The similarity system

This thread is set up in such a way that you have to read it to get the GOLD within. No single post contains all the jewels. All those who spent time reading it are happy today!


For the theory of transient zones, go to http://www.forexfactory.com/showthread.php?t=434603&page=286



Hello People:
I don't know if I can call this a system but there is a deep-mathematical support for what you are about to read. I will not 'bore' you will a lot of things you already know and initially I opened a demo-account for the EXPLORER section but I may not have the time to trade it daily at this time. Therefore, I waNT all of you to have a basic idea of the principle underlying this thread. The demo-account(EXPLORER) EURUSDpips that I opened grew from $3,000 to $21,302 within 5 days before I closed it today! I also traded heavy lots (8 lots) on such a little account in order to prove to you that the principle is sound. 23 trades, 1 loss, 20 wins.

The are many parts to my trading strategy, however there is one part that everyone can test and master. The SIMILARITY-TRICK!
There are two ways to apply/use the trick.
1: Across brokers, same time-frame, same currency pair

2: same broker, same currency pair, compatible time frames.

Best Compatible time-frames are 1: 1min-5min, 5min-15min, 15min-30min, 30min-1hr, 1hr-4hr, 4hr-1day, 1day-1week. For day-traders, 1min-5min, 5min-15min, 15min-30min, 30min-1hr will be sufficient!

Once you have chosen your currency pair, and compatible time-frames you need to chosen indicators that alert you on important patterns on the chart. IT DOES NOT MATTER if the indicators you chose repaint or not!

For the purpose of the thread, I will use 1min-5min and indicators that everyone can get!

There are very good ways to spot loop-holes in the market but a crude way is the use the cycle-identifier indicator. You can easily get it online. You may have to tweAK the code a little so that the indicator does not 'clear-itself' like it usually does when new data point comes in.
Then you need to make sure your 1min and 5min charts look VERY SIMILAR like the one below.

Do you see the cycle indicators on the 1min and 5min charts agreed?
Since the indicators are set in such a way that they should agree >90% of the time, as soon as you spot a difference, like the case below, you are in for a high-probability trade!
Furthermore, since both chart must agree >90% of the time, once the cycle on the 1min/5min chart is telling you something and the cycle on the 5min/1min chart does not show the same stuff, you need to pay attention to you chart!
Another example of aggreement

Look at this difference!!! Since both chart must AGREE within a maximum interval of 5 minutes, any time the 5min bar closes and the cycles do not agree, the chart showing the difference gives you the trade signal. In the example below, the 1min chart gave the trade signal after the 5min candle closed without a similarity! Details later.

The cycle-identifier is a repainting indicator and the least used in the similarity system! The next indicator is the stochastic indicator! This one is SUPER but you need to watch your chart cause once you get the signal, you are in for a big ,,,,,,,,,,

lOOK at the two reading in the indicator window! I will explain this approach next week!


Eurusdd, Professional Scammer

I will give interested traders sometime to tweet their charts and then I will put up a link to my EXPLORER or trade in real-time here! All the best!

why don't you share your modified indi?
that will help to discuss about it ...

This is the last example for 30min/1hr . spot the difference!!!

Hi. If you are not using a wireless connection and you don't experience cuts then the original cycle-identifier should be ok! Otherwise, when you lose connection, and regain it the indicator can reset itself!
To be save use 30min/1hr and higher time-frame pairs!!!

D, we can watch you, but can't set up our charts without more detail info.
Ma? Hama? zigzag? Cycle identifier settings?
why not post the indi's and a template and your settings?

You have a point! Any indicator should do. Each one has it own analysis. Therefore, I decided to stick to one : Cycle identifier. I am sure most traders already have it. If you don't you can get the code online.
As for the settings, you need to decide that yourself since the idea is to make the charts look very similar. There are different degrees of similarities. Each one has its own probability of similarity. For example, if you tweet you chart so that the cycle indicator agree in the past 97/100 of the time then you have a high-probability setup!
For the cycle identifier, the two parameters you have to tweet are shown below.


All the best!

Next week I will attach an explorer to this thread so that we can track and trade this strategy in real-time!!! Take care. LATER!!!

Cycle identifier attached, this is the first time I've uploaded a file, hope it works.

I meant that I hope the upload works, I know the Cycle identifier works just fine.
You will need to tweet the settings as shown above.

I like the style of this thread! My trading style was kinda along lines of "LOOPHOLES".

As you can see below have a MTF cycle identifier I'm currently working on, should work well with this method.

Nice!
Now, try the settings 1-6-4 for the 30min chart and 1-3-4 for the 1hr chart. That should get you a fairly good chart! We will then go through the analysis later after you have study it a little while yourself!

you are king's of trading ... how to trade with an indicator that repaint so much ? signal appears disappears appear disappear how to manage .....

or may be i didn't understand the way to use it ...

Exactly. In fact, you have a plus. Figure out the right settings and how to read the signals and boom.

Hi there. repainting indicators work well with this approach since at the end of the day, you need the charts to be similar. For the 30min/1hr pair, you only have to wait for the 1hr bar to close to figure out what is going on!!!

ok i start to see the light ..... thank's ... what setup should i use for 1 mn 5 mn ?
thank's for your patience

Eurusdd, how did you go about finding the correct parameters for each timeframe?

The EXPLORER I will construct will be called EURUSDpips JUST LIKE MY LAST ONE! It will be a demo-account!!! Deposit = $5,000 and I will use the cycle-identifier ONLY to generate signals so that you can easily verify the claim. One thing to note is : the shape the cycle-identifier takes is based on the number of bars in your chart. Therefore, my chart may be different from yours even if we use the same settings!!!!

In that case we can apply the across broker, same time-frame same currency-pair method.

Put both Cycle identifier files in your experts/indicators folder, restart Metatrader.

Have a good day.

The default settings are 5X-Y-4 for 1min and X-Y-4 for 5min chart or X-5Y-4 for 1min and X-Y-4 for 5min. The first is responsive to moving averages and so you will not catch tops and bottoms exactly. However, it is quite good too!