Pair Divergence Method | Page 44 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

What To Pair Divergence With? 14 replies

Divergence and hidden Divergence 122 replies

bo7a method... method for GBP/JPY 205 replies

Divergence method 11 replies

journal for pair divergence method 33 replies

Attachments: Pair Divergence Method
Exit Attachments

Pair Divergence Method

  • #861
  • Edited 9:36am Jan 13, 2010 9:22am | Edited 9:36am
E/U buy on the 15m triggered same time as the 60m, so I took the 15m trade to be in/out quicker. Covered with an opposite signal a short while later, for no gain/loss.

U/C sell 15 minutes after the cover was a winner.

I'm thinking about not letting lower time frame trades cancel out higher time frame trades. I'm also thinking about these "small crappy divergences" and not taking them. I'll look into both once I have all of 2008 tested (time goal: end of the month).
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusd_buy_201001131000.gif Size: 23 KB
Click to Enlarge Name: usdchf_sell_201001131115.gif Size: 22 KB
Hindsight is 20/20
  • #862
  • Jan 13, 2010 10:01am Jan 13, 2010 10:01am
I'm playing with a 200 SMA and RSI=2, OB=80, OS=20 in the 15TF and the 60TF for OB OS

and buying if above the 200 and OS or selling if below 200 and OB
  • #863
  • Jan 13, 2010 10:05am Jan 13, 2010 10:05am
Quoting dryclean
I'm playing with a ...
What does that have to do with this method? Are you only taking trades when divergences appear in that zone?
Hindsight is 20/20
  • #864
  • Jan 13, 2010 10:10am Jan 13, 2010 10:10am
When a chart is saying something like this

We are buying E/U because it made a higher low while U/C made a lower low. The E/U is showing strength, so we buy it.

I just want to confirm the sma and rsi are with me.

I said I was just playing with it not saying it is what should be done

Do you feel it has no relavance with this system?
  • #865
  • Jan 13, 2010 10:13am Jan 13, 2010 10:13am
I wasn't trying to imply anything, I just wanted more clarification in what you were suggesting, if you were suggesting something at all?

I like to keep things simple, so I prefer to keep indicators and filters at a minimum, unless they increase performance or reduce draw down without a doubt.
Hindsight is 20/20
  • #866
  • Jan 13, 2010 10:22am Jan 13, 2010 10:22am
for example in your last posted chart you would have done a U/C sell

If U/C was over the 200 SMA (trend up) and the RSI was OS<20(oversold already) I might look at it harder or pass on it and look for something better

I get your point about to many indi's and such a person gets thinking too much and everything becomes a mess

I'm just trying it out it may mean a lot of work for nothing
  • #867
  • Edited 8:24am Jan 14, 2010 7:58am | Edited 8:24am
U/C buy at the open of my "day" with questionably low SL (12 pips). Not sure if I would have increased that or what, due to high leverage.

E/U sell win
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usdchf_buy_201001140700.gif Size: 23 KB
Click to Enlarge Name: eurusd_sell_201001141215.gif Size: 23 KB
Hindsight is 20/20
  • #868
  • Jan 14, 2010 12:26pm Jan 14, 2010 12:26pm
U/C sell win after a little intra-trade drawdown
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf_sell_201001141530.gif Size: 21 KB
Hindsight is 20/20
  • #869
  • Jan 15, 2010 12:54pm Jan 15, 2010 12:54pm
U/C sell pittering into nothing...marking closed @ 1PM EST for break even, due to it being Friday, and that's when I'll probably close open positions and go to bed when I'm trading live.

Second sell marked, but would not be taken, no reason to double up on risk I don't think.

January stats so far: 10 W 8 L, average win being 1.0, average loss being 0.63.
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf_sell_201001151500.gif Size: 22 KB
Hindsight is 20/20
  • #870
  • Jan 17, 2010 9:25pm Jan 17, 2010 9:25pm
Quoting cosgrove
U/C sell pittering into nothing...marking closed @ 1PM EST for break even, due to it being Friday, and that's when I'll probably close open positions and go to bed when I'm trading live.

