ATP (Advanced Trading Philosophy) - Phasing into Income Potential

NO MORE REPAINT!

I have edited the SWI to not repaint esp on the previous bars. Of course, current bar will always re-evaluate as new tick comes in. But, it will be final after it's close. Yoohoo!!!

Damonl, walesoje1, hope this helps eliminate doubt on SWI. Please do put it side by side with your current version and compare it for a while (for observation purposes). I hope I did right on the re-coding.

More power to ATP!!!





OOOPS.... I THINK I SAW IT REPAINT AGAIN.... WILL TRY TO RE-CODE AGAIN... (I'M NOT REMOVING MY v1, TRY THE INDI IF YOU MUST)

@walesoje1,

On my PM to you, I was wondering if you can send me the mq4 file of the OSD. I wanted to custom it to my bare necessities. The current one is doing great, but, I may need to try it on lower time frames too.

Thanks in advance.

continuation...

I realized that option 2 and option 1 of the SWI renders different histograms. The option 1 somehow is lagging compared to option 2. I like option 2 better as it is more real time with the price chart.

I also noticed that the OSD is based on SWI with option 2.

Thus, I am defaulting the SWI to option 2 setting. I believe that it shouldn't repaint anymore. In any case, please let me know if it still does.

Thank you so much rsbgm, really appreciate it
Hope it will benefit all of us.

I myself is a programmer. Will look at the code further at home later tonite. If anything can be improved or help, please let me know also. I am still new to programming the MT4 language. Thanks.

So is it now possible to make some backtests?

I've been watching on the one minute gbp/jpy and it still repaints.

Apparently, it does. Oh well... for further review. In the meantime, stick to the original Damonl SWI indi...

Like others who have said so thanks a lot for trying Rsbgm!!!

Hi everyone,

The SolarWind-ACS3’s algorithm is a Fisherization of Stochasticization of the average price, as John Ehler called it. It’s procedure is as follows:

1. Compute Stochastic of the Average Price of the last 10 bars (period input): this involves finding the Highest High and the Lowest Low of the last 10 bars; taking the ratio (Average Price – LL)/(HH – LL). The result of this ratio is within 0.0 to 1.0
2. Scale the Stochastic Ratio to [-1.0 to 1.0] range: 2*[ (AvgPrice – LL)/(HH – LL) – 0.5 ]
3. Filter the Stochastic Ratio with an IIR filter with an alpha factor of 0.33 (1 - smooth input). This IIR filter is equivalent to an EMA filter with length = 5 bars ( alpha = 2/(Length + 1) ).
4. Cap the filtered value within -0.999 to 0.999. This is necessary to stabilize the Fisher Transform in the next step.
5. SolarWind output is the smooth filtered of Fisher Transform of this ratio: Fisher Transform = Log[(1+z)/(1-z)], smoothed by an IIR filter with a smooth factor of 0.5 (EMA equivalent length = 3 bars).

Here is the reason why SolarWind-ACS3 repaints (with option other than 1): The IIR filters were calculated BACKWARD! No matter what you do, the indicator repaints with option 2! By calculating the IIR backward, there is almost no lag introduced by the filters. But the indicator repaints. It is difficult to say how many bars it will repaint.

Option 1 in the SolarWind-ACS3 is the right calculation (IIR filters in forward calculation). This option is not repaint. Unfortunately, the 2 IIR filters introduce a lag of 2.5+1.5 = 4 bars! You can see this clearly between option 1 and option 2 charts.

You can replace the IIR filters with faster response filters to reduce the lag, but I would prefer Option 2 repainting SWI because:

1. It has no lag.
2. The repaint is not very severe and Damon already built into ATP stop orders to combat this repainting.

Just my two cent!

TKFF

Hello Everybody, it was very nice to see such a flurry of activity today on the thread. You will not be disappointed.

As you know, we have come a long way since the inception of ATP. I believe that this is now about to pay off.

In the beginning of this new thread I introduced you to a fantastic strategy that would get us many pips, but it had some faults that I wanted to inprove upon.

Then on Post #156 I introduced you to another method. One night's sleep and the advantages and disadvantages became apparent to me.

The interesting thing is that both methods had good and bad points.

