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Kang Gun Relative Strength trading - the EA's

  • #961
  • Nov 1, 2009 6:42am Nov 1, 2009 6:42am
Quoting stevegee58
Amazing someone's sitting here reading all this early on a Sunday morning, eh? LOL
Not really, i am just trying to help Steve and the others with their EA.
  • #962
  • Nov 1, 2009 6:51am Nov 1, 2009 6:51am
Quoting scooby-doo
Yes 100%.

You should look for where it is OS/OB in 2 different timeframes, this will help stop whipsaw. Also, you need to be careful on the timeframes you use.

Use M15 and 1H or 1H and 4H. There is no point using M15 and M30 combined as they are basically telling you the same thing!

The rule of thumb is to use at least 3 x your lowest time frame. So M5 and M15 are ok too. BUT, do not use M1 and M5 as you will get too many false breakouts.

Hope this makes sense.
Yes thanks. Perfect sense.

Cheers again.

  • #963
  • Nov 1, 2009 6:54am Nov 1, 2009 6:54am
I decided to copy the code that finds the strongest pair in the basket into the script to check it. It was wrong - I had forgotten to divide the xxxJPY pairs in the non-JPY baskets by 100. Download the fixed version from post 1.

Perhaps someone with an eye to detail could download the updated script (attached), run it and check the figures? Remember to mentally divide the xxxJPY price display by 100.

Attached File(s)
File Type: mq4 KG Range lot sizes script.mq4   16 KB | 318 downloads
  • #964
  • Nov 1, 2009 6:56am Nov 1, 2009 6:56am
Quoting stevegee58
Actually isn't that the opposite of what you said earlier scooby?

Here it is:



Steve said, "if Stochastic was either overbought/sold at the start of Tokyo's trading, the market moved quite rapidly in the opposite direction." That's the opposite of Scooby's statement.
It is, but I was wrong. I have copied scooby-doo's posts about this into a textfile for later reference, so I don't make the same mistake later on.

  • #965
  • Nov 1, 2009 7:34am Nov 1, 2009 7:34am
Just to clarify.

You should never trade off a single TF either manually or automated.

I dont know if KG original idea/EA did but it could be one, if not, the major reason why baskets remained open for far too long.

In my day job we trade off Daily, Weekly, Monthly and quarterly TF's. Obviosuly we use a higher lot size compared to retail forex but the number of trading signals is obviously allot lower than the average retail trader would like given their limited balance in comparison.

So, for OB and OS, use M5 and M15/M30 as the absoulte minimum if you want to increase the number of trade signals. Also, if you are using Stoch or RSI then set the period to 2. It should actually be 1 but i dont think MT4 allows this ?

Cheers.

PS. The above relates to group or basket pairs trading only when setting the period to 2.
  • #966
  • Nov 1, 2009 11:53am Nov 1, 2009 11:53am
I'd just like to send some thanks to Scooby do for the invaluable insights and to Steve for being the coder extraordinaire. This EA is superb but can cause a lot of drawdown during market conditions like we're experiencing now.

I'm a long time lurker of this thread, having been trading the EA for 4 Months live.

Vinesh - I share your pain, I have many thousands of pips of drawdown too, keep the faith dude! Hopefully V3 might be able to greatly reduce the drawdown seen in future but it will need everyones help as usual to report any new version EA glitches so that Steve can hopefully sort them.

Great stuff, exciting times for the KG range EA,

Good pips and low drawdown to everyone,

Cal
  • #967
  • Nov 1, 2009 11:59am Nov 1, 2009 11:59am
Quoting scooby-doo
Just to clarify.

You should never trade off a single TF either manually or automated.

I dont know if KG original idea/EA did but it could be one, if not, the major reason why baskets remained open for far too long.

In my day job we trade off Daily, Weekly, Monthly and quarterly TF's. Obviosuly we use a higher lot size compared to retail forex but the number of trading signals is obviously allot lower than the average retail trader would like given their limited balance in comparison.

