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The similarity system

  • #3,521
  • Jul 19, 2013 11:14pm Jul 19, 2013 11:14pm
Quoting Eurusdd
{quote} Part of the algorithm does not run on mt4. Therefore, you will need an external software. It is the reason I know we have a technical problem at 1.31583. As you can see, eurusd is going there against people's expectations.
Yes but these technical problems they do not happen often yes?

Actually all that you have already given and I mean you need to connect ALL of them together coupled with some sensible trade management is going to be rather profitable. And if you release the stable CI indictor it makes it even more robust.

Thankyou!!!
I want more brain power!
  • #3,522
  • Jul 19, 2013 11:26pm Jul 19, 2013 11:26pm
Can't wait for that stable CI to be released.
We have so many indicators and the mechanics of this system seems sophisticated to say.
Just need that one strategy to help achieve the ahhh moment and bam we are making constant good money!
  • #3,523
  • Jul 19, 2013 11:30pm Jul 19, 2013 11:30pm
Quoting Hennessy
Can't wait for that stable CI to be released. We have so many indicators and the mechanics of this system seems sophisticated to say. Just need that one strategy to help achieve the ahhh moment and bam we are making constant good money!
The similarity principle is simple and constant. However, there are many ways to apply it; you can use different indicators or setups. That is why there is a lot of different things going on here.
  • #3,524
  • Jul 19, 2013 11:33pm Jul 19, 2013 11:33pm
I just woke had a smoke. And then this thought (Rather stupid one I must say) came to me.

Since price moves away from the point of dissimilarity, should we hedge at this point?
Yes we can, and the price will move in favor of one of the hedges for some distance and then at some point the price will also retrace
The question is where do we take-profit on the winner and wait for the retrace?
The answer seems obvious to me while in this half-sleepy tobacco influenced state - At the next "zigzag+ema-out-of-bollinger."

Am I right? Monday will tell us
Now we all need a picture to explain our ideas, so the picture below says it all

Attached Image
  • #3,525
  • Jul 19, 2013 11:35pm Jul 19, 2013 11:35pm
Quoting Eurusdd
{quote} The similarity principle is simple and constant. However, there are many way to apply it; you can use different indicators or setups. That is why there is a lot of different things going on here.
Yes, do get a little confusing with the various methods of applying it.
I do seem to understand the similarity principle better with the CI indicator you posted in #1.
  • #3,526
  • Jul 19, 2013 11:57pm Jul 19, 2013 11:57pm
Quoting shiva
I just woke had a smoke. And then this thought (Rather stupid one I must say) came to me. Since price moves away from the point of dissimilarity, should we hedge at this point? Yes we can, and the price will move in favor of one of the hedges for some distance and then at some point the price will also retrace The question is where do we take-profit on the winner and wait for the retrace? The answer seems obvious to me while in this half-sleepy tobacco influenced state - At the next "zigzag+ema-out-of-bollinger." Am I right? Monday will tell us...
Had that exact same thoughts and noticed that too at the time of DS, price moves away from it. At times its obvious when price is out of BB and DS happens it moves away from that. Sometimes not so obvious when price is no where near the outer bands of BB.

The way I play with it is to trade when price is outside of BB and DS takes place. Take profit when price reach another point outside of BB.
Might be right might be wrong, would love to hear any comments on this.
  • #3,527
  • Jul 20, 2013 12:01am Jul 20, 2013 12:01am
CORRECTIONS TO THE CI-SIMILARITY PROBLEM

It is clear that the CI-indicator repaints badly and is normally unstable especially if you use us the setting 1-X-4. The setting X-1-4 is also difficult to work with. Therefore, I changed the code of the CI-indicator in such a way that we can use the same setting on the original CI and my version and get a picture like the one below:

Attached Image (click to enlarge)
Click to Enlarge Name: a.PNG Size: 48 KB


DAILY CHART!!!
Attached Image (click to enlarge)
Click to Enlarge Name: AA.PNG Size: 61 KB


My version is in Yellow and the original CI is in white. The setting is the same for both indicators. However notice the difference. Therefore, we are able to cut down NOISE/FALSE-FLAGS by 70%+. This is good!

HAHA.

