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Hanover: an auto-trader using Recent Strength

  • #101
  • Oct 22, 2011 10:53am Oct 22, 2011 10:53am
Cheers David. I have linked your post in post 1.

  • #102
  • Oct 22, 2011 10:59am Oct 22, 2011 10:59am
I have been thinking, so my wife keeps on feeding me paracetamol.

When the strongest/weakest have been to extremes - say +90/-10 - then start to move back towards one another, that might be a good time to reverse the trade. For example, GBP was strong (yeah, like that is likely to happen any time soon) and the USD weak, we would normally buy GU.

When the values leave the uber high/low regions and are sloping back towards one another, we close the buy and take a sell.

Any comments from those who have been using Recent Strength for a while? Or anyone else, for that matter.

  • #103
  • Oct 22, 2011 12:06pm Oct 22, 2011 12:06pm
Quoting SteveHopwood
I have been thinking, so my wife keeps on feeding me paracetamol.

When the strongest/weakest have been to extremes - say +90/-10 - then start to move back towards one another, that might be a good time to reverse the trade. For example, GBP was strong (yeah, like that is likely to happen any time soon) and the USD weak, we would normally buy GU.

When the values leave the uber high/low regions and are sloping back towards one another, we close the buy and take a sell.

Any comments from those who have been using Recent Strength for...
Hi Steve, I know I've only had 'Hanover' working for a day but the idea of being able to have the option to take a reverse trade was something that occurred to me on Friday after watching 3 trades open. Two of them immediately started to reverse and one of them was hovering.

Out of curiosity I popped 'Sixth's by Chaser' indi on the relevant charts and sure enough, if it was say 'The Beast' it would have been a signal for a CT.

As you say, if we could figure out at what level of strength to take the Buy's from and then to close and take the sells it would be awesome !! I suppose the choice of TF would be fairly critical.

I look forward to a full week of testing next week to get a better idea of this.

Cheers.
  • #104
  • Oct 22, 2011 2:13pm Oct 22, 2011 2:13pm
Quoting Rascacio
As you say, if we could figure out at what level of strength to take the Buy's from and then to close and take the sells it would be awesome !! I suppose the choice of TF would be fairly critical.

I look forward to a full week of testing next week to get a better idea of this.

Cheers.
Thanks for Clearing the Breach Rascacio,
the idea Sir Hopwood mentioned has me thinking of an overbought/Oversold mindset for the currencies

perhaps a combination of
(1) As in any oscilator such as the stochastic/RSI (20,80) for overbought over sold
(2) AllAverages Indicator with MA 10 to 10
(3) PSAR could also help to conform the U-Turn retrace or reversal.

Hanover has been excellent in picking the direction to get in. Leaves us to narrow down the optuimum T/F that wll allow us/him to (a) Spot the trade (b) get in with a reasonable amout of the opportunity left to reap (c) The combo above, inconjuction with Sir Hopwoods notion Hanover: less than 10% strength {oversold}, than 90% strength (Overbought} Should help us when it is finally time to leave or reverse.

Seems an interesting concept for further discussion.

Bless!
  • #105
  • Edited 6:10pm Oct 22, 2011 5:22pm | Edited 6:10pm
Quoting SteveHopwood
I have been thinking, so my wife keeps...
Never mind Paracetamol my friend. You either need an inspiring bath or few shots of single Malt! Or both!

IMHO this is the best way to trade the currencies which are at either extremes. It is also my understanding that this is the way David (HANOVER) uses his own indicator. I am sure when he is passing by here again he would comment.

Kind regards
  • #106
  • Edited 6:47pm Oct 22, 2011 5:47pm | Edited 6:47pm
Quoting pathumracled
Thanks for Clearing the Breach Rascacio,
the idea Sir Hopwood mentioned has me thinking of an overbought/Oversold mindset for the currencies

perhaps a combination of
(1) As in any oscilator such as the stochastic/RSI (20,80) for overbought over sold
(2) AllAverages Indicator with MA 10 to 10
(3) PSAR could also help to conform the U-Turn retrace or reversal.

Hanover has been excellent in picking the direction to get in. Leaves us to narrow down the optuimum T/F that wll allow us/him to (a) Spot the trade (b) get in with a reasonable amout of...
At this stage, I do not want to get into using other indicators etc and will ignore all such suggestions.

Your post made me realise that my post 1 is not specific enough, so I have changed it slightly. I have updated this section:
The purposes of this thread are:

  1. develop H as a trader in its own right. This means using only Recent Strength to trigger trades. I shall ignore all suggestions to add further thingies to H. Adding further thingies will come about once I have achieved purpose 2, which is:
  2. Develop a Hanover module to go into all EA's - this is the exciting bit. Imagine The Beast only taking mid-chart trades in the direction shown by the indi. Imagine the power this adds to Reversi, Trendy, Spider et al. Wow.

Maybe all we need for a Hanover module is already in place but I do not know. For now, I ask people to concentrate on this and look forward to using it in combination with all the other tools we have.

Cheers. You are not to regard anything I have just written as a criticism.


