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PowerSwing System For Long term trading

  • #41
  • Apr 11, 2008 8:43am Apr 11, 2008 8:43am
Mer,

Can you give a little primer on Swap Trades for us noobies, or point me in the direction where I can learn what these are.

Thanks
Mitch
  • #42
  • Apr 11, 2008 12:37pm Apr 11, 2008 12:37pm
If a customer still has an open position at the end of the trading day (Est 5:00 p.m. in winter, 4:00 p.m. in summer), ODL or whatever broker you use will automatically “Roll Over” the position. This rollover process is repeated daily until the position is closed by the client. At the time of the rollover, funds are either added or deducted from the client`s account using swap points. Swap point prices are based on the interest rate differential between the two currencies.

Basically if you have positive swap you will earn the difference between the interest rates between the two pairs each day. That is the wonderful benefit of long term trading. The downside is when good trades present themselves you can end up with negative swap reducing your overall profit. Some traders are willing to accept these losses especially if the pair traded have a very low negative swap rate. Personally, with so many pairs to watch I see no need to take a trade that has negative swap but that is up to the individual trader and there goals. I hope that helps answer your question.
  • #43
  • Apr 11, 2008 5:01pm Apr 11, 2008 5:01pm
Thank you for the that, I guess I did know something about it, but never really took it into consideration - I will now. This really is a fantastic system I look forward to live trading (some day). I think it will help me develop patience, and hopefully save me from blowing up another account.

Look forward to your monday posting!
  • #44
  • Apr 11, 2008 5:18pm Apr 11, 2008 5:18pm
Remember the key to proper trading is money management and discipline. Read post #26 and it gives you a little formula to calculate the proper lot size for your account. Also, as I said before I am going to be watching 22 pairs, which using the daily is more manageable than watching 5 pairs on a 15 minute chart, and only taking specific setups. No cutting corners, no shortcuts. Plan the trade, then trade the plan as I always say.
  • #45
  • Apr 11, 2008 5:36pm Apr 11, 2008 5:36pm
Mer071898,

On a side note what is your PowerSM system. Is there a thread here on FF about it?
  • #46
  • Apr 11, 2008 6:32pm Apr 11, 2008 6:32pm
PowerSM is a Semi-Martingale EA that I had my coder make for me and is currently going through a testing phase to work out the bugs. You can read about it here:

http://forexfactory.com/showthread.php?t=75394

The EA is free to all registered members of this forum. It does expire on 3/13/09 as to keep a little control over it.
  • #47
  • Edited 7:48pm Apr 11, 2008 7:34pm | Edited 7:48pm
Quoting popisdead
hi mer..
thanks for sharing your system!
definitely will put on test!

Can u suggest other indicators to filter instead of SolarWind??
SW is big-time repaint indi..

not good for historical view!

pid
Hi,


I am the writer of Laguerre-ACS1. You can check more indicators on my thread ( http://www.forexfactory.com/showthread.php?t=53189 ).

The method seems great. But I am writing here to show that the SolarWind-alert attached in the first post is a repainter (I just checked the code). The text below is from my earlier post on another thread. Hope this helps everyone to understand about this bad program.
Repainter: The signal you just used to make a decision may disappear after some time (even when using closed bar signal)!

Regards,
chandra
---------------------------------------------------------------
The SolarWind (or properly known as Fisher Tranform) commonly going rounds is a repainter. The whole idea of Fisher Transform is for smoothing (with supposedly less delay than other indicators). someone coded it wrongly to use future bars for that smothing, instead of past bars. If you want to use without re-initializing, you are basically not using Fisher Transform (still there will be small repainting by upto 2 bars, because of the way MT4 works). If you don't use that smoothing effect, you can as well use Stochoistics crossing 50 level, both calculations become nearly same in that case!.

The first link below has the repainter and the second link has non-repainter (both with alerts: pop-up, text-signal, email, sound):
http://www.forexfactory.com/showpost...8&postcount=10
http://www.forexfactory.com/showpost...3&postcount=15

I have worked/wasted quite sometime on this codes, actually the one called Fisher/Fish (but both codes are same, SolarWind is just a fancy name for the same wrong version). You can read more about it in my old post:
http://www.forexfactory.com/showpost...&postcount=555

