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ALF revisited - simple, effective daytrading

  • #761
  • Jun 15, 2010 6:21pm Jun 15, 2010 6:21pm
Lou, pls disregard my post numbers. I actually have quite a bit of experience designing indis. Designing, not coding.

I like your thread very much. I appreciate the simplicity of what you're trying to do here. And so I joined FF just now so that I may try to contribute something beneficial to the ongoing discussion.

OK, so here's how I'd code the indi to indentify an unwanted range: Make it so that the indicator counts the number of past candles that cross the ALF line. This would be an open user-defined parameter. Say it's set to "3". That being the case, should 3 candles ever cross the ALF simultaneously then no alerts would be given, at least not until that chain of candles was finally broken by one that didn't touch the ALF at all. Of course, the higher the number the less alerts there would be. IMO 3 sounds just about right.

Hope that makes as much sense to you as it does me.

Best,
  • #762
  • Jun 15, 2010 6:43pm Jun 15, 2010 6:43pm
Quoting Dick
Hi Lou,

I've been using the ALF method since about page 3 of your original thread. After trying it in demo for a week, I went live and am currently up a bit over $35,000 on ALF trades alone. I have updated the indicators as you changed them and resisted adding anything else (much) to my ALF charts. -----
Can you share something more about your trading with ALF i.e., pairs, TF, entries and exits?
Thanks.
  • #763
  • Jun 15, 2010 7:08pm Jun 15, 2010 7:08pm
Quoting Dick
Hi Lou,

I've been using the ALF method since about page 3 of your original thread. After trying it in demo for a week, I went live and am currently up a bit over $35,000 on ALF trades alone. I have updated the indicators as you changed them and resisted adding anything else (much) to my ALF charts. I downloaded the IT Candles and put them on a chart, but for the life of me I don't see much improvement. I have them on a Euro 15 min chart, and right beside it I have another 15 min Euro with the Fractal Candles. I switch back and forth quickly, but...
The IT_Candles are still an experiment and whether or not they are better in a quantifiable way may not be known for quite a while. My goal for a companion indicator to ALF was to find something that represented "outside the box" thinking rather than using the same old 10-20 workhorse indicators (almost all of which are based on moving averages of some flavor). To my mind, conventional indicators equals conventional results and I was looking for something better, and I still am.

I almost began the initial ALF thread with ALF as the only indicator (and I still believe that anyone who has taken to time to learn about basic market dynamics can trade very successfully with ALF alone). I added a companion indicator because I am practical by nature and realize that that level of involvement is not a realistic expectation and I wanted to make trading effectively available to more people.

I'm glad you are having good success with the method.

Best,

Lou
Old Benjamin was right
  • #764
  • Jun 15, 2010 7:13pm Jun 15, 2010 7:13pm
Quoting majikman2010
Lou, pls disregard my post numbers. I actually have quite a bit of experience designing indis. Designing, not coding.

I like your thread very much. I appreciate the simplicity of what you're trying to do here. And so I joined FF just now so that I may try to contribute something beneficial to the ongoing discussion.

OK, so here's how I'd code the indi to indentify an unwanted range: Make it so that the indicator counts the number of past candles that cross the ALF line. This would be an open user-defined parameter. Say it's set to "3". That...
I'm not sure I understand what you're getting at but I wouldn't mind kicking it around some more - let's do it "off the forum", though so as not to affect the direction of the thread.

PM me please.
Old Benjamin was right
  • #765
  • Jun 15, 2010 7:23pm Jun 15, 2010 7:23pm
Lou, as a new member I'm not allowed to send pm's. But I think I can receive them. If you pm me your email address I can tell you more about my ideas...
  • #766
  • Jun 15, 2010 8:20pm Jun 15, 2010 8:20pm
Took this trade on demo.
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  • #767
  • Edited 8:52pm Jun 15, 2010 8:24pm | Edited 8:52pm
Hi guy, I am looking at this system for some time now. Major problem is whipsaws taking out the stops. I have been using another method to follow the intraday/session trend to take my trades.

In the ALF chart, add EMA 62 and EMA 13. Here are the rules for the ALF trading.

Long:

Make sure the candles are above EMA 62 (the blue line maybe far up or close to EMA 62). Second confirmation, EMA 13 must be above EMA 62.

Only take long trade based on ALF if the above conditions are met.

