The similarity system | Page 528 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Similarity: A Practical Approach 859 replies

Similarity Trading - The ZZBB Method 215 replies

Rainbow similarity 256 replies

Similarity Stuff 17 replies

Directional Similarity 0 replies

Attachments: The similarity system
Exit Attachments

The similarity system

  • #10,541
  • Oct 18, 2014 7:33pm Oct 18, 2014 7:33pm
Quoting pedma
{quote} Nice to see you again Eurusdd, thank you for your great ideas !! {quote} Great posts Vlady. Thanks mate. h(T,k) is very interesting. The variable Time(T) and double value k will lead us to an optimal h. Amazing result .....
Cheers mate,
The mystery of TZ is that we don't know what k is. Kprsa already mentioned that his version of k is different - an average of price height. The original proposition says it's a positive integer. I think it's price related but not necessarily "price" value. No one knows but Eurusdd. Hasn't stopped strategies from being devised to bring in pips, though.
A pip is only worth it if you know how much you risked to earn it
  • #10,542
  • Oct 18, 2014 7:44pm Oct 18, 2014 7:44pm
Quoting ephisi
Now getting many emails requesting help! I will say here that i equally sent emails to vlady, ullen, eurusdd, neio etc trying to learn this stuff. No one revealed the key secrets to me. But pointers which are all in the thread. Pls read the threads and if you must send mails send ones that show what you have figured out and ask if youre on the right track or not. Thats hiw i see it. That can be done on the thread and not through pms


Quoting ephisi
{quote} A group of intelligent traders. My university education paid of afterall. Its not until 3days ago i gained full understanding. To get the gist one has to be a researcher. One who loves problem solving and will keep at it till the problem is solved. Eurusdd i cant thank you enough. Complicated, yet so simple. Or simple yet complicated. Dunno
After i found this thread, i feel that what i got at university can be applied (some of them) in forex .... it is worth, finally we can earn money. Need some time more for me, but i see the light at the end of the dark tunnel ....
I want to thank very much to Eurusdd, and all of members that have spend time and energy to help me and other friends here ...
May you all have a good health, always be happy & get green pips every day .....
Good friends are more valuable than gold ...
  • #10,543
  • Edited 8:10pm Oct 18, 2014 7:48pm | Edited 8:10pm
Quoting kprsa
{quote} hi Jack, Problem bars denote confirmed transient zones. Fully resolved bars denote potential TZs that have become recurrent. This appears ok, as far as the calculation is concerned. I'll simplify the language in V4. k
Thanks for your information mate. Wow, can not wait to see V4 Thank you for your hard work !!
edit: i mean, take you time mate i am just so happy to see it later after you have finished it ....
Similarity can change your life !
  • #10,544
  • Oct 18, 2014 7:58pm Oct 18, 2014 7:58pm
Quoting vlady1974
{quote} Cheers mate, The mystery of TZ is that we don't know what k is. Kprsa already mentioned that his version of k is different - an average of price height. The original proposition says it's a positive integer. I think it's price related but not necessarily "price" value. No one knows but Eurusdd. Hasn't stopped strategies from being devised to bring in pips, though.
Thanks again mate. Will spare time for all of this. Yes you are right, i just read from page 286up again for the x times, Eurusdd wrote that K is an integer. Will try to code it and see the result. If i get something, then i will try to trade using SMALL account/lot first. I think using small account / small lot is good for practice, if i get good result, then i may try a bigger one .... It is really worth to understand the equation: h(T,k) ......
Good friends are more valuable than gold ...
  • #10,545
  • Oct 18, 2014 9:18pm Oct 18, 2014 9:18pm
Quoting kore2
{quote} {image} Hey Guys and Eurusdd, This is my first post here (actually I tried to post more than a year ago but it was blocked somehow), anyway I`ve been following this thread with great interest. Lately I`ve been testing the concept that I`m quoting here. There are two reasons that I don`t reveal how I applied it. First reason is that nobody reveals his exact strategy here. Second reason is that I failed with it so it`s not profitable. With my own method I had about 90-95% success rate but that success rate was without using a stoploss. And...
Stunning question, kore2! Welcome to the frustrated club. I too was greatly inspired by the exact post you quoted, but it didn't work for me either due to the problems you said. I didn't give up though, just thought my stop loss, choice of h, TP, minimum k, etc. were off. So I spent a good few hours coding a mechanical system based on this one idea, and I couldn't get that to work either (over a few thousand bars). Exactly the problem you described! A win rate over 90% was possible if your SL was big enough, but the few losers would wipe out your profits with such a large SL. Small SLs didn't work either. I made sure to enter and take profit with limit orders, of course, to guarantee getting filled. Even reducing the TP to a single pip didn't work. It was very frustrating! I wrote about this previously in post #10042.