So, for OB and OS, use M5 and M15/M30 as the absoulte...
Ok, whilst you are being generous with your advice I am going to take advantage on all our behalves.

There is an extra filter in the Range EA that looks at KG's relative strength indicator at the trade-sending stage. So:

 

  1. The robot decides there is a basket trading opportunity on the 1H chart.
  2. It cycles through the list of potential trades and looks again at the indi but at a higher tf. If the higher tf is against the individual trade, the user has the option of either cancelling the trade or sending one in the opposite direction, which is what mostly happens.

By default, the robot looks at the next tf up i.e. 240 mins. From scooby-doos advice, it looks as though we should be looking at the D1 and the settings should actually be these:

 

  1. UseKgGroupFilter=true;
  2. KgFilterMins=1440;
  3. BasketReverseNotCancel=true;

If you see anything wrong with this, scooby-doo, we would appreciate your saying so.

I can't wait for the markets to open and to test out V3 on demo.

  • #968
  • Nov 1, 2009 12:26pm Nov 1, 2009 12:26pm
Quoting SteveHopwood
Ok, whilst you are being generous with your advice I am going to take advantage on all our behalves.

There is an extra filter in the Range EA that looks at KG's relative strength indicator at the trade-sending stage. So:[list][*]The robot decides there is a basket trading opportunity on the 1H chart.[*]It cycles through the list of potential trades and looks again at the indi but at a higher tf. If the higher tf is against the individual trade, the user has the option of either cancelling the trade or sending one in the opposite direction,...
Steve,

i am not sure i understand the part where you say, send the trade in the opposite direction?

Basically, if OB in M5 and OB in M15 and the lower TF is crossing back down then enter trades, otherwise do nothing and likewise for OS.

So i am saying (from my experience) if the 2 TF dont match, do nothing.

if i have misunderstood what you said then i apologise.

Also, you should stop the EA from being attached to M1 as you wouldnt want to check M1 and M5 alone for OS and OB. So, the lowest you should attach too is M5.

In an ideal world where you werent worried about having lots of trades, you would look at M15, H1 and H4 and wait for M15 to cross back down or cross back up.
  • #969
  • Nov 1, 2009 12:44pm Nov 1, 2009 12:44pm
Quoting scooby-doo
Steve,

i am not sure i understand the part where you say, send the trade in the opposite direction?

Basically, if OB in M5 and OB in M15 and the lower TF is crossing back down then enter trades, otherwise do nothing and likewise for OS.

So i am saying (from my experience) if the 2 TF dont match, do nothing.

if i have misunderstood what you said then i apologise.

Also, you should stop the EA from being attached to M1 as you wouldnt want to check M1 and M5 alone for OS and OB. So, the lowest you should attach too is M5.

In an ideal world...
Don't apologise for anything, scooby-doo. I have learned more about manual trading from you in 3 days than in nearly 3 years of just about surviving in forex trading. This is probably infant's school stuff to your, but it is gold dust to many of the rest of us. I am keeping copies.

For KG Range traders, scooby-doo's comments have implications for the BasketReverseNotCancel input. I suggest you experiment with the setting both on and off to see what happens thus:

 

  1. UseKgGroupFilter=true;
  2. KgFilterMins=1440;
  3. BasketReverseNotCancel=true;

and

 

  1. UseKgGroupFilter=true;
  2. KgFilterMins=1440;
  3. BasketReverseNotCancel=false;

On another note, I have started on the 'scooby-doo BOJ trading robot'. When it does something useful I will post it here at FF and let you all know.

  • #970
  • Nov 1, 2009 1:15pm Nov 1, 2009 1:15pm
scooby-doo, I have one more question then I will leave you in peace.

I am thinking about monitoring the xxxJPY pairs later on tonight when Tokyo opens. My scooby-doo robot will present me with Stochastic 1H and D1 readings; Stoch is set to a period of 2 - you are correct, a setting of 1 is not available.

Do I set Price field to Low/High, Close/Close or doesn't it matter?

