Thanks JR... I'll start a thread this weekend and it should be ready to go Monday or Tuesday next week. Not sure at this point what category to put it in. I just want to share and help other traders as well as learn from others along the way... I certainly don't know all the answers. I can just share with anyone who's interested what I've learned over the last 12 months. SEEMS LIKE EVERYONE HERE HAS MOVED ON. Please note that the fabulous information was developed by someone else originally. It definitely makes the pip's if it fits your trading times. Big E
I have been using Stochastic for a long time and it’s very well integrated in my trading system. Using it in hundreds of trades had showed some secrets (secrets that I’m not unwilling to share).
But the purpose of this thread is to make other traders who share my view, to unleash their discoveries and techniques on the stochastic.
The attachment contains my currently known and tested facts. (P.S. - updates will come periodically)
Waiting for feedback.
quite comprehensive observation. I am going to watch Stochastic for these. thanks for sharing
- #426
- Edited 4:39am Feb 1, 2011 3:59am | Edited 4:39am
- Joined Jul 2010 | Status: Determined | 5,346 Posts
Hey people
I use stochastics, but i mean its not a secret or anything super cool, i could sort of do the math in my head on the fly, integrate it into how i think, but its a bit easier to have it in the chart. So as Blacksun was saying, there is no super setting that will just fill your account in a jiffy, it all depends on what you are trying to glean from those old numbers we call "price".
I use it on M1, it doesnt much matter what settings i use on it, i see it sort of the same whichever setting im using. I also use CCI and a hwole bunch of MAs and envelopes and stuff. What it all comes down to is that im trying to read the probability of something working out. If im well rested and got my feelings under control it all works out just fine, and stochastic is a part of that, a pretty small part, maybe 10-20% of what i calculate on the fly for probability.
If you feel like watching the same Stoch as im using now try %k 8 % d 3 slowing 10, crucial levels at 80 and 20. So try that on e/u m1 and you will see that price at least has some aversion from staying at or beyond those levels. Add some slow MAs to figure out why its acting up sometimes, and voilá you can see something pretty cool happening.
I dont pay much attention to the stoch if its NOT at those crucial levels, if it is i look at the CCI and the rest if that seems to give me some indication and maybe i enter in the right direction, and maybe i win, or i loose, either way i wont blame my stochastic if im wrong.
So i mean mathematically indies is simply calculations, they are always right in such a way that the subtractions, additions and such is always spot on since its a computer that makes them. The computer does not however tell you when to buy/Sell, normally.
Philosophically and psychologically indies is a way of systematizing and presenting historical data on an more or less understandable manner to you, the trader.
I have about...let me see...30 indicators. Some time ago i saw them as separate calculations, i dont now, i see them as a complex system that i am trying to understand. Today im understanding it well, last tuesday not so (tuesdays are by far the worst days of the week to trade as i do), but thats just how the story goes. So i can almost "see" the channel that surrounds price, which i deem CCI in my indicator window, without looking at the CCI. The stochastic is a bit more difficult to "see", but eventually ill probably "see" that too. Maybe then ill remove them, hwo knows, i dont.
I have often encountered the opinion that "what ever works for you", in the context of how to systematize price, in other words the strategy is a personal thing. Well that opinion might be a bit to encompassing, here is why: What goes on in my account is not subject to opinion. I think deutsche bank would strongly object if i would call them and present a very different opinion of how much is in it, then what they thing is in it. Which means if two people trade the EXACT same way (with the same broker, same execution speed, same spread and so on), the exact same thing will happen in their accounts.
So that means the statement "What ever works for you" is problematic, in such a way that if something works for one person, it will work for another if it is the case that they are doing the exact same thing. However, people dont usually do the exact same thing. That means they are not using the same way of trading, not the same strategy so to speak. So that in turn must mean that if the statment "What ever works for you" is true, the statement "Trading a common strategy is a good idea" is a false statement, they cannot both be true. Learn from this what you want.
