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The similarity system

  • #11,361
  • Oct 31, 2014 4:30am Oct 31, 2014 4:30am
Quoting FX-Jay
For all visual learners out there &/or lazy asses that want their pips served on silver plate, here's what Eurusdd is saying in his last post. Check it out and thank me later ( eventhough I'm pretty sure you won't, you're way to busy figuring out how I'm faking my real results, no? ) I want to make it clear that this is NOT how I trade this concept, but the idea did start from here. This was the initial proposition, but I decided to to tweak it and make it work my way. If you managed to check my previous contributions, you would have realized...
thank you a lot !!!
  • #11,362
  • Oct 31, 2014 4:50am Oct 31, 2014 4:50am
In the below Daily chart, there are 11 trade opportunities using the concept presented.
ALL of them are winners & H is as small as 10.

Once you are able to identify all 11, you can consider yourself as a graduate.

Edit: In some of the 11 opportunities there could be more than one profitable trade done. However, I'm only talking about the main 11 opportunities (don't include sub-opportunities)

Best,
Jay
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  • #11,363
  • Oct 31, 2014 4:56am Oct 31, 2014 4:56am
Quoting adeforex
{quote} please what is the buy and sell signal? where should i enter? Give me, man, common?
Its Easy , buy when the price go's up,, sell when the price go's down
  • #11,364
  • Oct 31, 2014 5:01am Oct 31, 2014 5:01am
Quoting LiquidGenius
Now the cat is not only out the bag but on our heads! Although eurusdd gave it the recent clarification out himself so it's considered general knowledge. GL to all! I have new things to try..
Attached Image
  • #11,365
  • Oct 31, 2014 5:02am Oct 31, 2014 5:02am
Because today is friday and sharing day
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figuring out R:R ratio and entries is your part
the 3rd wave is the crowd's wave
  • #11,366
  • Oct 31, 2014 5:04am Oct 31, 2014 5:04am
And I'll finally leave you with this:

In the below chart (different dates than the one in the previous post), there are 11 winners & 1 loser.
If you can spot the loser, then you graduated with distinction

You do realize that getting 22 out of 23 winners on a Daily chart is a huge deal right?
BUT Whenever you get too carried away with optimism, this post is here to give you a slap on the face and bring you back to reality: http://www.forexfactory.com/showthread.php?p=7837257#post7837257
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  • #11,367
  • Oct 31, 2014 5:16am Oct 31, 2014 5:16am
Quoting FX-Jay
And I'll finally leave you with this: In the below chart (different dates than the one in the previous post), there are 11 winners & 1 loser. If you can spot the loser, then you graduated with distinction You do realize that getting 22 out of 23 winners on a Daily chart is a huge deal right? BUT Whenever you get too carried away with optimism, this post is here to give you a slap on the face and bring you back to reality: http://www.forexfactory.com/showthread.php?p=7837257#post7837257 {image}
Thank you Jay for sharing.
I'm a bit confused, with such small H (although true TZ < 3%, so h is small but fine).
Need some time to look at your chart to figure out what you see.
22 out of 23 that's nice.
the 3rd wave is the crowd's wave
  • #11,368
  • Oct 31, 2014 5:21am Oct 31, 2014 5:21am
I ask just one favor from you guys: Can you people put these ideas together nicely and create a Wikipedia page for the similarity and TZ-zones. I will provide the proof of important statements . Please do this! Thank you!!!

Just pm me for any comment of clarifications. I will not post here!!!
  • #11,369
  • Oct 31, 2014 5:40am Oct 31, 2014 5:40am
Quoting fx-jay
for all visual learners out there &/or lazy asses that want their pips served on silver plate, here's what eurusdd is saying in his last post. Check it out and thank me later ( eventhough i'm pretty sure you won't, you're way to busy figuring out how i'm faking my real results, no? ) i want to make it clear that this is not how i trade this concept, but the idea did start from here. This was the initial proposition, but i decided to to tweak it and make it work my way. If you managed to check my previous contributions, you would have realized...
ok people move along, nothing to see here.........
  • #11,370
  • Oct 31, 2014 5:54am Oct 31, 2014 5:54am
Quoting Eurusdd
I ask just one favor from you guys: Can you people put these ideas together nicely and create a Wikipedia page for the similarity and TZ-zones. I will provide the proof of important statements . Please do this! Thank you!!! Just pm me for any comment of clarifications. I will not post here!!!
I will TRY to make a pdf With This concept. Then I will send the pdf you check for possible errors. If OK, I'll post in this thread to upload to wikipedia.
It will take me some time because I have a task in my university, but it is done.
  • #11,371
  • Oct 31, 2014 5:58am Oct 31, 2014 5:58am
Quoting FX-Jay
Before getting too excited, I think it's only fair to show you the other side of the picture. I hope the below example shows you why this is far from being a Holy Grail & that it doesn't work by itself. For those who don't see it clearly, in this example if you wanted to take it as it is, you would have risked a DD of 60 pips for the sake of a 5 pip scalp, and then end up leaving the trade with a confirmed -50 pip. It sucks doesn't it? That's why I don't use this technique, and I warned you not to party too hard {image}
. Very insightful and helpful contribution indeed John! Although I think the only thing missing in your analysis is the issue of 'K', which I think Rahim and Saver0 covered pretty well. So between the three of you, Vlady and Eurusdd, there really is nothing much left to say(for now). Welldone my friend.
  • #11,372
  • Edited 6:50am Oct 31, 2014 6:02am | Edited 6:50am
Thanks Eurusdd And fx-Jay for your last post.

