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The similarity system

  • #10,761
  • Oct 22, 2014 9:44am Oct 22, 2014 9:44am
OK kind people, I haven't been observing this very long but it appears that the stochastic mismatches could be used for short-term trades. I haven't yet digested the most recent well-informed and thoughtful posts on using stochs, but I'll do my best while at the same time making my own observations. Happy trades to all.
Open to new approaches.
  • #10,762
  • Oct 22, 2014 9:56am Oct 22, 2014 9:56am
Quoting kprsa
{quote} No worries, I understand you loud and clear. No, my indicator does not use Zigzag directly (but is in principle connected with it). Thanks for letting me know. Mladen is a superhero. Cheers, k
Hi My Friend Kprsa, I already download your indicator, and thank you for sharing the mql file, look at the inside, and at this occasion i ask permission from you to make some cosmetic mod.. .

After checking how 'she' work, my early conclusion is that 'as always' great indicator need 'great data feed' to perform effectively..

please look at this two example picture..
1st picture is GBPUSD M15 candlestick chart, i put your indicator with h+/- 2 (just like normal fractal formation) with average 10.4 point candle size for the last 1440 bars.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD M15 Recurrent Statistic h2-2 example.png Size: 343 KB


and 2nd picture is GBPUSD renko chart accelerated with stochastic calculation formula with also 10.4 point brick size

Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD M11 Recurrent Statistic h2-2 accelerated shift renko example.png Size: 288 KB


I believe we can see that our probability 'jump' higher, because of more 'better and constant data feed'. Is that 'statistical' books say so..?

Hope it help and best regard
MTH
  • #10,763
  • Oct 22, 2014 10:02am Oct 22, 2014 10:02am
Hi fellas

I like to work with facts so here it is. Personally i believe a trading system with no fact to work on is BS. We all know a fact about the CI method and that is that it repaints, similar to the TZ method we know PTZ repaints more than they hold, 97%/3% it is? (Any other TZ facts?) If this is the case then i believe we should focus more on profiting from the the repainting nature of the PTZ rather than TZ.

How do we do this? one idea will be using a good reversal indicator to trading towards PTZ in the hope that in will repaint. If this is the case then i believe a higher H number will be the trick here since smaller H tend to hold lot more than higher H number. Any thoughts?

Regards
No Risk No Reward
  • #10,764
  • Oct 22, 2014 10:05am Oct 22, 2014 10:05am
Quoting Neio
{quote} Hi Bob, I have not really spent much time with comparing stochastics of different timeframes as the thread was developing quickly at the time and Eurussd introduced other methods that were more efficient such as the STOCH/BB method. This is where price was configured as a (1EMA close) to mirror a stochastic with a X,1,1 setting and a Bollinger band on both. This effectively meant that the stoch mirrored the price above. This is also the same as taught in the thread The 3 plan http://www.forexfactory.com/showthread.php?p=7095392#post7095392...
This and your subsequent post are rich with information, Neio! Thank you!
Open to new approaches.
  • #10,765
  • Oct 22, 2014 10:14am Oct 22, 2014 10:14am
Quoting Kiads
{quote} Hi My Friend Kprsa, I already download your indicator, and thank you for sharing the mql file, look at the inside, and at this occasion i ask permission from you to make some cosmetic mod.. . After checking how 'she' work, my early conclusion is that 'as always' great indicator need 'great data feed' to perform effectively.. please look at this two example picture.. 1st picture is GBPUSD M15 candlestick chart, i put your indicator with h+/- 2 (just like normal fractal formation) with average 10.4 point candle size for the last 1440...
Nice Kiads, when i first stumbled upon the TZ concept i knew renko will do alot more better and i have been doing all my homework off renko charts. Lets improve on this mate, i will post my findings.

Regards
No Risk No Reward
  • #10,766
  • Oct 22, 2014 10:20am Oct 22, 2014 10:20am
Quoting SunSaltwater
"Price is 97% recurrent, 3% transient" I have a few suggestions, especially for anyone new. Remove ALL indicators. While I am amazed at all the coding, other ideas being sparked etc. the most important thing period in this thread is the quote I opened this post with. Open a 15 min chart. Choose an H value of 6. Look at every bar for a few days back. See if you can draw a line or box (it becomes a box it price moves more than a pip in 'free' untouched space) from the current bar you are looking at back six bars without touching another bar. When...
Good read.
I really think it was right to let people understand this simple truth for themselves. You made my day.
Some will never understand what is going on and they will continue to search for something extra.
The statement is so simple and true. It is up to the trader to use it wisely!
  • #10,767
  • Oct 22, 2014 10:30am Oct 22, 2014 10:30am
Do you see it?

Short based on discretion anywhere in the black arrow area, take profit anywhere in the white arrow area as price comes back to fill the transient zone drawn by the different coloured boxes.

Long same thing, but purple and light blue arrows.

Study this chart and my previous post. This is all you need. Zero indicators.
Attached Image (click to enlarge)
Click to Enlarge Name: Untitled.jpg Size: 126 KB
  • #10,768
  • Oct 22, 2014 10:34am Oct 22, 2014 10:34am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting SunSaltwater
Do you see it? Short based on discretion anywhere in the black arrow area, take profit anywhere in the white arrow area as price comes back to fill the transient zone drawn by the different coloured boxes. Long same thing, but purple and light blue arrows. Study this chart and my previous post. This is all you need. Zero indicators. {image}

Hi SunSaltwater,

I like your posts but the reality is when the market trends you will find that some areas are not returned too. This is where the danger is.

