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ALF revisited - simple, effective daytrading

  • #281
  • Jun 6, 2010 8:54pm Jun 6, 2010 8:54pm
Quoting Lou G
Nice trading.

Thanks to you Lou!
  • #282
  • Jun 6, 2010 10:40pm Jun 6, 2010 10:40pm
Hi,

I've been following the old thread as well as the new updated one and I would like to thank Lou G for his fantastic work.

I've tried to see if there was any way to filter out some of the bad or range bound trades and while understanding that there is nothing that will ever be able to completely keep you out of these trades, I think I've found something that may help most of the times though.

It's an indicator called NVO (Normal Volume Oscillator). I found it over at the Sonic R thread (so credits go to Sonic and his thread).

Basically how his system uses it is that they don't take trades if the NVO is showing a blue color meaning that there is a low average volume of trades compared to a given time period. However when a signal presents itself and in this instance when the correct colored candle crosses the ALF in a particular direction and the NVO is a color other than blue that usually indicates a very good trade. I've been watching it along with ALF on M15 for that last little while and it seems promising but it will occasionally keep you out of a good trade but overall it seems that it will get you into good trades and more importantly keep you out of most bad trades.

Just my two cents hope it makes sense and helps.

The indicator is posted and I've also posted the guide from the SonicR thread and if you go to page 3 it explains how to read the NVO indicator. On my chart shots I'm using period 768 because it seems that this is good period to be using and some of the participants at the SONICR thread use the M15 timeframe and are using this period as well.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: alf nvo.gif Size: 28 KB
Click to Enlarge Name: alf nvo 2.gif Size: 25 KB
Attached File(s)
File Type: pdf Sonic R Manual.pdf   704 KB | 1,081 downloads
  • #283
  • Edited 11:20pm Jun 6, 2010 11:08pm | Edited 11:20pm
hi Lou
thanx for update ! its very nice idea to paint not all candle !

but i think there is some litle error
switch now to m1 and see
for me it is painting something strange sometimes
check image
best regards

edit
on m5 also have one candle like this
about 1:20 and my broker is gmt-1 if i remembour right
Attached Image (click to enlarge)
Click to Enlarge Name: err.gif Size: 104 KB
  • #284
  • Jun 6, 2010 11:14pm Jun 6, 2010 11:14pm
thanks for the filter but i only see the pdf not the indicator?

Looks like it is promising
  • #285
  • Jun 6, 2010 11:26pm Jun 6, 2010 11:26pm
here it is
Attached File(s)
File Type: ex4 Normalized_Volume_Oscillator.ex4   4 KB | 598 downloads
  • #286
  • Jun 6, 2010 11:29pm Jun 6, 2010 11:29pm
thank you very much i like filters
  • #287
  • Jun 7, 2010 2:03am Jun 7, 2010 2:03am
Quoting Lou G
Saw your post on the original thread - astounding results!

Check this chart - month of May using the ALF_Candle on H4:
Lou,
thanks for opening this thread. I am testing on an IBFS Demo account in 4h TF. I have a question about the Color tab in the properties of ALF.

# 0 gives me the color I set. What are #1 - #5 used for. Or are they just place holders for now?
  • #288
  • Jun 7, 2010 7:56am Jun 7, 2010 7:56am
Hi Lou & All

I'm uploading a couple of Screenshots of trades I took this morning. I show where I entered and where I am now after about 30 - 45 minutes.

I try to enter when ALF is either 10+ pips above/below so I'm sure of the direction.

Am I missing something??? Where am I going wrong?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eu_alf.gif Size: 48 KB
Click to Enlarge Name: ej_alf.gif Size: 47 KB
Jim (MrChips)
  • #289
  • Jun 7, 2010 8:01am Jun 7, 2010 8:01am
Quoting MrChips
Hi Lou & All

I'm uploading a couple of Screenshots of trades I took this morning. I show where I entered and where I am now after about 30 - 45 minutes.

I try to enter when ALF is either 10+ pips above/below so I'm sure of the direction.

Am I missing something??? Where am I going wrong?
Hello MrChips I take eurusd one candle in front of you when black went red and exit with 20pips. May be you wait to much ?
  • #290
  • Jun 7, 2010 8:12am Jun 7, 2010 8:12am
Quoting MrChips
Hi Lou & All

I'm uploading a couple of Screenshots of trades I took this morning. I show where I entered and where I am now after about 30 - 45 minutes.

I try to enter when ALF is either 10+ pips above/below so I'm sure of the direction.

Am I missing something??? Where am I going wrong?
its strong up trendline thas should be at your chart too you should not be shorting till this tl is broken
its not 100% mechanical trading remembour
Attached Image (click to enlarge)
Click to Enlarge Name: st.gif Size: 116 KB
  • #291
  • Jun 7, 2010 8:44am Jun 7, 2010 8:44am
Quoting MrChips
Hi Lou & All

I'm uploading a couple of Screenshots of trades I took this morning. I show where I entered and where I am now after about 30 - 45 minutes.

