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THV system, final edition

  • #2,201
  • Jan 13, 2009 7:42pm Jan 13, 2009 7:42pm
Gotta pass 13250 first though. I am waiting for her to come back down the coral ...
Quoting nuancom
i see this up to 13300
  • #2,202
  • Jan 13, 2009 8:00pm Jan 13, 2009 8:00pm
Quoting karun
All-

I understand that SL depends on the TF being traded, say you might have a different SL for 1M, 5M and 15M etc,. When we bring MM in, I get confused. We say we dont want to risk more than 2%, does that mean that you will only trade in TF which can fit your MM?

Also what is the best way to calculate a typical stop loss to set?

Thanks
Sadly, yes. Unless you chose to risk more than that percentage.

I had written something about it earlier on, but will summarize for you: usually a good "fixed" stop loss which will show the different scales for each timeframe, is the ATR (Average True Range). A 2 or 3 times ATR (20) is quite safe.

You also should consider using the psych levels and pivots as stop areas, chosing the one that will fil inside your MM... for example, let's say that your capital allows a 20 pips stop and as per your entry, the stop would be barely above a support or below a resistance, or psych level, it will be much safer IMO to risk a few pips more and avoid being stopped out just to see the trade go in your direction (provided that you are effectively trading with the trend, and following all the rest of rules and indications).

Something that I have been seeing these days while trading on much smaller charts, is that the price oscillates in waves of about 15 to 30 pips most of the time, then comes back for similar amount, then back in the direction again, etc... like "3 steps forward, 2 steps back", etc...
This is what is called "noise" in higher timeframes, and is not recommended to risk trading (scalping) those waves unless more experienced, BUT it is interesting to understand how it moves, so to be able to wait for the "little retrace" before making an entry.

Though it is true that entries don't matter and exits are more important, a good and precise entry will give you more for your stop loss and be safer, besides avoiding you lots of headaches waiting during those little retraces and biting nails
  • #2,203
  • Jan 13, 2009 9:28pm Jan 13, 2009 9:28pm
3 nice trades sofar
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  • #2,204
  • Jan 13, 2009 9:39pm Jan 13, 2009 9:39pm
Quoting doblece
I had written something about it earlier on, but will summarize for you: usually a good "fixed" stop loss which will show the different scales for each timeframe, is the ATR (Average True Range). A 2 or 3 times ATR (20) is quite safe.
I see an ATR indicator in MT4, trying to figure out how to use or make any sense of it. Could somebody point me to a place where I can read how to use it.

Thanks in advance
  • #2,205
  • Edited 11:10pm Jan 13, 2009 9:57pm | Edited 11:10pm
Quoting karun
I see an ATR indicator in MT4, trying to figure out how to use or make any sense of it. Could somebody point me to a place where I can read how to use it.

Thanks in advance
What you will be using from the ATR is the number for the amount of pips.

Quote
What Does Average True Range - ATR Mean?
A measure of volatility introduced by Welles Wilder in his book: New Concepts in Technical Trading Systems.

The True Range indicator is the greatest of the following:
-current high less the current low.
-the absolute value of the current high less the previous close.
-the absolute value of the current low less the previous close.

The Average True Range is a moving average (generally 14-days) of the True Ranges.
Source: http://www.investopedia.com/terms/a/atr.asp

In this case, ATR (20) would be a moving average of the True Ranges over the last 20 candles, on each TF.



Here's a short article on ATR and its uses as stoploss.
http://www.meta-formula.com/average-true-range.html

Here's how I would be using it:
M1 = ATR (20) maximum value reached in the last few hours is 0.0005 (5 pips) and minimum value 0.0002 (2 pips). I multiply max * 2 and min * 3 and take the higher value of those if significantly different. That would give 10 pips for M1.

This on all the 4 decimal priced pairs.

On Yen based pairs (2 decimal) it is a little different, you would have to skip the last digit I think but I never really used it on those pairs so if someone could confirm or comment on this I would appreciate.

