As the lights go by so too do the shadows move
Ratios & Harmonics: a Different Way to Trade
- #13,402
- Mar 17, 2015 10:06pm Mar 17, 2015 10:06pm
Hello Guyz,
I am studying this thread from the very beginning, I am actually around page 110, so I apologize if my question has ben already covered.
I have been wondering how to fit this method to my dayjob schedule and I have to test my ideas...
So, here is the question : How do you backtest this method???
I am obviously referring to manual backtesting..
Mr.Pip also made references several times to the necessity of backtesting different tweakings to adapt the method to each personal situation, this reinforces my believe that this is worth doing.
Thank You guyz
Have a nice day!
I am studying this thread from the very beginning, I am actually around page 110, so I apologize if my question has ben already covered.
I have been wondering how to fit this method to my dayjob schedule and I have to test my ideas...
So, here is the question : How do you backtest this method???
I am obviously referring to manual backtesting..
Mr.Pip also made references several times to the necessity of backtesting different tweakings to adapt the method to each personal situation, this reinforces my believe that this is worth doing.
Thank You guyz
Have a nice day!
If you quit, it is NEVER going to happen...
- #13,403
- Mar 18, 2015 2:49am Mar 18, 2015 2:49am
Hello Guyz, I am studying this thread from the very beginning, I am actually around page 110, so I apologize if my question has ben already covered. I have been wondering how to fit this method to my dayjob schedule and I have to test my ideas... So, here is the question : How do you backtest this method??? I am obviously referring to manual backtesting.. Mr.Pip also made references several times to the necessity of backtesting different tweakings to adapt the method to each personal situation, this reinforces my believe that this is worth doing....
Happy testing
- #13,411
- Mar 19, 2015 10:18pm Mar 19, 2015 10:18pm
{quote} Hello Maxx, welcome to the thread. i don't know at what level is your trading experience but i'm going to assume you are a newbie You simply choose a time frame that suits your style of trading ie; day trader or swing trader etc, what ever time your day job will allow you during the day to scan and analyse the charts, once decision is made then go back in time on that charts ( anywhere back) where the last visible candle is "the pretend current active price action", so that no price action is at all visible beyond that candle to the right,,(...
Well, my fault! I just pose the question maybe too generically for a proper answer.
My interest is in the real mechanics of it, hands on.
For instance, what software/platform do you use (I tried the "traditional mt4/f12" candle by candle style...slow and really time consuming. I tried the LFH simulator, but you cannot open other than a single order at a time. I am trying right now the "trader´s gym" simulator included in Trade interceptor, time will tell)
What are, in your experience, assuming you have any in this subject, the important data/variables to include in the spreadsheet for proper analisys of the results?
I am asking this because I am smashing my face on trying to fit the harmoic method to my daily schedule (...and this is the one of the hardst things I ve ever made
)Also, and this is important, did you find the process of any value? You know the story, some guys are advocating this before committing money, others putting it down becose market will never act the same...
This question of mine is obviously opened to everybody
To Mr. Pip : It would also be GREAT to have YOUR specific contribution to the subject, I am sure you have tons and tond of insights to share
Thank you for your time Guyz!
Have a wonderful day
If you quit, it is NEVER going to happen...
- #13,412
- Edited 3:15am Mar 20, 2015 2:09am | Edited 3:15am
{quote} Hi Georji
.when i test the market i always start by checking if there is any major data during that session so that i am aware of any fundemental action specially if i am using short time frame , i draw manually the Supp/Resist lines on the 60mn and then mark the Supply and demand zones on the trading time frame 5mn and there i analyse the Orderflow and all the swings checking for harmonics and moving to candle by candle analysis.
i've been trading for a while now and spent money on systems which they're ok but if i knew then what i know now i'll send it all back.to me bare charts with just Price action is the best system to trade in Any Market (all i need is to draw the lines and mark the zones like i mentioned above).
Harmonics are very interesting, you only need to scroll back on the charts and check them to see that the majority of time they do work (like magic)
. it's the herds mentality effect in human nature in ACTION and guess what,,, it's working!!!Happy trading,,, Georji
- #13,413
- Mar 20, 2015 2:30am Mar 20, 2015 2:30am
{quote} Hi Maxx, i use 2 platforms, Ninja and marketscope by fxcm, i've always done my back testings and analysis the old fashion way of going back in time hiding the future and move forward candle by candle, it's hard work and time consuming but worth it. However Ninja trader platform have a software called Market replay which is a good simulator, so if you don't already use ninja may be it's worth starting a demo account and use the system( all for free)
Nice response Georji.
We are observing "the herds mentality effect in human nature in action" -well put.
In Mr Pips webinar he demonstrates how to read the market and "manually" backtests his ability to read the charts. It is more than just a strategy with pre-set parameters, it is a SKILL to be able to read the charts. An ability for one to develop.
- #13,414
- Mar 20, 2015 3:16am Mar 20, 2015 3:16am
{quote} Nice response Georji. We are observing "the herds mentality effect in human nature in action" -well put. In Mr Pips webinar he demonstrates how to read the market and "manually" backtests his ability to read the charts. It is more than just a strategy with pre-set parameters, it is a SKILL to be able to read the charts. An ability for one to develop.
{quote} Hi Maxx, i use 2 platforms, Ninja and marketscope by fxcm, i've always done my back testings and analysis the old fashion way of going back in time hiding the future and move forward candle by candle, it's hard work and time consuming but worth it. However Ninja trader platform have a software called Market replay which is a good simulator, so if you don't already use ninja may be it's worth starting a demo account and use the system( all for free)
Seems I will need to find time and go on testing the old fashionated way
So far The trader's gym by Tradeinterceptor seems to do the job nicely...only problem you have to be online to access data...doesn't seem to work offline.
Another question related to my time for trading Vs. dayjob.
I live currently in Germany, nice for normal dayworking activity, deadly for daytrading style activity...I wake up everyday at 5 am to study and practice, start working at 7:30 or so and finish around 5:30pm...
By the time I am finished, the party is already over for the day in the market...I tried to trade just after finishing working, but with family and little kinds it's kind of madhouse here!
So, I have to switch to higher timeframes and her comes the challenge :
I trade naked charts and S/R price action, I like harmonics like a powerful added weapon, I like a lot the interesting R/R ratio this strategy often offers, and the capacity to somehow "read the map" before taking action.
The problem : on 1h/4H timeframes, it is very likely that i will not be at the computer to analyze and act on signals as they come on the chart...the lower the timeframe the worst.
Also, once the price enters the PRZ you cannot enter blindly (more whipsaw danger, and worse price for enter = worse R/R), but you should follow closely the price action in the area, right??
So, the only remaining option seems to be the daily TF : here is where the problem of "expectunity" (a neologism by Dr. Van K Tharp), that is expectancy of the system related to the number of opportunities offered by the timeframe traded (interesting concept guyz, make your Google on it!!) comes in...
So I was trying to optimize my backtesting skills to find out if just enter limit orders at 61,8 stands the chanche anyway Vs. waiting for daily signals.
Hope this make sense, and I hope also other traders had to fight this beast before (AND WON!
)Any suggestions?
If you quit, it is NEVER going to happen...