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Pair Divergence Method

  • #661
  • Oct 20, 2009 1:50pm Oct 20, 2009 1:50pm
Quoting stevegee58
We may actually agree but are just looking at the same thing from different viewpoints. Certainly you'd agree that a smaller spread is better since it tips the odds more in your favor.

I'd rather pay 0.5 pip than 2 on a spread.
Sure.

I've never traded ECN forex, but I have traded futures.
The commission isn't bad but the slippage is very bad.
I suspect you have the same problem with ECN forex.
  • #662
  • Oct 20, 2009 1:51pm Oct 20, 2009 1:51pm
Quoting cosgrove
Check out this smorgasbord of trades this morning. Not really sure what I would have done. None of them canceled each other out, so unless you have a "max open risk" value in your trading plan, take them all? Total of 3 wins 2 losses. Second trade on the U/C was really close though, who knows what would have really happened. Some of these trades also appeared on the 30m, but they appeared on the 15m first, and were as close to the same trade as you could get, so I didn't bother counting the 30m ones.

edit: I'm starting to think that all "close...

You don't need to guess. You can tell exactly if a trade would have hit profit or not.
  • #663
  • Oct 20, 2009 2:22pm Oct 20, 2009 2:22pm
Quoting billbss
It has changed the odds to favor the broker.
So should we compute expectancy with both methods of including/excluding spread: more winners, but less per win vs. less winners, but more per win? Think you'd come out the same profit wise in the end?
Hindsight is 20/20
  • #664
  • Oct 20, 2009 2:24pm Oct 20, 2009 2:24pm
Quoting billbss
You don't need to guess. You can tell exactly if a trade would have hit profit or not.
So in your experience, have your orders always been filled to the pip? I.e. chart shows a swing high at 1.1000, your order was at 1.1000, and you were always (or 99% of the time, whatever) filled?
Hindsight is 20/20
  • #665
  • Oct 20, 2009 2:43pm Oct 20, 2009 2:43pm
Quoting cosgrove
So in your experience, have your orders always been filled to the pip? I.e. chart shows a swing high at 1.1000, your order was at 1.1000, and you were always (or 99% of the time, whatever) filled?
I know when I'm about to enter a trade.
I watch the second hand and hit the button at the open of the bar.
If I miss it by a pip or two, I assume I got in on the open, and set my TP and SL to the actual open.

Sometimes the slippage works in our favor, sometimes not. It balances out.
  • #666
  • Oct 20, 2009 3:19pm Oct 20, 2009 3:19pm
Sorry Bill I should have been more clear -- I was wondering about your experience with TP/SL orders being filled once price on the chart hits your TP/SL level? Slippage on the order is to be expected; however, what I wouldn't expect was that if I had a TP at 1.1000, price got to that level on the chart, and my order just sat there on the books unfilled at all...can you comment on your experience when it comes to things like that? Thanks!
Hindsight is 20/20
  • #667
  • Oct 20, 2009 3:28pm Oct 20, 2009 3:28pm
Quoting cosgrove
Sorry Bill I should have been more clear -- I was wondering about your experience with TP/SL orders being filled once price on the chart hits your TP/SL level? Slippage on the order is to be expected; however, what I wouldn't expect was that if I had a TP at 1.1000, price got to that level on the chart, and my order just sat there on the books unfilled at all...can you comment on your experience when it comes to things like that? Thanks!
I've never had that happen in 4 years of trading forex.
It happens almost every trade, trading futures.
  • #668
  • Oct 20, 2009 7:46pm Oct 20, 2009 7:46pm
Quoting cosgrove
Sorry Bill I should have been more clear -- I was wondering about your experience with TP/SL orders being filled once price on the chart hits your TP/SL level? Slippage on the order is to be expected; however, what I wouldn't expect was that if I had a TP at 1.1000, price got to that level on the chart, and my order just sat there on the books unfilled at all...can you comment on your experience when it comes to things like that? Thanks!
well, i have a FXDD account (free $100 account they gave last year) and today trading another method i got stopped by 1 pip. See in your chart last high. At FXDD it is at 91.06, but at IBFX is 91.05.

so, simple broker difference.
  • #669
  • Oct 20, 2009 8:26pm Oct 20, 2009 8:26pm
Quoting billbss
You don't need to guess. You can tell exactly if a trade would have hit profit or not.
i still have difficult to backtest, because i don't know where would be my entry.

today my entry was somewhere in the bar BEFORE this highlighted bar. So it was wrong?
Attached Image
  • #670
  • Oct 20, 2009 8:32pm Oct 20, 2009 8:32pm
Quoting giraia_br
i still have difficult to backtest, because i don't know where would be my entry.