Fx-Jay, you show us the récurrence of H-bars. But some TZ are more than one Time récurrent in your charts (the définition of range market)

some intéressant things Will be to calculate the x-récurrence of a price.

for exemple in you last chart the price of 1.6099 have Been récurrent many Times, so some Times you trade the probability That some price Will be récurrent more than 2 times, which probably décrease the probability.

thats why it CAN be holygrail in range market, not in trend market.

Is is what you explain?
Bottomless wonders spring from simple rules, which are repeated without end
  • #11,373
  • Oct 31, 2014 6:16am Oct 31, 2014 6:16am
Quoting Porkpie
{quote} ok people move along, nothing to see here.........
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No wonder...
  • #11,374
  • Oct 31, 2014 6:53am Oct 31, 2014 6:53am
Quoting limprobable
thats why it CAN be holygrail in range market, not in trend market. Is is what you explain?
This comment shows you don't get it yet. It works in every market condition. Read it again!
  • #11,375
  • Oct 31, 2014 7:09am Oct 31, 2014 7:09am
The market is by nature 97% recurrent with all the data.

if we sub-divise the market with H, we try to find a H That Will be the same than the nature of the market. With smaller data like the fractal in the nature.
Bottomless wonders spring from simple rules, which are repeated without end
  • #11,376
  • Edited 8:11am Oct 31, 2014 7:10am | Edited 8:11am
Quoting Eurusdd
{quote}YOU ARE THE ONLY PERSON who really got the idea so far!!! I see a lot of people disputing facts! Prices are 97%+ h-recurrent for the right h. This means that every-time a price is hit, there is 97% chance it will be h-recurrent. so if the last time it was not h-recurrent, it has 97% chance to be h-recurrent now. it is not the bars, you should count for the probability. focus on price!!! Less than 3% of prices will not be h-recurrent for some minimum h. For example, go back. if you find a price which is not 5-recurrent, go into the future...
NOT REALLY!!!!! others know how to keep their mouth shut, like we were asked. (suggested) how many times did I post this same stuff?????
  • #11,377
  • Oct 31, 2014 7:58am Oct 31, 2014 7:58am
Quoting FX-Jay
Before getting too excited, I think it's only fair to show you the other side of the picture. I hope the below example shows you why this is far from being a Holy Grail & that it doesn't work by itself. For those who don't see it clearly, in this example if you wanted to take it as it is, you would have risked a DD of 60 pips for the sake of a 5 pip scalp, and then end up leaving the trade with a confirmed -50 pip. It sucks doesn't it? That's why I don't use this technique, and I warned you not to party too hard {image}
Actually Jay, that DD you would have gotten isnt necessary "60". If you can locate recurrent zones by using various methods (not just Freefox's setting curve-fitting) you can actually hedge yourself out with relatively low DD. If one manages to do this correctly its most of the times a win-win.
  • #11,378
  • Oct 31, 2014 9:07am Oct 31, 2014 9:07am
Quoting FX-Jay
Before getting too excited, I think it's only fair to show you the other side of the picture. I hope the below example shows you why this is far from being a Holy Grail & that it doesn't work by itself. For those who don't see it clearly, in this example if you wanted to take it as it is, you would have risked a DD of 60 pips for the sake of a 5 pip scalp, and then end up leaving the trade with a confirmed -50 pip. It sucks doesn't it? That's why I don't use this technique, and I warned you not to party too hard {image}
Hi Jay,

I know you got you got your own thing, which is great. I have 3 variations of H/K that I'm testing now.
BUT to be clear, clear for other readers. This trade that you marked is not what EURUSDD is talking about...

I don't want to give out too much.. haha
Focus, Patience, Determination & Order in chaos
  • #11,379
  • Oct 31, 2014 9:11am Oct 31, 2014 9:11am
Quoting FX-Jay
And I'll finally leave you with this: In the below chart (different dates than the one in the previous post), there are 11 winners & 1 loser. If you can spot the loser, then you graduated with distinction You do realize that getting 22 out of 23 winners on a Daily chart is a huge deal right? BUT Whenever you get too carried away with optimism, this post is here to give you a slap on the face and bring you back to reality: http://www.forexfactory.com/showthread.php?p=7837257#post7837257 {image}
Jay...very impressive results! I am certainly not the best math brain and been trying to wrap my head around all of the concepts presented. Your returns are very motivating! Been reading and re-reading the thread while taking many notes as well. Whenever I think I have it somewhat figuted out, doubt creeps in and frustration follows.
Maybe you could get a leash and take the cat out for a walk?! LOL. Any other hints and insights are greatly appreciated more than you could know!
Thanks for your contributions and have a great weekend!
  • #11,380
  • Edited 9:39am Oct 31, 2014 9:23am | Edited 9:39am
Let me state this clearly as possible:
1: choose your time-frame
2: choose your currency pair
3: choose any price level, p and a value for h.

The proposition says that the relative frequency of the number of times the market reached p and p was h-recurrent will approach 1 almost surely as time goes to infinity.
Now, since we cannot experience infinity, what about the short run.

The theorem predicts that there is a minimum value for h such that 97% of price levels - hit in the past - will have h-recurrent relative frequencies close to 1.

Therefore, focus on price. On rare occasions you will have an h-TZ zone at a given price p. That h-TZ zone has 97% chance Of been h-recurrent when price gets to p the next time.

Therefore, use h-TZ zones to find h-recurrent zones!!!!

Probability will be on your side.

For example, you can look for an h-TZ zone that was h-TZ twice in a row. That is a rare-rare event. The next time price gets there, you have a high probability h-recurrent zone.

This works in every condition of the market, ranging or trending!!!!
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