(edited - wrong statement)

Here's a more technical explanation of the indicator:
http://stockcharts.com/school/doku.p...true_range_atr
  • #2,206
  • Jan 13, 2009 10:01pm Jan 13, 2009 10:01pm
quote=cobraforex;2466595]Ok, let me know if it works when you get back to the Pip factory.[/quote]

Yes, yes, yes ,yes..... this finally works and if you notice ( if you chart it)on the chart how PA loves those quarter pivots. Cobra, you rock!

If traders will notice, in slower moving markets, the PA respects the q-pivots as well as the mid pivots and the s1,r1....

Now I am in my comfort zone.........aaaahhhhh!
  • #2,207
  • Jan 13, 2009 10:34pm Jan 13, 2009 10:34pm
why is it the chart seems to screw up every now and then.

look at the chart.
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  • #2,208
  • Jan 13, 2009 10:48pm Jan 13, 2009 10:48pm
Quoting sed34
why is it the chart seems to screw up every now and then.

look at the chart.
That's weird... I've never seen it happen except at the start of the visual simulation on the Tester

Did you try to change TFs back and forth so it refreshes?
  • #2,209
  • Jan 13, 2009 10:49pm Jan 13, 2009 10:49pm
Quoting doblece
Here's how I would be using it:
M1 = ATR (20) maximum value reached in the last few hours is 0.0005 (5 pips) and minimum value 0.0002 (2 pips). I multiply max * 2 and min * 3 and take the higher value of those if significantly different. That would give 10 pips for M1.

This on all the 4 decimal priced pairs.

On Yen based pairs (2 decimal) it is a little different, you would have to skip the last digit I think but I never really used it on those pairs so if someone could confirm or comment on this I would appreciate.

If you are using a 5 /...
Considering the attached chart, I think the max of the ATR 0.0015 (15 Pips?) and min is 0.0006(6 Pips?), please correct me if I'm wrong. So this mean the higher of 15*2 (30) or 6*3 (18) should be taken as SL? So in this case it will be 30 Pip SL ? Also I'm using 5/3 decimal broker platform.

And thanks for the help and detailed response as always. I'll go through the links.
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  • #2,210
  • Jan 13, 2009 10:56pm Jan 13, 2009 10:56pm
Quoting sed34
why is it the chart seems to screw up every now and then.

look at the chart.
I have seen this when opening up at first with V1, but it resolved itself after switching timeframe and then back. This has never happened in the V2.

Did you take the crayons from the kids?
  • #2,211
  • Jan 13, 2009 11:05pm Jan 13, 2009 11:05pm
I'm coding an indicator for this system and I just wanted to double check the entry requirements.

This is obviously for a long (buy) position

T3 above coral (color doesn't seem to matter)
Price Action (PA) above cloud
BOTH Trix lines above 0 (doesn't seem to say that green has to be above red)


It is just so we get a better alarm indicator of when we should look, no offense to cobra i'm just trying to improve of WHEN we should look at our charts. Fairly sure there is an EA for this but I hate them personally, would rather manually do what I do so this is for those that also like a visual backtest to see/test any patterns they might find.

If the buy entry requirements are wrong please inform me. I know how i've been trading it but I may has missed something and would rather code something that we ALL agree on.
  • #2,212
  • Jan 13, 2009 11:06pm Jan 13, 2009 11:06pm
I think it is made by the hull if you are using it
  • #2,213
  • Jan 13, 2009 11:06pm Jan 13, 2009 11:06pm
Quoting doblece
That's weird... I've never seen it happen except at the start of the visual simulation on the Tester

Did you try to change TFs back and forth so it refreshes?
switching time frames doesn't seem to help. i have to keep reloading the template to get rid of it. it seems to only effect the 1M frame. i might close it and clear out the logs and history. that might be the reason.
  • #2,214
  • Jan 13, 2009 11:13pm Jan 13, 2009 11:13pm
Quoting karun
Considering the attached chart, I think the max of the ATR 0.0015 (15 Pips?) and min is 0.0006(6 Pips?), please correct me if I'm wrong. So this mean the higher of 15*2 (30) or 6*3 (18) should be taken as SL? So in this case it will be 30 Pip SL ? Also I'm using 5/3 decimal broker platform.

