How I found what works for me

I have been asked about the symbolics for some divergence indicators.
I like to know what an indicator does - so I always like to have the symbolic.
It is amazing how some (unscupulous) people will take a little known indicator do a cosmetic change and post it as a .exe with a new name just like they invented it e.g. in Paulus Trend Magic thread.
In fact that thread also specifies to use just the ordinary part of a fancy indicator - i.e. you could just use the bog standard indicator in the first place (if you could see the code in the fancy one). Not to mention the fact that some supposed experts in that thread did not realise that their own indicators (based on the Fisher Transform) actually repainted several bars back.


Anyhow here are the divergence indicators based on original(?) work by FX5 and then by smjones.

Hi Codebreaker,
I was going to ask you why you keep taking the p1s55 out of TG. (Or am I just cynical?)
I have now just seen your profile & can't figure you out - she actually vouched for you!

As you are probably aware, all her indicators in the E/G thread were copies of other peoples ideas (and possibly even their code). In that thread she admitted that she couldn't/didn't know how to trade.

If you are what you say, then surely you have better things to do - at least until she gives you some concrete ammunition.

Ian

Far from it Ian! I am a strong supporter of TG and I have defended her. That is why I posted the cynical quote about Irathi complaining about the use of an EA.

Please don't get the wrong idea. I am trying to get her on board to work for us!

CB

Hi Ian

Your concern is much appreciated. But I think you may have been too cynical on this occasion. CB is a great guy and we are in contact. He is actually one of my staunchest suporters!

Anne

Well CB,
In that case, I hope that I have not offended you.
Ian

Not in the least, my friend! I think your defence of TG is very admirable.

Very best of luck with your trading!!

CB

Are the red arrows sells?

Hi gbppip,
You should noy trade divergence on its own.
The red arrows show bearish divergence( dotted line is hidden divergence) normal line is normal divergence.
The green arrows show bullish divergence.

Thank you for clarifying the indicator signals.

gbppip was in Joe Ross's thread before me. Looking there I found this:
http://www.forexfactory.com/showpost...&postcount=140

Hi Ian
I've been looking at the stochastic and cci ones, and found that when run through MT4 visual backtest they find additional signals to when they are just thrown onto a normal chart..... see attached - 2 extra bullish and 2 extra bearish on the stoch, 2 extra bullish on the cci...... this was EURUSD 1HR chart
Any ideas why?

I see that smjones hasn't marked the changes he made from the originals, do you know what he changed and why?
Thanks
Jim

Hi,
I think that smjones removed the '1 bar confirmation' before the signal. I think the original one waited until the bar after to close, before putting out a signal on the previous bar. That is, in detecting a peak or a trough, it waited until there was a confirmed 3 bar fractal.
There is always a compromise between a timely signal and a confirmed signal.
This accounts for the difference you find when forward testing.

Ian

Somebody asked about a non-repainting version of the notorious Solar Wind (the Fisher Transform also goes by many other names TG_... smFisherTransform3nr etc.).

Obviously, the non repainting version is no longer fully a Fisher Transform and so does not predict the future so well in hindsight/backtesting - though it does as well in forward testing.
It is called Solar_Wind_clean_X . When I played with it, I modified it so it could be called from an EA for backtesting using MT4 Strategytester. That is I put of the displayed line into ExtmapBuffer0 so you just call it the same way you would an MA. My version is Solar_Wind_clean_IHF.

Both versions are attatched.

Ian

Here is my answer to a question about how I trade Steviet's E/U London Open Reversal system.
I have just copied it from the thread where I responded:

Answer to a question about how I trade Steviet's E/U

My take on moving stops for Steviet's euro trade
steviet's euro method
Hi Ian

Thanks for leaving a comment on my journal. I'm trying to trade steviet's euro method, but i would like to protect some profits. Mind i ask how you protect your profits, and at any point do you tighten SL to lock in some profits?

