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Nb 10.0 trend trading system

  • #3,141
  • Jul 6, 2012 9:56pm Jul 6, 2012 9:56pm
I can only agree with the answers but here is a technical answer. Bob showed us a picture with price changing trend every 6.6 weeks (just an example) on average. To me that means the later I enter the trend the less chance I have to win or win big with small lots assuming I play from line to line or for longer term. The issue here is that I enter when the indicators show a nice trend but in fact it is time for price to turn around or just rest and do some ranging before deciding which way to go. Both can be dangerous and disheartening. This is why I use 10.2 as a filter and go for the short term with it. Others, who have more time for trading or more experience can catch the trend early.
functionaltrader.com
  • #3,142
  • Jul 7, 2012 7:22am Jul 7, 2012 7:22am
Nanningbob and many others. THANK You so much for the work that you all have done here. This is amazing.

One question for you and others here. What settings are you using with the bottom TMA graph/chart?

Thank you,
bubbadirect
  • #3,143
  • Jul 7, 2012 7:26am Jul 7, 2012 7:26am
Hi,
I was looking at this system and it seems to work very good.

I did some backtesting on the H4 and H1 charts. I did this by scrolling back. when the TMA slop on the H4 was collerd light green or red I switched to the H1 chart and waited till the slop there was also light green or red. after that I entered on a break of the ma line.

My SL was 20 pips above the swing high or low and I when the slope on the H4 was above or bellow the .04/-.04 I started looking at the H1 for the tp. as soon as the slope closes there bellow/above the .04/-.04 I closed the trade
the results are amazing. they are so good the I wonder if I miss something.

I also did this test on the D1 and H4. the differentce was that I let it run there till the D1 slope was bellow the .04/-.04 the results where amazing again. less trades but a very good risk rewoard ratio

are the charts showing something different when looking back as the do when you look realtime?

I will try this also in a demo but I hope some can tell me if my results are correct the way I did it

Thanks
  • #3,144
  • Jul 8, 2012 7:30am Jul 8, 2012 7:30am
Sois - I suggest checkout out this thread on SteveHopwoodForex Forum:

http://www.stevehopwoodforex.com/php...php?f=37&t=587

We don't really post on ForexFactory anymore, all the 10.2 discussion is going on in that forum.
  • #3,145
  • Jul 8, 2012 7:55am Jul 8, 2012 7:55am
Quoting Jemook
Sois - I suggest checkout out this thread on SteveHopwoodForex Forum:

http://www.stevehopwoodforex.com/php...php?f=37&t=587

We don't really post on ForexFactory anymore, all the 10.2 discussion is going on in that forum.

Ok thanks jemook I will got the the forum
  • #3,146
  • Jul 10, 2012 2:44pm Jul 10, 2012 2:44pm
Quoting rewand
Thanks, sorry for that, I agree with you on this issue, just showed the exit level on H4, which was cluttered by this currently tested autochartist. I had no time to play with the settings. The rest of the indis I am testing. RWB lines, divergence and ADX works well with my set ups but only certain TFs I use them, otherwise they do not show up on the charts. TMA only gets me confused too frequently (most probably I do not understand it entirely yet) and I prefer pivot trading but need few other signals to be sure where price is heading. I am not...
rewand, very cool. When the 10.2 TMA Slope is ranging, most of 10.2 becomes a filter for lower time frame trading anyway (per the manaul). Replacing the usual bands with patterns is a great idea.

You hit the major thing with chart patterns--filter, filter, and filter some more to find the reliable ones. Much of that "clutter" are the Autochartist filters that you pay your dealer for--and yes, we all pay. (I have IBFX). Anyone who started trading patterns by looking at paper diagrams on the wall, fully appreciates the automated sorting mechanism.

I'm surprised you say the TMA is confusing. To me, it is the main 10.2 filter. Key levels in the booklet are -0.4. -0.8. 0.4, and 0.8. In fact, TMA Slope is what I want to combine with patterns.

You might consider bringing this over to SteveHopwoodForex where there are many variations of NB's 10.2 strategy posted in their own threads. Anyway, thanks.
An ounce of profitable logic is worth a pound of efficient code.
  • #3,147
  • Jul 10, 2012 3:50pm Jul 10, 2012 3:50pm
NB is attempting to simplify our analysis and some charts that I am seeing in Jemook's thread are very bare of indicators.