How to trade this: Treat a spike of the original CI-indicator as important if and only if there is a corresponding spike on my version!
  • #3,528
  • Jul 20, 2013 12:03am Jul 20, 2013 12:03am
Quoting crottsinabox
{quote} There is a thread for the 3SS strategy located in the Commercial content section. Look for Third Screen Strategy- Dr. Alexander Elder" And the TCO EA is under the trading systems section. The 3SS is quite a decent system as well as long as you can handle the drawdown(thousands of pips sometimes) that comes with it. I have used it with good success as well.
Thank you very much for your information crottsinabox

Quoting Neio
{quote} Hi Smallcat, Here is the post where I disclose the settings. WARNING - Adjust the Lot sizes to suit yourself. Mine were high compared to my account size. Recommend to trade it in demo for a while before going live with any EA. I might use it to live to supplement my manual trading of Eurusdd's methods! Regards Neio {quote}
Thank you Neio. I found this thread is very wonderful, especially for a beginner like me ...
  • #3,529
  • Jul 20, 2013 12:04am Jul 20, 2013 12:04am
Quoting Eurusdd
CORRECTIONS TO THE CI-SIMILARITY PROBLEM It is clear that the CI-indicator repaints badly and is normally unstable especially if you use us the setting 1-X-4. The setting X-1-4 is also difficult to work with. Therefore, I changed the code of the CI-indicator in such a way that we can use the same setting on the original CI and my version and get a picture like the one below: {image} DAILY CHART!!! {image} My version is in Yellow and the original CI is in white. The setting is the same for both indicators. However notice the difference. Therefore,...
Amazing
  • #3,530
  • Jul 20, 2013 12:04am Jul 20, 2013 12:04am
Quoting Eurusdd
CORRECTIONS TO THE CI-SIMILARITY PROBLEM It is clear that the CI-indicator repaints badly and is normally unstable especially if you use us the setting 1-X-4. The setting X-1-4 is also difficult to work with. Therefore, I changed the code of the CI-indicator in such a way that we can use the same setting on the original CI and my version and get a picture like the one below: {image} DAILY CHART!!! {image} My version is in Yellow and the original CI is in white. The setting is the same for both indicators. However notice the difference. Therefore,...
bloody awesome!
  • #3,531
  • Jul 20, 2013 12:04am Jul 20, 2013 12:04am
Quoting Eurusdd
CORRECTIONS TO THE CI-SIMILARITY PROBLEM It is clear that the CI-indicator repaints badly and is normally unstable especially if you use us the setting 1-X-4. The setting X-1-4 is also difficult to work with. Therefore, I changed the code of the CI-indicator in such a way that we can use the same setting on the original CI and my version and get a picture like the one below: {image} My version is in Yellow and the original CI is in white. The setting is the same for both indicators. However notice the difference. Therefore, we are able to cut down...
Great Eurusdd, would you share the indicator ? ..... please ....
  • #3,532
  • Jul 20, 2013 1:59am Jul 20, 2013 1:59am
Quoting Eurusdd
CORRECTIONS TO THE CI-SIMILARITY PROBLEM It is clear that the CI-indicator repaints badly and is normally unstable especially if you use us the setting 1-X-4. The setting X-1-4 is also difficult to work with. Therefore, I changed the code of the CI-indicator in such a way that we can use the same setting on the original CI and my version and get a picture like the one below: {image} DAILY CHART!!! {image} My version is in Yellow and the original CI is in white. The setting is the same for both indicators. However notice the difference. Therefore,...
Dear SIR EURUSDD,
As a newbie, have been quitely following this thread since June29 with deep interest and taking down notes where necessary. You started with CI method, followed by Stoch readings and last is Stoc-BB-ZZ. All of them can give profitable tradings provided you or rather we, know how to effectively use it. I like KISS system hence am more prone to using the CI method as I find it simple and easier among the 3 methodologies. With reference to Daily chart in post 3527, you drew 2 blue arrows indicating the direction of price. I believe (sorry if am wrong) this was based on the upwards white spike of the original CI. This far I understand how the CI signals work.

On the other hand, the yellow spike shown by your version indicates that trades should go south. In cases where both CI give different signals, which way should I trade?

As English is not my primary language, am sorry again if I misunderstood your statement "Treat a spike of the original CI-indicator as important if and only if there is a corresponding spike on my version!"

