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THV system, final edition

  • #941
  • Dec 6, 2008 7:19am Dec 6, 2008 7:19am
Quoting keymaker
I've found a useful indicator for divergence and works on any TF
Well, thanks ! I use your settings, which at the your screenshot.
But if u can, explain me, how we must work with this indicator with full settings. Look at my screenshot plz.
Thanks )
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  • #942
  • Dec 6, 2008 7:22am Dec 6, 2008 7:22am
Quoting keymaker
I've found a useful indicator for divergence and works on any TF

Just remember to follow the rules of THV to confirm the divergence...

Just drag the indicator into "Indicator window 1"

Screenshots below

woops forgot the indi..sorry
I am not sure if the settings on the indicator are right becuase the lines that it drew and the arrows were not divergence. In the screen shot below, you will see that the aqua lines I drew on the chart and the OsMA are divergent which the indicator did not register. Divergence should be easy enough to spot without the use of an indicator, and I think it would be really difficult to program an indicator to notify us based on visual indiactions - someone correct me if I am wrong. Best thing is to practice spotting them ourselves to train our eyes to quickly pick up on them.
Attached Image (click to enlarge)
Click to Enlarge Name: DV example.PNG Size: 68 KB
Deprive a man of everything and you give him nothing to lose.
  • #943
  • Dec 6, 2008 9:03am Dec 6, 2008 9:03am
The DV indi settings are configurable (look in sourcecode for more info -russian though)

& use THV rules to confirm trades/DV
  • #944
  • Dec 6, 2008 9:15am Dec 6, 2008 9:15am
I think we are fine with the trix as divergence detection; I really want to keep the chart only with the absolutely necessary indicators.

More stuff to view, less concentration on the PA.

The Trix showed divergence in the last minutes on Friday and the other still didn’t show up with his arrow.

Anyhow thanks for the input, all opinions are useful and maybe someone want it to add to the candlestick chart instead of the OsMA.
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  • #945
  • Dec 6, 2008 10:26am Dec 6, 2008 10:26am
Since the Maestro (cobra) is in the forum, I wanted to ask...

when there is divergence of trix and PA, is it a general rule of thumb that the tipping point is when red trix crosses 0? Is that pretty safe to say, so that then we would look to THV for the setup?

And also, as in the chart posted, if I follow the green trix trendline, is that a better indicator of when to get out, meaning when green trix breaks trend line, is that more suitable then a wait of the red trix to break the trendline. I am looking for the post you submitted sometime back when there was a breakout and you were intent on getting out when the trix trendline was broken.

Basically, I am asking for exits, should we use green or red trix, as well as the other THV and S/R and T/L indicators?

Thanks,
Cashmeer

I think I'll probably answer my own question by looking back through the charts....
Attached Image (click to enlarge)
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Deprive a man of everything and you give him nothing to lose.
  • #946
  • Edited 11:03am Dec 6, 2008 10:38am | Edited 11:03am
Good question Cashmeer.

At divergence we should look for a good entry setup at cross of the red Trix line but taking in account our candlestick chart.

More problematic than a good entry point is to have a good exit, that is where most traders fail.

You can do the following, split your position in two and TP after first sign of pause or retrace on green Trix cross, you set the second part to profit and let it run till price cross T3 or red Trix cross zero.

That is moneymanagement and very important for successful trades.

Try it with a papertrade and let me know what you think.

Lets take an example on 15M AUD/USD from yesterday:

You take profit on Exit 1 and set the SL for the second part of your contract some pips obove S2 and take profit again at Exit 2.

BTW: please no questions on the template yet, that is the V2 beta version and still top secret



Quoting cashmeer
Since the Maestro (cobra) is in the forum, I wanted to ask...

when there is divergence of trix and PA, is it a general rule of thumb that the tipping point is when red trix crosses 0? Is that pretty safe to say, so that then we would look to THV for the setup?

And also, as in the chart posted, if I follow the green trix trendline, is that a better indicator of when to get out, meaning when green trix breaks trend line, is that more suitable then a wait of the red trix to break the trendline. I am looking for the post you submitted sometime back...
Attached Image (click to enlarge)
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  • #947
  • Edited 11:04am Dec 6, 2008 10:50am | Edited 11:04am
Quoting cashmeer
Since the Maestro (cobra) is in the forum, I wanted to ask...

when there is divergence of trix and PA, is it a general rule of thumb that the tipping point is when red trix crosses 0? Is that pretty safe to say, so that then we would look to THV for the setup?

