Attachments: ALF/TVI - Simple, effective daytrading

ALF/TVI - Simple, effective daytrading

#241
Apr 6, 2010 8:27am Apr 6, 2010 8:27am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

Quoting PipsUser

Disliked

Hi Lou,

How do you apply the stop loss? Do you use trailing stop loss?
Any insight would be good.

Regards,
Anjani Singh

Ignored

20 pip stop. Near ALF is also good depending on the distance between ALF/PA. Longer TF may require larger stop - use your judgement.

Old Benjamin was right

#242
Apr 6, 2010 8:31am Apr 6, 2010 8:31am

PipsUser
| Joined Mar 2010 | Status: Trader | 32 Posts

Thanks a lot. This has helped me and made me some more wise. I will apply this in upcoming trade oppertunity.

Quoting Lou G

Disliked

20 pip stop. Near ALF is also good depending on the distance between ALF/PA. Longer TF may require larger stop - use your judgement.

Ignored

#243
Apr 6, 2010 8:32am Apr 6, 2010 8:32am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

Quoting Soondoock

Disliked

I had a lot of losers with flat one. The only way for me then to look at M5 for earlier confirmation

Ignored

When PA moves definitively through ALF the slope will not begin immediately - I jump into these and don't wait for slope. If the move is more gradual it's better to wait for slope change.

I hate to keep using the phrase "develop a feel" but if you put in the screen time (either live or careful visual backtest) you will get it. Basic pattern recognition is the key.

Old Benjamin was right

#244
Apr 6, 2010 8:37am Apr 6, 2010 8:37am

PipsUser
| Joined Mar 2010 | Status: Trader | 32 Posts

Is it possible to create EA out of this? Have you attempted to do so?

Quoting Lou G

Disliked

When PA moves definitively through ALF the slope will not begin immediately - I jump into these and don't wait for slope. If the move is more gradual it's better to wait for slope change.

I hate to keep using the phrase "develop a feel" but if you put in the screen time (either live or careful visual backtest) you will get it. Basic pattern recognition is the key.

Ignored

#245
Apr 6, 2010 8:40am Apr 6, 2010 8:40am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

Quoting Soondoock

Disliked

Hello,
Lou G, you stole my trade (joking).
Attachment

Ignored

Yes, exactly - all should have seen this. Pattern recognition, screen time, don't overtrade, cultivate patience to wait for the market to move.

Old Benjamin was right

#246
Apr 6, 2010 8:42am Apr 6, 2010 8:42am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

Quoting PipsUser

Disliked

Is it possible to create EA out of this? Have you attempted to do so?

Ignored

In my early years in Forex I wrote probably 50 or more EAs - the "feel" I keep mentioning can't be programmed (or at least not by me)

Old Benjamin was right

#247
Apr 6, 2010 8:46am Apr 6, 2010 8:46am

KPForex
| Joined Dec 2009 | Status: Trader | 241 Posts

ya, i tink looking back to M5 for confirmation do help

Quoting Soondoock

Disliked

I had a lot of losers with flat one. The only way for me then to look at M5 for earlier confirmation

Ignored

#248
Apr 6, 2010 8:47am Apr 6, 2010 8:47am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

I've had 13 wins, 2 losses since the inception of this thread (all charts posted here) and others have also posted successful trades.

I don't expect to continue at an 87% hit rate forever (but it's been fun). Take the time to look at the posted charts and see what they have in common.

Old Benjamin was right

#249
Apr 6, 2010 8:52am Apr 6, 2010 8:52am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

I won't take this (at least not yet). I think it's a retracement - but I could be wrong.

Attached Image

Old Benjamin was right

#250
Apr 6, 2010 9:02am Apr 6, 2010 9:02am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

Quoting Soondoock

Disliked

But I agree with Lou G, by the way I read the book by William Blau and about TVI. In his book he uses 32, 32, 5 settings and zero cross as a basic signal.

Ignored

I think Mr. Blau is primarily an equities trader (or a position trader) but I like his indicators - they need to be fiddled with for use in shorter TFs.

Old Benjamin was right

#251
Apr 6, 2010 9:14am Apr 6, 2010 9:14am

Soondoock
| Joined May 2009 | Status: Trader | 233 Posts

Quoting KPForex

Disliked

ya, i tink looking back to M5 for confirmation do help

Ignored

Here is what I see. The TVI was red, so no buy.
Also I tried GU but it seems that this strategy works best with EU.
Lou G, sorry If I bothering in your thread.

Attached Image (click to enlarge)

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The Road appears under the steps of walking men...

#252
Apr 6, 2010 9:24am Apr 6, 2010 9:24am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

Quoting Soondoock

Disliked

Here is what I see. The TVI was red, so no buy.
Also I tried GU but it seems that this strategy works best with EU.
Lou G, sorry If I bothering in your thread.
Attachment

Ignored

You're not bothering anyone. I believe there are some here who trade GU successfully so that's not the problem - I don't see a "definitive move" of PA through ALF in your chart so probably not a good time to trade in either direction...

Old Benjamin was right

#253
Apr 6, 2010 9:26am Apr 6, 2010 9:26am

KPForex
| Joined Dec 2009 | Status: Trader | 241 Posts

Quoting Soondoock

Disliked

Here is what I see. The TVI was red, so no buy.
Also I tried GU but it seems that this strategy works best with EU.
Lou G, sorry If I bothering in your thread.
Attachment

Ignored

i enter the one candle before that and TVI was showing green and hence i thought can be a good buy...

so all of you used it on EU only?

#254
Apr 6, 2010 9:32am Apr 6, 2010 9:32am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

Quoting KPForex

Disliked

i enter the one candle before that and TVI was showing green and hence i thought can be a good buy...

so all of you used it on EU only?

Ignored

Look back about 20 bars - there was a "definitive move" down through ALF that looks like it was good for a decent profit. That's the pattern to look for.

I did some visual backtesting on GU and EY over last weekend - looks good on those as well. WAIT for a good signal...

Old Benjamin was right

#255
Apr 6, 2010 9:38am Apr 6, 2010 9:38am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

Still could be a retracement on a longer TF but a flat ALF is bisecting PA so no trade.

Also, coming to London close soon - I personally won't trade after that unless a good trend is in progress. That is not the case at this time but I will watch for another hour (screen time!).

Old Benjamin was right

#256
Apr 6, 2010 9:40am Apr 6, 2010 9:40am

KPForex
| Joined Dec 2009 | Status: Trader | 241 Posts

now is still quite flat..

dont know would there be any movement after FOMC meeting...

#257
Apr 6, 2010 9:51am Apr 6, 2010 9:51am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

Those of you who are uncertain about the whole "feel" and pattern recognition component should try this...

http://www.forexfactory.com/showpost...&postcount=207

Old Benjamin was right

#258
Edited 10:01am Apr 6, 2010 10:00am | Edited 10:01am

Lou G
| Joined May 2006 | Status: Only one user name... | 1,367 Posts

Some may fear entering after that "definitive move" - see the example below. This is not a trade I took but a good example. Had you sold at the point indicated, PA never went more than 10 pips against you and resulted in a very good profit.

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