  • #107
  • Oct 22, 2011 8:55pm Oct 22, 2011 8:55pm
Quoting SteveHopwood
At this stage, I do not want to get into using other indicators etc and will ignore all such suggestions...
[/color][*]Develop a Hanover module to go into all EA's - this is the exciting bit. Imagine The Beast only taking mid-chart trades in the direction shown by the indi. Imagine the power this adds to Reversi, Trendy, Spider et al. Wow.[/list]
Lets face it, just this year alone you have provided EAs for almost every type of trading there is and we all have our own ideas where a Hanover module could come handy. We would need an army of testers to test various EAs with the Hanover addition.
Kind Regards
  • #108
  • Oct 22, 2011 9:59pm Oct 22, 2011 9:59pm
Quoting astral77
Never mind Paracetamol my friend. You either need an inspiring bath or few shots of single Malt! Or both!

IMHO this is the best way to trade the currencies which are at either extremes. It is also my understanding that this is the way David (HANOVER) uses his own indicator. I am sure when he is passing by here again he would comment.

Kind regards
My 2 cents. I think it would be nice to have "reverse trade" as an option just to test it. Hanover does say he uses the angle of the strongest and weakest currencies. We have the slopeconfirmation parameter to test the slope of the strongest and weakest currencies. That should weed out taking a long on USD/CHF if one or both currencies start to reverse.

But the question is Are there pips to be made when the strongest and weakest signals reverse? The changing angles should show a reversal in price action.

If you look at the daily Recent Strength indicator at the close on Friday USD was the strongest but had turned down. And CHF was the weakest but had started to arc up. If you look at the daily chart the last 2 bars for usd/chf are short which corresponds to the indicator. Those 2 bars represent 200 pips.
  • #109
  • Oct 23, 2011 4:16pm Oct 23, 2011 4:16pm
Quoting astral77
It is also my understanding that this is the way David (HANOVER) uses his own indicator. I am sure when he is passing by here again he would comment.
FWIW, I trade strictly in the direction of the long term trends. I use RS to tell me which are strong/weak currencies. For example, if EUR is strong and USD is weak on D1/W1 then I will look for opportunities to BUY EURUSD, on the assumption that the upward trend will continue. Then I use PA on the EURUSD, D1 chart as a continuation signal to start buying (pyramiding) into the uptrend. I don't understand fundamentals, hence I use RS as my proxy (e.g. if EUR is strong, then there are supposedly macroeconomic reasons for this) and I gamble that these reasons will remain in place long enough to sustain a decent trend.

I don't use RS to time my entries. Instead I use a combination of factors (S/R, BV candles, OB/OS, ADR, correlation, stoch divergence) on predominantly M15 to try to pick what are likely to be local lows (in the long term uptrend). Then I'll place multiple low risk entries (using a tool which I'm also selling commercially), and hope that the D1/W1 uptrend continues, to ultimately create several high RR trades (e.g. 100-500 pip gains for 10-20 pips risk) from the same uptrend. A lot of this is similar to the millipede concept. By trading strongest vs weakest, the trend should, at least probability-wise, be strong and clean, resulting in less zigzagging back toward the entry point, and consequent stopout. The entry process is very discretionary and would be complex to code, and that's assuming that I freeze my learning long enough to somehow try to define it in strict mathematical terms.

Having said all that, I have done a lot more programming than trading this year.

I am sure that there are better ways of using RS than the way I do, especially as I've ignored its use in the shorter TFs. That's one big reason why I've avoided inputting too much in the way of strategy in this thread. Once I found a way of being profitable, I gave up experimenting with new ideas.

David
  • #110
  • Oct 23, 2011 4:52pm Oct 23, 2011 4:52pm
Quoting hanover
FWIW, I trade strictly in the direction of the long term trends. I use RS to tell me which are strong/weak currencies. For example, if EUR is strong and USD is weak on D1/W1 then I will look for opportunities to BUY EURUSD, on the assumption that the upward trend will continue. Then I use PA on the EURUSD, D1 chart as a continuation signal to start buying (pyramiding) into the uptrend. I don't understand fundamentals, hence I use RS as my proxy (e.g. if EUR is strong, then there are supposedly macroeconomic reasons...
Breathtaking stuff David. Thank you sooooo much on all our behalves.This gives me a few ideas. No doubt it has the same effect on others. Another post linked in post 1.

Quote
Having said all that, I have done a lot more programming than trading this year.
I know how you feel.

Quote
I am sure that there are better ways of using RS than the way I do, especially as I've ignored its use in the shorter TFs. That's one big reason why I've avoided inputting too much in the way of strategy in this thread. Once I found a way of being profitable, I gave up experimenting with new ideas.

David
We only need one way of being profitable.

Cheers. Next post coming up.

  • #111
  • Oct 23, 2011 4:57pm Oct 23, 2011 4:57pm
OK guys, in light of David's last post, here is what I propose:

 

  1. We use the D1 or W1 (depending on individual choice) RS readings to determine our 'trend'.
  2. Add in our fav stuff to actually trigger the trade - NB V10, RSI ob/os, shorter/longer MA cross/ritual chicken sacrifice etc

Yes, I know this directly contradicts my reply to pathumracled earlier, but if David uses RS thus, would we be daft not to follow?

