EUR/GBP Trendmagic System

Hi Paulus

and thanks for starting the thread, also thanks to the rest for contributing.

If I understood you correctly, what you are asking for here already exists, you are talking about a special case of the zig zag indicator with depth and backstep of 2. Please see attached image of around the same time as yours (notice small discrepancy due to different broker). It is trivial to access programmatically the buffers of this indicator and alert when a lower new high has been seen.

BTW zig zag repaints but I believe when set to 1 it won't repaint, but I haven't verified this.

I hope this helps, all the best and have a great weekend.

[Edit: this approach doesn't use RSI but if memory serves me right Re the maths of that indi, the end result will be the same]

So this is the current setup. This is all we need, nothing else...

Anne

Hi

Dont worry this thread will not deviate from what we want

I dont know who has the right to eliminate posts I think only the Forums administrators

I have used ZZ many times I used it primarly for my TP so for example we got short I would look at the last swing high to low as depicted by ZZ and use that..so we have big swings on Monday my TP mirrors the big swings Tuesday the market is quite and the swings are small and so my TP mirrors the smaller swings..it was a mechanical way of me have an Elastic TP directly linked to the volatilty of the days swings

TG The RSI I used on the chart was set to the following to give a smoother appearance and eradicate false peaks etc

Period 3 as shown

But apply to - Median Price (HL/2)

Will lock and load Indy now

Paulus - the code I am using applies RSI to HI and LO separately for the swing highs/lows respectively. This seems to eliminate false alarms but I can change the code at a moments notice.

Anne

Hey, Horrigan, my post wasn't directed to your approach, and ther was no offense intended... ....as a constructive critique, I understand perfectly your intention... losses are way different from noise.... but I saw you are trading off the 1M... IMHO, and I guess I can recall Paulus saying something alike, 1M is a hard TF, just because the plenty of noise...

In fact, I have alway traded highr TFs.... since the beggining with stocks (alway D1 or more), and now to Fx, the lower I can get is 15M... With Paulus and TG help I'm starting to jump to 5M, but I, personally, don't think I'll jump lower...

My way of testing too... forward, live and small...

Cheers!

HT

Having followed Paul's various methodologies for over a year now, and now with the addition of Anne's wonderful coding capabilities, I think it is timely to ask that the conductor slow the train a bit here.

SIMPLICITY is indeed difficult to grasp at times. Within the framework of this thread exists the ONLY item needed to trade successfully. As a full time trader, I will walk the plank here and humbly wait for those bearing sharp swords to urge me over into the deep abyss.

1. You already possess the TM in a format that will not repaint. I assume it can be dabbled with to increase the sensitivity so as to match the general PA depending on the TF you are trading.

2. You also are in possession of the TG indi that works relatively well. An earlier poster inquired about recoding such to be a bit more sensitive, and I believe that to be a minor adjustment for one with Anne's coding abilities and will be VITAL should you wish to trade the 5m TF predominantly.

3. You seek some manner of SL area which is a waste of time. Each and every trader, depending on the TF chosen to trade, has to, at the very least, have the MENTAL DISCIPLINE to set a SL of their own accordance based upon account size a prudent MM. Keep it simple here guys and gals, you NEVER, NEVER, NEVER risk more than 4% of account value on a per trade basis. Let me repeat, NEVER, NEVER, NEVER!!!!!

4. You also seek a TP level somewhat. The indicator you are striving to design will (or should) give you the ability to take MAXIMUM profit on each trading opportunity presented, regardless of the TF you are trading. This is why you need to have this indicator sensitive enough to provide an exit signal a bit quicker than what I have seen to date. Hence, we revisit the earlier posters request to increase sensitivity. In addition, the sensitivity of the indicator needs to be such that allows a user to manually adjust it to fit the currency pair they are trading. The PA in the GBPJPY is significantly more volatile than that of the EURUSD. Turning for red to blue and vise versa is quite adequate.

5. The recent talk of swing highs and lows is unwarranted IMHO. With all due respect to Paul, and I mean that in the deepest professional sense, the indicator Anne is developing, if recoded with finer sensitivity peramaters, will easily pick a short term (5m) top and bottom. I say short term because I feel many following this thread will end up using the 5m as a triggering TF. Those trying this on the 1m are simply asking for trouble as are those trying this on tic charts. It may seemingly be working well now, however, over time, the extreme volatility of such small TF's will lull a trader into a greed aspect that will bite them square in the a**. In addition, ALL traders are of the mind to trade WITH the dominant trend if one is present. The MTF aspects of the indi be developed should allow you instant recognition of such. You trade countertrend AT YOUR OWN PERIL!!

6. Your R&D will be completed much faster than you think!!!!!! What you have here is a very simplistic approach to trading that should be applauded. You already have in your possession a methodology that provides you with a POSITIVE EXPECTATION on a per trade basis. I personally could care less about a perceived win/loss ratio. If you will simply trade your signals and let your indi (especially a newly coded TM and/or TG with added sensitivity) dictate you TP level, your trading will do quite well. As mentioned, you SL should already be set either on a chart or in your mind. If a trader cannot accomplish this most basic fundamental task, YOU WILL FAIL. Where do you think that 95% failure ratio generates from? GREED and STUPIDITY!!!!! Harsh but true.

Lastly, I will implore ALL to stop adding indi ideas and chart shots showing so many indi's as to confuse everyone here. You need only ONE TRIGGERING MECHANISM and possible ONE CONFIRMATION indi in order to competently trade the Forex, or the Indices, or the S&P or any other trading vehicle. This thread need to evolve quickly into actual trading results based on actual LIVE trading efforts utilizing the finished product.

