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The Dragon

  • #121
  • Feb 14, 2010 4:59am Feb 14, 2010 4:59am
Good day am really enjoying this system but please can you really come down a bit for us newbies to understand and comprehend we beg U
  • #122
  • Feb 14, 2010 11:45am Feb 14, 2010 11:45am
Hi Jiva,

I attached a different version of a similar indicator. I don't know how it works but it seems to know when the trend is changing by planting a large dot and then the following smaller dots/lines follow the price. Pretty neat - I think a little more accurately then the Volty Channel.

I think Matrix modified it to his liking.

Jim (MrChips)
Attached File(s)
File Type: ex4 Matrix VCS.ex4   8 KB | 417 downloads
Jim (MrChips)
  • #123
  • Feb 15, 2010 1:49am Feb 15, 2010 1:49am
Quoting Namco
Good day am really enjoying this system but please can you really come down a bit for us newbies to understand and comprehend we beg U
Hi,
Happy to hear you might be getting something.
I can try to explain and share whatever.
What specifically?
jiva34
  • #124
  • Feb 15, 2010 1:50am Feb 15, 2010 1:50am
Quoting MrChips
Hi Jiva,

I attached a different version of a similar indicator. I don't know how it works but it seems to know when the trend is changing by planting a large dot and then the following smaller dots/lines follow the price. Pretty neat - I think a little more accurately then the Volty Channel.

I think Matrix modified it to his liking.

Jim (MrChips)
will give it a try.
Thanks...
  • #125
  • Feb 15, 2010 4:01am Feb 15, 2010 4:01am
Here's the kind of set up I like to find.
I saw this set up but I did not take this trade because China is closed all week and US is a holiday all day.I just don't like to trade on strange days like these. Sometime trading is thin or sporadic. There is no data release.
I don't usually trade on Fridays. And after 12 noon New York...
Frankfurt open is good, London is good. US is good, Sometimes Hong Kong or Tokyo opens if my schedule allows.

What I look for is as many time frames to agree as possible.
I watch the 1min. Macd was crossing and on the 5min macd was crossing at the same time from high above the zero line. All the indies were in agreement.
I really like to see whent he 15 min also agrees. And if the 30 is tending in the same way then most likely it is top (vice versa for bottoms) and good be good for a nice intermediate reversal.

I keep an eye on the higher time frames also.
But the 1m, 5m and 15 in agreement is enough to enter for at least a scalp, 10 or more pips.

pivots and 200 ema need to be watched.
On the 5m the dragon was leaving the 200 ema while on the 1m he was heading back to it.

zooming out (not shown) shows that trading is range bound, so the move would not be a big swooping one, just a little dip.

the 15 (not shown) was not in agreement but rather showed a strong tendency upward.

I might have taken a short entry here for the scalp, but really I like to see the 15m in agreement also....
Attached Image (click to enlarge)
Click to Enlarge Name: 2.gif Size: 52 KB
  • #126
  • Feb 16, 2010 2:10am Feb 16, 2010 2:10am
Jiva I DO see your point of view, and I think that a trading system must be suited to the trader, and the trader must be comfortable with what is giving him entry and exit signals. So it's all down to personal preference.

I think I read a reply on here that said mechanical principles will not make consistent profit?

600 pips in 5 days

329 this week and it's not finished yet, I am confident in saying that mechanical systems ARE profitable =]

Again, I believe it's down to preference.

Last note, Jiva I have just realized, our systems are similar in the "dragon" sense, I do not use as many indicators as you, but they are in fact similar =p

I will post a screen shot+my methodology as to why they are similar, soon =]
  • #127
  • Feb 17, 2010 1:01am Feb 17, 2010 1:01am
Quoting Xivali
Jiva I DO see your point of view, and I think that a trading system must be suited to the trader, and the trader must be comfortable with what is giving him entry and exit signals. So it's all down to personal preference.

I think I read a reply on here that said mechanical principles will not make consistent profit?

600 pips in 5 days

329 this week and it's not finished yet, I am confident in saying that mechanical systems ARE profitable =]

Again, I believe it's down to preference.

