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The similarity system

  • #5,541
  • Aug 14, 2014 5:08am Aug 14, 2014 5:08am
Quoting samaralala
{quote} How I am a supposed to see some obsure similarity issue? I even took a magnifying glass last night - killed my self over analysing those diagrams.
In the early days of this thread, the concepts were about comparing 1H to 30M.

Some of the early members found a way to programme that and that was fair enough. There are a variety of templates available within this thread. It comes down to what your preferences are.

If you are going to constantly hunt for dissimilarities, you will become screen-bound. That's not me.
When Eurusdd pointed out the Bollinger Band phenomenon, I ran with it and developed rules of my own. Ironically, it went well with Semaphor Zigzags.
Again, this was moving away from the original "similarity" of prices. But if you hunt down Ralome's indicator, it will point out Dissimilarity PERIODS on MT4. So you don't have to be screen bound.

None of this will teach you how to trade!

These just define the playing field and the boundaries. You still have to pick a direction. You still have to pick an entry point and exit point. Just because 1.3343 has a "problem" and current price is 1.3365 doesn't mean shit if you can't read a 5M, 15M, 1H chart and understand what is happening right now.

For some of you, a really good exercise is to create a word document and copy/paste entries from the thread on a given topic. There are 3 main ones:
Cycle Indicator, Similarity/Dissimilarity, Bollinger Band & ZigZag. Take your pick.
A pip is only worth it if you know how much you risked to earn it
  • #5,542
  • Aug 14, 2014 5:09am Aug 14, 2014 5:09am
Quoting davinci15
{quote} That's the problem he is tired of traders just following the post and put a trade after his analyze. He said a few days ago his purpuse is teaching us do the trades by yourself not just following. Go to page 1 and start reading then you can do it yourself.
I tried to analysis his digram and his post. Its quite something else. I am not even familiar with the terms he used. Is there any way I can learn from the basic ??? Any suggestion from where to start ???
  • #5,543
  • Aug 14, 2014 5:14am Aug 14, 2014 5:14am
Quoting Trillion2015
{quote} I tried to analysis his digram and his post. Its quite something else. I am not even familiar with the terms he used. Is there any way I can learn from the basic ??? Any suggestion from where to start ???
http://www.babypips.com/school
A pip is only worth it if you know how much you risked to earn it
  • #5,544
  • Aug 14, 2014 5:15am Aug 14, 2014 5:15am
...another misprice at 1.3349, old one still at 1.3343. Waiting for the final stophunt???....hmmm
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDH1.png Size: 58 KB
  • #5,545
  • Aug 14, 2014 5:26am Aug 14, 2014 5:26am
Quoting LITEchild
...another misprice at 1.3349, old one still at 1.3343. Waiting for the final stophunt???....hmmm {image}
I've been meaning to ask you, what is that indicator at the bottom?
What is your definition of a mis-price?
A pip is only worth it if you know how much you risked to earn it
  • #5,546
  • Aug 14, 2014 5:37am Aug 14, 2014 5:37am
Quoting vlady1974
{quote} I've been meaning to ask you, what is that indicator at the bottom? What is your definition of a mis-price?
...maybe I should have said dissimilarity??? still not sure whats the difference . Thats RSI overlayed on Momentum Indy. All periods set to 24. The DS 'misprice' is taken between the RSI cycle and the ZZ cycle(also set to 24 period).
  • #5,547
  • Aug 14, 2014 5:44am Aug 14, 2014 5:44am
Quoting LITEchild
{quote} ...maybe I should have said dissimilarity??? still not sure whats the difference . Thats RSI overlayed on Momentum Indy. All periods set to 24. The DS 'misprice' is taken between the RSI cycle and the ZZ cycle(also set to 24 period).
So is the Momentum blue and the RSI Red/Green?
Are you matching the peaks and troughs and then looking for the differences? For example, the last bottom swing.... the Red line has 2 top crests before it turns grey and swings up. On the Blue, it's only one crest. That's a misprice. What you should have is a Moving Average on the price. On the one hour, I'm currently using 4. That should match your 2 indies.
A pip is only worth it if you know how much you risked to earn it
  • #5,548
  • Aug 14, 2014 5:47am Aug 14, 2014 5:47am
Quoting LITEchild
...another misprice at 1.3349, old one still at 1.3343. Waiting for the final stophunt???....hmmm {image}
all I can see in your indicator is nothing but dis-similarity
  • #5,549
  • Aug 14, 2014 5:50am Aug 14, 2014 5:50am
Quoting vlady1974
There are 3 main ones: Cycle Indicator, Similarity/Dissimilarity, Bollinger Band & ZigZag. Take your pick.
vlady , can you please share how do you use the ZZ for this strategy. Thanks!
  • #5,550
  • Aug 14, 2014 5:54am Aug 14, 2014 5:54am
Quoting mario777
{quote}vlady , can you please share how do you use the ZZ for this strategy. Thanks!
On the top of this thread there is a paper clip icon with 1,001 next to the Subscribe button/symbol.
I suggest you go there and look through 5 pages of attachments. One of them is PDF from me from the early days. Have a read at your leisure.
A pip is only worth it if you know how much you risked to earn it
  • #5,551
  • Aug 14, 2014 5:56am Aug 14, 2014 5:56am
Ah, at last. Peace and beauty. For those who might be new to this thread and wish to create your own setup, after HOURS of trying this and that from this thread, see #4431 on page 56, posted by "Fraud". How ironic that Fraud's upload was the most truthful! His template works and I can finally view a great Similarity chart. I will program this to detect the differences.