It appears that the lower TF's are going to be your chosen trading arena. So, you are going to be intra-day traders or 'scalpers'. Great! Far less risk due to far less market exposure. When Anne finishes the indi based upon Paul's studies, and again that will be soon I believe, just take the one or two indi's a trade such. You need to generate cash flow now! This will allow you guys the opportunity, and with a much clearer though process, to further any other R&D should you deem such needed.

'Think about it real hard' now but not for very long. Paul and Anne, your cerebral capabilities are well admired and, to be honest, evoke envy from many.

However, let one task be completed, the resulting indicator be installed and trading efforts implemented, and then let the resulting profits henceforth inspire yet more creative opportunities.

'Simplicity, the SINGLE most difficult trading concept to grasp'.

Highest regards to you both!

Hi TG

Please be gentle with me whats follows is constructive not destructive

I have noted a few things on the chart..I know this puts you under pressure and I know its difficult to get right because I spent around 50hrs on it with a guy a few years back called ROD who live in Florida not a pro but very good..


A is a low that is put in place 1 bar after the 1st vert line but doesnt need to be on the chart

B is a low again depicted by the RSI but if the price at that point is compared to the price at A it computes its a lower low so no dot is placed

C is a low again depicted by the RSI but if the price at that point is compared to the price at B it computes its a lower low so no dot is placed

The low at D is put in place by the RSI on the bar marked (f) the code looks at the price low of bar D compares it to the price low of bar C and gives us a DOT under bar d.....We have out lower high in place

Paulus

Hi Paulus

OK, got it! Was plotting LL and HH instead of HL and LH !!!

What's a girl to do with all these letters.....

Anne

Yes! Too simple idea, but it can work. Sometimes I have front of my nose simple and simpler things and I miss it Good idea, mates, I will try it on M5 and M15, in non-changed exit/entry rules -there may not be a lot of "noise", loss looks as loss and profit as profit - I can't say it in English, im sorry
OK, this is constructive critism. THX (I'm not angry )

Your ways of testing strategies is the same as mine (I only broker's demo, my broker don't allow a microlots and minilot is too much (relatively to my account) - but (as mentioned above) today markets don't go, and I'm a workoholic

Edge

I agree with what you say I am making money from the original set up as I posted this morning.

And i am worried that TG will spend alot of time on this only to find it useless

perhaps we should move it off the thread and work on it in the back ground introducing it when we think its suitable and adds to the work already done.

Ive already stated that to pick a trend when its born is nigh on immpossible and that in a trend of 90 pips be very thanksfull if you get 1/3 of that idealy the middle chunk.

I take on board what you say.. we have to bow to your experience here Anne do you think its possible without wasting serious amounts of time for you ?

Cheers

Paulus

Hi Paulus / Anne and others on the thread

I would suggest we setup a team here who can have a look at one or two currency pairs and let them try it on live account with 0.01 lots and lets see the result till this month end. Let all of us stick to 5 min timeframe.

This way, u will have extensive forward tests and any chinks can then be diagnosed and cured.

just my 2 cents

nisha

I would really like to echo the sentiments of EdgeTrader, who is clearly an experienced and seasoned operator.

We are moving very fast and leaving some folk behind. And also perhaps plunging into putting effort into things we might not need?

I would like to "freeze" the development here for a short while and see how the live trading goes with what we have got. The real traders on this forum seem to think we have all we need already with just TM and TG MTF.

Can we give this a go then re-assess the situation?

Anne

Hi,
I have read every post and just want to contribute my 1 penny. I agree with BenQ, perhaps releasing the less lag version is the next step. As you know fuzzy SVMs are a major undertaking (assuming you are coding from scratch). I'm sure that I have some swing high, swing low code some where on my server (in VB I'm afraid) that I can forward to you but issues such as swing period then become a factor.
notch

Ive been asked about the last trade I did yest

here it is initially swing low is used for SL

My final TP was the plum coloured line..if price would of moved up again I could then of moved up my stop to the next horizontal line but as it didnt.......

Took around 30 pips

P

I agree 100%

Thank you chairman Edge for pulling in the reigns

Paulus

Good Trading and many pips!

PS: There are lots of brokers which allow very tiny accounts with real money... for me is by far the best way of "demo".... take a look here: http://www.forexfactory.com/brokers.php

Cheers!

A nice post. Never risk more than 2% per trade and never more than 6% of your account for all open trades. MM lore!

Thanks, Paul.

ALL - can we please now minimise the posts and restrict them to actual trading results until further notice?

Once we have tried this in anger for a week or two we will have a far clearer idea of the way ahead.

Can we take up Nisha's suggestion and all set our charts to the Paulus/TG "minimum setup" and all trade the M5 TF. If we each take various pairs we will get a great feeling for the system performance.

Many thanks for your kind understanding,

Anne

While I fully realize I may be annoying those who are working so hard here, the 'pivot' capabilities your are trying to code already exist in indicators available with many brokers. Shown are the points of reference for both a Renko and Candlestick (5m) chart from one such brokerage. Will not name such as to avoid any promotional activity.

As mentioned before, your indicator only needs enough sensitivity to match these shown points on the various TF's a trader choses to utilize. Again, simplicity in trading. :nerd:

Also, I will again trumpet the simplicity issue by drawing attention to the utilization of a MA as an added value trading tool. As such, imagine the simplicity of the indi you are designing as it could be coded to project entry and exit targets based upon just a couple of well recognized industry standard tools.

And granted, the Renko depicts far less 'noise' than a candlestick and therefore the MA would have to be adjusted to fit the chart better. Perhaps from a 14 up to a 21 but that is irrelative at this stage.

Regards.