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ALF revisited - simple, effective daytrading

  • #21
  • Edited 12:47pm Jun 1, 2010 12:34pm | Edited 12:47pm
Quoting teknoesen
Hi Lou,

is the short EURUSD on 15 min a valid entry? I guess the time of day is not ideal, but I enetered short on the break of previous low of 1.2258.

Eddie
Time of day is not ideal but it appears to be working out okay - don't expect huge profits, absent news to drive PA.

ALF_Candles will keep track of S/R for you so no need to second-guess it.

At first sign of reversal, grab the pips and get out...

See chart below - all good entries:
Attached Image (click to enlarge)
Click to Enlarge Name: alf.gif Size: 7 KB
Old Benjamin was right
  • #22
  • Jun 1, 2010 12:37pm Jun 1, 2010 12:37pm
Quoting vince
Hi. I'm new to this, can you please post some screenshots with enter/exit points. Thank you
Stick around - if this thread is anything like the first one, there will be many examples.
Old Benjamin was right
  • #23
  • Jun 1, 2010 12:41pm Jun 1, 2010 12:41pm
Quoting Lou G
Why a new thread?

1. The original (over 1000 posts) is too long - discouraging for new participants.

2. The ALF method is herein improved and simplified. It will be more effective over different timeframes without the need to modify indicator settings.

What is ALF?

Adaptive Laguerre Filter - an indicator created by John Ehlers (www.mesasoftware.com). It is a superior overbought/oversold tool. There is a free technical paper at Ehlers' website entitled "Time Warp Without Space Travel" which you may...


This one I will follow from the beginning! Count me in Lou.
  • #24
  • Jun 1, 2010 12:51pm Jun 1, 2010 12:51pm
Quoting Pippopotamus
very hard not to make money trading Euro. However,witness the GBP results to understand the importance of diversity. I am convinced that ALF needs but very little filtering to be traded profitably...There are limits to the extent to which we can refine our entries/exits. We are working with a discontinuous function. I believe these limits are approachable by the simplest of techniques...As we do...We buy when price is going up. We sell when price is going down. The rest is up to the idiosyncrasies of PA, and trade mgt. Pippo ps. The,"Month of Trades,"...
True enough - Euro in May was like the fish in the proverbial barrel. Still, we shall see what happens if no more EU member nations go belly up...
Old Benjamin was right
  • #25
  • Jun 1, 2010 12:51pm Jun 1, 2010 12:51pm
Quoting Lou G
Time of day is not ideal but it appears to be working out okay - don't expect huge profits, absent news to drive PA.

ALF_Candles will keep track of S/R for you so no need to second-guess it.

At first sign of reversal, grab the pips and get out...

See chart below - all good entries:

I took rofit at +10 pips. Where can i 'learn' a bit more about PA or will that only come with screentime?
  • #26
  • Jun 1, 2010 12:53pm Jun 1, 2010 12:53pm
Quoting Lou G
ALF_Candles will keep track of S/R for you so no need to second-guess it.

:
Lou, how do the candles keep track of S/R?
  • #27
  • Jun 1, 2010 12:57pm Jun 1, 2010 12:57pm
I do not see any ALF candles on my chart which has black background, only the ALF line, any body knows why?
Regards
  • #28
  • Edited 1:21pm Jun 1, 2010 12:59pm | Edited 1:21pm
Quoting teknoesen
I took rofit at +10 pips. Where can i 'learn' a bit more about PA or will that only come with screentime?
Basically, with screen time but there are many books and articles on the subject. Google "Japanese candle interpretation" - you'll get a ton of results.

Looks like your trade was eventually good for 20+ but I am certainly not second-guessing you - 10 pips is always good...
Attached Image (click to enlarge)
Click to Enlarge Name: alf.gif Size: 7 KB
Old Benjamin was right
  • #29
  • Jun 1, 2010 1:03pm Jun 1, 2010 1:03pm
Quoting howard
I do not see any ALF candles on my chart which has black background, only the ALF line, any body knows why?
See post #1 - download and copy the indicators and template as directed. Then put the template on your chart from the icon on the right end of the MT4 toolbar.
Old Benjamin was right
  • #30
  • Jun 1, 2010 1:08pm Jun 1, 2010 1:08pm
Quoting evynsdad
Lou, how do the candles keep track of S/R?
Everyone always wants to know what's up the magician's sleeve

