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Algorithmic Continuous Liquidity Flow (CLF)

  • #41
  • Dec 26, 2012 9:12am Dec 26, 2012 9:12am
it's a good move on the EURUSD
while the AUDUSD is still getting hammered when it can.

eye balling it again and again. i have noticed that when your DSS and TDI lines up together "in phase" it heightens probability.
where it doesn't it is better to have a "take what you can" which usually is 1/2 off at 1 risk and then BE the rest.
  • #42
  • Dec 26, 2012 9:35am Dec 26, 2012 9:35am
Quoting nicoacademia
it's a good move on the EURUSD
while the AUDUSD is still getting hammered when it can.

eye balling it again and again. i have noticed that when your DSS and TDI lines up together "in phase" it heightens probability.
where it doesn't it is better to have a "take what you can" which usually is 1/2 off at 1 risk and then BE the rest.

Yea when they line up, and the trade meets all the rules, then it is a high probability setup. You can always cut down your positions as you feel necessary. Everyone has different risk tolerances and goals. When the positions get up about 45-60 pips I will move my stops BE to eliminate the risk on the position to allow me to enter other setups. I usually don't recommend more than 2% VaR in your portfolio at any given time. So the faster you are able to take the risk off your book, the better. By doing this you can trade more pairs. Sometimes I might have 5-8 different trades going on, as long as I follow the risk control metrics. Some pairs lag, as in they are "late" to the setup in relation to other pairs where you might have entered the day before. So, if you are only taking high probability setups, then you want to be in as many trades as possible, due to the r:r.
  • #43
  • Dec 27, 2012 10:41am Dec 27, 2012 10:41am
AUDUSD is becoming overbought again, and is obviously in a strong down trend. Since the 25th, it has just been consolidating in this 30 pip range so it looks like it is struggling to gain traction for a larger bounce. The setup isn't ready just yet, but it looks to be getting very close.

AUDUSD8H

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  • #44
  • Dec 27, 2012 10:47am Dec 27, 2012 10:47am
Another decent setup developed overnight during the London session. USDCAD is trending up and DSS looks to be shifting momentum signaled by the OS double bounce, readying another bullish run.

USDCAD8H

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  • #45
  • Dec 27, 2012 10:57am Dec 27, 2012 10:57am
I've been holding EURGBP longs for about a week now, and it looks like it may be time to exit. The DSS is signaling a momentum shift and the TDI is showing divergent lows. Even though this trade didn't hit my 117 pip target, I can still just exit as I see fit.

EURGBP8H

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EURGBP5m

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Click to Enlarge Name: EURGBP5m.jpg Size: 188 KB
  • #46
  • Dec 27, 2012 11:21am Dec 27, 2012 11:21am
momentum indeed is everything. and what is happening before our eyes in this moment now is most crucial.
that said. has the 8H candle close to confirm your basis? the 5m has spiked up but if it sells off and turns into a 'falling off the roof' setup then the price action backs up the momentum.
but hey nothing wrong with taking some profits! even if it's just half

i really love the liquidity function you show. i believe it's the first 30mins opening range for each session?
  • #47
  • Dec 27, 2012 2:04pm Dec 27, 2012 2:04pm
Quoting nicoacademia
momentum indeed is everything. and what is happening before our eyes in this moment now is most crucial.
that said. has the 8H candle close to confirm your basis? the 5m has spiked up but if it sells off and turns into a 'falling off the roof' setup then the price action backs up the momentum.
but hey nothing wrong with taking some profits! even if it's just half

i really love the liquidity function you show. i believe it's the first 30mins opening range for each session?
The 8H doesn't have to close necessarily. Once you get more screentime with the DSS, you will be able to predict the momentum cross when it is in OB/OS. When you are ready, you then look at the 5m and just initiate the best algo level for your execution.

The liquidity levels for London are 1:00-1:02, New York 9:30-9:32, Market Close 17:00-17:05. These are all set in EST(GMT05:00).
  • #48
  • Dec 27, 2012 2:05pm Dec 27, 2012 2:05pm
Has anyone loaded the components & profile and started studying the system yet?
  • #49
  • Dec 27, 2012 5:31pm Dec 27, 2012 5:31pm
Quoting mfoste1
Has anyone loaded the components & profile and started studying the system yet?
Yes I have used the Algo EA , it took 2 trades , which made a small profit.

I then realised I have downloaded the Australian FXCM which has a different server time to the US one , so the Algo times where wrong , I will now download from FXCM.com and start again.

But it looks like a great method.
  • #50
  • Dec 27, 2012 6:52pm Dec 27, 2012 6:52pm
Quoting ianp
Yes I have used the Algo EA , it took 2 trades , which made a small profit.

I then realised I have downloaded the Australian FXCM which has a different server time to the US one , so the Algo times where wrong , I will now download from FXCM.com and start again.

But it looks like a great method.
You can just change the server time on your platform.

On the TradeStation, look under the tabs:
System>Options>General Trading>View format of time fields, and then just change it to "Server Time". It will automatically adjust everything to the correct time, so that the 8H candles are opening and closing at the right times for the system. You might have to adjust the times for the breakout box(liquidity levels) on the 5m.
  • #51
  • Dec 27, 2012 7:45pm Dec 27, 2012 7:45pm
mfoste1,

I have tested it and it seem really impressive so far. I have attached the screenshot of the P&L. Please ignore the 2 USD/CHF trades that caused the big loss. It was my mistake, I accidently triggered Buy instead of Sell even though on 8H it was showing a Sell. Other than that, I missed on a Long USD/CAD London trade yesterday which the algo didn't trigger. I wonder if I did something wrong. Anyways, so far so good.

