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ATP (Advanced Trading Philosophy) - Positioning For Success

  • #481
  • Mar 24, 2008 3:05pm Mar 24, 2008 3:05pm
Quoting tman378
Hi Damon,

Please see below chart for EUR/CHF. It looks like we had an NLCT long on 3/21. But the Monday bar (3/24) opened higher than the high of 3/21 bar. In a case like this how should we place an EES trade? Does this mean we have to wait for price to close back inside the set-up bar(3/21) before placing an EES trade? If price keeps going up without pulling back, we cannot place any long trades because no EES trade has been initiated. And therefore the only thing we could have done is cancel all pending short trades when we got the NLCT long signal on 3/21, and place TAMB short trade on 3/20 bar.

And from this point on, we continue to place daily TAMB short trades and not long trades for the above-mentioned reason. Am I getting this right? The only possible long trades at this point would be the previously placed TAMB long trades.

Cheers,

Tony
Hey TM...you should have had a NLRT trigger that was set back on the 18th....you may have changed this to a TAMB trade.

Because this triggered you are free to go long with a DPTT.

Also, the bar you are pointing at was Friday's bar which I did no use because it was a holiday so you really didn't miss anything.
"Keep your eyes on the helpers" - Mr. Rogers
  • #482
  • Mar 24, 2008 3:30pm Mar 24, 2008 3:30pm
@ SwingMan;

It would be nice to have an indicator that would show us how much exposure we have in each pair just like the Oanda platform. E.g. If I have a GBPUSD buy entry @ 1.9870 and EURUSD buy entry @ 1.5425 using 1 mini lot/10,000 unit trade then we have the following exposure:

______|_PAIR_|_UNITS_|_USD_____
LONG | GBP | 10,000 | $19,865.50
LONG | EUR | 10,000 | $15,426.00
SHORT | USD | 35,304 | $35,304.00

PS: Not an important request. Just a would be nice idea.

TimeFreedom
  • #483
  • Mar 24, 2008 3:42pm Mar 24, 2008 3:42pm
Quoting damonl
Hey TM...had a little drawdown myself, but am not worried about it. So far I have close 10% 2x and was almost ready to close again except market turned away. I was a couple hundred bucks away. That all since I started this thread..

I am still up in equity about 4% and I am hoping that the market wants the USD to continue to increase in value. If it does, I should reach my 10% tomorrow. If not, I am still up 20% for the month.

I am sure your drawdown is fairly small for your account size. All is well
Damon,

Thank you for the reassuring comments. In a wildly ranging market like this, we have to expect some drawdown, so I'm not overly worried about it either. We wait and see if things start to get better when the market starts to trend more.

Please see below a chart for NZDUSD. This is a classic example of the question I posted to you earlier about NLCT trades, and how many bars in between NL changes qualify as continuation rather than a new reversal.

As you can see we had a confirmed downtrend about 5-6 bars back. Now the NL could be turning yellow on the current bar. In a case like this, we should look for a reversal signal (yellow NL AND green ST dot) rather than calling this an NLCT with just a yellow NL. Do I understand this correctly? Therefore if we get a yellow NL at close of this current bar, we still have to wait for a new green ST dot to call it a true reversal, correct?

Cheers,

Tony
Attached Image (click to enlarge)
Click to Enlarge Name: nzdusd032408.gif Size: 14 KB
  • #484
  • Mar 24, 2008 3:47pm Mar 24, 2008 3:47pm
Quoting damonl
Hey TM...you should have had a NLRT trigger that was set back on the 18th....you may have changed this to a TAMB trade.

Because this triggered you are free to go long with a DPTT.

Also, the bar you are pointing at was Friday's bar which I did no use because it was a holiday so you really didn't miss anything.
Ok, I think I get what you mean, Damon. Thank you. So we should probably keep a note of which TAMB trades were previously an EES trade, so that if they get triggered we can take that as a signal to place more trades similar to an EES being triggered. Do you agree?

