Here's the previous TP and the new entry on USD/CHF (short)...
http://i276.photobucket.com/albums/k...z/Untitled.jpg"
http://i276.photobucket.com/albums/k...z/Untitled.jpg"
- #58
- Apr 15, 2008 9:59am Apr 15, 2008 9:59am
- | Joined Nov 2006 | Status: Amsterdammer terug in nederland | 632 Posts
nice idea to trade but i am still trying to figure out how you did your calculations as by post#1
can you be more specific how to calculate
20 week average candle lenght i understand
20 week average slope i understand (ma 20...?)
but then you say figure out the rest....
and then it gets a bit complicated
i would like to also enjoy some easy pips...
thanks
can you be more specific how to calculate
20 week average candle lenght i understand
20 week average slope i understand (ma 20...?)
but then you say figure out the rest....
and then it gets a bit complicated
i would like to also enjoy some easy pips...
thanks
- #59
- Apr 15, 2008 10:42am Apr 15, 2008 10:42am
nice idea to trade but i am still trying to figure out how you did your calculations as by post#1
can you be more specific how to calculate
20 week average candle lenght i understand
20 week average slope i understand (ma 20...?)
but then you say figure out the rest....
and then it gets a bit complicated
i would like to also enjoy some easy pips...
thanks
To calculate slope: ((Last week's midpoint)/(Previous week's midpoint)). I do this for the last 20 weeks of data, which yields 19 slopes. I then take the average of these results.
Next step is to project next week's midpoint: ((Last week's midpoint)*(Average Slope))
Now project next week's weekly max: (Projected midpoint)+(((Projected midpoint)*(Average candle length))/2)
Now project next week's weekly min: (Projected midpoint) - (((Projected midpoint)*(Average candle length))/2)
At this point you should have next week's projected candle.
Now you need to figure out your trading points. I use 80% and 20% and only trade in the direction of the trend (average slope).
To calculate the 80% point: (Projected midpoint)+(((Projected midpoint)*(Average Candle Length))*0.3)
To calculate the 20% point: (Projected midpoint)-(((Projected midpoint)*(Average Candle Length))*0.3)
You now have all the calculations you need to run this system on your own. The initial spreadsheet setup requires some work to collect all the data, but after that, it's pretty easy.
I should note that I have considered trading this from various levels other than 80/20, such as 60/40, 70/30, or even 100/0 (weekly max to weekly min). I've also considered graduated entry points (i.e. entering the first order at the 60% point, adding some more at 80%, and finally some more at 100% and exiting a little at 40%, a little more at 20%, and the rest at 0%). Maybe some of you will try that. For me, the 80/20 levels are running nicely and that will be the concentration of this thread.