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Digamber Shankar PATIL's DSP Candle Strategy

  • #201
  • Dec 9, 2013 12:12pm Dec 9, 2013 12:12pm
Rocky - I see it as the original system, not the inverse. Usually long arrow points north.
Please excuse the bad English via Google Translate.
  • #202
  • Dec 9, 2013 7:27pm Dec 9, 2013 7:27pm
Quoting dokopy
Rocky - I see it as the original system, not the inverse. Usually long arrow points north.

Currency pair: Any (stocks, commodity also)

Indicator: Candle Length Identifier

STEP 1 : Look at candle length indicator carefully and observe its horizontal axis (ie zero line). If it is at center (ie.. both +ve and -ve sides equal) skip this chart. But if not, then check where it is shifted? Upward or Downward. If upward then find biggest Bear candle and if downward then find biggest Bull candle. This candle is nothing but DSP candle.


Attached Image (click to enlarge)
http://www.forexfactory.com/attachment.php?attachmentid=1320886&stc=1&thumb=1&d=1385644219


STEP 2 : If this DSP candle is BULL candle then wait till any of the succeeding candle closes BELOW its opening price. Then, put SELL order.

(This i do not prefer to do; as shown below the sell signal.... what if the the close is not below that shown 1st bull candle ...in 1st bubble
and the market runs from there.... ? (Back test this for proof) (I don't say that system explained by the Author is wrong - this is my view)



Attached Image (click to enlarge)
http://www.forexfactory.com/attachment.php?attachmentid=1320889&stc=1&thumb=1&d=1385644306


STEP 3 : If this DSP candle is BEAR candle then wait till any of the succeeding candle closes ABOVE its opening price. Then, put BUY order.
(same applies here - if bear power is so strong... why would you buy ?)


Attached Image (click to enlarge)
http://www.forexfactory.com/attachment.php?attachmentid=1320890&stc=1&thumb=1&d=1385644452


STEP 4 : Put stop loss at opening or closing price for bear or bull DSP candle respectively. Take profit can be varies starting from 10 Pips-minimum.


Note : we loose the momentum which the stock or pair is gaining ahead....... and rather we wait for the entire rally to retrace and go long or short in respective of the trade we want to take...
rest every body is free to will and trade... these are my views and i have back tested this..

god bless all


regards
rocky1980
rocky1980
  • #203
  • Dec 9, 2013 7:36pm Dec 9, 2013 7:36pm
Hi

this is one of example... dsp
Attached Image (click to enlarge)
Click to Enlarge Name: Silver - DSP - Fail.PNG Size: 42 KB

rocky1980
rocky1980
  • #204
  • Dec 9, 2013 11:59pm Dec 9, 2013 11:59pm
Post 203 = This is the description of the original system, not inverse. "Put a stop loss at opening or closing price for bear or bull candle DSP respectively." Opening or closing is nonsense.

Post 204 = input long be close to the blue candle, which is also the DSP.
Please excuse the bad English via Google Translate.
  • #205
  • Dec 10, 2013 12:39am Dec 10, 2013 12:39am
Fantabulous system.. Made money on EURGPG last night.. Really great.
PS: Followed original rules written on the first post
Sorry for my English. Not the first language.

Attached Image (click to enlarge)
Click to Enlarge Name: Image2.png Size: 21 KB
  • #206
  • Dec 10, 2013 1:37am Dec 10, 2013 1:37am
Worked on AUDUSD too...

What really I like about this system is rules are very firm and constant till date. I have seen many people post their strategies and keep updating till the end. Thanks password.
  • #207
  • Dec 10, 2013 2:40am Dec 10, 2013 2:40am
Why should you have to look at the shifting of the horizontal axis of the candle identifier. It is only shifting because of the large bars it is showing. The indy does nothing more than place bull/bear bodies in 1 place. If the largest bull is bigger then the largest bear it will shift the horizontal axis downward. There's no momentum nor any volume incorporated or any calculation whatsoever is used. Just find the largest bar within the last 96 and you've got your DSP.

It would be nice to have the possibility to add the DSP candles indy to a larger timeframe. For example, set the indy to 1H and put it on 15m chart. We could then observe price action (engulfing, pinbars) around the 1H levels and trade it one of both possible ways.
  • #208
  • Dec 10, 2013 5:19am Dec 10, 2013 5:19am
Quoting dokopy
Post 203 = This is the description of the original system, not inverse. "Put a stop loss at opening or closing price for bear or bull candle DSP respectively." Opening or closing is nonsense. Post 204 = input long be close to the blue candle, which is also the DSP.