Appologise to offend you with my stupidness and being dumb hence I prefer to remain silent and keep my mouth SHUT rather than making people feel irritated with stupid questions. Thank you very much SIR for not prohibiting me from learning and applying your MAGIC approach.
  • #3,533
  • Jul 20, 2013 2:45am Jul 20, 2013 2:45am
Quoting Eurusdd
CORRECTIONS TO THE CI-SIMILARITY PROBLEM It is clear that the CI-indicator repaints badly and is normally unstable especially if you use us the setting 1-X-4. The setting X-1-4 is also difficult to work with. Therefore, I changed the code of the CI-indicator in such a way that we can use the same setting on the original CI and my version and get a picture like the one below: {image} DAILY CHART!!! {image} My version is in Yellow and the original CI is in white. The setting is the same for both indicators. However notice the difference. Therefore,...
Hi Eurusdd,

I am addicted to this thread now, which is not good I am using the stoch-bb concept now with very good result. I have tried the CI method as well, but as you said it repaints badly. In your version, the spikes reapints or not?
Thanks a lot for this amazing thread
  • #3,534
  • Jul 20, 2013 3:08am Jul 20, 2013 3:08am
Quoting Eurusdd
​But this will not ALWAYS be the case because the indicator we are using is not the "best". There are cases whereyour claim will fail: However, what most of you have FAILED to learnr is this: The orIginal principle states that price MUST return to the level where the dis-similarity was FIRST DETECTED. So, even if price returns there and the zone has not yet appeared (according to Ralome's indicator), the CONDITION IS DONE!!!!! GET THIS RIGHT!!!!
I restate my claim as Price usually corrects a DS zone from the opposite direction that created it. In other words if price was in a downward trend it would correct the DS from below in an uptrend and vice versa. This is however base on the current indicator we are using and I have observed the conditions where my claim fail is usually where price has ALREADY returned to the point of DS WITHOUT THE ZONE PAINTING OR BEING BORN YET. I see why you stressed it so. This has led to the conclusion that the moment a DS is picked up it is imperative that we mark the CLOSE of the DS candle.

I would also like to put forward the following suggestions and observations some of them may be contradicting

1)When a DS candle appears price usually does not kill it straight away. It will move away from it first but there are times when AFTER the initial move away price will return and approach the close of a DS candle and the zone is NOT YET PAINTED. The direction of the FIRST approach often makes for a good scalp. If price touches DS close form above short scalp and long scalp if it come up from below. A safer play might be to use the highs and low of the DS for your trigger point. **Every single approach under this condition may be a scalping possibility, that DS close may well be what some people call a scalp line! Analysis this on your own chart and come to your own conclusion** **I suspect some of you are probably employing some kind of hedging technique on this**

2)When PA takes out an unpainted DS, according to what I quote from Eurusdd I might not want to consider taking that zone into account for PA prediction because the DS/S condition of it has actually already been fulfilled

3)I have also observed that for unpainted zones that already have their DS/S condition fulfilled, price does still respect it when it paints to a rather reasonable degree however the forecast of where the PA would be when it paints and how it would be "killed" will have to be a evolving one. Example when the DS appears while price was downward I expect PA to be below it when it paints and kill it from below and it HAS to do it this way but if PA killed it before it got painted I instead expect PA to be above the zone now when it paints and kill it from top down. If the zone got killed again before it paints I again change my expectation for PA to be below the zone instead and kill it from bottom up. Repeating the cycle till such time PA decides how it bloody well wants to kill the zone or when the zone finally paints which by then it should be fairly clear how the zone is going to die.

Thankyou
I want more brain power!
  • #3,535
  • Jul 20, 2013 3:12am Jul 20, 2013 3:12am
Quoting josh11
hey guys, hope we are all making money!! Eurusdd show us that when dis-similarity become flat it becomes good support and Resistants: Take a look at the picture this help me alot with my trades! {image}
Hi josh,
Thanks for reminding us this tips.
I think this is one of important pieces that we should not forget.
I already added it to my trading plan.

By the way, I see you are using my indicator which draws H & L of dissimilarity zones and gap zones.
Few days ago, I received a feedback:
Quote
Xixi

I keep getting the following errors in my expert file at every tick..

Anyway to fix this?

10:51:42 StochDifZoneX_v1_2 EURUSDm,M15: object name passed to ObjectGet function cannot be an uninitialized or empty string
10:51:42......


1. I fixed it. I also rename it to 'StochDifZoneX_HL' to prevent confusing with the old one 'StochDifZoneX' which draws dissimilarity zones and dissimilarity correction zones.

