HAT Trading method | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

bo7a method... method for GBP/JPY 205 replies

The best - hang on to your hat - martingale system 5 replies

my trading system or trading method 10 replies

The Hat Trading Method 27 replies

Volatility Breakout, successor to "The HAT" 0 replies

Attachments: HAT Trading method
Exit Attachments

HAT Trading method

  • #1
  • First Post: Jun 25, 2006 10:25am Jun 25, 2006 10:25am
I had been bitter for the past week, because I just got too many freeloaders and stupid questions..

But I decided, if nobody shared, I wouldn't be where I am today, and so I guess I will share. I figure those who are too lazy to read, even when I post, they won't bother to study. So for everybody else...

Daily Chart
Heiken Ashi style bars
T3 Moving Average

Thus the name "HAT" (Heiken Ashi + T3)

I go ahead and use to Donchian Channels...

When the HA bars are riding either the upper or lower bars of the Donchian bars, you have a trend. The T3 should be on the other side of the HA bars. i.e. if the trend is up, the T3 should be BELOW the bars, and if the trend is down, the T3 should be ABOVE the bars.

http://www.forexfactory.com/forexfor...7&postcount=57

I had handdrawn an indicator that I thought would be ideal (as shown in the link above). The T3 against the HA bars is about as close as it's going to get.

For the lazy, Yes, I have a screen shot. No, I'm not going to post it. If you don't know what the T3 is.. then you should: A) use google.com or B) quit trading.
google:
  • #2
  • Jun 25, 2006 10:58am Jun 25, 2006 10:58am
Twoblink,

Why did you choose T3 over JMA? Doesn't JMA closer resemble True trend?
Great Idea by the way... Scott


Quoting twoblink
I had been bitter for the past week, because I just got too many freeloaders and stupid questions..

But I decided, if nobody shared, I wouldn't be where I am today, and so I guess I will share. I figure those who are too lazy to read, even when I post, they won't bother to study. So for everybody else...

Daily Chart
Heiken Ashi style bars
T3 Moving Average

Thus the name "HAT" (Heiken Ashi + T3)

I go ahead and use to Donchian Channels...

When the HA bars are riding either the upper or lower bars of the Donchian bars, you have a trend. The T3 should be on the other side of the HA bars. i.e. if the trend is up, the T3 should be BELOW the bars, and if the trend is down, the T3 should be ABOVE the bars.

http://www.forexfactory.com/forexfor...7&postcount=57

I had handdrawn an indicator that I thought would be ideal (as shown in the link above). The T3 against the HA bars is about as close as it's going to get.

For the lazy, Yes, I have a screen shot. No, I'm not going to post it. If you don't know what the T3 is.. then you should: A) use google.com or B) quit trading.
  • #3
  • Jun 25, 2006 11:09am Jun 25, 2006 11:09am
The formula to JMA is known publically? Anyone have the indicator for MT4?
  • #4
  • Jun 25, 2006 11:11am Jun 25, 2006 11:11am
No, you have to buy it.. scott

Ps, I am pretty sure Dr Jurik offers it for sale in MT4 format. I know it is offered in AMIBROKER and TRADESTATION and C++


Quoting nitman
The formula to JMA is known publically? Anyone have the indicator for MT4?
  • #5
  • Jun 25, 2006 11:19am Jun 25, 2006 11:19am
Hey Scott,

Great question. Hull's and JMA do a better job at exposing the "true trend". But that's not the goal here..

<Put on my Einstein German accent>

My theory is, sometimes, you want the lag.. The reason is, the PRICE gives you realtime, as real time as it gets, more so than the JMA. What you want to lagging indicator to do, is act as the wave cancellation.

Let me give you an example:

You have a semi-trend, floating upwards. Then you get two bars, one violently up, and the other violently down.. In a JMA or Hull's, it will "tick tock" as I call it, the indicator. With something that is very lagging, it won't.

If you try a JMA vs a T3 on HA bars, you will notice, the JMA is right there.. But that's great if I want to see where it's going, not great if I want to confirm speed up or slowdown.

By that, I mean, when the prices are moving, and the indicator is not even touching the price, then that to me is a trend. If the indicator is always smack dab in the middle of the bars like the JMA is, then you have neither trend confirmation or trend denial.

If you read what I wrote above, you will see, trends are confirmed when the movement in one direction is faster than a T3 is able to compensate for.. (i.e. moving faster than the average). You can't really do that with the JMA.

I hope all that made sense.. it's clear in my mind..
google:
  • #6
  • Jun 25, 2006 11:23am Jun 25, 2006 11:23am
TwoBlink, Yes I see your approach now.. Thanks for the clarification.

Scott
  • #7
  • Jun 25, 2006 11:34am Jun 25, 2006 11:34am
http://www.xeatrade.com/trading/11/T/378.html

This should be a link to the metatrader version of the T3.. if not.. more googling I guess.


google:
  • #8
  • Jun 25, 2006 11:47am Jun 25, 2006 11:47am
Yes that is the T3. It works fine.



Quoting twoblink
http://www.xeatrade.com/trading/11/T/378.html

This should be a link to the metatrader version of the T3.. if not.. more googling I guess.

  • #9
  • Jun 25, 2006 12:01pm Jun 25, 2006 12:01pm
TwoBlink,


Very nice, One last question, are you useing 24 as the periods on the Donchian
Channels and 14 on the T3? Or are your settings a little different? thanks again, Scott
  • #10
  • Jun 25, 2006 12:14pm Jun 25, 2006 12:14pm
I'm using 20 on the Donchian's, and I think 8 on the T3..