From this I drew the conclusion that the great scalpers on this thread are using a lot more than this technique to make money. How couldn't they be? When has a trading system ever worked without a good deal of discretion? If it were a simple case of following indicators then everyone would be making money, especially the big institutions with so much time and money to invest in research. As such, the only thing that's going to make you a great trader is knowing how to read the market. Without that, any edge a system or indicator provides might help you break even, but it won't make you rich.

As for Eurusdd's trade explorer, I have similar reservations to you about it. For instance, in his current explorer his last trade had a gearing of 200:1 (8 lots = $800,000, account = $4000, leverage = 200:1). That's financial suicide! If the trade had gone against him by just 10 pips (his SL?), he would have lost 25% of his account. Assuming he wasn't margin-called before that. And if he didn't use a SL, as he sometimes suggests, then his account would have been wiped out if that particular trade was the low-probability loser. Fortunately it's only a demo account, and fortunately the trade was a 6 pip winner. But I hope he will clarify what his thinking was behind such a suicidal leverage on that trade.

Sorry if it seems that everything I've posted has been negative the last few days. It's not my intention to bring down the mood of this thread. I guess I just want to be realistic, and perhaps provide a reality check from time to time. I hope Eurusdd doesn't mind.

Good luck, kore2, and please keep us updated with your progress.
You reap what you sow.
  • #10,546
  • Oct 18, 2014 11:35pm Oct 18, 2014 11:35pm
Quoting kore2
{quote} {image} Hey Guys and Eurusdd, This is my first post here (actually I tried to post more than a year ago but it was blocked somehow), anyway I`ve been following this thread with great interest. Lately I`ve been testing the concept that I`m quoting here. There are two reasons that I don`t reveal how I applied it. First reason is that nobody reveals his exact strategy here. Second reason is that I failed with it so it`s not profitable. With my own method I had about 90-95% success rate but that success rate was without using a stoploss. And...
Right now I'm playing around with entering during the bar following a completed left side transient bar. My stop loss, if TP not hit, is a automatic close at the end of h bars after the bar I entered on. Playing around in excel (not the best), the results are so good that I am sure my calculations are wrong. I'm on to the next phase of trying to code an EA...
  • #10,547
  • Oct 18, 2014 11:55pm Oct 18, 2014 11:55pm
Quoting VVizlan
{quote} Right now I'm playing around with entering during the bar following a completed left side transient bar. My stop loss, if TP not hit, is a automatic close at the end of h bars after the bar I entered on. Playing around in excel (not the best), the results are so good that I am sure my calculations are wrong. I'm on to the next phase of trying to code an EA...
Hi VVizlan, sounds interesting. But what's your TP? Is it within the range of the middle bar (which is the bar before you enter)? That might work, though be careful about the next bar being a mid-bar TZ too. According to my research the probability of two consecutive TZ bars is surprisingly high.
You reap what you sow.
  • #10,548
  • Oct 19, 2014 12:59am Oct 19, 2014 12:59am
hello Eurusdd, i am a new reader to your thread here, and having some challenges here. when i am trying to compile the indicators, i.e., r-v1/r-v2 mg4, it won't work, can you please advise how, big thanks!
  • #10,549
  • Oct 19, 2014 1:07am Oct 19, 2014 1:07am
Give it time. It will come to you. You mind will be blown everyday.Yes. Most things I learned in uni are applied here. Engineering maths for example. Fluid dynamics. Rock and fluid properties. So many concepts apply to fx. Chess whatever.
Quoting pedma
{quote} {quote} After i found this thread, i feel that what i got at university can be applied (some of them) in forex .... it is worth, finally we can earn money. Need some time more for me, but i see the light at the end of the dark tunnel...
  • #10,550
  • Oct 19, 2014 1:33am Oct 19, 2014 1:33am
Quoting cfdtaleong
{quote} Have you been reading selectively?
No, every post since the TZ discussion started. Admittedly not got round to reading the DS posts yet.
You reap what you sow.
  • #10,551
  • Oct 19, 2014 3:07am Oct 19, 2014 3:07am
For new comer who are looking for indicators, just look at top right of each page on this thread, there is aClip with number 1,559 (attachment amounts). Click it, and you will find all indicators of this thread. If what you are looking for is not there, it meanst you must create it your self. Learning to code is interesting, you must spare time for it, but it worth athe end ......
Similarity can change your life !
  • #10,552
  • Oct 19, 2014 3:47am Oct 19, 2014 3:47am
Quoting NorthTrader
{quote} A win rate over 90% was possible if your SL was big enough, but the few losers would wipe out your profits with such a large SL. Small SLs didn't work either.
After enough practice you'll be able to determine the correct H & K values for different TFs & instruments. Once you reach that stage you'll start on focusing on finding the high probability setups. Once you determine those setups, you'll only pick the ones with low Risk/Reward ratios.
For me a high probability setup is the one with 90+% probability (yours could be 80% or 95%) so for me a suitable R/R would be anything below 9:1 to stay in profit.