Short:

Candles are below EMA 62 and EMA 13 below EMA 62. Take short once ALF entry satisfied.

No trades:

If EMA 62 and EMA 13 are too close or intervining. Usually during quite market session. Let it move apart. Hardly happens due to price piercing through either side of EMA 62.

Hope this will help any whipsaws. Best for 15M time frame

Additional info:

EMA 62 will act as support/resistance similar to ALF line. It can be used as a guide to take profit of refrain from entering a trade.
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  • #768
  • Jun 15, 2010 8:35pm Jun 15, 2010 8:35pm
I have spotted major different with indicator IT Candles and Fractal Candles SR. With ITC, all candle's body will be in either green or black when upside/over ALF line and, either red or white in downside/below ALF. Fractal Candles doesn't shows this..can somebody confirmed these...
Regards

ALFA
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  • #769
  • Jun 15, 2010 9:01pm Jun 15, 2010 9:01pm
"Do not trade when ALF is flat and PA is cycling back and forth through ALF in a narrow range (20-30 pips or less)."

Nice thread Lou, ALF is simple and effective. How long did you analyze this one?
  • #770
  • Jun 15, 2010 9:04pm Jun 15, 2010 9:04pm
"I almost began the initial ALF thread with ALF as the only indicator (and I still believe that anyone who has taken to time to learn about basic market dynamics can trade very successfully with ALF alone). I added a companion indicator because I am practical by nature and realize that that level of involvement is not a realistic expectation and I wanted to make trading effectively available to more people." - Lou G


Couldn't agree more. I just thought I was missing something obvious. I more or less ignored the TVI from the start, focusing on PA and ALF.

For those who ask how I trade, read post #1 of this thread. That's exactly what I do, no ups, no extras. I trade all the majors (9 pairs). Go long above ALF, go short below ALF. The solution is NOT more indicators, it is using what is in front of you already. More indis equals more confusion, more reluctance to pull the trigger. If you have more than 3 indicators on your chart, you have too many. Use ALF and which ever of Lou's candles you like and follow the system. Easy Peasy.

One thing I think a lot of traders need to get used to is losing more. If a trade doesn't work out, close it down quick and go the other way on the next signal. If you lose 5 or 6 in a row, you still take the next trade. My win percentage is about 47%, but my average loss is less than 9 pips and my average win is 44. Just keep taking the trades as they present themselves and let the market tell you if you are right or not.

Dick


"Any intelligent fool can make things bigger and more complex... It takes a touch of genius --- and a lot of courage to move in the opposite direction." – A. Einstein
  • #771
  • Jun 15, 2010 9:05pm Jun 15, 2010 9:05pm
HI Guys,
just wanted to point out that there is very high volumes on the GBP/JPY which is very strange for this time of day!
Worth keeping a close eye on for a big break out!
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  • #772
  • Jun 15, 2010 9:11pm Jun 15, 2010 9:11pm
Quoting Dick
"I almost began the initial ALF thread with ALF as the only indicator (and I still believe that anyone who has taken to time to learn about basic market dynamics can trade very successfully with ALF alone). I added a companion indicator because I am practical by nature and realize that that level of involvement is not a realistic expectation and I wanted to make trading effectively available to more people."...
Hey Dick,
thanks for the enlightenment!
What pairs at what time of day do you trade, if you dont mind asking?

Thanks
  • #773
  • Jun 15, 2010 10:06pm Jun 15, 2010 10:06pm
Quoting Dick
"I almost began the initial ALF thread with ALF as the only indicator (and I still believe that anyone who has taken to time to learn about basic market dynamics can trade very successfully with ALF alone). I added a companion indicator because I am practical by nature and realize that that level of involvement is not a realistic expectation and I wanted to make trading effectively available to more people."...
Hey dick, can you please post a shot of your most recent wins from using ALF? I think everyone would love to see a shot of you account transactions! 35K is some good money, and a good visual motivator for others.

-Thanks!

Darren. (PS what happened to you since 2006? No posts since 06?
  • #774
  • Jun 15, 2010 11:54pm Jun 15, 2010 11:54pm
Quoting dsugums
Hi guy, I am looking at this system for some time now. Major problem is whipsaws taking out the stops. I have been using another method to follow the intraday/session trend to take my trades.

In the ALF chart, add EMA 62 and EMA 13. Here are the rules for the ALF trading.