He and some of his contributors have refined their approach and that has allowed to them to realize significant numbers of pips.

You might have a look at the three charts posted on this page and notice the simplicity of the charts.

http://www.stevehopwoodforex.com/php...=640&start=380
  • #3,148
  • Jul 11, 2012 12:31am Jul 11, 2012 12:31am
Hi RJo,

Thanks for the positive feedback. There are already too many good systems to understand and master and anyone can think this over and trade the patterns with 10.2. There is nothing new in this, just a good combination of already available tools that I wanted to draw attention on.

I was confused about different TMA values on different TFs and had a problem with how to interpret the manual because it is quite sophisticated in terms of entry points, main signals and confirmation signals and the weight that the trader should put on them to find the best set ups. It looks easy but what really helped me is to follow up on the different strategies that use 10.2 for their advantage. They help clearing up my confusion about the original 10.2 idea. Once I fully get it I will hold tight ; )
functionaltrader.com
  • #3,149
  • Jul 11, 2012 10:45pm Jul 11, 2012 10:45pm
Since it is summer in the northern hemisphere, would you guys be be less aggressive in the market? Use less leverage? How would you guys trade differently? And what do you think of the market during the summer months?

As for me I am planning to use half my normal position size.
Riding the order flow
  • #3,150
  • Jul 11, 2012 11:07pm Jul 11, 2012 11:07pm
Quoting rewand
Hi RJo,

I was confused about different TMA values on different TFs and had a problem with how to interpret the manual because it is quite sophisticated in terms of entry points, main signals and confirmation signals and the weight that the trader should put on them to find the best set ups...
After thinking about it for a while I think I know what the cause of my confusion about TMA is. A contradiction of the logical (numbers) and the visual (colors) signals. If anyone knows the answer, please share..

10.2 says: buy/sell if TMA is any shade of green/red. The same time we have TMA values. So our brain has to deal with two things, example: TMA +0.3 | red or TMA -0.25 | green. Short or long bias?

Adding to this the values found on multiple TFs (like now the eurusd is short on the daily with -0.69, red, that should decide the trend but on the 4H it is -0.29, green).

????
functionaltrader.com
  • #3,151
  • Jul 11, 2012 11:50pm Jul 11, 2012 11:50pm
hi rewand,
Quoting rewand
After thinking about it for a while I think I know what the cause of my confusion about TMA is. A contradiction of the logical (numbers) and the visual (colors) signals. If anyone knows the answer, please share..
The Teal and Hotpink Colors always mean a ranging Market...so no trading.

Quoting rewand
10.2 says: buy/sell if TMA is any shade of green/red. The same time we have TMA values. So our brain has to deal with two things, example: TMA +0.3 | red or TMA -0.25 | green. Short or long bias?
in NB 10.2 it is nowhere written that you should trade anything if the values are between the 0.4 and -0.4 Levels. This is a Ranging Area where we usually do not trade...because the strength of the current movement is to weak...
Not NB Style: You could still trade this levels but only in the lower TFs. If the TMA there aligns with the direction of this TF.

Quoting rewand
Adding to this the values found on multiple TFs (like now the eurusd is short on the daily with -0.69, red, that should decide the trend but on the 4H it is -0.29, green). ????
Trading NB 10.2 is trading from TopTF to BottomTF also sometimes called TopDown Trading...we start at the higher TF to look for our signals and go down to the next lower TF to get confirmation of this signal. The more the signals align in the TFs the higher the probability that we will have a successful trade.
In your example both TMAs show a downtrend this mean you should only look for sell positions...H4 is maybe in a retracement phase so it is in range mode. but the overall strength of the movement shows south.
If the colors irritate you that much then change them in the Indicator Properties->Colors Tab or use one of the newly developed Indicators on Steve's Forum.
Actually I also released a TMA MTF Indicator there that has only one Color per TF since I don't need the green red indication of the strength...i just look at the values of the TMA.


happy trading,

NeoTrader
  • #3,152
  • Jul 12, 2012 12:54am Jul 12, 2012 12:54am
Quoting NeoTrader
hi rewand,

The Teal and Hotpink Colors always mean a ranging Market...so no trading.


in NB 10.2 it is nowhere written that you should trade anything if the values are between the 0.4 and -0.4 Levels. This is a Ranging Area where we usually do not trade...because the strength of the current movement is to weak...
Not NB Style: You could still trade this levels but only in the lower TFs. If the TMA there aligns with the direction of this TF.