Last note, Jiva I have just realized, our systems are similar...
Yes please do. That's what these forums are all about. Will keep an eye out for your post.
  • #128
  • Feb 18, 2010 1:09am Feb 18, 2010 1:09am
RE:Mechanical systems

Yes I have to agree the more mechanical a ssytem can be the better. Automation...
Yes discipline is what makes it successful.
But profitable isn't enough.
We get bored very easily.
So it should also be a little fun.
Not just making money. But enjoyable at the same time.
Hence to make friends with the dragon...
  • #129
  • Feb 18, 2010 1:13am Feb 18, 2010 1:13am
always looking how to refine the system.
am using a color OSMA with custom settings.
helps to define the trend and locate significant trend changes.
setting stop above or below swings on the time frame being trades.
here it is the 15 m has the main stops and targets
but the 1 min is looked to for swing entries and exits.
Attached Image (click to enlarge)
Click to Enlarge Name: 2.gif Size: 40 KB
Attached File(s)
File Type: mq4 OsMA Color2.mq4   5 KB | 379 downloads
File Type: ex4 OsMA Color2.ex4   5 KB | 342 downloads
  • #130
  • Feb 18, 2010 1:57am Feb 18, 2010 1:57am
Right so here's my system in brief.

I utilize a pair of 50 period simple moving averages of the high & low.
These then create my channel.

This channel is where I see the similarities in our systems.

I then wait for a candle to open and close below/above the lower/upper channel band.

If a candle opens and closes below the lower band, that is my signal for a short (sell).

If at any point in time the candle closes back within the channel, I exit my position.


I use various Fibonacci points where I move my stop loss to/from.
The only times I exit my position without question is either at the 423 Fib, or the close within the channel.

I'll give you an example of a trade I took:
Attached Image(s) (click to enlarge)
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  • #131
  • Feb 18, 2010 1:59am Feb 18, 2010 1:59am
Apologies for the poor image quality,

I'm not sure why it did that, possibly because the actual images were too large and the upload re sized them.
  • #132
  • Feb 18, 2010 11:05pm Feb 18, 2010 11:05pm
Quoting Xivali
Apologies for the poor image quality,

I'm not sure why it did that, possibly because the actual images were too large and the upload re sized them.
simple is beautiful...

You are comfortable with holding for a long period of time.
I like lots of short trades. In and out a million times as it moves.
Yeah, I know my broker loves me..
But I can take advantage of the swings that more than makes up for the fees.

I appreciate your sharing your strategy. I will be familiarizing myself with it a bit.

Like I say simple is beautiful. Especially if it working....
  • #133
  • Feb 18, 2010 11:18pm Feb 18, 2010 11:18pm
I found a fatal flaw in my strategy. I was not careful about the exit strategy.
I was following the dragon to find entries and trading large positions and exiting quickly. Big gains in a few minutes. That was great as long I was right every time. Kind of like "all or nothing". It works a lot of the time but when it doesn't- out of business.
I knew it was a fatal weak spot but was not forced to do something about it until.... Casey lowered the boom..
I have come out of the disaster a lot better for it.
Not only have I dealt with the stop issue, but now also my entries are much better.
Surrendering to using stops is one of those hurdles that must be dealt with in order to actually be successful in trading.
Another one of those psychological issues.
It's celebration time. I have met the enemy and it is me. I have conquered my lower self, the one with the bad habit and stubborn denial, by the strength of the higher self, the one with knowledge and intelligence.
Failure is the pillar of success, someone famous once said.
The template has been tweaked.
By putting both the dss and the macd in the same window some very interesting patterns can be seen in the relationship between them.
And adding the OSMA (40,50,100) the longer term trending can be seen easily at a glance.
Great for scalping.
will discuss stops next.
Attached Image (click to enlarge)
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  • #134
  • Feb 18, 2010 11:35pm Feb 18, 2010 11:35pm
Quoting Xivali
Right so here's my system in brief.

I utilize a pair of 50 period simple moving averages of the high & low.
These then create my channel.

This channel is where I see the similarities in our systems.

I then wait for a candle to open and close below/above the lower/upper channel band.

If a candle opens and closes below the lower band, that is my signal for a short (sell).

If at any point in time the candle closes back within the channel, I exit my position.


I use various Fibonacci points where I move my stop loss...