And also, as in the chart posted, if I follow the green trix trendline, is that a better indicator of when to get out, meaning when green trix breaks trend line, is that more suitable then a wait of the red trix to break the trendline. I am looking for the post you submitted sometime back...
Good points Cashmeer, but remember this is not an exact science. Sometimes it might be better to exit by following the green trix line, sometimes it might be better when the price breaches the aqua, as THV indicates. Price action is always different. Even if you are better off exiting one way for a whole month, the next month the currencies personality may change a little, and you might be better off with THV exit. Either way, neither way would be a mistake. The trick is to make money long term, not to agonize about squeezing every pip out of every trade, as this is not possible and nobody can do it consistently long term.

I truly believe that the THV system can IMPROVE your trading. But I also think is possible that two different traders could reach diametrically opposite results using the system. Example, they might be trading at different times, they migh be trading different pairs. One may move the stop to BE once in the green, the other might let it ride. Too many variables.
  • #948
  • Dec 6, 2008 11:00am Dec 6, 2008 11:00am
Quoting wwwin
Good points Cashmeer, but remember this is not an exact science.

The trick is to make money long term, not to agonize about squeezing every pip out of every trade, as this is not possible and nobody can do it consistently long term.
Right wwwin, there is always a high percentage of feeling in the game, when you have spend thousands of trading hours with a specific pair you get this feeling and TP when your two sense say so. I not always TP on rules but yes mostly.
  • #949
  • Dec 6, 2008 11:05am Dec 6, 2008 11:05am
thanks both for your input. I am going to try this out this week and see how it goes...

I wanted to ask one more question, atleast one more for now :-)

For those of you that have been consistently trading for more than a few years, is there a difference in the volatility or character, for lack of a better word, during the final months of the year since companies, banks, govts are closing their books and have to close open positions.

I was reading that the behaviour of the market is atypical at this time of the year, it is more "smooth" and I am wondering when we get into the 1st quarter of 09' will there be noticeable differences in the smaller time frames.

Maybe this question doesn't really make sense, since I have not experienced it to be able to properly describe it.

You know how when London closes and New York is concluding the candle sticks start to get large wicks and the movement is erratic. Is that behaviour something that we should expect at different times of the year...

I know this hasn't anything to do with THV and maybe there is a more appropriate forum for that but I wanted to get y'alls perspective.
Deprive a man of everything and you give him nothing to lose.
  • #950
  • Dec 6, 2008 11:20am Dec 6, 2008 11:20am
Quoting cashmeer
I wanted to ask one more question, atleast one more for now :-)

For those of you that have been consistently trading for more than a few years, is there a difference in the volatility or character, for lack of a better word, during the final months of the year since companies, banks, govts are closing their books and have to close open positions.
I am a fan of Jacko and was following his thread from the beginning to the end, when he started he suggested a SL of 50 pips, since the E/U fall he changed it to 100 pips and I think that this still isn’t enough for the daily volatility that we experience lately for longer term trades.

To the December trades: there is usually noticeable less volume during this season but aware, low volume can give a lot of surprises in volatility and it is no good time to start live trading in my opinion. (just for the newbees)
  • #951
  • Dec 6, 2008 12:34pm Dec 6, 2008 12:34pm
Cobra, I seem to be having a difficult time running the template. I am using MT4 & v220. When I select the template, all that happens is the template appears , but no data , no indicators, nothing else at all. What am I not doing? Where is the " chart manual" as described in your setup instructions? I would appreciate any help.

thanks

Shotshell
  • #952
  • Dec 6, 2008 12:41pm Dec 6, 2008 12:41pm
Quoting shotshell
Cobra, I seem to be having a difficult time running the template. I am using MT4 & v220. When I select the template, all that happens is the template appears , but no data , no indicators, nothing else at all. What am I not doing? Where is the " chart manual" as described in your setup instructions? I would appreciate any help.

thanks

Shotshell
You might not have the latest version of V 220, first try to update it.

If that doesn’t work go to each indicator in the navigator , click right mouse and select modify.

The Meta Editor opens, select File and Compile.

That you need to repeat on each indicator.

At the end open a new chart and select the template.

Let me know if it worked for you.
  • #953
  • Dec 6, 2008 12:55pm Dec 6, 2008 12:55pm
cobra:

I sent you a private message becuase I wanted to get your opinion on a matter that is not THV related. Could you take a look at that if you get a chance.

Thanks,
Cashmeer.
Deprive a man of everything and you give him nothing to lose.
  • #954
  • Dec 6, 2008 1:03pm Dec 6, 2008 1:03pm
Quoting cobraforex
You might not have the latest version of V 220, first try to update it.

If that doesn’t work go to each indicator in the navigator , click right mouse and select modify.