Trading NB 10.2 is trading from TopTF to BottomTF also sometimes called TopDown Trading...we start at...
Good answers. Thanks
  • #3,153
  • Jul 12, 2012 1:02am Jul 12, 2012 1:02am
Quoting NeoTrader
hi rewand,

The Teal and Hotpink Colors always mean a ranging Market...so no trading.

in NB 10.2 it is nowhere written that you should trade anything if the values are between the 0.4 and -0.4 Levels. This is a Ranging Area where we usually do not trade...because the strength of the current movement is to weak...
Not NB Style: You could still trade this levels but only in the lower TFs. If the TMA there aligns with the direction of this TF.

NeoTrader
Hi NeoTrader,
Thanks for the answers, helpful indeed. I frequently go down to lower TFs, just as 10.2 says: we would be better off going down to lower TFs when the market is ranging. There are only two questions left related to this issue: regardless of color shade and TMA slope value on the lower TF, following rules, do we prefer short on lower TF as long as the TMA value is negative on the D1 (eg. -0.3, green shade on the D1 but +0.5 and green on the H1)?

Bob's H1/M30 trade examples are a bit confusing (at least they are confusing to me ; ), see THE H1 SCREEN) because they show the TMA slope indicator on the H1 but the entries do not seem to agree with them, they have probably much more to do with D1 signals. Considering this, should we just delete the slope indicator from the H1 and lower TFs, to avoid confusion?
functionaltrader.com
  • #3,154
  • Jul 12, 2012 1:45am Jul 12, 2012 1:45am
Hi rewand,
Quoting rewand
Thanks for the answers, helpful indeed. I frequently go down to lower TFs, just as 10.2 says: we would be better off going down to lower TFs when the market is ranging. There are only two questions left related to this issue: regardless of color shade and TMA slope value on the lower TF, following rules, do we prefer short on lower TF as long as the TMA value is negative on the D1 (eg. -0.3, green shade on the D1 but +0.5 and green on the H1)?
The probability for a successful trade raises if the TMAs align in the same direction on the TFs you watch.
Nevertheless I also trade sometimes against the D1 or H4 when I see a strong movement developing in the lower TFs (M15,M30, H1) but this is fishing for small fish...If I trade against the direction of the H4 and/or D1 I always use a tight SL and TP with a tight Trailing stop with RR of 1:1 or 1:2. I don't want to risk to much trading against the longtime trend.
And I do this only when there is no trend available elsewhere or I want to rush my adrenalin a little bit..

Quoting rewand
Bob's H1/M30 trade examples are a bit confusing (at least they are confusing to me ; ), see THE H1 SCREEN) because they show the TMA slope indicator on the H1 but the entries do not seem to agree with them, they have probably much more to do with D1 signals. Considering this, should we just delete the slope indicator from the H1 and lower TFs, to avoid confusion?
I don't remember exactly his lower Timeframe setups but if my gray cells are correct he uses the TMATrue indicator which is plotted direct on the chart and looks a little bit like a Bollinger Band for Trade setups in the lower Timeframes not the TMAslope alone.
I have my MTF TMA slope Indicator on all my setups and TFs running and set them up to show me the TMAslope of the D1, H4, H1.
I also use the TMA CSS Indicator I developed on almost all setups.
You can see a few examples on my Thread at Steve's forum

happy trading,

NeoTrader
  • #3,155
  • Jul 12, 2012 2:36am Jul 12, 2012 2:36am
Thanks for the answers NeoTrader and for sharing your trading habit on lower TFs. So the lower we go on TFs the more we have to figure things for ourselves when markets are in a ranging mode. This may be the only case when we can somewhat bend the rules (because there are no set rules here). I hope I understand this point well, Bob may confirm this later.
Thank you again.
functionaltrader.com
  • #3,156
  • Jul 12, 2012 3:50am Jul 12, 2012 3:50am
hi rewand,
Quoting rewand
Thanks for the answers NeoTrader and for sharing your trading habit on lower TFs.
You're welcome...

