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Trade the Slope System

  • #401
  • Apr 4, 2010 6:51am Apr 4, 2010 6:51am
Quoting gerald20000
Can you repeat what the indicator value you are using and which tf as main? Do you use those S&R indicator posted? Can you show us a screenshoot? Just too many post and unsure which is good and not. Thanks in advance.
For swings I mainly use the H1 tf, with the regular 80 period setting. For position trading of course the D1 tf. I don't really use S&R indicator, I don't think it is required, just by browsing the H4 and H1 charts it is easy to spot those.

Regards
  • #402
  • Apr 4, 2010 6:51am Apr 4, 2010 6:51am
I have been using a variation of this system for some time now. It is a pretty decent system, I really do like the slope directional line as to how PA relates with it. Works really well on a M1 TF..... for me at least. I will read through this thread to see if there are any neat ideas I can incorporate with my way of trading the slope.

Lohad
  • #403
  • Apr 4, 2010 10:13am Apr 4, 2010 10:13am
Quoting lohad
I have been using a variation of this system for some time now. It is a pretty decent system, I really do like the slope directional line as to how PA relates with it. Works really well on a M1 TF..... for me at least. I will read through this thread to see if there are any neat ideas I can incorporate with my way of trading the slope.

Lohad
Could you please tell me how you trade the1M TF. Which other TF's do you use?
I m trying to trade the 1M with the Slope. But it works only with tight targets and big stops. So RR is terrible.
I m not able to manage trading the slope with better RR.

Thank you and nice eastern to all!
  • #404
  • Apr 5, 2010 4:45am Apr 5, 2010 4:45am
This is the only way I trade and I like it.
I trade the daily only so have daily, 4H and 1H slope lines on my daily chart and wait for them to all be the same color. I don't have the courage yet to let my trades run till get a signal in the opposite direction so usually close too early with 50 to 100 pips. It's working so far but will keep you updated.
  • #405
  • Apr 5, 2010 3:54pm Apr 5, 2010 3:54pm
hey all,

Slope fan here, anyone know of a good s/r indicator to use with this? I have been freehanding for awhile now, it's time to nail this down a little further...
  • #406
  • Apr 6, 2010 5:33am Apr 6, 2010 5:33am
Quoting Lyall
This is the only way I trade and I like it.
I trade the daily only so have daily, 4H and 1H slope lines on my daily chart and wait for them to all be the same color. I don't have the courage yet to let my trades run till get a signal in the opposite direction so usually close too early with 50 to 100 pips. It's working so far but will keep you updated.

Do you trade the change of the slope line on one timeframe and check the other TF if they are in agreement? or do you enter everytime they are all the same color?
  • #407
  • Apr 6, 2010 5:31pm Apr 6, 2010 5:31pm
can someone let me know what the input settings stand for in the Slope Direction Line indicator.

I just can't find any reference to them anywhere.

thanks
  • #408
  • Apr 7, 2010 12:03am Apr 7, 2010 12:03am
Quoting jokoko
can someone let me know what the input settings stand for in the Slope Direction Line indicator.

I just can't find any reference to them anywhere.

thanks
depends on you! Try out what works best!

I think the most are using the default settings, but if you read the thread you'll also find period=12 as setting. The other inputs are the default.
  • #409
  • Apr 8, 2010 11:45pm Apr 8, 2010 11:45pm
Quoting Seikilos
Do you trade the change of the slope line on one timeframe and check the other TF if they are in agreement? or do you enter everytime they are all the same color?
They have to be all the same and for the daily to be sure it won't repaint I wait another day or two.
  • #410
  • Apr 9, 2010 12:49am Apr 9, 2010 12:49am
If you want to be more aggressive on the entry you can wait until the value shown for the slope under the data section on the left hand side of the screen is the same on the close for the previous two bars. This indicates the slope is leveling off, meaning a turn around is coming.

This tends to work on the mid time frames (M30, H1, H4) best
  • #411
  • May 31, 2010 3:10am May 31, 2010 3:10am
Hey all, Iv been trading with the slope recently, found that matching 4hr 30min 15min and 5min gives pretty good entry prices however exiting is the problem.

Any one care to share how they exit or suggestions?

Lots of potential here.
  • #412
  • Jul 1, 2010 5:56pm Jul 1, 2010 5:56pm
Quoting Seikilos
depends on you! Try out what works best!

I think the most are using the default settings, but if you read the thread you'll also find period=12 as setting. The other inputs are the default.
I use a period setting of 800 and a method of 1 on the 4H.. 300 and 1 on D1 .. Depends on what you are looking for.. I hate whipsaws so I go big and expect drawdown.
  • #413
  • Jul 3, 2010 1:37am Jul 3, 2010 1:37am
Hello!

This looks like a very nice system, which I will start demoing very soon.

I have been having a fiddle with Ronald Raygun's eas, but can't get them to perform well (at all) in backtesting. I know that MT4 backtests are not perfect, but...