  • #971
  • Nov 1, 2009 1:24pm Nov 1, 2009 1:24pm
Quoting SteveHopwood
scooby-doo, I have one more question then I will leave you in peace.

I am thinking about monitoring the xxxJPY pairs later on tonight when Tokyo opens. My scooby-doo robot will present me with Stochastic 1H and D1 readings; Stoch is set to a period of 2 - you are correct, a setting of 1 is not available.

Do I set Price field to Low/High, Close/Close or doesn't it matter?

Close/Close is fine.

Using 1H and D1 probably wont generate many trades, you can use M15 and 1H.
  • #972
  • Nov 1, 2009 1:33pm Nov 1, 2009 1:33pm
Also, i dont know if you do this with your EA's.

But if i were a retail trader with limited understanding of economics then i wouldnt be entering possible trades 90 mins before or 60 mins after economic alerts possible affecting any pairs i was trading.

Dont mean for the above to sound demeaning to anyone but i do realise that there are people of different trading levels/experience here.

All the best with Steve's new EA.
  • #973
  • Nov 1, 2009 1:37pm Nov 1, 2009 1:37pm
Quoting scooby-doo
Just to clarify.

You should never trade off a single TF either manually or automated.

I dont know if KG original idea/EA did but it could be one, if not, the major reason why baskets remained open for far too long.

In my day job we trade off Daily, Weekly, Monthly and quarterly TF's. Obviosuly we use a higher lot size compared to retail forex but the number of trading signals is obviously allot lower than the average retail trader would like given their limited balance in comparison.

So, for OB and OS, use M5 and M15/M30 as the absoulte...
Sorry guys, maybe silly question. Scooby wrote about checking stochastic on higher timeframes but is this suitable for KG Range trading? KG Filter is based on relative strength between currencies, but not on pure stochastic. Is correct suddenly change KGfilter from H4 to D1?

Or scooby wrote general recommendation for trading based on stochastic (BOJ intervence and so on)?
I want avoid mistakes from misunderstanding.
Pavel
  • #974
  • Nov 1, 2009 1:40pm Nov 1, 2009 1:40pm
Quoting maya007
Sorry guys, maybe silly question. Scooby wrote about checking stochastic on higher timeframes but is this suitable for KG Range trading? KG Filter is based on relative strength, but not on pure stochastic?

Or scooby wrote general recommendation for trading based on stochastic (BOJ intervence and so on)?
I want avoid mistakes from misunderstanding.
I wrote it as a general recommendation IF you use Stoch or RSI.
  • #975
  • Nov 1, 2009 2:41pm Nov 1, 2009 2:41pm
Quoting scooby-doo
Also, i dont know if you do this with your EA's.

But if i were a retail trader with limited understanding of economics then i wouldnt be entering possible trades 90 mins before or 60 mins after economic alerts possible affecting any pairs i was trading.

Dont mean for the above to sound demeaning to anyone but i do realise that there are people of different trading levels/experience here.

All the best with Steve's new EA.
Cheers, scooby-doo. We have this technology courtesy of ffcal.mq4. Your contribution here helps take the guesswork out of how long pre and post to wait.

  • #976
  • Nov 1, 2009 2:47pm Nov 1, 2009 2:47pm
Quoting maya007
Sorry guys, maybe silly question. Scooby wrote about checking stochastic on higher timeframes but is this suitable for KG Range trading? KG Filter is based on relative strength between currencies, but not on pure stochastic. Is correct suddenly change KGfilter from H4 to D1?

Or scooby wrote general recommendation for trading based on stochastic (BOJ intervence and so on)?
I want avoid mistakes from misunderstanding.
Yes, in case people are confused. scooby-doo neither knows not cares much about how this robot works or what it does. He doesn't need it. Some of his guidance is applicable to the robot, some of it is of a more general nature.

All his comments about Stochastic are relevant elsewhere - very relevant.

His comments about time frames are applicable both here and elsewhere.

As to his comments about BOJ, watch this space. There is a robot on the horizon...........