I try to enter when ALF is either 10+ pips above/below so I'm sure of the direction.

Am I missing something??? Where am I going wrong?

In the first chart, you simply entered too late. I personally would have entered upon the candle turning red or within a couple pips. Or you could have taken 10 pips but chose not to. Maybe you should shoot for 10 pips until you get a "feel" for the pair you're trading.
As for the EJ chart, there again, simply entered too late. When the market starts to hesitate, look to the left in the chart and see if it's due to S/R and think about a possible exit.
Only time and chart study will clear your eyes, and like Lou says, you'll start recognizing patterns in the market.

We all have losers. We must learn to cut them short.

MM
  • #292
  • Jun 7, 2010 8:53am Jun 7, 2010 8:53am
... either of the replies you've received could be right. The entry is indeed counter-trend but also a bit late - entry at the arrow with a 20 pip stop and you are still in this trade.

Considering the trend to be up and not taking a short would have saved the loss.

So, which is right? Market appears to be shifting from trending to ranging so perhaps getting in earlier would have been best. Ah, hindsight...

A word about stops - IMHO, stops are not meant to be hit - if the trade turns against you in a meaningful way, exit and live to fight another day,
Attached Image (click to enlarge)
Click to Enlarge Name: alf.gif Size: 9 KB
Old Benjamin was right
  • #293
  • Jun 7, 2010 8:57am Jun 7, 2010 8:57am
Quoting bbolss
hi Lou
thanx for update ! its very nice idea to paint not all candle !

but i think there is some litle error
switch now to m1 and see
for me it is painting something strange sometimes
check image
best regards

edit
on m5 also have one candle like this
about 1:20 and my broker is gmt-1 if i remembour right
I'm not seeing that on my chart but I'll watch for it.
Old Benjamin was right
  • #294
  • Jun 7, 2010 9:00am Jun 7, 2010 9:00am
Quoting unclek6
Lou,
thanks for opening this thread. I am testing on an IBFS Demo account in 4h TF. I have a question about the Color tab in the properties of ALF.

# 0 gives me the color I set. What are #1 - #5 used for. Or are they just place holders for now?
The only color you can change is shown on the Inputs Tab - the other arrays are not meant to be seen
Old Benjamin was right
  • #295
  • Jun 7, 2010 9:00am Jun 7, 2010 9:00am
Quoting Lou G
... either of the replies you've received could be right. The entry is indeed counter-trend but also a bit late - entry at the arrow with a 20 pip stop and you are still in this trade.

Considering the trend to be up and not taking a short would have saved the loss.

So, which is right? Market appears to be shifting from trending to ranging so perhaps getting in earlier would have been best. Ah, hindsight...

A word about stops - IMHO, stops are not meant to be hit - if the trade turns against you in a meaningful way, exit and live to fight another...
Hi Lou,

How do we have to view the new alf candles? Do you wait for a black bar to turn red and a white bar to turn green, or do you wait till the bars close because it can change colors again during it's formation?

Thanks pbb
  • #296
  • Jun 7, 2010 9:01am Jun 7, 2010 9:01am
Quoting bpips
thank you very much i like filters
I like filters too - ALF is a filter - not sure I need another filter at this time.
Old Benjamin was right
  • #297
  • Jun 7, 2010 9:12am Jun 7, 2010 9:12am
Quoting mannai70
Hi,

I've been following the old thread as well as the new updated one and I would like to thank Lou G for his fantastic work.

I've tried to see if there was any way to filter out some of the bad or range bound trades and while understanding that there is nothing that will ever be able to completely keep you out of these trades, I think I've found something that may help most of the times though.

It's an indicator called NVO (Normal Volume Oscillator). I found it over at the Sonic R thread (so credits go to Sonic and his thread).

Basically how...
Thanks for your input. NVO appears to be a good indicator but not something I'd like to add to the method at this time.
Old Benjamin was right
  • #298
  • Jun 7, 2010 9:20am Jun 7, 2010 9:20am
Lou if that candle now closed above ALF it would be a good entry right
  • #299
  • Jun 7, 2010 9:25am Jun 7, 2010 9:25am
@ 1.45341 right after candle turned green. Moved against me roughly 6 pips and had thought about closing it for a loss, but something told me to hold it.
Closed @ 1.4558 for +23.9

MM
Attached Image (click to enlarge)
Click to Enlarge Name: GU 6-7-2010 10-20-51 AM.png Size: 67 KB
  • #300
  • Jun 7, 2010 9:30am Jun 7, 2010 9:30am
Short as shown - wicked volatility on EU today. We'll see...
Attached Image (click to enlarge)
Click to Enlarge Name: alf.gif Size: 13 KB
Old Benjamin was right
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