Regards

Neio
An expert is a man who has made all the mistakes which can be made
  • #10,769
  • Oct 22, 2014 10:36am Oct 22, 2014 10:36am
Quoting Neio
{quote} Hi SunSaltwater, I like your posts but the reality is when the market trends you will find that some areas are not returned too. This is where the danger is. Regards Neio
Exactly! Market state. And what's the trigger again?
  • #10,770
  • Oct 22, 2014 10:43am Oct 22, 2014 10:43am
The problem is how you deal with transient prices, in a ranging or trending market. There are some things that must remain secret. If you can figure it out, good for you!!!!

You have the theory, build your trading model! Bye.
  • #10,771
  • Oct 22, 2014 10:44am Oct 22, 2014 10:44am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting LITEchild
{quote} Exactly! Market state. And what's the trigger again?
Sorry i'm not on your wavelength.
An expert is a man who has made all the mistakes which can be made
  • #10,772
  • Oct 22, 2014 10:48am Oct 22, 2014 10:48am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting MetaCoder
{quote} This and your subsequent post are rich with information, Neio! Thank you!
You're welcome. Hope it helps.
An expert is a man who has made all the mistakes which can be made
  • #10,773
  • Oct 22, 2014 10:48am Oct 22, 2014 10:48am
Quoting Neio
{quote} Hi SunSaltwater, I like your posts but the reality is when the market trends you will find that some areas are not returned too. This is where the danger is. Regards Neio
Agreed, you must have stops and if you see a strong trend couldn't you use this information to get in towards the trend? Yes, yes you can.
  • #10,774
  • Oct 22, 2014 10:48am Oct 22, 2014 10:48am
Quoting SunSaltwater
"Price is 97% recurrent, 3% transient" I have a few suggestions, especially for anyone new. Remove ALL indicators. While I am amazed at all the coding, other ideas being sparked etc. the most important thing period in this thread is the quote I opened this post with. Open a 15 min chart. Choose an H value of 6...
Price is 97% recurrent.

Open a chart. Remove all indicators. Close your chart. Open your Buy/Sell button. Buy or sell

Price is 97% recurent. Does it really mean that if i enter anywhere, anyhow, buy or sell, pure hasard, price have 97% to come back to my enter?
Bottomless wonders spring from simple rules, which are repeated without end
  • #10,775
  • Oct 22, 2014 10:53am Oct 22, 2014 10:53am
Quoting limprobable
{quote} Price is 97% recurrent. Open a chart. Remove all indicators. Close your chart. Open your Buy/Sell button. Buy or sell Price is 97% recurent. Does it really mean that if i enter anywhere, anyhow, buy or sell, pure hasard, price have 97% to come back to my enter?
Don't forget the 'H' to help clean things up a little. But, yes, try it, see how many times you enter buy or sell randomly without a chart that your trade will go in to profit. Obviously you need more than this but it is an interesting little exercise.
  • #10,776
  • Oct 22, 2014 10:55am Oct 22, 2014 10:55am
Quoting limprobable
{quote} Price is 97% recurrent. Open a chart. Remove all indicators. Close your chart. Open your Buy/Sell button. Buy or sell Price is 97% recurent. Does it really mean that if i enter anywhere, anyhow, buy or sell, pure hasard, price have 97% to come back to my enter?
yes.
but the question is not complete. you missed the important part "WHEN" (H or time or x axis). this is why you use time windows. upon expiration of this window, you take the profit or the loss.
As Above, So Below
  • #10,777
  • Oct 22, 2014 10:57am Oct 22, 2014 10:57am
Quoting tashkent
{quote} yes. but the question is not complete. you missed the important part "WHEN" (H or time or x axis). this is why you use time windows. upon expiration of this window, you take the profit or the loss.
A pip is only worth it if you know how much you risked to earn it
  • #10,778
  • Oct 22, 2014 10:58am Oct 22, 2014 10:58am
Quoting Eurusdd
The problem is how you deal with transient prices, in a ranging or trending market. There are some things that must remain secret. If you can figure it out, good for you!!!! You have the theory, build your trading model! Bye.
Yes Sir, and once again Thank You So Much...
best regard
MTH
  • #10,779
  • Oct 22, 2014 11:05am Oct 22, 2014 11:05am
Quoting Neio
{quote} Hi SunSaltwater, I like your posts but the reality is when the market trends you will find that some areas are not returned too. This is where the danger is. Regards Neio
DO YOU SEE IT!!!!!
Attached Image (click to enlarge)
Click to Enlarge Name: Untitled.jpg Size: 150 KB
  • #10,780
  • Oct 22, 2014 11:12am Oct 22, 2014 11:12am
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting SunSaltwater
{quote} DO YOU SEE IT!!!!! {image}
I have traded it that way. Ultimately for me it did not work when price was trending strongly. Also how far would you have the stop? There will be drawdown even on the ones that return thus also risk taking out your stop.

Perhaps it was my own money management that let me down but it did not suit the way I want to trade.

It looks perfectly traded in hindsight but in practice is another thing.

Regards

Neio
An expert is a man who has made all the mistakes which can be made
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