Tony
  • #485
  • Mar 24, 2008 4:36pm Mar 24, 2008 4:36pm
I'll post charts a bit later after we get new candles. As always, your insight is much appreciated, Damon...especially on the points I highlighted in red. Thank you sir!

AUD/USD
Lot = 0.25
Add: 8
Observations
1. Downtrend continues
2. Green ST dot but lag has not changed color
Actions
1. Replace DPTT short trade
2. Place a long TAMB trade on 3/21 bar (not possible -- current price higher than that bar's high)



EUR/AUD
Lot = 0.25
Add:11
Observations
1. NL Reversal signal short
2. AO turning red
Actions
1. Cancel all pending long orders
2. Move S/L for all open long trades to low of 3/24 bar
3. Place EES1 short
4. Do not place EES2 (only one EES at a time)
5. Place a long TAMB trade on 3/21 bar



EUR/CAD
Lot = 0.25
Add: 11
Observations
1. NL Reversal signal short
2. AO turning red
Actions
1. Cancel all pending long orders
2. Move S/L for all open long trades to low of 3/24 bar
3. Place EES1 short
4. Place a long TAMB trade on 3/21 bar



EUR/CHF
Lot = 0.25
Add: 7
Observations
1. NLCT long signal on 3/21 bar -- previous EES long trade (turned TAMB) was triggered
2. All pending short trades should have been cancelled yesterday
3. TAMB short trade should have been placed on 3/20 bar yesterday
Actions
1. Place daily DPTT long trade
2. Place daily TAMB short trade on 3/21 bar



EUR/GBP
Lot = 0.15
Add: 6
Observations
1. Downtrend continues
2. EES1 short trade triggered
Actions
1. Place daily DPTT short trade
2. Place daily TAMB long trade on 3/21 bar



EUR/JPY
0.15
Add: 7
Observations
1. Yellow lag turning back up for NLCT long
2. AO turning green
Actions
1. Cancel all pending short trades
2. Place EES2 long trade
3. Move SL for all open short trades to high of 3/24 bar
4. Place TAMB short trade on 3/21 bar



EUR/USD
Lot = 0.25
Add: 5
Observations
1. Downtrend continues
Actions
1. Place daily DPTT short trade
2. Place TAMB long trade on 3/21 bar



GBP/CHF
Lot = 0.1
Add: 12
Observations
1. Uptrend continues -- EES1 long triggered
2. S/L for all open short trades should have been moved yesterday to high of 3/21 bar BUT 3/24 bar opened higher, so how should SL have been moved? Should we have exited all open short trades manually then?
Actions
1. Place daily DPTT long trade2. Place TAMB short trade on 3/21 bar



GBP/JPY
Lot = 0.1
Add: 12
Observations
1. EES1 long trade triggered
2. AO turned green yesterday -- SL for all open short trades, if any, should have been moved.
Actions
1. Place daily DPTT long trade
2. Place daily TAMB short trade on 3/21 bar




GBP/USD
Lot = 0.25
Add: 7
Observations
1. Green ST two bars back -- NL still red but looks to turn back up
Actions
1. Replace daily DPTT short trade
2. Place daily TAMB long trade on 3/21 bar



NZD/USD
Lot = 0.25
Add: 8
Observations
1. EES short trade triggered
Actions
1. DPTT short trade
2. Place daily TAMB long trade on 3/19 bar



USD/CAD
Lot = 0.25
Add 8
Observations
1. Red ST two bars back -- NL still blue
Actions
1. Place daily DPTT long trade
2. Place TAMB short trade on 3/20 bar since current price is below the low of 3/21 bar



USD/CHF
Lot = 0.25
Add 7
Observations
1. Uptrend continues
2. Both EES1 and 2 in play

Actions
1. Close profitable DPTT long and place new trade
2. Place daily TAMB short trade on 3/21 bar