Basically, by analyzing Bill Williams fractals as they develop, the indicator can infer price action. Best to read chapter 8 of the book suggested in post #1 but you can find a good explanation by googling "williams fractals".
Old Benjamin was right
  • #31
  • Jun 1, 2010 1:12pm Jun 1, 2010 1:12pm
Hi Lou,

Was with your prior thread from the beginning and really liked the way you managed that, just so straight forward. I am looking forward following this revisited thread and will reread a bit from "Trading Chaos" by Bill Williams (that's been a while). I have not been so great at posting charts myself, see if with the start of this new thread can change that!

Great to see you back so soon again!

pbb
  • #32
  • Jun 1, 2010 1:22pm Jun 1, 2010 1:22pm
In post #21 one of the red ALF candles referred to as a good entry closed above ALF. I thought a red close below ALF was needed for a qualified short entry.
Vincit qui se vincit.
  • #33
  • Jun 1, 2010 1:29pm Jun 1, 2010 1:29pm
Quoting Pippopotamus
In post #21 one of the red ALF candles referred to as a good entry closed above ALF. I thought a red close below ALF was needed for a qualified short entry.
It's actually possible to anticipate the ALF cross with the new indicator and get away with it, believe it or not.

Still, your point is well-taken. I should stay with a more conservative approach until everyone gets on track
Old Benjamin was right
  • #34
  • Jun 1, 2010 1:35pm Jun 1, 2010 1:35pm
Tell us something about re-entry Lou G
  • #35
  • Jun 1, 2010 1:41pm Jun 1, 2010 1:41pm
Thanks for the work you are doing on this thread, Lou. Simplicity is hard for most humans... we tend to over complicate things... Your advice to put in the screen time and to be patient is the best advice anyone could give.

ALF is amazing...
  • #36
  • Jun 1, 2010 1:43pm Jun 1, 2010 1:43pm
Quoting Lou G
Everyone always wants to know what's up the magician's sleeve

Basically, by analyzing Bill Williams fractals as they develop, the indicator can infer price action. Best to read chapter 8 of the book suggested in post #1 but you can find a good explanation by googling "williams fractals".
Are you saying that, if the candle is either red or green, there is no need to look at support and resistance levels? Or am I misunderstanding?
  • #37
  • Jun 1, 2010 1:49pm Jun 1, 2010 1:49pm
Quoting gopsat77
Tell us something about re-entry Lou G
See the chart. Entry at down arrow, exit at the X (or when next bar shows green), re-enter at the down arrow as shown. A similar pattern occurs twice more in subsequent bars.
Attached Image (click to enlarge)
Click to Enlarge Name: alf.gif Size: 8 KB
Old Benjamin was right
  • #38
  • Jun 1, 2010 1:52pm Jun 1, 2010 1:52pm
Excellent upgrade...way to stay with the project...Look forward to your continued posts as well as those of others as this thread progresses...
Took a little trade during off hours after I got home from work...played out further than 6 pips but I was scalping after all...
Great addition to the candles...
Thanks much...
Cliff
Attached Image (click to enlarge)
Click to Enlarge Name: OffHours Trade.gif Size: 40 KB
I get exercise just pushing my luck
  • #39
  • Jun 1, 2010 1:55pm Jun 1, 2010 1:55pm
M15 trade...I have added my fetish...6 pd. Price Channel to help decide PA.
Attached Image (click to enlarge)
Click to Enlarge Name: bb.gif Size: 21 KB
Vincit qui se vincit.
  • #40
  • Jun 1, 2010 1:56pm Jun 1, 2010 1:56pm
Quoting evynsdad
Are you saying that, if the candle is either red or green, there is no need to look at support and resistance levels? Or am I misunderstanding?
You are not misunderstanding - the indicator does look at S/R levels and candles will change color when the levels are breached.

Color change also occurs at reversal and retracement points.

Put the attached indicator on your chart - it's a huge clue to how ALF_Candles does what it does.
Attached File(s)
File Type: ex4 Fractals.ex4   8 KB | 1,046 downloads
Old Benjamin was right
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