Second sell marked, but would not be taken, no reason to double up on risk I don't think.

January stats so far: 10 W 8 L, average win being 1.0, average loss being 0.63.
interesting
  • #871
  • Jan 18, 2010 8:54am Jan 18, 2010 8:54am
USD bank holiday today, so I wouldn't be taking trades (even though a few popped up).
Hindsight is 20/20
  • #872
  • Jan 20, 2010 10:44am Jan 20, 2010 10:44am
E/U buy loss on the 1h
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd_buy_201001201000.gif Size: 20 KB
Hindsight is 20/20
  • #873
  • Jan 20, 2010 11:47am Jan 20, 2010 11:47am
Sell E/U
Attached Image (click to enlarge)
Click to Enlarge Name: untitled.GIF Size: 36 KB
  • #874
  • Jan 24, 2010 11:08am Jan 24, 2010 11:08am
Has anyone done any testing in 2008 yet? I'm seeing negative expectancy for July and August, positive expectancy for September, October, November, December. I have yet to test earlier than that.
Hindsight is 20/20
  • #875
  • Jan 25, 2010 8:04am Jan 25, 2010 8:04am
I did some backtesting a while ago, forgot to post the results. I have backtested 1 May 2009 - 20 October 2009.

Max drawdown during the backtest period is 10%, reached on June 11th. P/L at the end of the backtesting period +30%.

Conclusion for the 6 month backtest period: Overall it is profitable, but there will be some negative months which can be frustrating.

Feel free to adjust initial capital and risk % per trade to suit your money management.
Attached File(s)
File Type: xls correlation_method.xls   37 KB | 607 downloads
  • #876
  • Jan 25, 2010 9:53am Jan 25, 2010 9:53am
Quoting artov
I did some backtesting a while ago, forgot to post the results. I have backtested 1 May 2009 - 20 October 2009.

Max drawdown during the backtest period is 10%, reached on June 11th. P/L at the end of the backtesting period +30%.

Conclusion for the 6 month backtest period: Overall it is profitable, but there will be some negative months which can be frustrating.

Feel free to adjust initial capital and risk % per trade to suit your money management.
Interesting stats, thanks a lot for sharing!
One Chart is Worth Ten Thousand Words.
  • #877
  • Jan 25, 2010 9:57am Jan 25, 2010 9:57am
Thanks for your post artov, I was just about to PM you. If you ever get into 2008, I would love to share notes.
Hindsight is 20/20
  • #878
  • Jan 25, 2010 10:27am Jan 25, 2010 10:27am
These backtests confirm what I concluded several months ago.
This is one of the rare mechanical systems that is profitable.
It may be the only one we'll ever see.

It is also one I would not trade. I would not trade a system that shows a negative month.

This method is a framework for a very profitable system. Anytime the basic method exceeds the expectation of random entries, it can be improved upon.

I'm open to suggestions, particularly from Cosgrove and Artov and Lucid, who have worked with it.
  • #879
  • Jan 25, 2010 11:10am Jan 25, 2010 11:10am
watching this system on 1m it looks profitable, maybe even more than in higher TFs. Reason i have ti believe in that: the time window to take benefit of the inneficience is small and trying on higher TFs the inefficience is gone.

the indicator don't make it easy to backtest, so did not do it. And the signals of the indicator/EA are not the same one should take using naked eyes.

but still a mechanical method wich works.
  • #880
  • Jan 25, 2010 11:20am Jan 25, 2010 11:20am
Quoting giraia_br
watching this system on 1m it looks profitable, maybe even more than in higher TFs. Reason i have ti believe in that: the time window to take benefit of the inneficience is small and trying on higher TFs the inefficience is gone.

the indicator don't make it easy to backtest, so did not do it. And the signals of the indicator/EA are not the same one should take using naked eyes.

but still a mechanical method wich works.

Thanks.
I invite suggestions from you, also.
This is something to look at.
0 traders viewing now