For today's trade, i took the short, but made the mistake of moving SL to BE out of fear of losing the profit, but ended up becoming stopped out, before the downtrend resumed. I'm reading PeterFM's old thread, whereby advise was given not to move SL to BE too quickly, which seems a comfortable but not the best choice.

Thanks in advance. Cheers.
__________________
TraderT - My Trading Journey

Hi, I thoiught it would be a good idea to answer you here, then we may both benefit from examining my though processes.

Please note that Steve's results are better than mine.
So why do I spend more time and effort for worse results?

Well, I trade several systems/methods which have large runs of sequential losses. So I really don't want to add another one to them - in case they all go wrong at the same time! This means that I am prepared to (potentialy) have smaller losses (and fewer of them) but also smaller wins (and possibly fewer of those too).

WHat I try to do are 2 things
- Get a better entry (or not enter if I don't like the Price Action).
So if the Frankfurt Open is too close to the London Open I don't enter. Just a few pips can mean the you would take a long with one broker, but a short with another.
Also if the F.O. direction starts reversing too early (i.e. before 45 minutes, then I don't trust it.
But if it starts to reverse just before London Open then I enter at London Open. Or if it does not sart to reverse, I wait until it does show signs of at least a small reverse before entering (usually at a slightly better price).

- The other thing I do is to manage my Stop Loss (or hopefully my Stop Profit). Most trades need some space to breathe, yet I don't want to lose the full 1% unless it goes against me from almost the start. So I usually have 2 Sl moves before going to BE. The first one is at around +15 pips, when I move my SL to -15 ; at around +20 pips I move it to -10; then at +30 pips I move it to BE. Then if it goes to about +40 and I move to +5.

After that I just rely on PA S&R, so it varies every day. But I do look for potential reversal spots and usually tighten up my stop - so if it bounces too hard off them I am taken out (like today).

I hope this gives you some ideas.

Ian

Another post I made in that thread:

Unrealistically high expectations?
Quote:
Originally Posted by TraderT http://cdn.forexfactory.com/images/buttons/viewpost.gif
Mechanical Trade Ideas
1. Spent some time on the weekend to manually backtest steviet's method to the Dollar-yen opening, results are average for July & August (5.9% and 4.6%, from risking 1% per trade), and decent for June (15%). Will do further backtest with filters, before evaluating whether to trade this or not.

2. Read about an alternative London opening method based on the Frankfurt-London range. Backtested it for 2 months and the results are quite mediocre. Again, this requires a larger sample size of backtests before the...

Hi,
I am just wondering if you are suffering from unrealistically high expectations. Have you really thought about what is a really good average or consistent return?

How high a yearly % do the professional hedge fund managers/traders make consistently?

How high an average % did Warren Buffett make in order to become one of the richest men in the world?

How much is 6% per month compund as a yearly %?

Answers: Less than 30%, less than 30% and 100%.
And you call that average!!!
Don't believe the Hype Salesmen - get real (or you will get killed in the market by overtrading or overleveraging).

Ian

http://cdn.forexfactory.com/images/misc/progress.gif

There is a great post by 4xstar in another thread. It is so long since I learned this poem in school, that I had forgotten most of it. Yet it is so applicable to trading as well as to many other things in life:

http://www.forexfactory.com/showpost...&postcount=389

I came accross this websit with a link to a wonderful video. I don't want to lose it so am posting it here:
http://www.yourtradingcoach.com/Vide...otivation.html

It offers more proof that the culture of huge salaries and bonuses is hugely damaging to businesses and society as a whole.

Ian,

I only stumbled accross this thread which now appears to be defunct.

If you are still around, please would you indicate what trailing stop loss did you use. For the record, I use a similar system which also works also.

KR

Hi KR,
I didn't use a fixed trailing Stopp loss accross all pairs - since they all have different volatility.
It was adjusted on each pair according to the recent volatility shown. Just as the entries were.

Sorry, but I can't be more specific.

Ian

In tradersWorld, Joel is interviewed - mainly about Gann:

Download here

The last part is Joel's medium term view on Commodities, Stocks, Bonds and inflation. He is very pessimistic.

Ian