USD/JPY
Lot = 0.25
Add 5
Observations
1. EES long trade triggered
Actions
1. Place daily DPTT long trade
2. Place daily TAMB short trade on 3/21 bar
  • #486
  • Mar 24, 2008 5:02pm Mar 24, 2008 5:02pm
Quoting TimeFreedom
@ SwingMan;

It would be nice to have an indicator that would show us how much exposure we have in each pair just like the Oanda platform. E.g. If I have a GBPUSD buy entry @ 1.9870 and EURUSD buy entry @ 1.5425 using 1 mini lot/10,000 unit trade then we have the following exposure:

______|_PAIR_|_UNITS_|_USD_____
LONG | GBP | 10,000 | $19,865.50
LONG | EUR | 10,000 | $15,426.00
SHORT | USD | 35,304 | $35,304.00
I dont know if you mean the TickValue for 1 Lot in the AccountCurrency():
.
Here a version ONLY TO TEST for TimeFreedom.
Attached Image
Attached File(s)
File Type: mq4 Damon smDashBoard_v1.mq4   21 KB | 468 downloads
  • #487
  • Mar 24, 2008 5:10pm Mar 24, 2008 5:10pm
Here a first version for trading signals, with the TrendReversal signals.


As observation: because the slow calculation(!) of the NonLag moving average, I reduced the calculation to the last 40 bars.
.
Attached Image (click to enlarge)
Click to Enlarge Name: audusd_80324.gif Size: 14 KB
Attached File(s)
File Type: mq4 Damon smTradingSignals_v1.mq4   7 KB | 592 downloads
  • #488
  • Mar 24, 2008 6:06pm Mar 24, 2008 6:06pm
Quoting tman378
Damon,

Thank you for the reassuring comments. In a wildly ranging market like this, we have to expect some drawdown, so I'm not overly worried about it either. We wait and see if things start to get better when the market starts to trend more.

Please see below a chart for NZDUSD. This is a classic example of the question I posted to you earlier about NLCT trades, and how many bars in between NL changes qualify as continuation rather than a new reversal.

As you can see we had a confirmed downtrend about 5-6 bars back. Now the NL could be turning yellow on the current bar. In a case like this, we should look for a reversal signal (yellow NL AND green ST dot) rather than calling this an NLCT with just a yellow NL. Do I understand this correctly? Therefore if we get a yellow NL at close of this current bar, we still have to wait for a new green ST dot to call it a true reversal, correct?

Cheers,

Tony
Wow...this is a good question. I am not sure that I have the rright answer. By definition this should be a NLCT. I see your point though as a lot of movement has occured between the formation of the last dot.

Personally I think that we all need to learn to trade wihtout emotion and that means following the rules no matter how much it looks like the trade may go against us because the bottom line is that no one really knows.

I placed the trade as a NLCT. If I lose, I lose and I will pick up the slack with the next TAMB trade. It is okay to take losses on the way to you friend

Perhaps we can find a filter to help us with this in the future. I will keep my eyes out for a signal to stay out....no more indicators however

I hope that this has been helpful.

P.S. and yes...this market has been crazy. I wonder if this is a sign of things to come
"Keep your eyes on the helpers" - Mr. Rogers
  • #489
  • Edited 6:35pm Mar 24, 2008 6:16pm | Edited 6:35pm
Here is my EU evaluation with Spreadsheet for 03/25/08

Attached Image
Attached Image


As you can see from the chart above the only trade we would have with EU today is our DPTT which would be placed short beneath the close of yesterdays bar.

Happy Pippin'

Updated Spreadsheet for 03/25/08:
Attached File(s)
File Type: xls 3-25-08.xls   202 KB | 410 downloads
"Keep your eyes on the helpers" - Mr. Rogers
  • #490
  • Edited 6:46pm Mar 24, 2008 6:32pm | Edited 6:46pm
Hello.

Thank you for all your work everyone and for those who are here learning what I feel is a very powerful system for taking profits from the Forex Market.

