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The similarity system

  • #1,581
  • Jul 13, 2013 1:04am Jul 13, 2013 1:04am
price is aware of where all the dis-similarity points/zones are and JUST LIKE a river meandering
Attached Image


its way from the source to sea, price will correct each dis-similarity depending on how close each one is and the ease of correction.
Therefore, you have a chess-board and if you stare at it you can determine possible options for price in order to avoid a check-mate.

The basic principle is simple: PRICE has to move in such a way that it corrects as many dis-similarities as possible and also create VERY FEW NEW ONES. That is why some-times price can just move in way, that no one expected.
Because there are so many dis-similarity points - taking into consideration all possible computable time-frames, you need a powerful algorithm to track these things. Most traders don't have that luxury.
  • #1,582
  • Jul 13, 2013 1:23am Jul 13, 2013 1:23am
The problem now is: find the best settings that are close to the true one. The true one is the one that will eventually happen at a point-at-infinity.
That is not an easy thing to do event though it is possible to estimate the true settings.

So, for you -the ordinary trader - try and consider as many time-frames as possible and keep the template simple: You need to mark those point and do your chess-board analysis.
  • #1,583
  • Jul 13, 2013 1:29am Jul 13, 2013 1:29am
#follow eurusdd
Pivot Boss in the making~
  • #1,584
  • Edited 1:51am Jul 13, 2013 1:40am | Edited 1:51am
Quoting Eurusdd
price is aware of where all the dis-similarity points/zones are and JUST LIKE a river meandering {image} its way from the source to sea, price will correct each dis-similarity depending on how close each one is and the ease of correction. Therefore, you have a chess-board and if you stare at it you can determine possible options for price in order to avoid a check-mate. The basic principle is simple: PRICE has to move in such a way that it corrects as many dis-similarities as possible and also create VERY FEW NEW ONES....
That's exactly what I see in my experiments of your idea.

Quoting Eurusdd
The problem now is: find the best settings that are close to the true one. The true one is the one that will eventually happen at a point-at-infinity. That is not an easy thing to do event though it is possible to estimate the true settings. So, for you -the ordinary trader - try and consider as many time-frames as possible and keep the template simple: You need to mark those point and do your chess-board analysis.
I'm wondering if we have rules to evaluate these points so that to pick the best one among the chess-board...

Excellent, Eurusdd!
  • #1,585
  • Jul 13, 2013 1:49am Jul 13, 2013 1:49am
Quoting Cfx1
{quote} Could you explain the hedging strategy you employ? The way I use "recovery" is to open additional lots in the same direction any x pips and close them individually as price returns to the profit zone. This way if even if price never makes it back to the level of the initial order but instead cycles up and down at a certain level I am able to close the position at breakeven or even at profit. I stop this operation & take the loss once it becomes obvious that the odds are against my position.
This has sense for me :

- If the long term probability to win/lose is 50/50
- Then if you are winning, the longer you stay in the market, the more probable you can lose
- Then if you are losing (this is the case), the longer you stay in the market, the more probable you can win.

So hedging can help us to stay in the market.
And scalping reduces exposure time.
  • #1,586
  • Jul 13, 2013 2:10am Jul 13, 2013 2:10am
Quoting xixi
{quote} I think the general idea is trade from similarity to dis-similarity or vice versa. Just make it fit yourself.
Yes, although trading toward dissimilarity seems trickier
  • #1,587
  • Jul 13, 2013 2:22am Jul 13, 2013 2:22am
Quoting Eurusdd
The problem now is: find the best settings that are close to the true one. The true one is the one that will eventually happen at a point-at-infinity. That is not an easy thing to do event though it is possible to estimate the true settings. So, for you -the ordinary trader - try and consider as many time-frames as possible and keep the template simple: You need to mark those point and do your chess-board analysis.
Yeah, you're right. It's like playing chess, like how you can decide which one is the best move next. It seems simple but not easy. You must have the view of the whole context in mind and the best move next is usually based on your experience or "eyes" or how far you can evaluate. To evaluate exactly the best move you must see as far as to the infinity and that needs a huge computations...
  • #1,588
  • Jul 13, 2013 2:29am Jul 13, 2013 2:29am
Quoting xixi
{quote} Yeah, you're right. It's like playing chess, like how you can decide which one is the best move next. It seems simple but not easy. You must have the view of the whole context in mind and the best move next is usually based on your experience or "eyes" or how far you can evaluate. To evaluate exactly the best move you must see as far as to the infinity and that needs a huge computations...
BAAAM. That is the KEY!!!!

