DTFD - Dot Trading for Dummies

Dot Trading for Dummies

My journal into the unpossible.

I was once told, that wealth can only be achieved through extreme dedication and hard work. No luck involved. I have since built my life around this idea...

Excuse me, will be back shortly - have to go check the lotto numbers....

I have always been an "indicator" type. I know they lag. I know. I know.I know.. yet, I enjoy trading them.The core of the way I trade, is represented by Dots. These are MA cross type dots. With the regular problems...but once you get to know them, they do offer small windows of opportunity.

The aim will be a modest 30 pips per day - gathered from 1 pair, or 3 pairs. I am trading GBP/USD, EUR/USD and EUR/JPY.

But tell you what - if one can sort out the general direction upfront, these dots are gold. So - join me as an observer, as I attempt to actually make some profits trading.

The nice thing about these dots, are the fact that they will, at times, also present a good exit, should you get the general direction right - and i know a lot of us are battling in this department. I invite you to join in. Young and old - to see who can find/build the ultimate system with these dots as the core. I use cycles to assist, but these I can not share.

Welcome to Dot Trading for Dummies.

PS - I will post the dotties a bit later...

Regards

Here is the basic framework.

The chart indicates the primary dots plotted on the chart. Red for possible down move, Blue for possible upmove.

The thing with MA crosses is this...

You always have to sacrifice something. Either too many crosses, with a lot of falsies ( false signals), or major "overshoot" - less crosses, but WAY too late.

I have read many posts where traders are using MA's of different settings. These are used as guides to determine entries / exits. Some traders will enter on bounces, some on crosses - some will use a spesific MA to determine general direction.... Enter long above / short below.

Here is the deal...

Moving averages are indicators too. So - PA creates these. They never lead, they follow. The fact that price goes and stall at one of these, is coincidental. If one looks closely, it is rather a spesific price level that has stalled price. The MA happened to be there. BUT - they are excellent tools - probably some of the very best indicators you will find.

Enough about that.

More to follow, as well as the indicators to load..

Cheers

My Brother!!

So glad to see you start this sir! I will watch very closely and who knows, maybe even be able to contribute some of my nonsense...LOL

This will be fun!

OK - now we get funky.

A few changes to the input parameters of the same indicator set, will give us the "secondary" dots. At times, good for a pre-warning, and as exits. But only at times.

These are bugged by the same ghosts normally found with the MA type cross indicators. But I still find these useful. They are marked on the chart. ( light blue for long/ short exit)( Funny reddish color for short / long exit)

The actual indicator set to follow shortly...

Good day to you, Sir

Sooo happy you popped in.

Maybe you can contribute the proper ingredients to make this a probable winner. I expect nothing less than 80% from you...

Have a good one, Biker MAN

My highest regards

I will watch and learn what you do (might need those DOTS too I guess) at which point I'd be happy to move along with you buddy.

But 80%....Ummm.... ...maybe I'll keep quiet for a while... ...LOL

Good day to you,

Ok - herewith the base set of indicators.

All goes into your indicator folder.

Again, you need to know the following:

 

1. Grail? No
2. Of any value then? - You betcha
3. These are attemptng a balance between too many cross signals, and overshoot.
4. Do they repaint? - not really - they re-calculate - this entails that a kneejerk move in the opposite direction may see a signal disappear - but this is nothing new to MA crosses.
5. Do they move around? - not really - they re-calculate - this entails that a dot may move back one bar, should the move in the intended direction be strong - but this is not a concern, as this is good..

The primary dots - the ones we are most concerned over, are set as follows:

Once all indis are in the "indicators" folder, you only need to attach the Taucross to your chart. Better on 30min and above. When you observe the "inputs" section, you will leave all as is, except changing the following:

 

1. T3 period from 14 to 28
2. Snake_Halfcycle from 5 to 10
3. The rest stays the same.

Under the "colors" tab, increase the ratio from 1 to 3.

Done.

To place the secondary dots, you attach for a second time the Taucross. This time, you leave all as is. Thus T3 period remains @ 14 and Snake_Halfcycle remains @ 5. Just change the colors to a ligher shade of each, so it is visibly different.

Now - start working on determining the actual direction, and post some solutions.

I will add to this later..

Regards and keep well

I have them, placed and set as you indicated (just the primary) but see no dots. I do get the alerts.

Have I missed something?

BINGO!!

Great!

Now observe....

Regards

OK, so these recalculate at the end of the TF session?

I have replaced the T3 clean indicator in the original post - all should be fine now.

Gentlemen / Ladies - start your engines.

I will now start posting trades as I take them. Aiming for a mere 30 pips per day. Play with the Dots - all welcome. Should you find a good directional setup to enhance the dots, please share.

This is all open. Free discussion.

Regards and wish you all success

Good day to you,

Just keep these on your charts for a while, and watch them. They appear instantly. Even whilst a bar is still forming. The only time they will move:

 

1. A strong reversal following the dot printed
2. A strong move in the signalled direction - moves back one bar.

They will not appear and then disappear within the same bar - or the following bar, unless one of the above conditions are met.
Just use these as an additional aid to your current system for a start.

Hope this assists

Good day to you,

I include a link to my favourite band - truly Cape Town inc..



Also a little chart of my EUR/JPY dot trade

Regards

Good day to you.

I see a lot of interest.

I am proud of my Capetonian decent...

I include a rap song by the same band - common people we are...

Enjoy



Regards

Good day,

Another example. Closing now. Secondary blue dot received - exit. Banked profit.

Regards

Tau!!! How are ya??!!

I am glad to see you started a thread. Very interesting! I hope you keep posting your results, I have always been curious about your cycles work.

It's also nice to see you add some flavor to the thread, not the usual dry stuff that I see so often!

Good day to you, Sir

Wow - what a pleasure to have you pop in!

Thank you for your wishes! Now add these dots to your trading system, and help us out here... I know you WANNA!

Please come by often. Really!

Regards to you

Good day to you,

Now closing GU short... I was hoping for a dot, so I could tell you all how wonderful this is...

Truth be told, the GU was added due to correlation with EUR/USD - no more, no less. Gamble..

Closing for an additional +39

Have a good evening

See tomorrow

I already have it loaded on my trading chart. I will post a chart on my next trade I take. I've been short on e/g for a week. lol

I will miss ny/uk overlap tomorrow but I will be around later!!

Meantime, I will scratch my mind and see how it compliments my favorite macd!