I didn't mention that this in inverse...
rocky1980
  • #209
  • Dec 10, 2013 5:32am Dec 10, 2013 5:32am
hi

the best thing about this Indicator is that IT WORKS ...... that is important.... rules can be modified as per trading style...

thanks to the author who introduced this on FF.......


just post the trades so all can learn and earn from this thread.....

god bless all


regards
rocky1980
rocky1980
  • #210
  • Dec 10, 2013 5:41am Dec 10, 2013 5:41am
AJ 10pip
Attached Image (click to enlarge)
Click to Enlarge Name: Image1.png Size: 5 KB
NEVER go against the Daily trend
  • #211
  • Dec 10, 2013 5:42am Dec 10, 2013 5:42am
AUDCAD trailing pips
Attached Image (click to enlarge)
Click to Enlarge Name: Image1.png Size: 15 KB
NEVER go against the Daily trend
  • #212
  • Dec 10, 2013 6:17am Dec 10, 2013 6:17am
Password thanks for bringing us this thread.

Here is the EA i wrote for the system based on the rules in post #1.

It is locked so only runs on demo accounts and only until the end of January. Please don't ask questions on how to load it and use it, use Google! It is set by default not to trade but to act as an indicator so finds last DSP candle and draws lines for you and the 24hr history box based on NumBars. It doesn't use any indicators all calculations are done internally.

The settings are outlined below:

SignalOnly=true; //Stops trading and make the EA behave like and Indicator
NumBars=96; // Box length
LineColor=Yellow;
BoxColor=SlateGray;

SignalOnly=false; //EA will trade based on rules
Lots=0.01; //Trade Lot size
RiskPercent=0; //scales lotsize based on SL
RR=1; //sets TP to be 1:RR
TakeProfit=0; //Overrides TP enter in real pips
DspSlFactor=1.0; //Allows SL to be made less than DSP candle is desired
DspEntryDelay=0; //Allows a delay of entry i.e. 1 means wait at least 1 candle before a valid entry can occur
UseTS=0; //Adds a Trailing stop, 0= off, 1 = on
TrailingStop=10; //TS real pips


Please don't litter the thread with EA questions, respect the thread owners system this is just an aid. PM me with questions and/or results and if it does well we can open a new thread. I'm not currently using this EA.

Regards

Mike
Attached File(s)
File Type: ex4 dsp candle EA.ex4   12 KB | 691 downloads
  • #213
  • Dec 10, 2013 6:23am Dec 10, 2013 6:23am
Quoting magft
Password thanks for bringing us this thread. Here is the EA i wrote for the system based on the rules in post #1. It is locked so only runs on demo accounts and only until the end of January. Please don't ask questions on how to load it and use it, use Google! It is set by default not to trade but to act as an indicator so finds last DSP candle and draws lines for you and the 24hr history box based on NumBars. It doesn't use any indicators all calculations are done internally. The settings are outlined below: SignalOnly=true; //Stops trading and...

Thanks magft,will try it on demo
NEVER go against the Daily trend
  • #214
  • Dec 10, 2013 7:16am Dec 10, 2013 7:16am
Hi folks, been following this thread since it start. this system looks interesting and very simple to follow.
The problem we should pay attention is MM which regarding to the risk and reward ratio, as per the rule from post 1, TP set as 10 pips which is not good compare to the SL, most of time DSP candle is large than 20 or even 30 pips. That means i have to risk 1% of my account to make only 0.5% or 0.3% profits. Any good ideas guys?

Ren
  • #215
  • Dec 10, 2013 7:22am Dec 10, 2013 7:22am
Quoting ForexRen
That means i have to risk 1% of my account to make only 0.5% or 0.3% profits.
Where is the problem? As long as your percentage of winning trades is large enough, you'll be fine. You also can use a trailer so you won't get into trouble if the move stops e.g. at 8 Pip profit.
  • #216
  • Dec 10, 2013 8:25am Dec 10, 2013 8:25am
Quoting conglom-o
{quote} Where is the problem? As long as your percentage of winning trades is large enough, you'll be fine. You also can use a trailer so you won't get into trouble if the move stops e.g. at 8 Pip profit.
yes, you are right, high win rate is the key if you have low RR, but why not to keep high win rate and make RR 1:1
  • #217
  • Dec 10, 2013 8:50am Dec 10, 2013 8:50am
Is it right enter?
Attached Image (click to enlarge)
Click to Enlarge Name: Image1.jpeg Size: 121 KB
  • #218
  • Dec 10, 2013 9:27am Dec 10, 2013 9:27am
Quoting milliotrade
Is it right enter? {image}
Not if you use Password's strategy.
  • #219
  • Dec 10, 2013 10:14am Dec 10, 2013 10:14am
Quoting conglom-o
{quote} Not if you use Password's strategy.
what exactly is wrong, a sell limit?
  • #220
  • Dec 10, 2013 10:24am Dec 10, 2013 10:24am
Quote
STEP 1 : Look at candle length indicator carefully and observe its horizontal axis (ie zero line). If it is at center (ie.. both +ve and -ve sides equal) skip this chart. But if not, then check where it is shifted? Upward or Downward. If upward then find biggest Bear candle and if downward then find biggest Bull candle. This candle is nothing but DSP candle.
how to define more clearly the shift Upward or Downward?
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