Any comments, guys?

  • #112
  • Oct 23, 2011 6:29pm Oct 23, 2011 6:29pm
Quoting SteveHopwood
...Any comments, guys?
Hi Steve
As you have reminded us on several occasions FF is full of people trading their own systems profitably (Lawgirl`s naked trading, David`s trend line, Bob`s NB, eelfranz`s TMS, etc, etc). IMHO the best course of action for people like me who are either too thick or stupid or busy to create their own system is to find one which is on offer here which works for them. For me NB VER5 is the one which makes money and I am very comfortable with it. The only negative aspect of this system is the occasional massive DD which needs BOS (Ball of Steel) and a good supply of blood pressure medication.

I have been thinking for several days on the lines you have suggested. Trading NB VER5 as before but with higher TF trend as determined by RS, this would in theory reduce the floating DD and less recovery trades also. IMHO "the Beast" which is an offshoot of NB system would benefit from this approach as well.

Moreover for trend trading I like the simplicity of eelfranz`s TMS (trading made simple) system. You were kind enough to to provide an EA for this approach and as you know the thread has grown mainly thanks to seller9. I may have a go at this system in H1 or H4 TF with trades taken in the direction of higher TF as determined by RS. I do not need to remind my fellow traders that this approach can by implemented almost immediately and they do not need for the development of the RS module.

I am waiting for my in-laws who are visiting (for the last 3 months!!!) to return to their home to start trading properly. They have been here (allegedly visting) for the past 3 and half months but it seems they have been here for ever. As you can imagine with them around my routine is severely disrupted.

Kind regards
  • #113
  • Oct 23, 2011 7:06pm Oct 23, 2011 7:06pm
Quoting SteveHopwood
OK guys, in light of David's last post, here is what I propose:

 

  1. We use the D1 or W1 (depending on individual choice) RS readings to determine our 'trend'.
  2. Add in our fav stuff to actually trigger the trade - NB V10, RSI ob/os, shorter/longer MA cross/ritual chicken sacrifice etc

Yes, I know this directly contradicts my reply to pathumracled earlier, but if David uses RS thus, would we be daft not to follow?

Any comments, guys?

Bless You Messers.: Hpwood & Hanover.

When the Elephants/Giants are at play (even mentally) it is best to provide ample room. Certainly there will be trampling of grasses. I do hope the hidden gems and nuggets will emerge.

I second/support Hanover's reference to the Millipede thread, it is a good educational investment. It is Long But the first 50+ Post by the originator, can provide a worthwhile shift to an investors point of view. It Certainly concretized for me the practical application of the maxim, Cutting losses & letting Profits Run.

On the Forgoing Inputs, Most valued Sir Hopwood. As with all... Timing is paramount.

Bless!
  • #114
  • Oct 24, 2011 12:44am Oct 24, 2011 12:44am
Hi all

Some trades done by H without slope control.... pretty erratic...
I added "2,2" to SlopeConfirmationCandles this morning.

Have a nice trading day

Regards
Alex
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  • #115
  • Oct 24, 2011 9:05am Oct 24, 2011 9:05am
Open trade at this moment : Buy AUDUSD

(TF : H1+H4 // Slope : 2,2)

Regards
Alex
  • #116
  • Oct 24, 2011 12:19pm Oct 24, 2011 12:19pm
Simple H4 on several brokers is doing VERY well.
Ditto for simple H1 on a single broker.

I like it. Glenn
  • #117
  • Oct 24, 2011 12:23pm Oct 24, 2011 12:23pm
Quoting winsteadglenn
Simple H4 on several brokers is doing VERY well.
Ditto for simple H1 on a single broker.

I like it. Glenn
Glenn by "simple H4" do you mean you're trading just 1 time frame? Are you using the slope check?

Thanks!
Sandy
  • #118
  • Oct 24, 2011 12:25pm Oct 24, 2011 12:25pm
The TF choice is the most difficult part of the job with this EA

I will try only H4 and keep slope "2,2"

Regards
Alex
  • #119
  • Oct 24, 2011 12:27pm Oct 24, 2011 12:27pm
Quoting alex_forex
The TF choice is the most difficult part of the job with this EA

I will try only H4 and keep slope "2,2"

Regards
Alex
.

I still wish there was the option to take the reverse trade when the slope turns in the opposite direction. On higher TFs that would also be a pip maker imo
  • #120
  • Oct 24, 2011 12:34pm Oct 24, 2011 12:34pm
Hi, Sandy.
I have H4 by itself, with 2,2 slope unchanged, otherwise large lot sizes on a demo account of one million dollars on Tadawul, Sig, Go Markets.
Go M. is up five percent since last evening.
My simple H1, otherwise the same, on Broco is up 4%.
I took my cue from Bluto's comment that H4 is the sweet spot for his soontobereleased EA, which is strength related, methinks.

Glenn
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