Quoting NorthTrader
{quote}From this I drew the conclusion that the great scalpers on this thread are using a lot more than this technique to make money. How couldn't they be? When has a trading system ever worked without a good deal of discretion? If it were a simple case of following indicators then everyone would be making money. Without that, any edge a system or indicator provides might help you break even, but it won't make you rich.
I have mentioned many times that no system by itself is perfect, and you definitely need some trading skills to make it work.
There's no way a new amateur trader could make the same results I'm making even if I teach him the system step by step, the same way I'm sure a more professional full time trader can make much more profits with much lower risks than I do given the same system/ideas.

As you have mentioned, the ideas presented here will give you an edge i the market, but there's no chance it will give you free money on a silver plate.
  • #10,553
  • Oct 19, 2014 3:59am Oct 19, 2014 3:59am
Quoting cfdtaleong
Edit I wanted to say more but decided not to bother This thread is a complete waste of time and we are all so grateful for your reality checks. Lets move on with life and be realistic !
I guess I deserved that cfd, but OUCH! Don't worry, this will be my last post for a while. I can't help feeling that you misunderstand my message, but that's probably due to my poor communication skills.

Good luck everyone!

PS Just saw your post, Jay. I agree 100%! Thanks and gambatte!
You reap what you sow.
  • #10,554
  • Oct 19, 2014 4:49am Oct 19, 2014 4:49am
Quoting Neio
{quote} Great results FX-Jay! One thing that is puzzling me is that on the 18th September you called a high probability sell trade on USD/MXN which was trading towards tzs down below... Regards Neio
Hey Neio,

Any smart question or constructive criticism is more than welcome. You're one of the good people around here with legit contributions, that's why I took the time to go back in my trading history to check what happened at that time.

The answers to your questions were already answered in later posts by me on this thread through the statements that I was posting here.

1- http://www.forexfactory.com/showthread.php?p=7747925#post7747925
2- http://www.forexfactory.com/showthread.php?p=7754346#post7754346
3- http://www.forexfactory.com/showthread.php?p=7757014#post7757014

In #1 you'll see the call that you are talking about, and how much I stress on the time factor + money management
In #2 you'll see the time I entered and exited the 1st call
In #3 you'll see when I re-entered & re-exited at a later date