Quoting rewand
So the lower we go on TFs the more we have to figure things for ourselves when markets are in a ranging mode. This may be the only case when we can somewhat bend the rules (because there are no set rules here). I hope I understand this point well, Bob may confirm this later.
Thank you again.
Yep, as far as I know Bob has not set any fixed guidelines or definitions for lower TFs or ranging conditions yet. But I think that he mentioned that he was thinking about this topic too.
He also made some advancements to his 10.2 strategy (Daily, Weekly, Monthly Pivot alignment) that you can find on Steve's Forum somewhere in the 10.2 subforum (search for 10.2a).

And since you're already a member there why not talk there about this topic or if you have more questions...you can also use PM there to contact me.

happy trading,

NeoTrader
  • #3,157
  • Jul 12, 2012 4:31am Jul 12, 2012 4:31am
Thanks, I will look around some more, I do need indies that give accurate picture of D1 trend without changing the TF on the charts. The 10.2a handout is printed along with 10.2 but still have not got to the point to actually use it or just to realize in practice when exactly I should switch to it (when 10.2 fails). I try to master and live with 10.2 first and in a waiting mode regarding 10.2A.
functionaltrader.com
  • #3,158
  • Jul 12, 2012 5:55am Jul 12, 2012 5:55am
Quoting rewand
Thanks, I will look around some more, I do need indies that give accurate picture of D1 trend without changing the TF on the charts. The 10.2a handout is printed along with 10.2 but still have not got to the point to actually use it or just to realize in practice when exactly I should switch to it (when 10.2 fails). I try to master and live with 10.2 first and in a waiting mode regarding 10.2A.
IMHO the 10.2A is easier to trade. The alignment of the Pivot Line is easy to catch and therefor the primary Trade Direction you should go. If the TMA confirms this Direction on the TFs you watch you are good to go.

See attachment for a little example from the EURUSD M15 Chart with two attached "TMATrue SlopeHisto MTF" Indicators (The top one shows TMATrue slope for D1, H4, H1 and the bottom one shows the TMATrue for M30,M15,M5).


The daily Pivots are aligned (not shown on the chart)
( Monthly above Weekly above Daily) -> Sell Trades only

Price Action is below the daily and around the centerline of the TMATrue Indicator in the chart (looks like Bollinger Bands)

vertical lines from left right:
1st: H1 TMA crosses H4 TMA; H1 TMA is falling; Not a strong signal yet but a directional change to the downside is possible.
2nd: lower TF TMAs align 1st time for possible sell trade (M5 below M15 below M30 )
3rd: Higher TF H4 TMA has also started to fall; H1 is already below the -0.4 and H4 is almost there.

This would be a great time to enter a Sell Position.

Remember this is not NB rules that I show here. Rather my interpretation of some of his rules and the TMA for use in lower TFs.

happy trading,

NeoTrader
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd m15 analysis with 2 tmatrue mtf (d1,h4,h1 & m30,m15,m5).gif Size: 35 KB
  • #3,159
  • Jul 12, 2012 6:33am Jul 12, 2012 6:33am
Neotrader,

My exact thoughts,I had wanted to PM you just this morning on Steve's Forum about an aspect of this system referencing one of the Templates for the Baluda indicator you had designed but you have just taken the words right out of my mouth with your Graphic display re your Chart and Explanation .
Thanks to you and Nanningbob now something is becoming rather very clear to me.

But I am still going to PM you my Question anyway because Forexripper had asked a question close to mine in the past but I just want a bit more Clarity on the Issue.


Regards,
xrismak.
  • #3,160
  • Jul 12, 2012 6:59am Jul 12, 2012 6:59am
NeoTrader, Your chart and the explanations make great sense to me and I feel I have significantly more ammunition now to go to the battlefield. Let's see how I will react and whether I can make the right decisions while facing the charts real time.
Thank you, Rewand
functionaltrader.com
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