Similarity: A Practical Approach | Page 17 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Similarity Trading - The ZZBB Method 215 replies

Rainbow similarity 256 replies

Help implementing zigzag similarity concept indicator 0 replies

Similarity Stuff 17 replies

Directional Similarity 0 replies

Attachments: Similarity: A Practical Approach
Exit Attachments

Similarity: A Practical Approach

  • #321
  • Jul 30, 2013 1:38am Jul 30, 2013 1:38am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting FxGunner
Hi Neio ! happy to see you reading here. I was impressed by your results you have with the dissimilarity but can't find them in your trade explorer... Do you have another method of trading ? Something practical ?
Hi FxGunner,

To be totally honest I am still trying to figure out a CONSISTENT way to trade this. I have a few good trades then a few bad trades knocks me back. I am not confident in my approach to the similarity method yet. Things I thought I knew do not always work out as planned. Drawdown and recovery can be tough and I am not confident enough to start trading it live yet.

I removed the explorers as I was getting too much attention and I blew the one I started last week.

As you might have noticed in my explorers I am also trying to combine this with high leverage trading. I want to be able to start with a couple of £1000 and build it up to a nice sum.

So in summary still finding my way at the moment if I feel I have something worth sharing I will.

Regards

Neio
An expert is a man who has made all the mistakes which can be made
  • #322
  • Jul 30, 2013 1:51am Jul 30, 2013 1:51am
Heading to bed....here is current pic of same trade from today.
Attached Image (click to enlarge)
Click to Enlarge Name: current.png Size: 25 KB
  • #323
  • Jul 30, 2013 2:45am Jul 30, 2013 2:45am
Hi
Well I don't see the difficulty with the DS methods. Infact, after experiencing what i went through last week i think trading the DS could be so simple. I trade only the EURJPY market. I first tried the DS method 3weeks ago. Unknown to me price at the time was gearing for a two week long up trend, unfortunately, my first DS was below the price so i quickly took a sell knowing that price will always come back to that DS zone.

Price went against me -350 pips for my first sell. -250pips for my second sell and 140 pips for the 3rd sell. I noticed that as price kept pushing up it was creating new DS zones below. That gave me more confidence that i should hold onto my sell. Now how do you hold on when you do not have equity? Then i realized.

1. Have a good trading system
2. Take a trade targeting a DS zone.
3. Make sure you have enough equity to last you 800 pips plus.
4. Use the recovery system when price moves further and further away from your zone.
5. Most importantly, Have a little faith that price will come back to your DS zones. Do not chase price.

I thought hedging would be great.....I don't think so anymore. Hedging is going to protect your equity, but you not making money that way. Have the courage to take a position and allow price to come to you.....the benefits are rewarding if you practice good money management and by that i mean, being able to hold on to trades for weeks. Make sure you trust your DS zones. 97% accuracy is all I need to have confidence in the DS.....

This was on my live account, today i am 250% up in profits because I made money when price finally obeyed the laws of DS.

Good Luck.

Quoting Dewey McG
3. DS zones and how best to trade them. I admit this one gets me confused whenever to I try to figure out how best to trade them. One simple idea I think that should be explored further is setting pending orders to open a trade when a zone is breached with TP on the other side of the zone. We know most will be taken out, so I think we only need to work on the best SL for the few times when the trade is entered and the zone is not taken out in a timely manner.
My help is in the name of the Lord who made heaven and earth.
  • #324
  • Jul 30, 2013 3:08am Jul 30, 2013 3:08am
Quoting Baillie
That is less than 50% Similar. We might want to consider making an adjustment to the indicator(s) to get closer to 90-97% before running too far ahead. {image}
This is what I have been feeling to when looking at the charts all the way back in Eurusdd´s thread. That is why I asked early on if it was ok to use other stochperiods that gave us less dis-sim! On the other hand, Eurusdd used the 300 setting on the StochDifZones and then that should be right!? But something don't add up to me here.
If we have less than 50% similarity with out charts and indicators right now, we should also count in that only about 60% of the zones are valid?
Maybe that's why we have so much dis-sim?

Don't know if 60% is still relevant, when we use V1/V2 indicators together though?
  • #325
  • Jul 30, 2013 3:40am Jul 30, 2013 3:40am
Someone I can repeat the stochastic settings for all tf possible?
thank you very much
  • #326
  • Jul 30, 2013 3:43am Jul 30, 2013 3:43am
Quoting Baillie
So this is where everyone went... Mind if I join in? Here is a pic of last weeks market with the Stoch Diff Indicator on the 15 min chart, I counted up the bars of DIS similarity and came to a total of 298 bars out of 474 bars for the week. give or take a bar. That is less than 50% Similar. We might want to consider making an adjustment to the indicator(s) to get closer to 90-97% before running too far ahead. {image}
Our problem here is that we don't have full information. That's it 100%.
We have been provided a concept that Function A and Function B hopes to derive similarity almost all the time but sometimes doesn't.
We can use whatever "indicator" we want as a proxy for A or B. This leads to inevitable inefficiency. Let's not even begin to talk time frames.