And THANKS to those kind people who tried to help over PM. And special thanks to Eurusdd for bringing this system to our attention.
Vita est simillimus forexum(Life is like forex)
  • #5,552
  • Aug 14, 2014 6:01am Aug 14, 2014 6:01am
It’s a shame that EURUSDD has decide to abandon the thread (for now at least), he’s got an obvious talent but I would have liked for him to hang around to learn more insights from him. You can tell that EURUSDD gets frustrated with all the questions and would rather people develop something themselves using the techniques he offers, and that his a great objective for anyone – to rely on your own abilities. (He stated as much the other day – post your calls to the thread, he asked).

But he hasn't helped himself when some basic fundamental stuff he carries out that on the face of it is very contradictory and remains unanswered, so how can people have any chance of grasping the more complicated and deeper stuff? There are a number of things that I just don’t get and I guess the vast majority of others (all?) don’t too. And these are the basics and not even getting into the in-depth stuff of the system logic itself. For example:-

 

  1. Why does the demo account not have trades based on the directional bias he calls out in the thread and are typically only for a few pips profits. (Example: the recent call that the Euro was going to hit 1.3375 - why was no trade placed?). The trades in the demo account bear no relation to the great calls he makes in the thread. Just confusing to me...
  2. Why in the demo account do we have trades for 0.1 lots when the main trades are for much bigger lot sizes (1-8 lots each)? Now I think I read somewhere that they were hedging positions – but hedging what and at 0.1 lot size they were pretty worthless hedges anyway with regard to the main trade size. So they were confusing (and pointless) trades... unless somewhere can offer an explanation that I’m overlooking.
  3. He says he uses 10 pip SL but that clearly wasn’t the case. In fact his Trade Explorer was titled “No 3 losses in a row. MAX SL = 10pips”. So again genuine question – how does anyone reading the thread reconcile that in a meaningful way to what he actually did?
  4. Why not use a live account?


Now the above are NOT in depth questions about EURUSDD’s Similarity System but they have not been given a satisfactory explanation (not that I can find anyway). So if people can’t fathom the reasons for the above and get a straight answer to this simple stuff then when tackling the core of the system where there are so many interpretations of what something can mean it will elude the vast majority, probably everyone. (In fact, after over 5,500 posts has anyone managed to develop a trading strategy around it and ended up trading for a living with it?)

Having said all that, I like a challenge and like to think I’m a well educated clever chap (we'll see!) and with years of experience in Forex so I’m going to continue to read through the thread to gather as much information about EURUSDD’s obvious abilities as I can.

He’s a gifted Trader without question but frustrating at the same time

Isn't that a mark of a genius – an ongoing tension between two competing forces?

*** Shoot for the moon. Even if you miss, you'll land among the stars. ***
  • #5,553
  • Aug 14, 2014 6:12am Aug 14, 2014 6:12am
Some other notes I've compiled. One is regarding the zones and the numbers required to match the equivalence of time. For whatever reason, we are using 4500 minutes. I can't remember where this comes from.

In my previous post, I mentioned a PDF in the attachments section - that was a compilation of posts from the thread specifically about Stochastics and Bollinger. It's the basis and foundation of the ZigZag Bollinger Method. Attached is my unfinished draft of my notes on the method.

DISCLAIMER: These are unfinished or works in progress. Adapt them to your own!