And thanks for the help and detailed response as always. I'll go through the links.
I have edited my earlier statement about 5/3 digit brokers, it appears that I didn't check on my FxPro platform and it is showing just the same as on the 4/2 decimal one. So please disregard that sentence.

Yes you are right, max S/L would be around 30 pips for safety, though you could also consider the middle option ((30+18)/2 = 24 pips) depending on the volatility of the moment. And also what I pointed out before about pivots and psych levels. But better be safe...
  • #2,215
  • Jan 13, 2009 11:15pm Jan 13, 2009 11:15pm
Quoting sed34
switching time frames doesn't seem to help. i have to keep reloading the template to get rid of it. it seems to only effect the 1M frame. i might close it and clear out the logs and history. that might be the reason.
If you are using the same platform for backtesting and thus have a bigger history file especially for M1, try using the whole history data only when you are going to test, and thereafter rename it so the platform doesn't take it into account and re-updates itself to the minimal data. This way you also will be eating up much less resources of your computer
  • #2,216
  • Jan 14, 2009 12:09am Jan 14, 2009 12:09am
ok my target hit
dam good system + patience= a lot of pips
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  • #2,217
  • Jan 14, 2009 1:33am Jan 14, 2009 1:33am
Quoting nuancom
nice first trade of the day
will you please post the indi on your chart thnx
  • #2,218
  • Jan 14, 2009 1:57am Jan 14, 2009 1:57am
Quoting Omniferum
I'm coding an indicator for this system and I just wanted to double check the entry requirements.

This is obviously for a long (buy) position

T3 above coral (color doesn't seem to matter)
Price Action (PA) above cloud
BOTH Trix lines above...

I think those are all the rules, but as you mentioned, and EA is not going to be able to take into consideration a level of S/R or a T/L....those are essentials. So as you mentioned an alarm would bring a potential to the attention of the trader.

Regarding the positioning of green and red trix...Cobra, Doblece or one of the other team members would be better to answer.
Deprive a man of everything and you give him nothing to lose.
  • #2,219
  • Jan 14, 2009 2:16am Jan 14, 2009 2:16am
Well i've scoured through some things and am not getting any clarification beyond what I already understand.

So without further ado here is the indicator, an alarm will pop up when the criteria is met. Keep in mind that the criteria might be sequentially met, I prefer it but can stop it from doing that if necessary.


Current criteria is as posted above

T3 above/below coral (Color not taken into account)
Price Action (PA) above/below cloud
Green Trix above red trix and 0
Red Trix below green trix and 0


It uses the THV V2 indicators so you need this indicator along with all the others.

Any problems just let me know
Attached File(s)
File Type: ex4 THV.ex4   4 KB | 613 downloads
  • #2,220
  • Jan 14, 2009 2:32am Jan 14, 2009 2:32am
Quoting Omniferum
Well i've scoured through some things and am not getting any clarification beyond what I already understand.

So without further ado here is the indicator, an alarm will pop up when the criteria is met. Keep in mind that the criteria might be sequentially met, I prefer it but can stop it from doing that if necessary.


Current criteria is as posted above

T3 above/below coral (Color not taken into account)
Price Action (PA) above/below cloud
Green Trix above red trix and 0
Red Trix below green trix and 0


It uses the THV V2 indicators so...
i'm not really a fan of EAs, but if it works out then great. As stated on page 1 it is designed as a manual system. i think there are too many factors to look at to automate. besides an alert is already included.
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