Bottomline - "we" don't know:

  1. what conditions perfectly identifies a dissimilarity
  2. what combination of indicators and their settings will yield the above.

However, here is the risk. If the author/proponent of the concept says that the Optimal Settings for Ralome's StochDiff Indicator v1 and v2 is 300/24 and 300/6 and they must be combined together when reading the chart.... then we run the risk of getting less than the 60% he already mentioned was capable from BBZZSTOCH method.

Not many of us here are mathematicians, so the best we can do is theorise and implement best "trading strategies" using the existing tools that are tuned already according to the "master". He never elaborated on trading strategies - and that was a distinct lack of the other thread. I think this is the heart and soul of what Joe's thread is about.

If we start re-optimizing the tools themselves, then borrowing from a Formula 1 analogy - we've changed everything.

A pip is only worth it if you know how much you risked to earn it
  • #327
  • Jul 30, 2013 3:45am Jul 30, 2013 3:45am
Quoting burnssss
Someone I can repeat the stochastic settings for all tf possible? thank you very much
Careful. The stochastic and bollinger settings can be whatever you want.
The settings of Ralome's indicator stay the same:
v1 = 300/24
v2 = 300/6

v2 = unless someone can read the code of the indicator - the change by a factor of 4 to the bollinger band alters the precision (obviously). I don't know what is done to this data.

Let me hunt down the formula that was posted on the other thread.
A pip is only worth it if you know how much you risked to earn it
  • #328
  • Jul 30, 2013 3:46am Jul 30, 2013 3:46am
Quoting spufuz
{quote} This is what I have been feeling to when looking at the charts all the way back in Eurusdd´s thread. That is why I asked early on if it was ok to use other stochperiods that gave us less dis-sim! On the other hand, Eurusdd used the 300 setting on the StochDifZones and then that should be right!? But something don't add up to me here. If we have less than 50% similarity with out charts and indicators right now, we should also count in that only about 60% of the zones are valid? Maybe that's why we have so much dis-sim? Don't know if 60%...


Yes it is.

If this tool is 60% accurate, Would you be able to be profitable 100% of the 60%?
That would be my goal.
A pip is only worth it if you know how much you risked to earn it
  • #329
  • Jul 30, 2013 3:48am Jul 30, 2013 3:48am
Quoting burnssss
Someone I can repeat the stochastic settings for all tf possible? thank you very much
stoch settings: 1min = 1500 with BB 125 (I saw this setting EURUSDD uses in his new thread) / 5min = 900 with BB 24 / 15min and bigger = 300 with BB 24.

That is what I think works best.
  • #330
  • Jul 30, 2013 3:56am Jul 30, 2013 3:56am
Quoting mattkirby
{quote} stoch settings: 1min = 1500 with BB 125 (I saw this setting EURUSDD uses in his new thread) / 5min = 900 with BB 24 / 15min and bigger = 300 with BB 24. That is what I think works best.
It is based on 4500 min in a chart. I don't know where this comes from. His optimal figure for calculation?

4500 = 300 x 15M
4500 = 900 x 5M

Now obviously you can't have 4500 in a stoch for 1M.. so 1500 was chosen... but that means it's at a resolution of 3M..... so 1M = 3M (ie no difference).
A pip is only worth it if you know how much you risked to earn it
  • #331
  • Jul 30, 2013 4:04am Jul 30, 2013 4:04am
Quoting vlady1974
{quote} It is based on 4500 min in a chart. I don't know where this comes from. His optimal figure for calculation? 4500 = 300 x 15M 4500 = 900 x 5M Now obviously you can't have 4500 in a stoch for 1M.. so 1500 was chosen... but that means it's at a resolution of 3M..... so 1M = 3M (ie no difference).
yes but the BB for 1500 was changed to 125. Perhaps this matches with 4500 /24 and it's easier for MT4 to calculate??
  • #332
  • Jul 30, 2013 4:11am Jul 30, 2013 4:11am
Right now I'm focusing on the problem, I do this because there are still things left to relate but until you build the model, I can not improve it. My first step is to study the Hurst coefficient for all tf to make sure everyone keeps relationship with each other, and if not so operate with those who are closely related.
Once done and checking the tf that are related to a number of periods, as it may change over time, build EMA1 expressions and STOCH with optimal parameters for one of the tf. construct the expression of relationship (EMA1 = STOCH%% similarity) and point out the dis-similarities.
I build the relationship with other tf, and calculate the turnaround points. At the time that both graphs are realigned is where CREO be operated as the level of correction and we have to dis-similarity is above, but this part I have not very clear yet.
If you acordais, EURUSDD compartia one chart in which there were two arrows, one with a green dot and one with a red dot. At the time no one appeared, meant that the price would return to that level. Well I think those arrows are relations of which I speak.
If someone mt4 expert programming logic would think you can try, but that's the way
  • #333
  • Jul 30, 2013 4:14am Jul 30, 2013 4:14am
Quoting mattkirby
{quote} yes but the BB for 1500 was changed to 125. Perhaps this matches with 4500 /24 and it's easier for MT4 to calculate??
That's an interesting mystery mate. I've collated the following based on the the #1st thread. It outlines the definition of how the Stoch and Dissimilarity is defined in Ralome's indicators (v1 and v2). The settings are the only difference.