Also, If most of the trading is done during the beginning of the session, why the Liquidity Box extends past that time. For example if we only focus on trading during 9:30 - 9:35 then why do we need the box till 9:25 (next day)?

Thanks for sharing.

Fez
Attached Image (click to enlarge)
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  • #52
  • Dec 27, 2012 7:59pm Dec 27, 2012 7:59pm
from a trader's perspective the liquidity from last session shows how things shape up now compared to yesterday.
this is highly valuable information.
something like a market profile - but simpler.
  • #53
  • Dec 27, 2012 8:09pm Dec 27, 2012 8:09pm
Quoting bose3
mfoste1,

I have tested it and it seem really impressive so far. I have attached the screenshot of the P&L. Please ignore the 2 USD/CHF trades that caused the big loss. It was my mistake, I accidently triggered Buy instead of Sell even though on 8H it was showing a Sell. Other than that, I missed on a Long USD/CAD London trade yesterday which the algo didn't trigger. I wonder if I did something wrong. Anyways, so far so good.

Also, If most of the trading is done during the beginning of the session, why the Liquidity Box extends past that time....
Hey Fez, thanks for the input to the thread . If price blows straight through the liquidity level very fast it may not trigger. I don't really know what the deal with this is, but I had had it happen a few times to me. Not a big deal.

The liquidity boxes extend so that you may enter the market throughout the day at whatever level you see fit. I have found in my research and practice that price will gravitate to these levels. So if you missed a trade, you can always enter a few hours late, if need be.
  • #54
  • Dec 27, 2012 8:12pm Dec 27, 2012 8:12pm
Quoting nicoacademia
from a trader's perspective the liquidity from last session shows how things shape up now compared to yesterday.
this is highly valuable information.
something like a market profile - but simpler.

That is a good description. It essentially shows what the market is doing in each session. The best thing you can do is focus on the 8H chart, because it is the lifeblood of this system. If you can fine tune your short/long bias based on this chart, the execution will be easy. You don't always have to enter with the corresponding algo to when you want to enter the market. This is when you want to look at the 5m to see where the best execution level will be, because sometimes, the levels will be spread out over a range and some levels will look better to enter than others.
  • #55
  • Dec 27, 2012 8:42pm Dec 27, 2012 8:42pm
Quoting mfoste1
That is a good description. It essentially shows what the market is doing in each session. The best thing you can do is focus on the 8H chart, because it is the lifeblood of this system. If you can fine tune your short/long bias based on this chart, the execution will be easy. You don't always have to enter with the corresponding algo to when you want to enter the market. This is when you want to look at the 5m to see where the best execution level will be, because sometimes, the levels will be spread out over a range and some levels will look better...
i have loaded it up and exploring it.
thanks for sharing!
  • #56
  • Dec 27, 2012 8:46pm Dec 27, 2012 8:46pm
Quoting nicoacademia
i have loaded it up and exploring it.
thanks for sharing!

No problem. I encourage everyone using this to post setups and what they see in this thread. I am going to make a video later tonight that will help clarify everything.
  • #57
  • Dec 29, 2012 9:17am Dec 29, 2012 9:17am
mfoste1,

Do you turn off the previous session algo when starting up the next session? For example if NY session is about to start, do you turn off London algo?


Thanks,
Fez
  • #58
  • Dec 29, 2012 10:43am Dec 29, 2012 10:43am
Quoting bose3
mfoste1,

Do you turn off the previous session algo when starting up the next session? For example if NY session is about to start, do you turn off London algo?


Thanks,
Fez

Hey Fez, interesting question which I am sure many are wondering the same. So the answer is no, not necessarily. You do need to look at the other levels and use your best judgement. You can use 1, 2 , or all three of the levels to build a net position. It just all depends upon your risk tolerance. So for example, if you were to use all three levels, then you would obviously want to scale back your position sizing. The main thing that you need to focus on is forming your long/short bias on the 8H. This is the core of the strategy.

I just wanted to show an example, and you can find these types of examples everywhere in all pairs. This is a shot of the EURUSD over the past week. You can see that even though the levels extend, you can still use them later in the day for a better fill. You just have to change some parameters of your algos. I am currently looking for an LUA programmer to work with me and alter the algos code to make them much more capable in regards to how I want execution to be a bit more precise. Its just hard because I don't code and I have really good ideas that will make this system even better and easier to use, but I just need a coder.

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD5m.jpg Size: 184 KB


Once I am able to reconnect to TradeStation, which should be sometime today, I am going make a video. I have just been extremely busy over the past week and haven't had any time.
  • #59
  • Dec 30, 2012 2:26am Dec 30, 2012 2:26am
summary: use moving average for trend and a OS/OB indicator to identify turning points and trade when the market is active.

man if i get a penny everytime i come across this type of system...i'd have a penny

Quoting mfoste1
Yes this system is very unique, but also flexible.
Please explain how this is unique?
just a fancy name with a misused buzz word ?
  • #60
  • Dec 30, 2012 4:47am Dec 30, 2012 4:47am
Quoting Mingary
summary: use moving average for trend and a OS/OB indicator to identify turning points and trade when the market is active.

man if i get a penny everytime i come across this type of system...i'd have a penny



Please explain how this is unique?
just a fancy name with a misused buzz word ?
I believe you may have misunderstood that posters comment. You should really re-read it.

My system can be traded in various styles which I have not yet explained, that are different from the original. I will explain these styles once I have fully explained the original system so that people have a solid grasp. Focusing on risk management, ability to enter a trending market at high liquidity levels, and the very low time commitment once a user has a good understanding make this system unique.

The name perfectly describes the system, which was obviously what I had intended. It utilizes algorithmic execution at continuing liquidity flows throughout the day. So, a "fancy name with a misused buzz word"? Maybe that is how you incorrectly perceived it.
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