I have decided to make a correction to my Exit Rules: This chage is due to the recent addition of the NLCT and the TAMB trades which get us back into a trending market quickly if we are stoped out.

Before I had finalized these two trades, I wanted to stay in the market as long as possible. Since the introcution of them I no longer think it is necessary to remain in the market any longer than we need to becasue the NLCT and the TAMB trades are long term trades designed to get u sback in the market quickly if our exit is hit and the market continues.

Here is what I will do from now on in regards to exiting the market:

For the most part I am only going to use the Early Exit signal for exiting the market. The Early Exit signal includes a NLRT being triggered in the opposite direction of any open trades. By implementing this strategy I will save many lost pips in the ranging market and will easily be able to re-enter any trending markets that we exit as stated above.

After our Early Exit strategy is signaled, many times it won't trigger on the next bar or the bar after that. If this is the case I will resort to any of the other 3 exit strategies if the Early Exit strategy is not triggered and by using one of the other 3 will save pips.

Those of you following along should find this easy to understand. Please, if you have any questions regarding this change, please feel free to shoot away. I beleive this is a valuable correction when taking into account the big picture of the ATP.

Happy pipin'
"Keep your eyes on the helpers" - Mr. Rogers
  • #491
  • Mar 24, 2008 6:43pm Mar 24, 2008 6:43pm
Quoting tman378
I'll post charts a bit later after we get new candles. As always, your insight is much appreciated, Damon...especially on the points I highlighted in red. Thank you sir!

AUD/USD
Lot = 0.25
Add: 8
Observations
1. Downtrend continues
2. Green ST dot but lag has not changed color
Actions
1. Replace DPTT short trade
2. Place a long TAMB trade on 3/21 bar (not possible -- current price higher than that bar's high) Use 3/20 bar since Friday was a dull day. Give yourself every reason to place a trade





EUR/AUD
Lot = 0.25
Add:11
Observations
1. NL Reversal signal short
2. AO turning red
Actions
1. Cancel all pending long orders
2. Move S/L for all open long trades to low of 3/24 bar
3. Place EES1 short
4. Do not place EES2 (only one EES at a time)
5. Place a long TAMB trade on 3/21 bar



EUR/CAD
Lot = 0.25
Add: 11
Observations
1. NL Reversal signal short
2. AO turning red
Actions
1. Cancel all pending long orders
2. Move S/L for all open long trades to low of 3/24 bar
3. Place EES1 short
4. Place a long TAMB trade on 3/21 bar



EUR/CHF
Lot = 0.25
Add: 7
Observations
1. NLCT long signal on 3/21 bar -- previous EES long trade (turned TAMB) was triggered
2. All pending short trades should have been cancelled yesterday
3. TAMB short trade should have been placed on 3/20 bar yesterday
Actions
1. Place daily DPTT long trade
2. Place daily TAMB short trade on 3/21 bar



EUR/GBP
Lot = 0.15
Add: 6
Observations
1. Downtrend continues
2. EES1 short trade triggered
Actions
1. Place daily DPTT short trade
2. Place daily TAMB long trade on 3/21 bar



EUR/JPY
0.15
Add: 7
Observations
1. Yellow lag turning back up for NLCT long
2. AO turning green
Actions
1. Cancel all pending short trades
2. Place EES2 long trade
3. Move SL for all open short trades to high of 3/24 bar
4. Place TAMB short trade on 3/21 bar



EUR/USD
Lot = 0.25
Add: 5
Observations
1. Downtrend continues
Actions
1. Place daily DPTT short trade
2. Place TAMB long trade on 3/21 bar



GBP/CHF
Lot = 0.1
Add: 12
Observations
1. Uptrend continues -- EES1 long triggered
2. S/L for all open short trades should have been moved yesterday to high of 3/21 bar BUT 3/24 bar opened higher, so how should SL have been moved? Should we have exited all open short trades manually then? Yes
Actions
1. Place daily DPTT long trade2. Place TAMB short trade on 3/21 bar