One way around that is to identify NODES. Have the mind of the chess-player. Price does not move any-how.
  • #1,589
  • Jul 13, 2013 2:38am Jul 13, 2013 2:38am
Quoting xixi
{quote} Yeah, you're right. It's like playing chess, like how you can decide which one is the best move next. It seems simple but not easy. You must have the view of the whole context in mind and the best move next is usually based on your experience or "eyes" or how far you can evaluate. To evaluate exactly the best move you must see as far as to the infinity and that needs a huge computations...
We humans don't have such computing power. So how can we still win the competitor?
The best strategy in practical is usually attack the competitor's weaknesses. Detecting those weaknesses, picking the weakest and easiest-to-attack one is most likely the best move next...
  • #1,590
  • Jul 13, 2013 3:23am Jul 13, 2013 3:23am
Hi Guys, I'm an avid reader of the thread since it's inception but my knowledge of indicators and their settings is very limited. I downloaded the 15 min template on here which has stoch settings of 300/1/1. Could anyone be so kind as to tell me what the settings would be for the 5 min and 1 min charts. I have trawled through the whole thread a few times and cannot find the answer to my question. Thanks.
  • #1,591
  • Jul 13, 2013 3:29am Jul 13, 2013 3:29am
Quoting Shearer9
Hi Guys, I'm an avid reader of the thread since it's inception but my knowledge of indicators and their settings is very limited. I downloaded the 15 min template on here which has stoch settings of 300/1/1. Could anyone be so kind as to tell me what the settings would be for the 5 min and 1 min charts. I have trawled through the whole thread a few times and cannot find the answer to my question. Thanks.
From 15min TF :300 x 15min = 4500 min
For 1hour TF >> setting is 75/1/1 (Use 4500 min divide 60 min = 75 hours)

For whatever TF, as long as the setting is matching 4500 min or 75 hours or 3.125 days, then it is fine.
So for 5min TF >> 4500min / 5min = 900 min >> 900/1/1
So for 1min TF >> You should know.
  • #1,592
  • Jul 13, 2013 3:38am Jul 13, 2013 3:38am
Thanks for the prompt response Bull Bear - much appreciated.
  • #1,593
  • Jul 13, 2013 3:59am Jul 13, 2013 3:59am
Hi everyone,

here is StochDifZones v1.2 with two optional extras, which are disabled by default:

1. You can change the bottom dot markers into line markers.
2. You can have markers on the chart where dissimilarity was bigger than X.

The settings_are_self_explanatory
Attached Image (click to enlarge)
Click to Enlarge Name: SDZ3.jpg Size: 140 KB
Attached File(s)
File Type: mq4 StochDifZones_v1_2.mq4   9 KB | 1,268 downloads
Even if you fall on your face, you're still moving forward.
  • #1,594
  • Jul 13, 2013 4:21am Jul 13, 2013 4:21am
Quoting Ralome
Hi everyone, here is StochDifZones v1.2 with two optional extras, which are disabled by default: 1. You can change the bottom dot markers into line markers. 2. You can have markers on the chart where dissimilarity was bigger than X. The settings_are_self_explanatory {image} {file}
Thanks Ralome,

Ur indicator makes spotting the dis-similarity so much easier and provides the start and end of dis-similarity window.
Makes my entry plan easier to carry out.

Will practice more and use it when market opens on Mon

My only question here would be how to utilize the First Dis-Similarity Zone as part of Eurusdd's trading methods.
  • #1,595
  • Jul 13, 2013 4:21am Jul 13, 2013 4:21am
eurusdd loves talking in riddles, keep it straight boss, spill
  • #1,596
  • Jul 13, 2013 4:26am Jul 13, 2013 4:26am
ralome does your indi repaint.?
  • #1,597
  • Jul 13, 2013 4:34am Jul 13, 2013 4:34am
Quoting a_fx
ralome does your indi repaint.?
No, it doesn't.
Even if you fall on your face, you're still moving forward.
  • #1,598
  • Jul 13, 2013 4:46am Jul 13, 2013 4:46am
Quoting Ralome
Hi everyone, here is StochDifZones v1.2 with two optional extras, which are disabled by default: 1. You can change the bottom dot markers into line markers. 2. You can have markers on the chart where dissimilarity was bigger than X. The settings_are_self_explanatory {image} {file}
It took the loading for quite a long time....
Is my platform issue? Or maybe could re-code it with the calculation of few bars instead of all bars. So it faster the load up.
Thanks.
  • #1,599
  • Jul 13, 2013 4:47am Jul 13, 2013 4:47am
does every1 only take ci in the direction of a 15min established stoc on the m1 chart
  • #1,600
  • Jul 13, 2013 5:02am Jul 13, 2013 5:02am
Quoting Ralome
Hi everyone, here is StochDifZones v1.2 with two optional extras, which are disabled by default: 1. You can change the bottom dot markers into line markers. 2. You can have markers on the chart where dissimilarity was bigger than X. The settings_are_self_explanatory {image} {file}
Ralome: Well done!!!! You have made life easier for a lot of folks here. I just want to add that your indicator is OPTIMIZED for the 15min chart only and for EURUSD in particular!!!
So, folks should be careful!!!
Furthermore, only zones that are younger than 300*24 =7200 bars should be considered valid!!!!

Look at the chart! The rise of EURUSD was partly due to the correction at A. tHAT ZONE WAS MATURING!!!

Attached Image (click to enlarge)
Click to Enlarge Name: a.PNG Size: 114 KB
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