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- #12,122
- Edited 8:28pm Oct 11, 2015 2:41pm | Edited 8:28pm
- | Joined Jul 2015 | Status: Trader | 111 Posts
{quote} Hi TraderJoes. I tried the indicator and I monitored closely for a strong sell signal. I got the signal, but it lasted 1-2min then it it repainted to a minor sell signal. (2nd shot on next page) {image}
emadmax001,
This indicator is NOT meant to be used alone. Of course, it WILL repaint. But, in my opinion, it is a much better trend reversal indicator, than the Semaphore, or even internal Casino "Trnd" filter (at least for longer-term trends), as it determines the peaks and troths correctly in about 60 - 70% of cases. I'd suggest that in the Renko EA you set the property ShowWicks = "true". This should help the Cycle Identifier to filter out some false signals. Also, classic Heiken Ashi, overlaid on Renko bars seems to be helpful to his indicator. I don't know what its behavior would be with the Mean Renko Bars as I never tested that setup.
In your chart, the strategy I had described earlier would work like this:
We actually don't care if and when the Cycle Identifier repaints. We don't enter a trade upon its Major signals, we only EXIT positions upon its signals. For trade entries, we use it as a supporting/confirmation entry signal for the CCI. It can repaint for one or 2 Renko candles anyway. But by the time we will have a CCI line cross the threshold for the actual trade entry which will occur several candles above/below the Cycle Identifier Major Up/Down trend change signal, the solid thick UP or DOWN bars corresponding to the direction of the trend will stay put. Yes, we might miss 2 or 3 candles on the top or on the bottom because of the lag in CCI, but the CCI Renko Trend entry strategy would be a lot safer and more consistent than what we have right now. More than that - we EXIT the trade upon the Cycle Identifier opposite signal, which will give us at least 1 extra candle on the top or bottom of the trend, and sometimes - more than 2 or even 3 candles than we would otherwise have upon CCI exits. With this strategy, as the CCI moves into the Overbought or Oversold zone, we wait for the Cycle Identifier to give us the opposite signal upon which we close the position in more profit than with CCI exit. I am not sure how the Casino internal Trnd filter works, but it seems to be too intermittent and short-lived for longer-term trend entries, which is where the Cycle Identifier does better.
You can experiment with the Cycle Identifier "PA" properties, and set them to higher numbers and see if it gives you better filtering.
{quote} Hi TraderJoe, Great sharing ! So, if I understood correctly, for the Entry, the Cycle Identifier just provide us a Preparing signal before the real Buy/Sell, and once we see it appears, then we would know the Entry point is closing, and then once CCI triggered the crossing, then we'll get hands on. Does it sound right?
Buy Rules:
- Cycle Identifier signals a thick bar for the major BUY trend start signal (Yes, you are right - it is a "prepare for trade" signal):
- CCI upcrosses the lower threshold and the long position is opened:
- Cycle Identifier generates the opposite (SELL) signal and the long position is immediately closed:
Sell Rules:
- Cycle Identifier draws a thick red (or any color you like) bar for the major SELL trend start signal.
- CCI downcrosses the upper threshold and the short position is opened.
- Cycle Identifier generates the opposite (BUY) signal and we close the short position. Here is the whole sell sequence. Note that at the end, upon a Cycle Identifier BUY signal, the CCI still has not reached the lower threshold:
- #12,127
- Edited 10:37am Oct 12, 2015 7:19am | Edited 10:37am
- Joined Mar 2010 | Status: Trader | 2,261 Posts
- #12,128
- Oct 12, 2015 7:30am Oct 12, 2015 7:30am
yes, not a losing day yet although some days the DD got quite high but always corrects and goes to profit im toying with idea of setting a tight basket SL, to iulter out baskets that don't quickly go to profit. but for time being will leave it as is. {quote}
