also gives a signal). This signal is of course updating in realtime because the exact level may change with every new bar. But once a signal occurred it will never repaint.

With this said and done it's possible to formulate a ZigZag trend following strategy with a very high win rate (> 70%-75%). And you not only get the entry signal (DP's entry) but also defined SL and TP levels.

At the core of the system is the standard 1-2-3 ZigZag pattern described in many places, for example here: Opto123 Pattern EA. But that system alone is not profitable (see post #195). Reason is that generated signals are not interpreted in context of the bigger picture or the major trend. To overcome this issue we can use a second inner ZigZag with periodicity of about 1/4 of the outer Zigzag (the exact number is not important). Signals generated this way are very reliable and similar to the XARD 2nd Dot system (link1, link2). However, imho that guy is a FS scammer. His templates and indicators will kill your PC, and the whole thread is only bragging around but he doesn't show a single concrete trade. But the idea of the "2nd dot" is the one I described: One Zigzag painting the big picture and another nested one giving the actual signal.

Ok, for the moment I will leave it with that. Enough material for reading provided :-)

Thanks again for opening this thread.
Actual trade example. Opened a sell position 6 min ago and closed it 3 min later at the projected TP level. The blue/pink dots are DP's starting points for calculating orders.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPYM1.png Size: 28 KB
I am going thru some of your post. Here is you mentioned - In the following post I'm going to explain parameter navigation via keyboard. This allows the user to explore the parameter space of the ZigZag similar to the optimizer in tester.
Most accurate ZigZag indicator? | Page 2 | Forex Factory

Please can you show us when your time allows. thanks
Whats get measured get improved
Quoting AKCodingEye
I am going thru some of your post. Here is you mentioned - In the following post I'm going to explain parameter navigation via keyboard. This allows the user to explore the parameter space of the ZigZag similar to the optimizer in tester. Most accurate ZigZag indicator? | Page 2 | Forex Factory Please can you show us when your time allows. thanks
Will post the latest version and write about the parameter stepper at the weekend. A video would be best but I'm not good at that. So writing/screenshots have to do it.
Quoting AKCodingEye
I am going thru some of your post. Here is you mentioned - In the following post I'm going to explain parameter navigation via keyboard. This allows the user to explore the parameter space of the ZigZag similar to the optimizer in tester. Most accurate ZigZag indicator? | Page 2 | Forex Factory Please can you show us when your time allows. thanks
Posted the description for the parameter stepper: https://www.forexfactory.com/thread/...9#post14810419
Quoting emmzett
{quote} Posted the description for the parameter stepper: https://www.forexfactory.com/thread/...9#post14810419
Thanks for uploading your updated version and will give it a go.
Thanks again and really much appreciated
Whats get measured get improved
brother... the man saw something... but he said something else... don't look at what he said... look for what he wanted to say... there is a truth here...

God bless you Phil and God bless everyone!
The only impartial feeling is love. It is also the only feeling of God.
as I said before... I don't answer PMs...


I'm really sorry.... RIP Phil and God bless everyone!
The only impartial feeling is love. It is also the only feeling of God.
Quoting emmzett
Actual trade example. Opened a sell position 6 min ago and closed it 3 min later at the projected TP level. The blue/pink dots are DP's starting points for calculating orders. {image}
I came here after a long time. Nice info You posted. Will definitely check it out soon. Have some troubles in life, but if I survive, I'll definitely check this.
Quoting SilentFather
{quote} I came here after a long time. Nice info You posted. Will definitely check it out soon.
Good luck to you.

Quoting dancingphil
...I want to quantify how much this line extends for. That is, I want to get an idea on the average number of pips it repaints by; so marking the chart with the price when it first forms would be great... With this average of repaint-pips known, I think I can code an EA for it trade profitably... The EA I have in mind would set limit orders "x-pips" away from when the line is first created... These limit orders would be set with a take-profit at the average repainted pips in the last z-number bars....
Some more information. In the above quoted post Phil imho describes best what he's looking at. Some time ago I wrote a ZigZag EA, mainly to explore the possibilities of the "Turtle Trading" system. The EA enters positions similar to the Turtle system (when the Donchian channel is broken or in ZigZag terms: whenever a new ZigZag leg appears). Meaning it's always in the market. Now I don't expect it to be profitable like that, but the idea is that over time such a system should always be near break even (in theory, assuming no transaction costs).

The EA is capable of calculating and logging it's own trade statistics and I track exactly what DancingPhil was looking for: the average number of pips a leg would expand over the breakout point, and the average number of pips it would go against that direction.

Let's take an example: a GBPJPY,M1 test from 15.01.2024-01.03.2024 with ZigZag period=30 (full stats attached)

We have 1016 trades which is enough to be statistically relevant. And indeed, without any costs the average profit per trade is -0.2 pip (that's almost breakeven). However, the maxRunup and maxRundown numbers are interesting: on average we see a profit of 12 pip and a drawdown of -6.5 pip. These are the numbers DancingPhil was looking for. It's just an example but we can see a clear imbalance caused by changing market behavior when a breakout occurs. It can be exploited using Phil's entry technique (wait for a few pip minus before entering) and adding a smart exit condition (breakeven stop + profit target).
Btw: Using BarModel=ControlPoints doesn't affect signal statistics. Of course it affects trade statistics but this example is just about ZigZag stats.

In reality one would switch to at least M5, so numbers/imbalance become larger and it's easier to overcome noise and transaction costs.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ZigZag stats.png Size: 13 KB
Click to Enlarge Name: ZigZag EA signal equity.png Size: 33 KB
Attached File(s)
File Type: zip ZigZag EA, GBPJPY,M1 P=30, 2024-03-05 12.14, id=001.zip   37 KB | 96 downloads
0 traders viewing now