today my entry was somewhere in the bar BEFORE this highlighted bar. So it was wrong?
Entry should have been at the open of the highlighted bar.
  • #671
  • Oct 21, 2009 5:18am Oct 21, 2009 5:18am
I've just found an interesting blog (free at the time...) with two first .pdf files.They are also interesting videos.
http://www.correlationcode.com/blog/
  • #672
  • Oct 21, 2009 3:08pm Oct 21, 2009 3:08pm
Hi Guys - here is something that looks interesting for those interested in divergences: Infinity futures is doing a webinar tomorrow on trading correlations/divergences between different markets. Here's the info they sent to their mailing list: (hope its OK to post a link to it - I am not affiliiated with them or anything)

Event: Using Divergence Techniques to Compare and Contrast Like Markets
When: 10/22/2009
Time: 3:30 pm CDT (Chicago Time)
Cost: Free
Presenter: Ant Trading Inc.
Speaker: Anthony Drager
Registration Link: https://www2.gotomeeting.com/register/669829275

Description:
Many people like to fade these markets - Sell highs, Buy lows... But what if there was a system that identified those turns? On October 22nd learn how professional trader, Anthony Drager, uses his divergence techniques that assign values in the S&P e-minis, Crude Oil, Gold and more. See how Anthony uses his divergence techniques to compare and contrast like markets and find WHERE these products want to go next.
  • #673
  • Edited 8:48pm Oct 21, 2009 7:40pm | Edited 8:48pm
Quoting pippaFett
Here are two indicators I found that you might find useful.

Second Chart, at the bottom, displays a second currency pair as small candles in an indicator window below your current main pair. This is showing USDCHF on 5 min below EURUSD on 5 min.

Custom Candle comes from a strategy called 3-in-a-box. It draws large candles over the normal candles you see on screen. For example, here we have larger 15 min candles on top of 5 min candles. You can fiddle with the colors to get things to be less confusing.

WARNING: If your strategy is based on...
Hi All,

Is there a way to attach a simple moving average to pippafets second chart indicator?

I can attach one to the main chart but not the one underneath it.

His indicator is at page 21 post No 314

Or if i can't do that could i make the candles in the indicator chart show a line chart instead.

Thanks
Enter Signature
  • #674
  • Oct 21, 2009 8:59pm Oct 21, 2009 8:59pm
Quoting ECO
Is there a way to attach a simple moving average to pippafets second chart indicator?
I believe if you have the mt4 navigator window open (side panel on the left), you can drill down into the indicators and try to drag the moving average entry over to your data window...I've seen it done before but I can't remember exactly how to do it if that doesn't work.
Hindsight is 20/20
  • #675
  • Oct 22, 2009 8:02am Oct 22, 2009 8:02am
These picky ones just make me mad. No trade, because while the second lower high on the euro (aqua line) looked like a mini swing high on the chart, it was actually flat compared to the point next to it after rounding of the values to 4 digits after the decimal. Also, you have to go look at the actual MA on the USD/CHF to see that it's a higher high (or actually a lower low, since it's inverted).

IMO, the pipettes would lower the signal-to-noise ratio of the system, so that's why I round.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd_sell_almost.gif Size: 17 KB
Hindsight is 20/20
  • #676
  • Oct 22, 2009 11:00am Oct 22, 2009 11:00am
Quoting billbss
Basically, if one pair makes a lower low and the other does not, you buy the one that does not.

If one pair makes a higher high and the other does not, sell the pair that does not.

Hi billbss

What if one pair makes higher low and the other does not, should you sell the pair that does not?


And if one pair makes lower high and the other does not, should you buy the pair that does not?
  • #677
  • Oct 22, 2009 4:01pm Oct 22, 2009 4:01pm
Don't know about this U/C buy because of the 'wiggles' but thought I'd post it anyway as it fell into my time frame.
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf_buy_200910221800.gif Size: 18 KB
Hindsight is 20/20
  • #678
  • Oct 22, 2009 4:20pm Oct 22, 2009 4:20pm
I got a spam for a webinar for a new powerful trading system.
I just came back from it.
Guess what it was.

Yep- this system, applied to stock indexes.

I guess we've had some lurkers.
  • #679
  • Oct 22, 2009 4:22pm Oct 22, 2009 4:22pm
Quoting prolog
Hi billbss

What if one pair makes higher low and the other does not, should you sell the pair that does not?


And if one pair makes lower high and the other does not, should you buy the pair that does not?
I'd have to know more about what the "pair that did not", did.
  • #680
  • Oct 22, 2009 4:49pm Oct 22, 2009 4:49pm
In this correlation trade. If I have it right you buy the one that didn'nt make the lower low. This is contra indicated for a correlation trade, in that
you should buy the one that made thew lower low if it is the GBP because the GBP moves lower and makes higher highs. Yes, you made money but if you look at the trades you will see that if you bought the GBP instead of the EUR you would have made more money. The ATR's of the GBP would be larger. I know because I made money on that trade. Peace.
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