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The similarity system

  • #9,721
  • Oct 1, 2014 8:18am Oct 1, 2014 8:18am
Quoting vlady1974
This is for the questions I'm getting asked via PM regarding Uneven Transient Zones (UTZ) The chart is 5M. My platform is IGIndex so there are no MT4 indicators, just visual. The anchoring bar that produces the HIGH or LOW is the central bar. Take the HI and LO of this bar H is any number of bars before and after this central bar. For this example, I'll use 8 (no reason, random number) Take the lowest LO of any bar within H range of the central bar. Draw a mental red line. The highlighted section is the difference between the Red Line and the Low...
nice we really need this work thanks vlady
Regards orid peter
  • #9,722
  • Oct 1, 2014 8:22am Oct 1, 2014 8:22am
Quoting NorthTrader
{quote} Thanks for sharing this, hepsibah, but this system seems a bit too much open to interpretation. For instance, why wouldn't you take the longs at the points I circled on your chart? Both seem to fit the rules you specified, yet both would have incurred drawdowns and possible stop losses. Why wait until the crosses you marked? Thanks! {image}
My take....He is waiting for a TZ to form as a bottom as before that you really don't know how long price is going to keep going. Once we have that TZ we have a time frame where we are confident price is not going to go lower than X. Hence your pip window so to speak
I want more brain power!
  • #9,723
  • Oct 1, 2014 8:28am Oct 1, 2014 8:28am
Quoting cfdtaleong
{quote} My take....He is waiting for a TZ to form as a bottom as before that you really don't know how long price is going to keep going. Once we have that TZ we have a time frame where we are confident price is not going to go lower than X. Hence your pip window so to speak
First cross is 4 bars after potential TZ, second cross is 3 after. First circle is 2 after, second circle is 1 after. Not a massive difference, but you could be right. Maybe he waits a minimum of 3 bars after potential TZ before taking the trade?
You reap what you sow.
  • #9,724
  • Oct 1, 2014 8:34am Oct 1, 2014 8:34am
Quoting NorthTrader
{quote} Thanks for sharing this, hepsibah, but this system seems a bit too much open to interpretation. For instance, why wouldn't you take the longs at the points I circled on your chart? Both seem to fit the rules you specified, yet both would have incurred drawdowns and possible stop losses. Why wait until the crosses you marked? Thanks! {image}
I wonder if this is where you could take the 2nd Long, if you knew that the very thin TZ is actually uneven.

Even on a value of h=30, that 3rd bar creates the lowest minima of the right handside "height" and the next bar has a higher low and closes above the previous bar's high. So at that point, the uneven TZ is confirmed up to RHS-h=3... you could then risk a long and put SL at below that low that created the uneven level since in theory it is now in the Transient Zone.

Does that make sense? I feel I'm not being clear enough.
A pip is only worth it if you know how much you risked to earn it
  • #9,725
  • Oct 1, 2014 8:38am Oct 1, 2014 8:38am
Quoting vlady1974
{quote} I wonder if this is where you could take the 2nd Long, if you knew that the very thin TZ is actually uneven. Even on a value of h=30, that 3rd bar creates the lowest minima of the right handside "height" and the next bar has a higher low and closes above the previous bar's high. So at that point, the uneven TZ is confirmed up to RHS-h=3... you could then risk a long and put SL at below that low that created the uneven level since in theory it is now in the Transient Zone. Does that make sense? I feel I'm not being clear enough. :s
Chart to make sense of it.... you could enter at any price higher than the bar that created the Uneven TZ (which I indicate with light blue ink)
Or if not, use the previous level as a breakout point (blue line)... that's with the confidence that the UTZ confirms the transient zone alot earlier than the full value of h on the right side.
Attached Image (click to enlarge)
Click to Enlarge Name: TZ.JPG Size: 38 KB
A pip is only worth it if you know how much you risked to earn it
  • #9,726
  • Oct 1, 2014 8:58am Oct 1, 2014 8:58am
would never take longs there
What we need is to be sure if the tz will be fully formed for definite then we have the HG
  • #9,727
  • Oct 1, 2014 9:05am Oct 1, 2014 9:05am
Quoting josh11
{quote} I am out at BE, will wait for another chance for long! I calculated a bottom for today could be set soon! Lets see
TP hit 12633
  • #9,728
  • Oct 1, 2014 9:15am Oct 1, 2014 9:15am
Quoting josh11
{quote} TP hit 12633
sold at 12633 with 10pips SL

