HAT Trading method

Hello Trinity,

Of course you can get an MT4 version.. Just not from me...

Here is the Donchian Channels that you wanted for MT4.

Thanks, richx7.

When I have enough data from results of Du Toit's median grid trading, I'll post them. Confirmation of the trend, as always required, is recommended, hence my interest in HAT.
Trinity

While it seemed logical, I found the second set of DC's to be distracting..

Hi richx7

There is no difference between the Donchian MT4 indicator and the Donchian% MT4 (from post 102) on my daily charts.

Comments?

Trinity

twoblink,

I have to agree with some of the earlier comments, that I too have learned a lot from this thread and more so, due to your manner of explaining...thank you very much.
The main thing that attracted me to your HAT system was it's simplicity...I LOVE IT!!!, secondly, for my trading style...it seems it will fit like a glove.

I like your view of taking a position and when you do, with more confidence due to the HAT indicators, even if it means capitalising on only a big chunk of it and not necessarily trying to grab it all.

I can understand that everydody wants to get maximum profits and will try to add another myriad of indicators to achieve this BUT I personally, would hate to see, what seems like a good system, which you have shared here, be ruined by bombarding it, as with many other systems around, with unnecasary clutter.

Thanks again for your efforts.
Sage.

Went long where the orange dot is.
I didn't set a stop loss (not the focus of my experiment at the time im still calculating an optimum stop loss on these entries) , until I was into the trade and up 36 pips. I went to sleep from memory and then I set a 20 point stop to lock in profit from memory and then did this again at about 165 pips when I next looked at it., I was stopped out at 161 approx.

I wasn't trying to be overly scientific, just do a gross trade, to see if I can pick an entry.

Attached is a rough screen shot, of roughly where I entered.

[unfortunately metatrader has lost my data for this trade due to expiry or something = I have relogged in but the account data is not there, so sorry I don't have exact times.]

I can say though that I like these entry signals.

Best I can do with the data I have. But should give a picture of what I did with HAT

That's a beautiful entry by the way.. One of the most perfect ones, because you entered on a failed downtrend, that resulted in an uptrend...

starting tomorrow, I will probably aggressively test the HAT to see if I can observe any anomalies about it.

Just a comment on T3 though ..

Why does it always curl-up or curl-down into the current bars ??

If I click "Refresh" button, it looks the way MA should paint ..

Any ideas ??

I have a theory on why it does that, let me take a crack at it;

T3 = MA(MA(MA(MA(MA(MA(X))))))

So somewhere, how it plays out mathematically means that the current real-time point is always incorrect, or close to incorrect.

Your can do an "examine data" and see if that's true or not...

There are many versions of T3 and some don't update every bar properly. Some look like zig zag where the last bars move around a lot. The Nick version in post #86 doesn't do that.

We seem to have big T3 problems on the MT4 platform. I know mine is correct, except it doesn't work with 100.xx numbers.

The Nick one doesn't look right to me. The other one has the flippy end..

This is ridiculous to me; MT4 is a very popular platform, and the T3 is a very popular indicator.. the fact that these two are like War of the Roses, is ridiculous..

{edited}
I retried Nick's, and now it seems ok...

Minute,

On my charts, I add "volume" to the price chart. If I'm in a trend and the volume is increasing, that's a good sign..

Just tried T3MA_Nick on post #86 ..

Oddly, it seems to stay sane on 4H charts but it still seems to curl on 1H charts .. Weird ..

It's my Bad ..:-) ..

1H seems to work too ..

Thnx guys ..

Twoblink, you really have a good thing developing here. HAT has the main ingredient for a seccessful method - simplicity.

My two cents - the mod2 T3 seems to work the best in my admittedly limited testing. Keep up the good work.

Lou G

accrete & twoblink

In posts 20 & 21 you use 14 instead of 8 for T3.

Have you kept 14 for T3?

Thanks.

No. There was a problem with that version of T3. So I still use 8.

''blink

One of the strange things I did, was I went ahead and mixed price channels (DC) with volatility channels (Bollinger Bands).

I added a BB @ 1 Deviation to the charts. Assuming that a "move" is defined as outside the BB bands;

I didn't like the %DC that I had going, because it didn't work as well as I had hoped for.. With the addition of a 1Sigma BB, here's what I'm thinking:

Question, what are important characteristics or datum that I should take note of?

1) "Peaky" price action (as defined by John Piper in "The Way to Trade")
2) "Breakout" of some defined Channels
3) Volatility
4) Volume

Volume generates Volatility
Volatility induces a price movement
Price movements cause a breakout

1) HA's will smooth out peaky price action for us
2) DC's will show us a breakout
3) BB's will tell us a little bit about what's going on with volatility. When breakouts are "done" or weakening, then the BB's fold inwards. The Curve Inflection (2nd order derivative) generally tells me that the price is going to fade back softly or have a reversal.
4) I add volume to my charts, this tells me.. volume! If we have a strong trend, and volume is increasing, then I know the trend will continue. If the volume drops off the face of the earth all of a sudden, then I might have to tighten up that stop.

The T3 will give us directional confirmation, as it lags, this prevents heavy whipsawing. It however, will not prevent quick reversals. That's the job of a tight stop.

The simplicity of the HAT is its strength, I am reluctant to add to it without a good reason. I will keep the 1 Sigma BB's for a while, see how I like it.

Here's a hint though; of 5 bars in a row aren't touching the DC's (or BB's @ 2 sigmas) then you are in a squeeze, regardless of what everything else tells you. Prices usually bounce in the DC's or climb the DC's. If they stay within "the pocket" of the DC's without touching either side for 5 bars, you are headed for a big breakout.

QUOTE:
The simplicity of the HAT is its strength, I am reluctant to add to it without a good reason. I will keep the 1 Sigma BB's for a while, see how I like it.

2blink,

The 20 period BB seems satisfactory -- are you using 20?