I just hope nobody wastes too much time on this.
------------------------------------------------------------------
  • #48
  • Edited 10:15pm Apr 11, 2008 10:05pm | Edited 10:15pm
Chandra, I appreciate your input, I've already warned everyone about the repainting issues with the Solar wind. The repainting can be a severe problem when you trade 4 hr timeframes or less but is not as dramatic of a change on the daily or weekly charts. Also, if you would have read through the thread I've added some levels to the Solar Wind to counteract and add additional filtering properties to it when the bars do change. I do not use the Solar wind for entry criteria, primarily as a filter. I'm sure if the people following want to change indicators I'm sure the links will help them understand your efforts and concept, thanks again. I will add the SolarWind-ACS1 here for everyone to use so they don't have to search for it and feel free to add your expertise to the thread anytime you wish because every opinion counts.

p.s. I think the Laguerre is the one of the best indicators in my opinion, great job.
Attached File(s)
File Type: mq4 SolarWind-ACS1.mq4   4 KB | 696 downloads
  • #49
  • Apr 11, 2008 11:14pm Apr 11, 2008 11:14pm
Quoting mer071898
Chandra, I appreciate your input, I've already warned everyone about the repainting issues with the Solar wind. The repainting can be a severe problem when you trade 4 hr timeframes or less but is not as dramatic of a change on the daily or weekly charts. Also, if you would have read through the thread I've added some levels to the Solar Wind to counteract and add additional filtering properties to it when the bars do change. I do not use the Solar wind for entry criteria, primarily as a filter. I'm sure if the people following want to change indicators I'm sure the links will help them understand your efforts and concept, thanks again. I will add the SolarWind-ACS1 here for everyone to use so they don't have to search for it and feel free to add your expertise to the thread anytime you wish because every opinion counts.

p.s. I think the Laguerre is the one of the best indicators in my opinion, great job.
so I have to add splarwind-acs1 to my template?
  • #50
  • Apr 11, 2008 11:59pm Apr 11, 2008 11:59pm
It's totally up to you which indicators you'd like to use. We always welcome improvements to the system if they can be used.
  • #51
  • Apr 12, 2008 1:39am Apr 12, 2008 1:39am
can you post a chart of valid signal that come with the new indicator?
  • #52
  • Apr 12, 2008 10:57am Apr 12, 2008 10:57am
I can, but I will not be using the new indicator as of yet so my entry signals may differ than yours. If you're going to use the new indicator you'll have to judge what your entry signal will be by demoing it on your own.
  • #53
  • Apr 12, 2008 12:32pm Apr 12, 2008 12:32pm
this my questions.....................please answer it?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: chf.gif Size: 44 KB
Click to Enlarge Name: a valid one.gif Size: 46 KB
  • #54
  • Apr 12, 2008 12:58pm Apr 12, 2008 12:58pm
B@by,

My two-cents is these are take pre-caution trades, they go against the zig-zag indicator and in the first example the Stoch didn't move below the 85 for above. You might make a few pips but they are trades you'd have to watch closely.

Mer071898, and I right?
  • #55
  • Apr 12, 2008 1:56pm Apr 12, 2008 1:56pm
Correct mitch, the Stoch was not over 80 during either one of these charts. The Stoch must be above 80 and cross down through it to be valid (per my rules in post #1). If you want, you can count the Stoch as valid if it just touches the 80, but be cautious. With regards to the Solar Wind, once all the other indicators have met their criteria it must break the .3 or -.3 for the entry to be finally confirmed. But keep in mind you should be looking for long entries on both charts as the ZigZag arrow is blue and you are at the 0/8 Ultimate Support Murrey levels. Your target area will be probably be around the 4/8 or 5/8 level.

Also make sure your screen is refreshed before entering your trade as chandra mentioned the bars in the Solar Wind may adjust on a refresh. To make sure I have the current info I just reload my template to make everything current.
  • #56
  • Edited Apr 13, 2008 1:37pm Apr 12, 2008 2:55pm | Edited Apr 13, 2008 1:37pm
Quoting mer071898
Chandra, I appreciate your input, I've already warned everyone about the repainting issues with the Solar wind. The repainting can be a severe problem when you trade 4 hr timeframes or less but is not as dramatic of a change on the daily or weekly charts. Also, if you would have read through the thread I've added some levels to the Solar Wind to counteract and add additional filtering properties to it when the bars do change. I do not use the Solar wind for entry criteria, primarily as a filter. I'm sure if the people following want to change indicators I'm sure the links will help them understand your efforts and concept, thanks again. I will add the SolarWind-ACS1 here for everyone to use so they don't have to search for it and feel free to add your expertise to the thread anytime you wish because every opinion counts.

p.s. I think the Laguerre is the one of the best indicators in my opinion, great job.
Hi mer,

Thank you for the compliments on my version of Laguerre indicator.