Long:

Make sure the candles are above EMA 62 (the blue line maybe far up or close to EMA 62). Second confirmation, EMA 13 must be above EMA 62.

Only take long trade based on ALF if the above conditions are met.

Short:

Candles are below EMA 62 and EMA 13 below EMA 62....

Wholly agree with you....I had the 62 ema on my chart before your recommendation but hadn't considered the 13 ema till now....might get less trades, but less of the dreaded whipsaws. Trading is mainly psychological and this seems to give one an advantage over the ranging markets. "Why take a beating when you don't have to?"

The 62 ema is a great S/R level (in my experience) and it can enhance the filtering process....really appreciate your input....look forward to more....!!
  • #775
  • Jun 16, 2010 12:02am Jun 16, 2010 12:02am
Just got in... EUROPE OPEN are coming in 10 minutes so this might be a long ride UP north with EU or another of those false breakout. We'll see...

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  • #776
  • Jun 16, 2010 1:41am Jun 16, 2010 1:41am
Hi,

This EA can be VERY usefull, you can set TP, SL (and moving it by mouse), trailing stop, automatic BE, close part.

Please enjoy (and all greetings to www.luktom.biz ).

Best regards, J.
Attached File(s)
File Type: mq4 luktom visual order editor.mq4   14 KB | 708 downloads
Audaces fortuna iuvat !
  • #777
  • Jun 16, 2010 2:36am Jun 16, 2010 2:36am
Quoting dirty
Hey Dick,
thanks for the enlightenment!
What pairs at what time of day do you trade, if you dont mind asking?

Thanks
I trade all the majors at the London open every night and also whenever I have the time and see a trade. You can find trades at any time of day.

Dick

I would like to live in a world where a chicken can cross a road without anybody questioning his motives.
  • #778
  • Jun 16, 2010 3:00am Jun 16, 2010 3:00am
Quoting pilotui
Hey dick, can you please post a shot of your most recent wins from using ALF? I think everyone would love to see a shot of you account transactions! 35K is some good money, and a good visual motivator for others.

-Thanks!

Darren. (PS what happened to you since 2006? No posts since 06?
Not sure what good my charts would do anyone. They are mostly just the ALF and Fractal Candles. Just finished trading for the night, took 23 on the Pound, 14 on the Euro (got out much too soon, what else is new?), 38 on the pound/yen and 30 on the euro/yen. I took the signals on the Euro and Pound, and took the Yen trades before they reached the ALF. Most of the time, when the mothership starts to move, the rest follow along.

Well, I posted a few others this year. I got bored and did something else for a couple of years. Got back in FOREX about 18 months ago. A friend asked me to look at a thread about an EA he was enamored of, so I traded it for a while. Decided that the risk/reward balance wasn't right and I noticed the ALF thread. I tend to follow threads quietly until I get bored with them, but this one has kept my interest.

Dick

Timing has a lot to do with the outcome of a Rain dance.
  • #779
  • Jun 16, 2010 3:13am Jun 16, 2010 3:13am
Quoting Lou G
... post charts by way of the MT4 "save as picture" facility (on the file menu). It's easier and better than the way some are doing it and I'm sure the folks at FF would prefer you do it that way too...
Hey Lou G,

Firstly many thanks for sharing such a system with community. I have been trading live on this system since two weeks and had mixed kinda results. What I am basically struggling with are the valid signals turning out to be failure. I am still trying to figure out the best moves, patterns, combination etc. So it would be great if you could post some charts from your daily trading (the way you do normally) and also explain why you took a certain trade after a signal and why you didn't considered another signal.

Lastly here are some of my trades from today.
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  • #780
  • Edited 5:37am Jun 16, 2010 3:48am | Edited 5:37am
Quoting Dick

One thing I think a lot of traders need to get used to is losing more. If a trade doesn't work out, close it down quick and go the other way on the next signal. If you lose 5 or 6 in a row, you still take the next trade. My win percentage is about 47%, but my average loss is less than 9 pips and my average win is 44. Just keep taking the trades as they present themselves and let the market tell you if you are right or not.

Dick
I think you are using good MM, exits are more important than entries.
At what point you decide that the trade is not going in your favour and pull the trigger and take the loss? Or do you use SL and/or trailing SL?

PS: you seem to come up with new signature with every post.
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