Has anyone had success with the ea? Can you share your settings / pair(s)

Thanks in advance
Charlie
  • #414
  • Jul 5, 2010 4:39pm Jul 5, 2010 4:39pm
Quoting FokkerCharli
Hello!

This looks like a very nice system, which I will start demoing very soon.

I have been having a fiddle with Ronald Raygun's eas, but can't get them to perform well (at all) in backtesting. I know that MT4 backtests are not perfect, but...

Has anyone had success with the ea? Can you share your settings / pair(s)

Thanks in advance
Charlie
I don't see any possible way for this system or an ea of this system to work in a static context. In range, just like all other systems, it will take back the pips because by the time the slope flips, you will have already taken a beating for the oh sh$t bar (the trend breaker).

One filter you may consider is trading this when the longer term slopes are already trending and the shortest term has just flipped. If the long term slope signal is the last to flip, you're going to lose pips usually.

Charlie, my advice would be to try to dissect a system, find out why it works, what scenarios are giving back money and why. You'll drive yourself to the brink of insanity, but the reward will be successful trading.

Ask James16, ask Nial fuller, ask Mr. Charts from T2W, ask Tro, any of the trading rockstars that are nice enough to still post on boards to help aspiring traders. All of these guys have systems but it's their hard work and knowledge of trading that makes them able to trade successfully.

They all teach that it takes more than just a system and it is absolutely right. Slope lines alone aren't a holy grail. But they can be, if you find a unique way to use them that fits your style.
  • #415
  • Jul 8, 2010 11:13am Jul 8, 2010 11:13am
Quoting MrCBee
Hey all, Iv been trading with the slope recently, found that matching 4hr 30min 15min and 5min gives pretty good entry prices however exiting is the problem.

Any one care to share how they exit or suggestions?

Lots of potential here.
I place Bill Williams Alligator on the PA, When Red/Green Cross I exit
  • #416
  • Jul 9, 2010 12:46am Jul 9, 2010 12:46am
Quoting pmacbrian
I place Bill Williams Alligator on the PA, When Red/Green Cross I exit
On which time frame?
  • #417
  • Jul 10, 2010 11:11am Jul 10, 2010 11:11am
Quoting BlueBull
On which time frame?
I use the H1 and 30M to warn me about a change in 4H. When I see the cross of Red and Green in alligator it usually heralds a change in the slope. I trade the 4H.
I use the Fractals and Wiseman 2 as add on entries .. usually .1 only enter in direction of Slope.. close when slope changes
Something I have been working on for awhile as the Williams Wise 1 entry sucks
My setup so far is:
D1
SDL 300
SDL 20
Alligator
Fractals
Wiseman 2
H4
SDL 800
SDL 200
Alligator
Fractals
Wiseman 2
H1
SDL 800
Alligator
Fractals
Wiseman 2
M30
SDL 800
Alligator
Fractals
Wiseman 2
  • #418
  • Sep 23, 2010 1:37pm Sep 23, 2010 1:37pm
Waiting for the H1 and M30 slope line on the yen to turn. Maybe in Tokyo session?
  • #419
  • Sep 23, 2010 1:44pm Sep 23, 2010 1:44pm
"Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative.

The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat." - P64 "HOW WE DECIDE"


What I realized was all conventional trading wisdom is "wrong".

I have distilled trading into the following:

ALL YOU NEED TO KNOW ABOUT TRADING

 

  1. Price either goes up or down.
  2. No one knows what will happen next.
  3. Keep losses small and let winners run.
  4. POSITION SIZE = RISK / STOP LOSS
  5. The reason you entered has no bearing on the outcome of your trade.
  6. You can control the size of your loss (skill) but you can't control the size of your win (luck).
  7. You need to know when to pick up your chips and cash them in.

Expectancy = (Probability of Win * Average Win) - (Probability of Loss * Average Loss)
You can not control the probabilities of wining or losing.
You can not control your average win size.
The only part of the equation of the equation that you can control is your average loss size.



THE ILLUSION OF CONTROL


"Individuals appear hard-wired to overattribute success to skill, and to underestimate the role of chance, when both are in fact present."

[Langer, E. J., The Illusion of Control, Journal of Personality and
Social Psychology 32 (2), 311-328 (1975)]

FINANCIAL MANAGEMENT


"After a full cycle of rise and fall after which stocks were valued just where they were at the start, all his clients lost money (Don Guyon, 1909).

Many academic works suggest that most managers underperform "buy-and-hold" strategy; persistence of winners is very rare, etc.

Most funds consistently fail to overperform random strategies (dart throwing)."


OVER-OPTIMIZATION

Rats beat humans in simple games

People makes STORIES!

"Normal people have an "interpreter" in their left brain that takes all the random, contradictory details of whatever they are doing or remembering at the moment, and smoothes everything in one coherent story. If there are details that do not fit, they are edited out or revised!"

(T. Grandin and C. Johnson, Animals in translation (Scribner,
New York, 2005)


PDF here

The rat will beat you if you do not understand this.

  • #420
  • Sep 23, 2010 9:00pm Sep 23, 2010 9:00pm
Long @ 84.531 01:50 GMT
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