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The similarity system

  • #3,761
  • Jul 22, 2013 2:27am Jul 22, 2013 2:27am
Quoting Neio
Strange...just logged into my Alpari Demo and noticed a dissimilarity zone inside the active big zone...{image}
Hey Neio, My charts don't have it, and yours look like they may comply with eurusdd's statement



2: When both charts show dis-similarity bars at the same time, the zones do not appear at the same time AND one zone is taken out before the other one appears on the other chart, then that zone is a very good target.
  • #3,762
  • Jul 22, 2013 2:28am Jul 22, 2013 2:28am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting taypot
{quote} Hey Neio, My charts don't have it, and yours look like they may comply with eurusdd's statement 2: When both charts show dis-similarity bars at the same time, the zones do not appear at the same time AND one zone is taken out before the other one appears on the other chart, then that zone is a very good target.
Hi Taypot, Yes I agree. It is a valid zone. The price found support there. Would have been a nice trade with ZZ confirmation.
An expert is a man who has made all the mistakes which can be made
  • #3,763
  • Jul 22, 2013 2:36am Jul 22, 2013 2:36am
Quoting Eurusdd
{image} REMEMBER, I said we will take 1.31583 out on OPENING!!!

Truly awesome!
  • #3,764
  • Jul 22, 2013 2:54am Jul 22, 2013 2:54am
Quoting Neio
{quote} Hi Taypot, Yes I agree. It is a valid zone. The price found support there. Would have been a nice trade with ZZ confirmation.
Yes, they definitely agree with Eurusdd's statement as the bars appear at the same time but the zones appear at different times on the charts, marked by the positioning of the red bars below. Curiously though, looking at your charts you have dis bars at around 16.30 (which mine do not have obviously) but visually I can't see the diff between your stoch and your main chart. I usually can see an area where they go out of kilter.
  • #3,765
  • Jul 22, 2013 2:58am Jul 22, 2013 2:58am
Heys guys, something you may find interesting/amusing.

I work for a small private bank in London, we are not big players and we certainly don't move markets. Anyway everyday we get market views from some of the big boys. This snippet might raise your eyebrows

With the main event risk behind us, trading believes that the USD will have a corrective few days. Watch 1.3205 in EURUSD and 1.5305 in cable. The spot desk will be looking for medium term opportunities to buy USD on dips and highlight that 10y UST at 2.35% will be a signal for them to buy USD.
Don't worry, anything I learn at Forex Factory has been for me and me only, the banks have enough money.

Daz.
Keep smiling
  • #3,766
  • Jul 22, 2013 3:04am Jul 22, 2013 3:04am
Quoting Misterdaz
Heys guys, something you may find interesting/amusing. I work for a small private bank in London, we are not big players and we certainly don't move markets. Anyway everyday we get market views from some of the big boys. This snippet might raise your eyebrows With the main event risk behind us, trading believes that the USD will have a corrective few days. Watch 1.3205 in EURUSD and 1.5305 in cable. The spot desk will be looking for medium term opportunities to buy USD on dips and highlight that 10y UST at 2.35% will be a signal for them to buy...
Nice one! Big Thumbs Up!
A pip is only worth it if you know how much you risked to earn it
  • #3,767
  • Jul 22, 2013 3:14am Jul 22, 2013 3:14am
Well it was 2.49% Friday so a fall is implied for them to buy at this price which of course means more upside for our lady until they make their move. This is fundamentals of course but interesting. Here's another snippet which contradicts and implies a rise from 1.32
EUR/USD - sizeable buy stops resting above 1.32 through 1.3215; including stops from CTA accounts (http://www.orderflowtrading.com/News/FlowInfo/tabid/349/articleType/ArticleView/articleId/2314/EURUSD--sizeable-buy-stops-resting-above-132-through-13215-including-stops-from-CTA-accounts.aspx)

from

http://www.orderflowtrading.com/News/NewsFeed.aspx

So thanks to the fundamentals, normal volatility will be resumed for us to make technical trading decisions on.
  • #3,768
  • Jul 22, 2013 3:16am Jul 22, 2013 3:16am
Quoting Neio
Strange...just logged into my Alpari Demo and noticed a dissimilarity zone inside the active big zone...{image}
I have a active zone inside the big one. I also noticed the high of its own zone was broken when it should not be while we are in similarity now.Quite an anomaly perhaps due the correction of 1.31583 or a 3% incident

Still confused but thinking about it....price was trying to take out the big zone and it will try to do so without creating new similarity but key here is it would try so a new zones will still have chance to get created...which did happen. Now she has two zones that need to be taken in out opposite directions..not sure what she will do but taking confirmed bounces can be a good idea. But Im staying on the benches for this one.