I think there is not much difference between using some signal as a filter or main signal, because either they both support a trade or block it. So, it is good to have something that does not change after we make a decision based on it. The timeframe does not matter because the holding time also changes with it. If the Solarwind supports a buy in the early part of a day and later changes its mind what can one do? It can change from positive to negative or above the threshold to below the threshold (say 0.35 in morning and 0.25 in the evening, for the previous day value). Close the trade? I think it is better not to have such "fly in the ointment" type unreliable indicators in a good system.

In the above posted SolarWind-ACS1, the default option is NOT a repainter (will add some delay to signals). But, changing the "Option" input to anything other than 1 will make it a repainter (but very unreliable and useless for historic testing). But it has Text display of the current signal...

So, here is a better version of Solarwind. The Smoothing Factor (called Smooth in Input parameters) is made changeable here. The default is same as used in the common versions (0.67). If you want the non-repainting plain data, you can set this value as zero. Then the "Option" does not matter. It will be somewhat noisy, but never repaints, no delay and also useful for historic testing. Hope this option to change the Smooth parameter helps. You can test it and if you like, you can set the default Smooth as zero and use/recommend it. Without reliable historic testing ability, it is difficult to trust anything.

I have worked originally on the Fisher indicator and both are exactly same.

Regards,
chandra

EDIT: The Smooth=0 problem fixed. Just understood that the SolarWind is a horror. For today's calculations, it gives more weight to tomorrow's data than today's data!!! Fit only for time travellers! So their default Smooth=0.67, not 0.33 as I originally thought. Sorry about the mistake.
You can attach it twice and compare them (once with Smooth=0 and once with defaults). The Smooth=0 is what you will see in realtime and then it will change later to the default setting attachment. That will show how reliable this indicator is.
Attached File(s)
File Type: mq4 SolarWind-ACS2.mq4   4 KB | 794 downloads
  • #57
  • Apr 12, 2008 2:58pm Apr 12, 2008 2:58pm
Quoting mer071898
Correct mitch, the Stoch was not over 80 during either one of these charts. The Stoch must be above 80 and cross down through it to be valid (per my rules in post #1). If you want, you can count the Stoch as valid if it just touches the 80, but be cautious. With regards to the Solar Wind, once all the other indicators have met their criteria it must break the .3 or -.3 for the entry to be finally confirmed. But keep in mind you should be looking for long entries on both charts as the ZigZag arrow is blue and you are at the 0/8 Ultimate Support Murrey levels. Your target area will be probably be around the 4/8 or 5/8 level.

Also make sure your screen is refreshed before entering your trade as chandra mentioned the bars in the Solar Wind may adjust on a refresh. To make sure I have the current info I just reload my template to make everything current.
the trend power must cross 0 or -o.5?for buy
  • #58
  • Apr 12, 2008 3:13pm Apr 12, 2008 3:13pm
It must be below -.5 to start then cross up through it or it can come down and touch -.5 (more aggressive) for a buy.

Ans chandra, thank you for your efforts. I'm sure those who are following this system will be more than welcome to test this new Solar Wind out. Thanks again.
  • #59
  • Apr 12, 2008 3:24pm Apr 12, 2008 3:24pm
Quoting achandrasekaran99
Hi mer,

Thank you for the compliments on my version of Laguerre indicator.

I think there is not much difference between using some signal as a filter or main signal, because either they both support a trade or block it. So, it is good to have something that does not change after we make a decision based on it. The timeframe does not matter because the holding time also changes with it. If the Solarwind supports a buy in the early part of a day and later changes its mind what can one do? It can change from positive to negative or above the threshold to below the threshold (say 0.35 in morning and 0.25 in the evening, for the previous day value). Close the trade? I think it is better not to have such "fly in the ointment" type unreliable indicators in a good system.

In the above posted SolarWind-ACS1, the default option is NOT a repainter (will add some delay to signals). But, changing the "Option" input to anything other than 1 will make it a repainter (but very unreliable and useless for historic testing). But it has Text display of the current signal...

So, here is a better version of Solarwind. The Smoothing Factor (called Smooth in Input parameters) is made changeable here. The default is same as used in the common versions (0.33). If you want the non-repainting plain data, you can set this value as zero. Then the "Option" does not matter. It will be somewhat noisy, but never repaints, no delay and also useful for historic testing. Hope this option to change the Smooth parameter helps. You can test it and if you like, you can set the default Smooth as zero and use/recommend it. Without reliable historic testing ability, it is difficult to trust anything.

I have worked originally on the Fisher indicator and both are exactly same.

Regards,
chandra
can post chart of trade using the indicator base on this swing daily system?
  • #60
  • Apr 12, 2008 3:26pm Apr 12, 2008 3:26pm
b@by, there are already several charts posted showing how to enter trades, what exactly are you needing to see???
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