So thats todays exercise in applied Aristotelian logic, classed dismissed
I use stochastics, but i mean its not a secret or anything super cool, i could sort of do the math in my head on the fly, integrate it into how i think, but its a bit easier to have it in the chart. So as Blacksun was saying, there is no super setting that will just fill your account in a jiffy, it all depends on what you are trying to glean from those old numbers we call "price".
I use it on M1, it doesnt much matter what settings i use on it, i see it sort of the same whichever setting im using. I also use CCI and a hwole bunch of MAs and envelopes and stuff. What it all comes down to is that im trying to read the probability of something working out. If im well rested and got my feelings under control it all works out just fine, and stochastic is a part of that, a pretty small part, maybe 10-20% of what i calculate on the fly for probability.
If you feel like watching the same Stoch as im using now try %k 8 % d 3 slowing 10, crucial levels at 80 and 20. So try that on e/u m1 and you will see that price at least has some aversion from staying at or beyond those levels. Add some slow MAs to figure out why its acting up sometimes, and voilá you can see something pretty cool happening.
I dont pay much attention to the stoch if its NOT at those crucial levels, if it is i look at the CCI and the rest if that seems to give me some indication and maybe i enter in the right direction, and maybe i win, or i loose, either way i wont blame my stochastic if im wrong.
So i mean mathematically indies is simply calculations, they are always right in such a way that the subtractions, additions and such is always spot on since its a computer that makes them. The computer does not however tell you when to buy/Sell, normally.
Philosophically and psychologically indies is a way of systematizing and presenting historical data on an more or less understandable manner to you, the trader.
I have about...let me see...30 indicators. Some time ago i saw them as separate calculations, i dont now, i see them as a complex system that i am trying to understand. Today im understanding it well, last tuesday not so (tuesdays are by far the worst days of the week to trade as i do), but thats just how the story goes. So i can almost "see" the channel that surrounds price, which i deem CCI in my indicator window, without looking at the CCI. The stochastic is a bit more difficult to "see", but eventually ill probably "see" that too. Maybe then ill remove them, hwo knows, i dont.
I have often encountered the opinion that "what ever works for you", in the context of how to systematize price, in other words the strategy is a personal thing. Well that opinion might be a bit to encompassing, here is why: What goes on in my account is not subject to opinion. I think deutsche bank would strongly object if i would call them and present a very different opinion of how much is in it, then what they thing is in it. Which means if two people trade the EXACT same way (with the same broker, same execution speed, same spread and so on), the exact same thing will happen in their accounts.
So that means the statement "What ever works for you" is problematic, in such a way that if something works for one person, it will work for another if it is the case that they are doing the exact same thing. However, people dont usually do the exact same thing. That means they are not using the same way of trading, not the same strategy so to speak. So that in turn must mean that if the statment "What ever works for you" is true, the statement "Trading a common strategy is a good idea" is a false statement, they cannot both be true. Learn from this what you want.
So thats todays exercise in applied Aristotelian logic, classed dismissed
My signature is: "Classified".
- #431
- Mar 31, 2013 4:32am Mar 31, 2013 4:32am
- Joined Nov 2012 | Status: Account Deactivated | 2,737 Posts
The secret about stochastics is to throw that useless indicator in the garbage can.
Best advice in the entire thread.
- #434
- Mar 31, 2013 1:51pm Mar 31, 2013 1:51pm
- Joined Nov 2012 | Status: Account Deactivated | 2,737 Posts
It´s your newbie comment, that makes me laugh.
- #437
- Mar 31, 2013 4:27pm Mar 31, 2013 4:27pm
- Joined Nov 2012 | Status: Account Deactivated | 2,737 Posts
- #439
- Apr 1, 2013 6:52am Apr 1, 2013 6:52am
- Joined Jun 2009 | Status: Trader | 5,558 Posts
yes, I would be also curious what might that be? pls share if you know the top secret
im not using my computer at present so i cant post you the link to the original source and how the indicator is calculated but i will when im home.
in short its calculating the z score across multiple time frames and as price deviates away from the 0 mean always returning to the mean .the yellow line representing price .