  • #977
  • Nov 1, 2009 2:51pm Nov 1, 2009 2:51pm
Quoting SteveHopwood
Cheers, scooby-doo. We have this technology courtesy of ffcal.mq4. Your contribution here helps take the guesswork out of how long pre and post to wait.

I have read allot of other threads on FF and have come to the conclusion that the majority of retail traders seem to be failing due to the following:

1. Understanding of economics.
2. Money management/leverage.
3. Entering a trade for the sake of being in the market.
4. Trading off of one timeframe only.
5. Trying to work off of multiple indicators.

Forex is fairly simple, once you grasp the basics.
  • #978
  • Nov 1, 2009 3:18pm Nov 1, 2009 3:18pm
Quoting scooby-doo
I have read allot of other threads on FF and have come to the conclusion that the majority of retail traders seem to be failing due to the following:

1. Understanding of economics.
2. Money management/leverage.
3. Entering a trade for the sake of being in the market.
4. Trading off of one timeframe only.
5. Trying to work off of multiple indicators.

Forex is fairly simple, once you grasp the basics.
Hehe. I am a pianist and piano teacher by profession. One of my favourite sayings is this:

"Anybody can play a piano concerto once they know the notes."

Sadly, learning to play the notes takes a lifetime and is beyond the ability of most pianists. I suspect that many of us rookie forex traders have a similar problem.

So, here is how I score on the sd list - my answers in blue:

 

  1. Understanding of economics. Clueless. Not even a hint of understanding.
  2. Money management/leverage. MM, Ok. I mean, I can avoid taking trades with lot sizes that will kill the account. Leverage baffles me. When a broker/criminal offers me the choice, I go for the lowest available.
  3. Entering a trade for the sake of being in the market. Got this one ok. Definitely happier when not in any kind of trade at all, even though I know this means I am not making money. I am not losing it, either.
  4. Trading off of one timeframe only. Got this one too. Don't always pick the correct tf's, but am getting there.
  5. Trying to work off of multiple indicators. Definitely got this one. I hate systems that rely on on lots of pretty-coloured thingies lining up before a trade is triggered. Even though I am coding an EA for it and hope to go live with the robot eventually, this is my biggest objection to AshFX's system - too many pretty-coloured thingies needing to line up.

Cheers again scooby-doo. Don't stop, will you? I am gaining loads from your contributions here.

  • #979
  • Nov 1, 2009 3:37pm Nov 1, 2009 3:37pm
Quoting SteveHopwood
Hehe. I am a pianist and piano teacher by profession. One of my favourite sayings is this:

"Anybody can play a piano concerto once they know the notes."

Sadly, learning to play the notes takes a lifetime and is beyond the ability of most pianists. I suspect that many of us rookie forex traders have a similar problem.

So, here is how I score on the sd list - my answers in blue:
[list=1][*]Understanding of economics. Clueless. Not even a hint of understanding.[*]Money management/leverage. [color=blue]MM, Ok. I mean,...
No i wont stop helping if the concensus is that it is of some benefit. Although my day job means i cant post between 8.00am and 4.30pm GMT. I have to make money for others otherwise I wont get my quarterly bonus which I have already spent taking delivery of my new R8.

Once you understand (or try too) economics then the rest becomes very simple.

Anyhow, i will post and answer questions when i can.

Cheers.

PS. Be careful trading (with real money) JPY as their is some economic news in the early hours and like I mentiond my trading floor will be consolidating/liquidating around 18.4M positions at intervals during tomorrow prior to New York opening.
  • #980
  • Nov 1, 2009 3:56pm Nov 1, 2009 3:56pm
I am sure there is no one here would want to rob you of your R8. Enjoy.
Quoting scooby-doo
PS. Be careful trading (with real money) JPY as their is some economic news in the early hours and like I mentiond my trading floor will be consolidating/liquidating around 18.4M positions at intervals during tomorrow prior to New York opening.
Being a bit slow, it didn't occur to me to ask this earlier.

Why is your firm consolidating/liquidating large positions? What do you/your firm know that the rest of us have ignored or not noticed?

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