Best of luck
  • #9,729
  • Oct 1, 2014 9:17am Oct 1, 2014 9:17am
Quoting josh11
{quote} sold at 12633 with 10pips SL Best of luck
Wow that was fast but anyway My SL is now at BE!!!
  • #9,730
  • Oct 1, 2014 9:22am Oct 1, 2014 9:22am
I think we all know the direction.
So I still think 2820 is still valid.
Attached Image (click to enlarge)
Click to Enlarge Name: SEMANAL.JPG Size: 153 KB
  • #9,731
  • Oct 1, 2014 9:30am Oct 1, 2014 9:30am
Quoting vlady1974
{quote} Chart to make sense of it.... you could enter at any price higher than the bar that created the Uneven TZ (which I indicate with light blue ink) Or if not, use the previous level as a breakout point (blue line)... that's with the confidence that the UTZ confirms the transient zone alot earlier than the full value of h on the right side. {image}
Yeah, I see. Wait for the UTZ to form before taking it. Thanks for taking the time to explain that, vlady. But I agree with orid that taking a trade there would be too aggresive (after such a strong move down).
You reap what you sow.
  • #9,732
  • Oct 1, 2014 9:58am Oct 1, 2014 9:58am
Quoting FX-Jay
There you go guys, the results for the 3 weeks live testing! Even better results than the back-testing. ( If you want to check the day by day results, you can go through my older posts ) 190 out of 198 profit trades (96%) Largest volume = 1 Max Consecutive losses = 2 Return in less than 3 weeks: 69% (57% including floating P&L) All current open positions will be closed by next Tuesday {image}
Impressive results Jay, congratulations!!
  • #9,733
  • Oct 1, 2014 10:14am Oct 1, 2014 10:14am
Quoting NorthTrader
{quote} Yeah, I see. Wait for the UTZ to form before taking it. Thanks for taking the time to explain that, vlady. But I agree with orid that taking a trade there would be too aggresive (after such a strong move down).
I think I would look for more signals to support an entry, myself.
It was just an idea to try and explain that blue entry you queried.... it seemed a logical explanation based on what we've discovered so far.
Of course, as always, it's still work-in-progress until further refinement.
A pip is only worth it if you know how much you risked to earn it
  • #9,734
  • Oct 1, 2014 10:38am Oct 1, 2014 10:38am
Quoting josh11
{quote} TP hit 12633
awesome scalping! definitely not for the faint hearted!
  • #9,735
  • Oct 1, 2014 10:47am Oct 1, 2014 10:47am
Quoting FX-Jay
There you go guys, the results for the 3 weeks live testing! Even better results than the back-testing. ( If you want to check the day by day results, you can go through my older posts ) 190 out of 198 profit trades (96%) Largest volume = 1 Max Consecutive losses = 2 Return in less than 3 weeks: 69% (57% including floating P&L) All current open positions will be closed by next Tuesday {image}
FX-jay grats that is impressive ,wanna race yachts next month or shall we take our jets
sent you a pm
regards orid peter
  • #9,736
  • Oct 1, 2014 11:15am Oct 1, 2014 11:15am
Today has been an awesome day for me. Quiet day at work for plenty of FF time Some new stuff learnt and fitted more puzzle pieces making my system in development closer and closer to my personal specifications and a decent % recovery of the pips I lost yesterday due to being silly. So I'll contribute something for the newbies. Now I've posted a fair bit, most are jokes now that I realised how wrong some of them are. But these are some principles that will never be wrong and you will need them if you want to get anywhere in this thread.