**some of the rules of the high or low of a DS period as boundaries don't seem to apply very well here maybe because the current one is nested and only the values of the bigger one is valid
I want more brain power!
  • #3,769
  • Jul 22, 2013 3:25am Jul 22, 2013 3:25am
Quoting taypot
Well it was 2.49% Friday so a fall is implied for them to buy at this price which of course means more upside for our lady until they make their move. This is fundamentals of course but interesting. Here's another snippet which contradicts and implies a rise from 1.32 EUR/USD - sizeable buy stops resting above 1.32 through 1.3215; including stops from... (http://www.orderflowtrading.com/News/FlowInfo/tabid/349/articleType/ArticleView/articleId/2314/EURUSD--sizeable-buy-stops-resting-above-132-through-13215-including-stops-from-CTA-accounts.aspx)...

It was the fact they said "watch 1.3205" which I found amusing as EURUSDD has also called this level.

Daz.
(http://www.orderflowtrading.com/News/FlowInfo/tabid/349/articleType/ArticleView/articleId/2314/EURUSD--sizeable-buy-stops-resting-above-132-through-13215-including-stops-from-CTA-accounts.aspx)
Keep smiling
  • #3,770
  • Jul 22, 2013 3:32am Jul 22, 2013 3:32am
Those posts must not be there...

The CI indicator repaints soooo much. Looks great on a chart ! But work not so good in real-time. Make a test by yourself.

Like the zigzag : "look, if i sold at top and bought at bottom !"
  • #3,771
  • Edited 3:54am Jul 22, 2013 3:37am | Edited 3:54am
Quoting IFxRobot
Those posts must not be there... The CI indicator repaints soooo much. Looks great on a chart ! But work not so good in real-time. Make a test by yourself. Like the zigzag : "look, if i sold at top and bought at bottom !"
another way to SAY i do not know how to USE it!!!
The problem is YOU!
  • #3,772
  • Jul 22, 2013 3:38am Jul 22, 2013 3:38am
Quoting cfdtaleong
{quote} I have a active zone inside the big one. I also noticed the high of its own zone was broken when it should not be while we are in similarity now.Quite an anomaly perhaps due the correction of 1.31583 or a 3% incident Still confused but thinking about it....price was trying to take out the big zone and it will try to do so without creating new similarity but key here is it would try so a new zones will still have chance to get created...which did happen. Now she has two zones that need to be taken in out opposite directions..not...
I also had something similar. Go to settings and change the stochperiod to something else than 300 and get out from the settings so it repaints.
Then change back to 300 and it should be fine!
  • #3,773
  • Jul 22, 2013 3:42am Jul 22, 2013 3:42am
Quoting crodzilla
Eurusdd, I found this article for you. They speak your language... talks about a Market Instrument Function... (way over my head) {image}
Okay this article. Basically it is a genetic algorithm, but differs from the fractal theory. In this case you must try to follow the steps of EURUSDD. It is very difficult to try to predict low values ​​such algorithms because the price by noise, overfitting occurs easily. A NarX neuronla network I developed has a coefficient of determination of 70% and so far response is the maximum I could give. I like the approach of treating the problem from a spatial form, and develop algorithms such calculations in a temporary, based on the setting of weights over time. Very complicated.
  • #3,774
  • Jul 22, 2013 3:51am Jul 22, 2013 3:51am
Quoting IFxRobot
Those posts must not be there... The CI indicator repaints soooo much. Looks great on a chart ! But work not so good in real-time. Make a test by yourself. Like the zigzag : "look, if i sold at top and bought at bottom !"
Hi Dude,

I've not used the CI, but you mentioned the ZigZag. It's not meant to be used the way you stated it.


"look, if i sold at top and bought at bottom !" - is a good way to get lose a trade. Simple.

You have to treat a turn as signpost. It may or may not be accurate. But you are ready.
That doesn't mean you have a guaranteed turn. No - one should ever rely on their indicators to guarantee a trade signal... .that is just absolute madness.
Every trade is a gamble. You find as many valid reasons to trade or not to trade. Relying on one signal's VISUAL INDICATOR is just ..... let me repeat. MADNESS.

That's why I traded it live last week... I willingly risked real cash (and I did lose some) to find out what rules could be applied to limit risk. That's every trader's goal. How to limit risk.

So if there is a ZZ TOP.... you get ready to look for a short... you apply the rules.... 3/4 check, you gamble that it's good enough. You place the SL at your least costly risk point (absolutely up to you to work this out). That's it! No more no less. If you wanted to analyse it further, set up a trading diary and find out how many winners and losers you get real time.... don't back test. Actually let me qualify that.... DON'T BACK TEST WITH A VIEW OF MODIFYING THE RULES. If you do, you have a totally different set of rules that you need to forward test over at least 3000 bars to have a worthy history.