I am not on my other computer right now, so I will have to verify that for you later.. But I'm pretty sure that is true..

Whatever the VT parameters are for the defaults..

Thus far, I haven't seen better clarified signals than this combination..
google:
  • #11
  • Jun 25, 2006 12:24pm Jun 25, 2006 12:24pm
Thanks for the info... It looks very interesting. I am going to study this...

Scott


Quoting twoblink
I'm using 20 on the Donchian's, and I think 8 on the T3..

I am not on my other computer right now, so I will have to verify that for you later.. But I'm pretty sure that is true..

Whatever the VT parameters are for the defaults..

Thus far, I haven't seen better clarified signals than this combination..
  • #12
  • Edited 2:13pm Jun 25, 2006 1:09pm | Edited 2:13pm
Scott,

I'm hoping for some feedback...

T3 Parameters:
Close, Exponential, 8 Periods, and 0.7 Volume Factor

Donchian Channels:
20 periods


Just for you Scott Screen shot with explaination..
Attached Image
google:
  • #13
  • Jun 25, 2006 4:14pm Jun 25, 2006 4:14pm
Thanks TwoBlink, I will type back tomorrow after I have had a good look at it.
It looks interesting, I have a similar setup from your description... Feedback to follow.

scott


Quoting twoblink
Scott,

I'm hoping for some feedback...

T3 Parameters:
Close, Exponential, 8 Periods, and 0.7 Volume Factor

Donchian Channels:
20 periods


Just for you Scott Screen shot with explaination..
  • #14
  • Jun 25, 2006 5:40pm Jun 25, 2006 5:40pm
TwoBlink,

So here is what I see. Notice the stop placement. I was thinking a good place is just the other side of T3, because if price went there, by definition the trade is wrong..

It looks like it could be made nearly mechanical. But I still think there is a need for descrestion. It looks like a great method for figuring trend. and range Markets.

So for some rules,

1. If price is above and not touching T3 and Price is crowding Donchians
upper limit, Price is strongly trending up.
The opposite of a downtrend.
2. Stop can be placed on the opposite side of T3.
3. Trend is weakening as price pulls away from Donchians upper limit.
4. Trend ends as price crosses T3.

What are your thoughts on it?

scott
Attached Image
  • #15
  • Jun 25, 2006 5:50pm Jun 25, 2006 5:50pm
Quoting smjones
TwoBlink,

So here is what I see. Notice the stop placement. I was thinking a good place is just the other side of T3, because if price went there, by definition the trade is wrong..

It looks like it could be made nearly mechanical. But I still think there is a need for descrestion. It looks like a great method for figuring trend. and range Markets.

So for some rules,

1. If price is above and not touching T3 and Price is crowding Donchians
upper limit, Price is strongly trending up.
The opposite of a downtrend.
2. Stop can be placed on the opposite side of T3.
3. Trend is weakening as price pulls away from Donchians upper limit.
4. Trend ends as price crosses T3.

What are your thoughts on it?

scott
Sm did you have trouble downloding the T3 indicator from the site twoblink provieded , I am just wanted to know if there is a way to work around it

Thanks
  • #16
  • Edited Jun 28, 2006 11:40am Jun 25, 2006 5:53pm | Edited Jun 28, 2006 11:40am
It has to be created and compiled. Here is the compiled version

scott


Quoting vinn234
Sm did you have trouble downloding the T3 indicator from the site twoblink provieded , I am just wanted to know if there is a way to work around it

Thanks
Attached File(s)
File Type: mq4 Donchian Channels.mq4   3 KB | 1,274 downloads
File Type: mq4 Heiken Ashi.mq4   4 KB | 963 downloads
  • #17
  • Jun 25, 2006 6:26pm Jun 25, 2006 6:26pm
Quoting smjones
It has to be created and compiled. Here is the compiled version

scott

Thanks much i got it, looking to be as much help to you in the future.

Vinny
  • #18
  • Jun 25, 2006 10:48pm Jun 25, 2006 10:48pm
If the T3 is touching the BODY of any candles, that's a no-no.. If it's scraping quite a bit of candle shadow, then that's an early warning.

If you are in an uptrend and it is now above the body of a down candle, then the trend generally has ended. Visa versa holds true for the other side.

I find the system to simple and near unmistakeable in interpretation.

Yes, note where I put the stop..
google:
  • #19
  • Jun 25, 2006 11:25pm Jun 25, 2006 11:25pm
In principle, this is "timeframe agnostic", it's just that the dailys are so much smoother, in theory, this can be used on a 15M all the way up to the Dailys.

In order to "speed up" some of my testing; I will probably try to compress it and try it on the 15M charts. The 15M though, is really just wild compared to the daily. The daily is like a slow rocker, where as the 15M is more like the cat on acid..

We'll see..
google:
  • #20
  • Edited 12:43am Jun 26, 2006 12:25am | Edited 12:43am
to duplicate what i saw in the GBP/USD i kept the T3 in MT4 set at the default of 14 as changing it to 8 just seemed to be to fast and not telling the story we had hoped for. The DC's set to 20 looked good for testing. Looks like this might be a simple/effective way to catch some of the trends that can develope.
: ) Thom

a post script comment related to MT4's T3 indicator i've got...the code is a bit whacked as what i see is a very (wrongly) skewed T3 over the last 4 daily candles unless you go to another time frame and then refresh the daily chart. Once refreshed the T3 lookes quite a bit smoother and like you might expect it to.
0 traders viewing now