In effect... it's 300 bars analysed and any differences must persist over 24 bars. If not similarity returns.
Changing this means that you have eg. 300 bar population but difference period of 6 bars. This would potentially create MORE DS Zones than the 24.
Attached File(s)
File Type: pdf ZONES.pdf   314 KB | 710 downloads
A pip is only worth it if you know how much you risked to earn it
  • #334
  • Jul 30, 2013 4:17am Jul 30, 2013 4:17am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting Albertdkpllh
Hi Well I don't see the difficulty with the DS methods. Infact, after experiencing what i went through last week i think trading the DS could be so simple. I trade only the EURJPY market. I first tried the DS method 3weeks ago. Unknown to me price at the time was gearing for a two week long up trend, unfortunately, my first DS was below the price so i quickly took a sell knowing that price will always come back to that DS zone. Price went against me -350 pips for my first sell. -250pips for my second sell and 140 pips for the 3rd sell. I noticed...

Interesting thoughts. The drawdown is the problem for me especially as I am trying to use high leverage. But I am trying to trade away from DS zones as I recognise that price can go a long way before returning and this is what Eurusdd recommended doing.

Also I mainly trade EUR/USD and have noted that some of the zones expire and do not always get returned too. Which is obviously a problem if you are making trades based on it returning there!

PS...Glad to hear you have made this work for you! I hope it continues to be profitable.

I am also starting to look at EUR/JPY. It was my favoured pair before I started looking at Similarity but I recognise that what has been given to us has been optimised for use with EUR/USD.
An expert is a man who has made all the mistakes which can be made
  • #335
  • Jul 30, 2013 4:55am Jul 30, 2013 4:55am
1H
DS Zone born. Funny how price went down to the bottom of that range prior to being born so basically it can only be cleared from above. Does this imply that prices MUST go higher? 1.33X ?
A pip is only worth it if you know how much you risked to earn it
  • #336
  • Jul 30, 2013 5:05am Jul 30, 2013 5:05am
Hi guys!

This is MTF disimilarity indicator which I'm done up to now.

Currently, it can draw the "difference" lines only.
Dissimilarity zones drawing will be for the next stage.

Read indicator's parameters for more info.

I may have cut my last hairs to write this one.

Please test it.
Attached Image (click to enlarge)
Click to Enlarge Name: 2013-07-30-01.png Size: 82 KB
Attached File(s)
File Type: mq4 MTF_StochDifZoneX_v1_0.mq4   18 KB | 799 downloads
  • #337
  • Jul 30, 2013 5:25am Jul 30, 2013 5:25am
Hey guys,

Have been playing around with multiple ZZ's from different time frames on one chart and this is what I have found. It seems almost the opposite of Dis sim zones but rather using "Sim zones" instead....

1. Similarity will at some point occur between the zz's of two different time frames (maybe more TF's as well but have not checked extensively yet)

2. When similarity finishes, a trade could possibly be taken in the OPPOSITE direction of the direction of price DURING the "sim zone" (example - if ZZ leg is down you would buy and if up you would sell)

3. However, this should only be taken WITH the trend.

4. From a historical perspective price has returned many times to the beginning of the "Sim Zone" without ever having retested the low or high of that particular zone (making your SL fairly safe).

Please see attached image:

The white lines identify the beginning and end of a "Sim zone"

The green line would be your long entry and you can see the red line as TP (when price returns to the beginning of the zone)

Vlady do these particular setups confirm or correlate with your method of a ZZ bottom/top at all?

Thanks hope this helps possibly.

Effex
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdsim2.jpg Size: 185 KB
  • #338
  • Jul 30, 2013 5:26am Jul 30, 2013 5:26am
Quoting xixi
Hi guys! This is MTF disimilarity indicator which I'm done up to now. Currently, it can draw the "difference" lines only. Dissimilarity zones drawing will be for the next stage. Read indicator's parameters for more info. I may have cut my last hairs to write this one. Please test it. {image} {file}
Awesome. Thanks.
  • #339
  • Jul 30, 2013 5:56am Jul 30, 2013 5:56am
Eur/Usd needs badly to break ou t of this 1.3240 - 1.3300 range!
  • #340
  • Jul 30, 2013 6:00am Jul 30, 2013 6:00am
I thought that the general idea was to detect when the banks were in the market manipulating price. Afterwards price would then return to a level reflecting natural order flow etc. However banks do this on a daily basis so shouldn't we be seeing this reflected by a zone's appearance and then being taken out on the same day as price returns to its normal ebb and flow? Just wonderin because i'm not really making sense of this after studying it for three weeks now. Has anyone been able to tune this system into a profitable method?
0 traders viewing now