The Meta Editor opens, select File and Compile.

That you need to repeat on each indicator.

At the end open a new chart and select the template.

Let me know if it worked for you.
I tried & failed . The version I have was dated Nov 7. Any other ideas that might help? I think I will try to delete the THV & then re-download the zipped file. I'll let you know what happens.
  • #955
  • Dec 6, 2008 1:27pm Dec 6, 2008 1:27pm
Quoting shotshell
I tried & failed . The version I have was dated Nov 7. Any other ideas that might help? I think I will try to delete the THV & then re-download the zipped file. I'll let you know what happens.
In case that compiling the indicators don't help please send a PM to doblece,the tecnical director of THV, she always has a solution.

Cashmeer: I already answered
  • #956
  • Dec 6, 2008 3:37pm Dec 6, 2008 3:37pm
Hi,
How big is your average loss trade when using this system?
  • #957
  • Dec 6, 2008 4:55pm Dec 6, 2008 4:55pm
Quoting Polonaise
Hi,
How big is your average loss trade when using this system?
Polonaise:

I am not sure if I understand correctly. Do you mean how large is the avg stop loss? If so, that is a function of two, maybe more things that are outlined on the first page of the thread.

Breifly, the higher the time frame the higher the S/L. Therefore a trade on an hourly chart would most likely require a larger stop loss than a trade on a 5 min chart. It is also a function of your money management.

How much of your capital are you willing to risk ? 1%, 2%, 3% etc. You can find a multitude of websites regarding moneymanagement and drawdown or drawback.

That was quite vague, I know.

Generally, I do not let my losses exceed 15 pips on the 1 or 5 min chart. Sometimes I get kicked out of the right trade at 16 pips...but that is the nature of this business.

I think all would agree that the maximum amount you can risk is according to your moneymanagement policy AND the particulars of a trade - where the closest level of Support and Resistance. That will dictate if you can afford to take a trade. Some trades you may not be able to take becuase the closest real level of support and resistance may be too far - farther than your risk appetite and farther than the closest level of T/P.

That is also covered in the rules posted by Cobra about trading right at levels of Support and resistance.

I am sorry if I confused you.

I would suggest you reread through the rules and find a site that talks about moneymanagement - babypips.com has a section on that - and see what the others have to say.

Hope this was helpful.

Cashmeer
Deprive a man of everything and you give him nothing to lose.
  • #958
  • Edited 5:11pm Dec 6, 2008 4:59pm | Edited 5:11pm
I ment 1min TF . I feel more comfortably with fixed, not mental stops witch Cobra said he is using.
  • #959
  • Dec 6, 2008 5:50pm Dec 6, 2008 5:50pm
Quoting Polonaise
I ment 1min TF . I feel more comfortably with fixed, not mental stops witch Cobra said he is using.
The reason why I use a mental SL are these type of candles, the ones that show this candlestick chart are 40 pip 1M candles. I f you would have set a fixed SL of 15 pips what would be reasonable, you would have been out stopped and it happened nothing.

Sometimes they are bad data feed because you don’t see them at the same time on another brokers chart.

I mentioned once that I lost more positions in the past because of SL hunting than bad trades, especially trading the 1M.
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  • #960
  • Dec 6, 2008 6:09pm Dec 6, 2008 6:09pm
Quoting Polonaise
I ment 1min TF . I feel more comfortably with fixed, not mental stops witch Cobra said he is using.
The most important thing about MM is determining how much are you willing (or can you afford) to lose on a single trade. As Cashmeer said, anywhere between 1% and 3% is reasonable, and it has then to match the particular timeframe you will be using, as well as the number of lots (full, mini or micro) that you will be able to place for that trade.

For example, it is quite usual to employ ATR (average true range) indicator to calculate probable stoploss, for example, 2*ATR(20) which in a M1 TF have been ranging (on EURUSD) between 4 (8) and 9 (18). So let's say that a max SL of 20 pips would be quite safe.

Then, how much do those 20 pips represent in $ on your position?
1 microlot = 20 x 0,1 = $2
1 minilot = 20 x 1 = $20
1 lot = 20 x 10 = $200

Let's say that you have a total capital of $1000 and will to risk 2% on each single trade, which would be $20, your position shouldn't be higher than 1 minilot ($1 per pip).

Now, if you are able to trade microlots, you can increase the SL as much as you decrease the number of lots traded. But always with the maximum risk in mind, and of course, also matching the risk to the potential reward (it wouldn't make much sense to have a 100 pips S/L for a 5 or 10 pips potential gain, for example).

In that ATR based S/L calculation you also have to take S/R into account, both sides, as Cashmeer said.
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