This brings me to my latest idea which I think will become the base for whatever ATP is to become. This latest idea combines the benefits of both the previously mentioned methods in this thread into one fantastic way to trade.

I am not aware of all the additional entrance points at this point in time, but I have some things in mind and will be looking from ideas from you all as well.

The best part is that this trading will be highly successful no matter which TF's you choose to trade from and I know can very easy supplement an income without too much trouble.

So...without further ado...Here we go....

Please welcome the Base to ATP

I believe that this will be the new base to ATP and will forever be the foundation that will shape it into what it will become.

Time Frames:

It doesn't matter what Time Frames (TF) you choose to trade, but you will always use two of them. You will use one for placing your orders and one to determine the trend. There may be slight rule variations depending on what your TF choice might be, but they will only be minor.

For example.....if you want to trade on D1, you will use W1 to determine the trend. If you want to trade M15, you will use M30 to determine the trend.

It is just that simple

Indicators:

SWI:

1. 1. Change these settings:
      1. Option=2
      2. Collor1=Lime

Bill Williams Awesome Oscillator (AO)

Bill Williams Accelerator Oscillator (AC)

Determining the Trend:

As I mentioned earlier, if you want to trade D1, then you will use W1 to determine the trend. If you want to trade H4, then you will use D1 to determine the trend.

The trend will be determined by the SWI. You simply wait until you get a Trend Direction Change based on a change in color of the SWI. When you get this change in color, you will then switch to the chart that you would like to trade.

It appears that on the Lower TF's you could simply use the AO to determine the trend, but if you are using W! to determine the trend, then SWI should be used.

It is just that simple

Determining the Trade and Entering the Market:

After you have determined the Trend, you now must find a place to enter the trade. To do this you switch to your Trade Chart and imediately go and check the AC.

What you will be waiting for is for the AC to either be or to change colors to match the Larger trend.

If the aC is already matching the Larger Trend, then place pending orders either above or below the bar that just closed.

If the AC currently does not match the Larger Trend, then you will wait until the close of a bar that does match the Larger Trend and place your orders accordingly.

Hi Damon,

Is it better to pair the timeframe as follows?

Trade TF, Trend TF => TF Multiple
---------------------------------------------
M5, M30 => 6x
M15, H1 => 4x
M30, H4 => 8x
H1, H4 => 4x
H4, D1 => 6x
D1, W1 => 5x
W1, MN1 => 4x

TKFF

I am not sure what you mean by TF Multiple

Higher TF is x multiples of lower TF. 1 higher TF bar = x lower TF bars.

When a higher TF bar determines a trend, you have x lower TF bars to make entry/exit decision.

Gotcha.. I don't know if it makes any difference, but please keep an eye on this and let me know if you notice anything.

Hi Damon,

Thank you for sharing this magnificient system.

1. If I understand you correctly, for higher TFs such as D1, W1 you would use SWI to determine the trend. But for lower TFs such as M30, H1, H4 you would use AO to determine the trend.

2. "If the AC is already matching the Larger Trend, then place pending orders either above or below the bar that just closed." That means placing buy/sell stop orders above/below that bar by 1 point + spread?

3. "If the AC currently does not match the Larger Trend, then you will wait until the close of a bar that does match the Larger Trend and place your orders accordingly." That means placing market orders?

Thank again for this very simple system.

This is correct, but on a side note, if you were daring, you could use both the SWi and the AO on the Trend Charts. If either of them switched directions, you could trade in that direction.

All is correct, except that we never place market orders. Always as in your #2 above.

Now that we have the base of the system, we have many more things to work out. I have lots of thoughts regarding Exiting, Adding Positions, and Re-Entering the market, but I need to take a break and then check my trades for tonight.

In the meantime if you have any thoughts to any of these things, please feel free to post them.

I will return with the rest of the equation

Damonl, here is the new indicator.

As for those talking about SWI repainting, just change the setting of the option to 1 and it won't repaint. Compare the result to the new indicator from rbsgm and if it is same then he is right else, he's not.

Can you test the new indicator on a less TF and let me know if it is ok as per your request.

As for the new system, I will check and let you know what is happening.

All the best