Is that a ziz zag ind?
Looks simple enought. I don't like a lot of indicators on the screen either. Gets me confused
  • #135
  • Feb 18, 2010 11:40pm Feb 18, 2010 11:40pm
The xpma and the 8 ema have been removed.
The ashi candles define the trend without their use. That is the added benefit of the ashi candles.
I keep the 1m which is where I trade, the 5m and the 15m all open at the same time. 3 computers. 2 dinosaurs that basically only keep mtv4 running and my main system. I like to watch all the time frames to get a feel for the general direction things are going in.
I look for macd divergences. and especially watch dss for oversold and overbought.
I don't mean to be impersonal in describing the dragon. This just something like anatomy class..
http://t3.gstatic.com/images?q=tbn:n...8_f51e18c8.jpg
Attached Image (click to enlarge)
Click to Enlarge Name: 2.gif Size: 25 KB
  • #136
  • Feb 18, 2010 11:54pm Feb 18, 2010 11:54pm
Yes the screenshot is pretty bad. It has to be zoomed in to see the second channel, the dark blue one...
  • #137
  • Feb 19, 2010 12:48am Feb 19, 2010 12:48am
Jiva, I have tried adding the Macd lines on the DSS but I don't know if you noticed already, the Macd lines shift vertically when you scroll the chart. After the fact, they look perfect but are actually misleading unless in a separate panel.
I am using a Stochs 30,9,9 (just the main line) on top of my DSS 10/60 on the 1m chart. Less clutter. I find faster Stochs like 14,3,3 confusing and misleading as well. They are better with higher timeframe charts. This one catches the bigger moves and is great with divergence, both by itself and with DSS.
On my chart I have 200 EMA(pink), 200 LWMA(purple) with bands 1, 2 and 3, 10LWMA,shift 3(yellow)
I also discovered a great strength tool called the currecy strength meter that no one should trade without.
Here is the link : http://www.currencystrengthmeter.com/
Thanks to Henry Liu for making this unbeliavable tool available free.
I would like to master the use of DSS because I think it is one of the best indicators ever.
Attached Image (click to enlarge)
Click to Enlarge Name: gu 1m.gif Size: 20 KB
  • #138
  • Feb 19, 2010 2:25am Feb 19, 2010 2:25am
Quoting okfx
Jiva, I have tried adding the Macd lines on the DSS but I don't know if you noticed already, the Macd lines shift vertically when you scroll the chart. After the fact, they look perfect but are actually misleading unless in a separate panel.
I am using a Stochs 30,9,9 (just the main line) on top of my DSS 10/60 on the 1m chart. Less clutter. I find faster Stochs like 14,3,3 confusing and misleading as well. They are better with higher timeframe charts. This one catches the bigger moves and is great with divergence, both by itself and with DSS.
On...
I agree about dss. It's a gem. So easy to look at. It's really just a conventional stochastic but instead of lines crossing it is the dots changing colors. Really nice.
will play around a bit with dss settings you suggest.
About the macd shifting up and down when plotted along with dss. I think there may be a way to even use that. I see it but it doesn't confuse me somehow (probably because I'm already confused so I don't notice the difference...) I've just started using them in the same window and am working on trying to identify how their interaction in the window may help for signals. the vertical shifting could be part of it. It will take some time and lots of practicing to know for sure.
Thanks also for the the strength meter I will definitely look into that.
Will have time this weekend to explore and experiment.
Your template looks good. Like it catches some nice entries.
Hope you are enjoying this great trading adventure as much I am. Part sport, part science, part investment and a lot of self development...
Who says there is no such thing as dragons!!!

http://t3.gstatic.com/images?q=tbn:g...%2520large.jpg
  • #139
  • Feb 19, 2010 2:54am Feb 19, 2010 2:54am
Yes, fx trading is my career, hobby, passion, etc. It is really an adventure. And I absolutely agree on the confusion part. After trying out >1000 MT4 indicators (I am relatively new to MT4), I have decided to adopt the KISS style. That is why I like the DSS so much. It is plain and simple, no intertwining lines that keep quivering in real time.
For me, the other real gem is the currency meter. Definitely incorporate it in your trading. Its best help is that it keeps you out of bad countertrend trades.
I am looking forward to your input on the DSS.
  • #140
  • Feb 19, 2010 3:39am Feb 19, 2010 3:39am
nice little scalp
(am at work hoping the the phone doesn't ring, you know my desire... no more work, only trade... that to be my work... doing something I love)
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