1)You need to build for yourself a Trading logic. If A do B if C else D kinda thing. Buy/Sell once you get a signal will not cut it in the long run. This is basic so I'll leave it here.

2)Any logic should have WHERE, WHEN and HOW (W.W.H) answered. If you can do WHY you don't need to read this post.

The various components in this thread at their most basic levels answer the following first
a)TZ - Where
b)CI - When
c)Similarity - A bit of everything at once

Take any component and expand on the understanding of it and you'll see they all answer W.W.H to varying but reasonable and tradable degrees. Combine them somehow and you'll see the probabilities of you making an accurate call increase. Its back breaking work to make it even to my level and I've only just gone thru the door. Others are way way ahead. Yet this still is only half the job as mentioned previously. All of these can only take you halfway and is the reason why my pip counts on my live only buys me beer till date cause quite frankly I'm not a very good trader

BUT if you can hunker down and take your time to learn this hair tearing and tree banging stuff, you WILL grow as a trader.
I want more brain power!
  • #9,737
  • Oct 1, 2014 12:56pm Oct 1, 2014 12:56pm
Hey freefox, thnx for your earlier creation, the tz indi. I have a small question for you regarding a slight modification of the code. Would it be possible to add an option for 'use max h per zone'. In other words, to not remove zones when the (h) is too big. Regards, robert.

tried sending you this as a pm but somehow it didnt work.
  • #9,738
  • Oct 1, 2014 4:16pm Oct 1, 2014 4:16pm
Quoting wireash
WITH THAT SAID: WITH STUDYING THIS INDI. AND WHAT IT;S TRYING TO DO (KEEP IN MIND THAT I DONT USE THAT INDI. WHILE TRADING) I CAN PINPOINT THE LEVEL'S THAT THE PRICE MISSED ,AND I CAN TELL WHEN IT WILL COME BACK TO THAT PROBLEM LEVEL BEFORE IT DOES ANYTHING ELSE gbp/nzd 4H CHART LINE: 2.0697 TIMELINE NEXT 13 CANDLES I SAW THAT ON MONDAY SO FAR 260PIPS IN PROFIT I WOULD SAY HAT EARLIER BUT I DONT TRADE $USD BUT IT SHOWS YOU THAT THIS STRATEGY WORKS ON ANY PAIR THAT'S WHY I FEEL THE NEED TO SHARE IT WITH YOU
here's what happened:
as predicted priced got to 2.0697 and jumped 152pips in less than an hour
price actually went 30 pips lower than 2.0697 but its ok 50pip sl was never close to being in danger
so you know my entry
reason for exit :on 1h price touched 50ma
50pip for 150pip
risk to reward
1:3
  • #9,739
  • Oct 1, 2014 9:46pm Oct 1, 2014 9:46pm
Quoting NorthTrader
{quote} Thanks for sharing this, hepsibah, but this system seems a bit too much open to interpretation. For instance, why wouldn't you take the longs at the points I circled on your chart? Both seem to fit the rules you specified, yet both would have incurred drawdowns and possible stop losses. Why wait until the crosses you marked? Thanks! {image}

Yes, NorthTrader, you are absolutely right that both of the examples you pointed out would have been legitimate entries, the first one would have been stopped out, the second one wouldn't and you should have made a small profit overall. I try to stay within Eurusdd's guidelines of 10 pip SL's for scalps so these would have been over the limit for me but definitely valid trades all the same.
  • #9,740
  • Oct 1, 2014 10:27pm Oct 1, 2014 10:27pm
Quoting hepsibah
{quote} Yes, NorthTrader, you are absolutely right that both of the examples you pointed out would have been legitimate entries, the first one would have been stopped out, the second one wouldn't and you should have made a small profit overall. I try to stay within Eurusdd's guidelines of 10 pip SL's for scalps so these would have been over the limit for me but definitely valid trades all the same.
Boils down to preference I guess
I want more brain power!
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