Here's also the answer for the eur/usd long calls:

http://www.forexfactory.com/showthread.php?p=7787570#post7787570

Please everyone excuse me in advance for ignoring msgs pointed towards me from now on if the answers are available in my previous posts.
If you can't find the time to read my previous posts, then I don't have the time to search for them & post them for you again.
(this is not addressed directly to you Neio)
  • #10,555
  • Oct 19, 2014 4:57am Oct 19, 2014 4:57am
Quoting NorthTrader
{quote} I guess I deserved that cfd, but OUCH! Don't worry, this will be my last post for a while. I can't help feeling that you misunderstand my message, but that's probably due to my poor communication skills. Good luck everyone! PS Just saw your post, Jay. I agree 100%! Thanks and gambatte!
Ok North, if you put it this way yes I am harsh. If you had put in the effort to read all the posts as you say did, you've noticed there were a few posts my frustrations got the better of me too. I was this close to giving up. Your posts have not been very helpful in the matter. Question not the validity of the method for now, question instead how the method is applied and then come to your conclusions. Try post 8085 and a couple after that which Bailie mentioned. That's one way of using the TZs. Demo the applications of it and see for yourself then branch out from there.

You've read Jay's reply and that explains why he has an 800% account and I have a 110% account given that we started this TZ business not too far apart in time. Why I am shooting my mouth off here is because I know I've progressed. I already have the TZ stuff figured out reasonably but not completely. That said it is enough for me now to be working on how to trade it properly. Once you get to where I am...this is where the pips will start to come assuming success in the endeavour. Which is why I try to answer the questions that I can so that people can get to where I am and start working on the pip counts.
I want more brain power!
  • #10,556
  • Edited 5:19am Oct 19, 2014 5:05am | Edited 5:19am
Quoting NorthTrader
{quote} I guess I deserved that cfd, but OUCH! Don't worry, this will be my last post for a while. I can't help feeling that you misunderstand my message, but that's probably due to my poor communication skills. Good luck everyone! PS Just saw your post, Jay. I agree 100%! Thanks and gambatte!
I understand you completely NorthTrader. You are not alone.

I am still trading it in a small live account the way Eurusdd described back in those basic TZ introductory posts. Nothing else, no indis whatsoever. No dissimilarity either because I have yet to read the first hundred pages of this thread I saved offline. I trade towards TZ because I still can't figure out when I should trade away from them. And yes, I am still waiting for a big wrong move to wipe out my gains because I dun use stop loss in favor of higher probabiliy.

As to why I've hardly made any progress with TZs at all, I can only say I still couldn't figure out many of the hints, tips and 'golden nuggets' given out in this thread.
  • #10,557
  • Oct 19, 2014 7:29am Oct 19, 2014 7:29am
From this picture, is not difficult for me to decide where to place my entry, SL, and my first TP target with RRR at least 1:3. With my own interpretation, this Similarity and Transient Zones is clear and simple great concept.. are you sure you don't see it ?

Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD 5point brick shifted renko and Transient Zones.png Size: 306 KB


Best Regard
MTH
  • #10,558
  • Oct 19, 2014 8:11am Oct 19, 2014 8:11am
94% probability that AUD/USD will reach 0.8838 before Wednesday's Asian session

Current price 0.8742
Target 0.8838 (+96 pips)
Stop Loss 0.8670 (-72 pips)
Risk/Reward Ratio: 1:1.33
Probability of success: 94%
Expiry time: End of Tuesday's American session

This call has all the components you need for a perfect trade using TZ & probabilities.
If you could manage a better entry, it would be perfect.

Note: 94% is not equal to 100%, so try to stay calm if the trade gets stopped out or the target isn't reached by expiry. I'm no magician , I'm a trader that takes high probability trades. It's up to you to bet with the 94%probability or the 6% probability.

GL,
Jay
  • #10,559
  • Oct 19, 2014 8:25am Oct 19, 2014 8:25am
Quoting FX-Jay
{quote} After enough practice you'll be able to determine the correct H & K values for different TFs.
Hi Jay
I dont know the K values,it mean bar number?
thx.
  • #10,560
  • Oct 19, 2014 8:28am Oct 19, 2014 8:28am
Quoting Kiads
From this picture, is not difficult for me to decide where to place my entry, SL, and my first TP target with RRR at least 1:3. With my own interpretation, this Similarity and Transient Zones is clear and simple great concept.. are you sure you don't see it ? {image} Best Regard MTH
Hi Kiads,

it's very nice. I've tried it with your indi (thanks for it). My probleme is to make an automatic signal at turning point, because TZ indi gives you signal when finished zone, in this case after 32 bars. It's too late I think How do you solve it?

Thanks.
4 traders viewing now