GBP/JPY
Lot = 0.1
Add: 12
Observations
1. EES1 long trade triggered
2. AO turned green yesterday -- SL for all open short trades, if any, should have been moved.
Actions
1. Place daily DPTT long trade
2. Place daily TAMB short trade on 3/21 bar




GBP/USD
Lot = 0.25
Add: 7
Observations
1. Green ST two bars back -- NL still red but looks to turn back up mine did turn back up - adjust actions below accordingly
Actions
1. Replace daily DPTT short trade
2. Place daily TAMB long trade on 3/21 bar



NZD/USD
Lot = 0.25
Add: 8
Observations
1. EES short trade triggered
Actions
1. DPTT short trade
2. Place daily TAMB long trade on 3/19 bar

I replied to your post about this.



USD/CAD
Lot = 0.25
Add 8
Observations
1. Red ST two bars back -- NL still blue
Actions
1. Place daily DPTT long trade
2. Place TAMB short trade on 3/20 bar since current price is below the low of 3/21 bar Yes



USD/CHF
Lot = 0.25
Add 7
Observations
1. Uptrend continues
2. Both EES1 and 2 in play

Actions
1. Close profitable DPTT long and place new trade
2. Place daily TAMB short trade on 3/21 bar



USD/JPY
Lot = 0.25
Add 5
Observations
1. EES long trade triggered
Actions
1. Place daily DPTT long trade
2. Place daily TAMB short trade on 3/21 bar


Please see corrections above in blue...looks like you are really starting to get the hang of it
"Keep your eyes on the helpers" - Mr. Rogers
  • #492
  • Mar 24, 2008 6:58pm Mar 24, 2008 6:58pm
Quoting SwingMan
Here a first version for trading signals, with the TrendReversal signals.


As observation: because the slow calculation(!) of the NonLag moving average, I reduced the calculation to the last 40 bars.
.
Hey SW....this looks phenominal on your chart, however I just can't get it to show the arrows on my chart. Is anyone else having this struggle and would anyone know why it is not working for me?

Thanks in advance
"Keep your eyes on the helpers" - Mr. Rogers
  • #493
  • Mar 24, 2008 8:33pm Mar 24, 2008 8:33pm
Hello friends,

I have been following the system from the begining of the thread and been fascinated by the efforts taken by Demon to teach us. My sincere gratitude and THANKS to our mentor!

True to its name, I find the following advantages :

1) Those who have day job and can not monitor during day time, can enter trades in the evening

2) Since we are dealing with multiple positions in many pairs and that too in small units, possibilities of spectacular gain or loss (DD) on one pair may not be there. But one pair's loss may be offsetted by gain on the other. But on the whole, it may turn out to be a winning proposition.

3) Substantial possibilities of profit in trending market and reasonable during ranging, resilient during news etc etc.

However I am having one issue. Essentially the system involves discretionary trading decisions, based on visual interpretation of chart. I know Demon has perfected chart reading over years, so it comes naturally. But for me, I am either misjudging or missing trades.

I am toying with the idea of creating a small application, where data can be manually or automatically downloaded to the tool (having MS Access as backend database and Excel/VB as front end). Alternate ideas are welcome too! Once it is developed, tested, validated, we can follow the daily actions.

Development can be in phases. First may be, we concentrate on opening trades based on price action, later on money management (MM), margin calculations, P/L calculation etc. etc....

Although I am not a Computer programmer, but surely there would be few in the group who can develop the Application based on Demon's theory. This would purely be a non commercial project. Personally I feel EA may not be a very good idea. I have burnt my fingers earlier.

In any case if this idea enthuses you and permission granted by our Boss, you can send me a pm and we can go from there. Preferably in the initial phase,we can form a core team with those having Programming skill and reasonable Forex Trading experience. This may be followed by a wider audience for testing and validation.