2. I see that there's only a small difference between R-v1 and R-v2 indicator which is one based on SMA to calculate Stoch & BB, the other based on EMA. So I add another option to both indicator 'StochDifZoneX' & 'StochDifZoneX_HL' so that it can switch caculation between SMA and EMA. I also fixed above error for 'StochDifZoneX'.

Further more, I also update these indicators to work as Eurusdd just said:

Quoting Eurusdd
​But this will not ALWAYS be the case because the indicator we are using is not the "best". There are cases whereyour claim will fail: However, what most of you have FAILED to learnr is this: The orIginal principle states that price MUST return to the level where the dis-similarity was FIRST DETECTED. So, even if price returns there and the zone has not yet appeared (according to Ralome's indicator), the CONDITION IS DONE!!!!! GET THIS RIGHT!!!!

I think that means the dissimilarity zone is ended as soon as it is corrected.

Hope that helps & thanks Eurusdd for this great educational thread!
Attached Image (click to enlarge)
Click to Enlarge Name: 2013-07-20-01-eurusd.png Size: 132 KB
Attached File(s)
File Type: mq4 StochDifZoneX_v2_0.mq4   10 KB | 786 downloads
File Type: mq4 StochDifZoneX_HL_v2_0.mq4   8 KB | 819 downloads
  • #3,536
  • Jul 20, 2013 3:19am Jul 20, 2013 3:19am
Quoting Eurusdd
CORRECTIONS TO THE CI-SIMILARITY PROBLEM It is clear that the CI-indicator repaints badly and is normally unstable especially if you use us the setting 1-X-4. The setting X-1-4 is also difficult to work with. Therefore, I changed the code of the CI-indicator in such a way that we can use the same setting on the original CI and my version and get a picture like the one below: {image} DAILY CHART!!! {image} My version is in Yellow and the original CI is in white. The setting is the same for both indicators. However notice the difference. Therefore,...
Ok take reference from the yellow spike.....

1)If it points up, up trend and if it points down, down trend.
2)Look to the right and upper CI and assuming we have a UP yellow spike
3)If the upper CI shows an UP spike it is SELL signal (weaker)
4)If the upper CI show a DOWN spike it is BUY signal (stronger)

Spikes are inversely related.....correct me if I am wrong.

Whew....what a day!
I want more brain power!
  • #3,537
  • Jul 20, 2013 3:23am Jul 20, 2013 3:23am
Quoting xixi
{quote} Hi josh, Thanks for reminding us this tips. I think this is one of important pieces that we should not forget. I already added it to my trading plan. By the way, I see you are using my indicator which draws H & L of dissimilarity zones and gap zones. Few days ago, I received a feedback: {quote} 1. I fixed it. I also rename it to 'StochDifZoneX_HL' to prevent confusing with the old one 'StochDifZoneX' which draws dissimilarity zones and dissimilarity correction zones. 2. I see that there's only a small difference between R-v1 and R-v2 indicator...
I O U 1 x future vouch if I ever can vouch

The original indicator still has it uses though...if my ramblings on the scalp line thingy holds water then original indicator will give me a good gauge on how long I can employ the line
I want more brain power!
  • #3,538
  • Jul 20, 2013 3:30am Jul 20, 2013 3:30am
Quoting cfdtaleong
{quote} I O U 1 x future vouch if I ever can vouch
Thanks mate! I see you're learning very well day by day. I'm learning too and tweaking the indicator is a way I go.
  • #3,539
  • Jul 20, 2013 3:39am Jul 20, 2013 3:39am
Quoting cfdtaleong
{quote}The original indicator still has it uses though...if my ramblings on the scalp line thingy holds water then original indicator will give me a good gauge on how long I can employ the line
Maybe.
I just keep up with latest lesson from Eurusdd. I'm not sure how it affects what we've been learnt so far... :nerd:
  • #3,540
  • Jul 20, 2013 4:09am Jul 20, 2013 4:09am
Quoting xixi
{quote} Hi josh, Thanks for reminding us this tips. I think this is one of important pieces that we should not forget. I already added it to my trading plan. By the way, I see you are using my indicator which draws H & L of dissimilarity zones and gap zones. Few days ago, I received a feedback: {quote} 1. I fixed it. I also rename it to 'StochDifZoneX_HL' to prevent confusing with the old one 'StochDifZoneX' which draws dissimilarity zones and dissimilarity correction zones. 2. I see that there's only a small difference between R-v1 and R-v2 indicator...
Thanks mate will download later when I get home!!

Glad to hear you have a trade plan....

Keep up the great work.
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