Happy Reading!
Attached File(s)
File Type: pdf ZONES.pdf   320 KB | 1,556 downloads
File Type: pdf The ZigZag Bollinger Method 1.0.pdf   1.6 MB | 1,661 downloads
A pip is only worth it if you know how much you risked to earn it
  • #5,554
  • Aug 14, 2014 6:17am Aug 14, 2014 6:17am
Quoting vlady1974
{quote} So is the Momentum blue and the RSI Red/Green? Are you matching the peaks and troughs and then looking for the differences? For example, the last bottom swing.... the Red line has 2 top crests before it turns grey and swings up. On the Blue, it's only one crest. That's a misprice. What you should have is a Moving Average on the price. On the one hour, I'm currently using 4. That should match your 2 indies.
yes you're right vlady(ma'am?). Momentum is blue. Rsi red/Green. Matching peaks and troughs is another way to look at it I guess. That seems like noting divergences between the Momtm indy and the RSI? Interesting way to look at it. What I look for is discrepanceis between the RSI and the ZZ legs. Ideally the ZZ swings should match RSI swings. When they don't match that's how I get the DS price, which I expect the market to eventually correct.. I'll try pay more attention to the divergent 'misprices' you pointed out and see if it holds any value for me. Tnx friend!
  • #5,555
  • Aug 14, 2014 6:24am Aug 14, 2014 6:24am
Quoting LITEchild
{quote} yes you're right vlady(ma'am?). Momentum is blue. Rsi red/Green. Matching peaks and troughs is another way to look at it I guess. That seems like noting divergences between the Momtm indy and the RSI? Interesting way to look at it. What I look for is discrepanceis between the RSI and the ZZ legs. Ideally the ZZ swings should match RSI swings. When they don't match that's how I get the DS price, which I expect the market to eventually correct.. I'll try pay more attention to the divergent 'misprices' you pointed out and see if it holds any...
You are actually on the right track or very "similar" track to the Bollinger method.

Basically, you mention the ZZ creates its leg. For example, the current leg is a Top. Therefore, the next leg should be a bottom until the Top is invalidated by another top. But since price revisited the area and failed - this is just the classic Test / Retest phenomenon, nothing new! - you could create a trade to Short with a tight stop against the ZZ Top. On a Bollinger Band, that would display as Price outside of the bands as a price extreme point.

If you look for dissimilarity in the indicator values, you will probably notice that once it happens price starts to move (away) from it. Your queue then is to find the extreme point of its travel and trade it back. Or you could trade in the direction of travel away from it. Up to you.

Cheers,

(Mister) Vlad LOL
A pip is only worth it if you know how much you risked to earn it
  • #5,556
  • Aug 14, 2014 6:41am Aug 14, 2014 6:41am
Quoting vlady1974
{quote} This was very "similar" to my trades this morning: a) Counter-trend trade targetting my original projections: Long @ 3359, TP 3383 b) With Trend: Short @ 3395, TP open The short was influenced by Eurusdd's comment that it will be a reshoot. But that was an easy influence to take because of the chart I posted this morning. If my Dissimilarity price was 3378-3382, how much further would price have to expand before it collapsed back to that price? I use S/R and the good old price of 3396 was the one I chose as the most likely to hit, with a...
vlad!(sorry, ma bad, ma bad!) lol. Now i understand your thinking too for the trades you took. personally i didn't take the longs because divergence(misprice?) is just too fickle for me. Before it can be confirmed as valid, entries are too late. I prefer to trade towards the DS price, and then AWAY from the DS price if PA confirms that. Thanks 'Mister'.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDH1.png Size: 65 KB
  • #5,557
  • Aug 14, 2014 6:44am Aug 14, 2014 6:44am
vlady1974. are you still targetting 1.3347 low. Or Im the only crazy trader that has opened short trades
  • #5,558
  • Aug 14, 2014 6:49am Aug 14, 2014 6:49am
Quoting LITEchild
{quote} vlad!(sorry, ma bad, ma bad!) lol. Now i understand your thinking too for the trades you took. personally i didn't take the longs because divergence(misprice?) is just too fickle for me. Before it can be confirmed as valid, entries are too late. I prefer to trade towards the DS price, and then AWAY from the DS price if PA confirms that. Thanks 'Mister'. {image}
Yep, that's fine. It's your style! You shorted when price made an extreme. I would place my SL closer.
Your target is the DS prices (towards) which is good. I'm not sure of your pending Buys. It assumes that it will reverse (which it could do)... but isn't it better to wait? Just thoughts.

Just remember that currently we are in consolidation or sideways market.
Trending is different behaviour. Reversals are also different.... a mixture of consolidation and trending....all in the same timeframe
A pip is only worth it if you know how much you risked to earn it
  • #5,559
  • Aug 14, 2014 6:51am Aug 14, 2014 6:51am
Quoting feline207
vlady1974. are you still targetting 1.3347 low. Or Im the only crazy trader that has opened short trades
My tp is 3343 but yes, I'm still short. Stops are now at BE so no risk.
And I don't care if I'm wrong and get stopped out. (Read "Trading in the Zone", awesome book)

Edit: Changed tp to 3325 and will keep my eyes peeled.
A pip is only worth it if you know how much you risked to earn it
  • #5,560
  • Aug 14, 2014 7:00am Aug 14, 2014 7:00am
Quoting vlady1974
{quote} My tp is 3343 but yes, I'm still short. Stops are now at BE so no risk. And I don't care if I'm wrong and get stopped out. (Read "Trading in the Zone", awesome book) Edit: Changed tp to 3325 and will keep my eyes peeled.
Hello. based on my analysis there are 2 numbers now to be corrected - 1.3379 and 1.3342. i have loaded shorts but am not confident in the trade
what caused your tp change?
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