Falling Knives

I find this topic fascinating so please don't take my questions as aggressive, they are questions.

I was taught that volatility is a function of liquidity, and that price moves to the less liquid side of the market in search of the closest or most dominant block of order flow. Overly simplified still but closer to what I know the movement of price to be.

So while I understand the essence of what you're saying, for me it simplifies it further and almost too much for something that has far more complexities to it. And in doing so cannot, for me, possibly be used as reasoning for why publicly known strategies must eventually fail.

I'm not claiming to be an expert on market structure and the function of liquidity, it's simply that what i was taught goes against the reasoning for the claim being made. Always up for acquiring more knowledge/resolving incorrect understandings if someone can answer the questions posed.

I have put the question to someone I have learnt a great deal from and will share what I receive back.

Happy Sunday

Aight...

DRMA added to Post 1.

There are some issues on the versions running
HERE & HERE

I've tried to work these out, but haven't actually market tested yet.
At default, it should trade like the first account, steady stream, no additions to the primary trade size, all lot sizes the same - Idea based around a 3 pip brick.

Set the Grid Size to the size of bricks you have your renko charts set to.
Will it work on regular charts and timeframes?
It will work, just not sure at how the outcome will be...but hell, I don't even know how it will react to Renko, so it should be an interesting week.


Want it to trade like the second account?
Set Lot Calculation Method = Increment
Set Lot increment or multiplier = same size as your Lot Size ->default=.01
And let'r rip!

DO NOT TEST THIS MOTHERFUCKER ON A LIVE ACCOUNT!!
Need to see if there's any other bugs to work out...

Hello, Magix

After your some-kind-of-deeply-saying at the Club, I have decided to look at your thoughts closely, now at your thread. If you mind.
The matter is that I believe that the most important thing in trading is the point where one quits the market, closing his position,
i.e. the point of being out of the market is more important than the entry point.

That is why your concepts published at the first page are quite interesting to me.

I have some intraday areas identified for me to search for possible intraday points to reverse a position - the intraday contratrend position entry.
And I am about to look at your thoughts about this.

As for non-stop-loss concept, my experiments have shown that it is too risky for one to trade a basket without a stop-loss. News can be killing.

Best
D.P.

P.S. Collecting the links

Do I right understand the logic behind EA?

Features chronology till the date of May1, 2016

1/ http://www.forexfactory.com/showthre...41#post8753541
2/ http://www.forexfactory.com/showthre...56#post8755356
3/ http://www.forexfactory.com/showthre...28#post8755628
4/ http://www.forexfactory.com/showthre...48#post8781948
5/ http://www.forexfactory.com/showthre...68#post8787268
6/ http://www.forexfactory.com/showthre...43#post8796043
7/ http://www.forexfactory.com/showthre...34#post8801034
8/ http://www.forexfactory.com/showthre...51#post8810651
9/ http://www.forexfactory.com/showthre...63#post8826863
10/ http://www.forexfactory.com/showthre...84#post8827584
11/ http://www.forexfactory.com/showthre...37#post8828037
12/ http://www.forexfactory.com/showthre...68#post8836968
13/ http://www.forexfactory.com/showthre...70#post8838470
14/ http://www.forexfactory.com/showthre...70#post8841670
15/ http://www.forexfactory.com/showthre...90#post8864390
16/ http://www.forexfactory.com/showthre...66#post8864466

THIS is the true secret to market, not what a whole thread of other wankers are chiming in on.

Follow the trend...DUHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

But what happens when the trend changes?
Inside of this is what will show the success and failure of any system.

I've been coding for a few years now and I have tried fucking near every system posted at FF, psept the ones that I can immediately see are steaming piles of dog shit!
And they all work the same.
The triggers work in trend, but when the trend changes, you are fucked!

Now, the grids I play with are basically cost averaging concepts, because even in my own personal manual trading, I don't always get the position I want and will cost average into the trend, so to me, these make sense.

The issue isn't defining the trend in these...but there is a lot to that.
The real issue becomes when to stop cost averaging, what to do with the losers and when to close, profit or loss.