In the mean time happy trading.......
Thanks
  • #494
  • Mar 24, 2008 9:09pm Mar 24, 2008 9:09pm
While typing I mis spelt Damon's name. Extremely sorry for the inadvertant error!

Thx
  • #495
  • Mar 25, 2008 12:57am Mar 25, 2008 12:57am
Quoting damonl
...however I just can't get it to show the arrows on my chart.
- Are you sure to have the file "Damon smNonLagMA_v1" in the folder "...\indicators" ?
  • #496
  • Mar 25, 2008 2:46am Mar 25, 2008 2:46am
Hello Damonl,

Thanks for all these information about the method, I am just a newbie going through all the posts.

May be it is me missing out some important points. forgive me on this. Here are my questions (about MM) for you.

1. You said 0.01 lots for each $400 equity. What is the leverage ratio of your lots?
2. You said "Account's Equity increases to $10,500 or more you would then raise all new orders by .01 pips, and so on and so forth. Like wise you would decrease by .01 pips if your Equity fell back to say $10,300." Could you elaborate more on this? Is that I will keep on adding order if the trend is with my direction?

Thanks in advance.

fxBatman
  • #497
  • Mar 25, 2008 3:04am Mar 25, 2008 3:04am
Quoting SwingMan
- Are you sure to have the file "Damon smNonLagMA_v1" in the folder "...\indicators" ?
I don't?....I don't even see this file listed on this thread anywhere. Can you repost it for me please
"Keep your eyes on the helpers" - Mr. Rogers
  • #498
  • Mar 25, 2008 3:19am Mar 25, 2008 3:19am
Quoting fxBatman
Hello Damonl,

Thanks for all these information about the method, I am just a newbie going through all the posts.

May be it is me missing out some important points. forgive me on this. Here are my questions (about MM) for you.

1. You said 0.01 lots for each $400 equity. What is the leverage ratio of your lots?
2. You said "Account's Equity increases to $10,500 or more you would then raise all new orders by .01 pips, and so on and so forth. Like wise you would decrease by .01 pips if your Equity fell back to say $10,300." Could you elaborate more on this? Is that I will keep on adding order if the trend is with my direction?

Thanks in advance.

fxBatman
Hey BM...Basically I am saying that for evey $400 in equity you can wager an additional .01 lots. So if your equity was at $800 you could risk .02 lots, etc. Anytime I have a decimal in my calculations I round down.

I need to say though that it may be best when starting out with just $400 that you only trade the 5 majors...AU,EU,GU,UJ and UCHF until you get up to about 1K in equity where you can then add the more volitile pairs because as you say with pairs like GJ or GCHF I use less than half the lots that I use for pairs like EU.

So in theory you would not use pairs like these until you had enough equity to cover them.

Hopefully this is what you are looking for
"Keep your eyes on the helpers" - Mr. Rogers
  • #499
  • Mar 25, 2008 3:19am Mar 25, 2008 3:19am
Quoting damonl
I don't?....I don't even see this file listed on this thread anywhere. Can you repost it for me please
Yes, yes, yes, here is the file "Damon smNonLagMA_v1" - this was a mistake from me to forget it
Attached File(s)
File Type: mq4 Damon smNonLagMA_v1.mq4   7 KB | 528 downloads
  • #500
  • Mar 25, 2008 3:47am Mar 25, 2008 3:47am
Quoting SwingMan
Yes, yes, yes, here is the file "Damon smNonLagMA_v1" - this was a mistake from me to forget it
Hey SW.....thanks...I am usually very good with this kind of thing, but it is still not working.

 

  1. I have Damon smNonLagMA_v1 on my chart
  2. I have Damon smSilverTrend_v2 on my chart
  3. I have Damon smTradingSignals_V1 on my charts

the NL and the ST indicators are working stellar, but I am still not having luck with the Trading Siganls arrows showing up.

Any additional thoughts?

"Keep your eyes on the helpers" - Mr. Rogers
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