Guys, do not look for PERFECTION. It does not exist.
Find out what works 60 or 70 percent of the time and then refine it to your trading style. That remaining 30% is completely yours not anyone else's.

EDIT:
Let me refine this: "Guys, do not look for PERFECTION. It does not exist."
Principles can be perfect (eg. Similarity PRINCIPLE) because it's an idea.... Plato and all that.
Execution is never perfect.... we, as individuals, stamp our own truth to it... thus manifesting an imperfect model of the idea. Accept the kinks... or limit the risk.
A pip is only worth it if you know how much you risked to earn it
  • #3,775
  • Jul 22, 2013 3:55am Jul 22, 2013 3:55am
Quoting Eurusdd
{quote} another to SAY i do not know how to USE it!!! The problem is YOU!
Everybody can make a try and judge by itself.
  • #3,776
  • Jul 22, 2013 3:58am Jul 22, 2013 3:58am
Quoting IFxRobot
{quote} Everybody can make a try and judge by itself.
This is exactly why I mentioned this in my last post:

Principles can be perfect (eg. Similarity PRINCIPLE) because it's an idea.... Plato and all that.
Execution is never perfect.... we, as individuals, stamp our own truth to it... thus manifesting an imperfect model of the idea.

There're's nothing wrong with the above.... but back to trading, you have to Accept the Indicator's kinks/flaws... or limit the risk.
A pip is only worth it if you know how much you risked to earn it
  • #3,777
  • Jul 22, 2013 4:03am Jul 22, 2013 4:03am
Quoting IFxRobot
{quote} Everybody can make a try and judge by itself.
I repeat: "you do not know how to use it" YOU are USING the setup in the wrong way> What are people going to test for themselves? Do you have a set of rules for them to follow? Do you have the right settings for the particular broker/pair?

If you are not getting the results you want, try something else:

It is like someone saying running 100m in 9.58 sec is impossible: Let people try it for themselves.

Sure: most people will not even get below 10sec.

AND did you read the part where I stated that "the CI-method is the LEAST......"
  • #3,778
  • Jul 22, 2013 4:23am Jul 22, 2013 4:23am
Quoting Misterdaz
.... 10y UST at 2.35% will be a signal for them to buy USD.
Hi Misterdaz,
Can you explain what does it mean ? I can't found it at FF calendar for this week about "10y UST" ....

Thanks
  • #3,779
  • Jul 22, 2013 4:29am Jul 22, 2013 4:29am
Quoting vlady1974
{quote} Hi Dude, I've not used the CI, but you mentioned the ZigZag. It's not meant to be used the way you stated it. "look, if i sold at top and bought at bottom !" - is a good way to get lose a trade. Simple. You have to treat a turn as signpost. It may or may not be accurate. But you are ready. That doesn't mean you have a guaranteed turn. No - one should ever rely on their indicators to guarantee a trade signal... .that is just absolute madness. Every trade is a gamble. You find as many valid reasons to trade or not to trade. Relying on one...
I agree 80% with that, perfection doesn't exists. But some have NO losing trades... hmmmm. They have no stop loss, so what... this is not a risk / reward scheme. Now that the zones are a little big more intricated than just shorting the euro down and down and down with a big reversal, the game is not so easy now.

And the dissimilarity is 97% accurate. So how ? I applied 'when the dissimilarity ends by similarity, the price is going back to clear the zone'. Works when the market trends. Doesn't seem so easy now it ranges. Maybe up 1.32 with support 1.30. So the market is ranging around 1.32 / 1.30...

You are wrong with the backtest : backtest is absolutly necessary BUT with unchanged rules. What you probably wanted to say is "don't try to optimize with backtest results". Here we have rules for zone clearing changing day by day. No good to forward-change the rules too. You are always trying to reach someting just happened yesterday.

And EURUSDD didn't gave his intrinsic motivation for all this thread.
  • #3,780
  • Edited 4:56am Jul 22, 2013 4:33am | Edited 4:56am
Quoting Eurusdd
{quote} I repeat: "you do not know how to use it" YOU are USING the setup in the wrong way> What are people going to test for themselves? Do you have a set of rules for them to follow? Do you have the right settings for the particular broker/pair? If you are not getting the results you want, try something else: It is like someone saying running 100m in 9.58 sec is impossible: Let people try it for themselves. Sure: most people will not even get below 10sec. AND did you read the part where I stated that "the CI-method is the LEAST......"
You are right, i haven't any rule, i tried to use YOURS, without success. Don"t have any others ones...

Make a clear recap of your rules, give it to everybody and let them judge by themselves (with BB + Stock + ZZ). IF YOU DO IT I WILL MAKE A FORWARD DIARY OF IT AND SHOW IT HERE.

Maybe "You Can".

Sorry, this will not be possible anymore : banned from this thread...
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