HAT Trading method

I'm a nerd by trade; but I'm fairly curious; does everybody else analyze and focus on the math of it all?

It seems that "simple is better" but in fx, it seems that things get real complicated real fast.

It just absolutely amazes me; because you think, I just have two choices: buy or sell. That's it! But the complexity and choices are simply staggering..

Thus far, I like HAT better than OCC. Last night, while I was dream about linear regression, optimized against a mini-max point (don't tell me you don't dream about it too!!!) I thought to myself, wow, I have a new theory I have to program and test tomorrow in Excel. I'm wondering if others do the same.

I start with "theories", then apply indicators that match those theories, and see if the indicators match those theories I had originally proposed, and see if the theory is sound etc.. I see quite a lot of "systems" presented on this forum, and I pretty much have yet to see the theories behind the system (I think Vegas is probably the only other guy I see presenting theories)...

I'm so curious if anybody else is taking this approach, or how others are coming up with their innovations..

Hello Two Blink,

A changed man? you do seem a little less anal in your approach this time... Nah, you still got it. You are on to something here. Like you I have read 2000 plus pages (actually more like 10,000) in the past month on forex with no prior trading or programming experience. But this is really a strong method.

T3, I have attached a 3 line T3 that is seems very stable (I know you solved the problem), but I thought my contribution here could be this indicator and a suggestion.

How about using a 3 line T3 to trgger a long or short. When 2 of the 3 conditions are met... close the position, or when all 3 cross... etc. etc. That might just allow for a more accurate exit. I hope this helps, I am still trying to catch up even in this thread. I will focus all my energies here for ya. Good luck!

If I seem less anal, then I must be slipping...

Hmm.. the GBP and the Yen just slapped me in the face.. Grrr...

Attached is some documentation on T3 indicator passed on to me from
Johan Mare.

Eagle, thanks for sharing that.

Here is a T3 by Nick Bilak I modified that works good on all charts including JPY. His version had counter errors so it wouldn't update and was missing the volume setting. This T3 has less lag and is smoother - it got in 15 min earlier at 2 pm on 15min charts to show the buy reversal before the FOMC news at 215 pm.

what da heck is T3 if there are 10 versions that act differently?

Isn't there like only one math formula for it?

twoblink..."Last night, while I was dream about linear regression, optimized against a mini-max point (don't tell me you don't dream about it too!!!) I thought to myself, wow, I have a new theory"

I think you may need to take a little break and look at some nudie mags for about 3 hours or so.... Great posts by the way

Richx7...Are you going to code that for VT as well?

Palmer,

Why look at nudie magazines?? I want to work the forex until I can retire in a few years. Then I'll take my wife to a nudie BEACH..

I wish you all the best.

Has there been any talk or does anyone have any thoughts about where to re-enter the HAT method if you miss the initial signal?

Hmm..

2 schools of thoughts on the re-entry:

1) If you missed the signal, i.e. missed the bus.. then you wait for the next one. That's it!

2) If the entry is no the biggest influence of long term $$$ making, then any time within your trend is a good time to enter.

I'm in camp #1 personally...

Managed 161 pips on GBP/USD using the HAT. Unfortunately I can't remember what time frame I used, think it was 4 hour. Demo only, but the signal was clear.

"Smaller HAT size"

Any suggestions on what the settings could be for use on a lower timeframe like 15min? My Comcast connection is working ,for the moment, so I can't reliably load any charts. I'm done with them as of Thursday next week...

Hi Palmer,

It should be the same settings for all time frames from 15M ~ Daily. It should be timeframe agnostic..

Please, do share!! A screenshot would be even better! You said the signal was clear; what about the stops??

I'd like to hear more.

I must say that first of all I really enjoy being a passenger on your journey of understanding the Forex market. I’m a newbie that’s being studying Forex for the last year and I really appreciate all of your contributions to this forum. I whish I had your gift of explaining your thoughts in a clear and concise manner. I have learned a lot from you, in just a short time frame and I would like to make a very small contribution to this tread.


I have been forward testing you HAT method the last couple of days and I have applied the Bollinger Squeeze indicator that Nick Bilak programmed for MT4 ,to your system and it really has help me with another layer of entry and exit confirmations.

<o> </o>

I have been following two other method that use the indicator, one is on this forum called Akuma99 Squeeze http://www.forexfactory.com/forexforum/showthread.php?t=5174

http://www.forexfactory.com/forexfor...ead.php?t=4943


“Bollinger Squeeze (more information | download)
Settings: 20,2,20,1.5,10

The bollinger squeeze is the foundation of my entry warning system, I enter generally only during blue zones, i.e. when a blue dot appears. I do not however use the common method of waiting for the first red dot after the blue, but attempt to pre-empt the move early on. This makes it more risky but more rewarding, the remaining indicators aid me in reducing risk.”

<o> </o>

The other system is created by John Carter and Hubert Centers of Trade The Markets (TTM) an is call the TTM squeeze, here http://www.forexproject.com/tag/TTM_Squeeze/ and here http://www.tradethemarkets.com/index...1517919927722/ .

http://www.cbot.com/cbot/pub/cont_de...+26251,00.html


His systems also uses another indicator call the TTM Trend Indicator – which is basically a HA’s

The bottom line is I believe this indicator may be a good addition to the HAT project, especially for visually minded people such as myself. I've attached two files to the post,

File 1 is Nick's BB Squeeze Indicator
File 2 is Akuma99's BB Squeeze Indicator

I also attached a document I started to gather your logic and rules for the HAT system.


ps I currently reading Martin J. Pring book - Martin Pring om Price Action. I can wait until all my reading and studying over hte last year starts to really make sense. I have to read apply and reread to really understand complex topics such as Forex.

Well, since you are talking about the squeeze, I guess I'll let the cat out of the bag and share a little about what I'm currently working on.

If you create BB's @ 2 Sigma, and @ 1 Sigma, you create what I call the "DMZ" Demilitarized Zone, or "No Man's Land". When the price is out of the DMZ, and hugging either side of the borders between the 1 Sigma and 2 Sigma, then you are in a trend.

I would like to do the same for the DC; but the DC is based on the high/low, not volatility like the BB's, so I'm trying to figure out how I'd accomplish that.

Since 1 Sigma = 68.3%, I might go ahead and take the abs(high-low) of the DC and put a 68.3% tunnel within it..

So.. as expected, the DC DMZ works just like the BB's DMZ. Works really well too! Very very filtered...

Because it works on a straight percentage (if DC = 100%, then DC DMZ = 68.3% i.e. 1 Sigma) it doesn't flux like 1 Sigma on the BB.

With the HA's, and with the T3, I see pretty much no false signals.. That's fairly amazing to me.

3 Screen shots included:

1) is the BB DMZ @ 1,2 Sigma's..
2) Donchian Channel DMZ @ 100%,68.3% Regular bars
3) DC DMZ @100%, 68.3% Heiken Ashi

Used like the regular DC indicator, but you can put in a %.

Very interesting thread, twoblink. Can we get an MT4 version?

Thanks.
Trinity