With each step I take in coding and working with automation, my logic progresses. From a generic grid, to trigger on grid, to dynamic profits to wussy closes and now the latest that's been posted, basket values on trades for close.

The basket close is still a work in progress, I don't actually expect to nut this in the first couple tries and in fact, I wrote some 16 versions before even posting the ideas in the thread. All tested, all turned to shit!

The current ones that I will be playing with, by immediate view, stand the best possible chances of success, but that don't mean there won't be some bumps along the road.

As for the Current House Tester Trade Explorer...this motherfucker has been trading over a month now, 16 pairs off of an M1 chart.
It has seen some market woes, but has recovered and for this, I will continue to run it and view it according to it's logic to see if there is anyplace I can improve without fucking up the whole shooting match.

As for the logic, the link you posted is the heart and nuts of the system, but I have added a medium trend to the mix.
All have to be in sync before a primary trade will get taken and then only the fast need be in play for cost averaging.
In this, these are only small bites of the actual logic, because along with these are a few different closing logics, all trying to find a suitable exit.
When all trends are in sync, there is one closing logic.
When the Medium folds, there is another closing logic.
When the Long term trend changes, there is another logic.
And then, there is still a stop loss that has come into play once.

Again, defining the trend is no big deal.
It's when to take a ride and how long the ride is going to last that makes the system.

Basket closing isn't new to market...definitely not even knew to me, but incorporating it in the way I am, is...

The overall trend is still the same, if you download the latest version, there is only 3 moving averages taken into consideration, but because of the nature of the charts, this may be enough...if not, I can always add as we go.

In a nutshell, I am defining a trend, defining a trigger, and defining a basket close value.
When the value gets hit, all trades close.

If the trend changes, the new trend will have to drag the dead soldiers across the profit line to exit.

This is kind of a fucked sort of nedging concept, but something if done correctly may prove to show some decent prosperity with a lot more reasonable risk.

Without adding to the size of lot, a lot more trades need to be taken, but whether we are increasing the size or the number, it really all works out to be about the same...we are carrying a lot of trade value for a minimal profit.

EURUSD started off in what the logic understood to be short trend...tried like fuck to close the shorts, but when the trend went long, tried like fuck to close a combination of longs and shorts in profit with the closing logic in play.

Now...when we see a market exodus and you hit pantshittingly high levels of cost averages, you get that prickly feeling in your armpits and it takes a lot of brass in the trousers to either let these go into to a possible account explosion, or to minimize loss into taking profit.

Under the basket close...the exodus seemed to play out like a fucking Champ.

A couple of trades caught topside on the immediate trend, but when the shit hit the proverbial plan, these were all dragged into profit by the new trend takers.

Now, the basketing thing is kewl...to be sure.

But check out how Iresh handled the situation.

Cost averaged the only pair it got trapped in on, closed all in profit before taking it's first trigger short.

And kept on, rolling.

So...

Will we every find market perfection inside of these?

Probably not...but that's not really the point.

Continued success with reasonable risk...the same way I trade these markets manually.

There is more than one way to skin a cat...hopefully by end of week, this thread will have developed another one.

DRMA, plays a little more aggressively than it's predecessor posted HERE.

I have tried to write in a longer delay, and write in a little more aggression but still allowing enough room for trades to grow. In this, I believe I have corrected a couple of the triggering areas that may take the aggression in number of trades and play it out better than did in the original version.

Kinda hard to explain, and it's going to be a couple of days of live testing to see if I have managed to accomplish this.

If all works, it should be an interesting week.
If it doesn't, should still make for an interesting week.

2, 4, 5.

Those together probably sum up the Iresh trader best.

Combine them together and that's it.

As soon as spread tightens a little, I will be starting the new traders...TE and myfxbook links to follow.

Most likely be in about 2 hrs...

I have two more solutions to propose.

Interested? Download below now.

Best
D.P.

Сontused?

Parameters to watch.
These are for BB -- for Market statistics are the same.
Original parameters of deviations are 1.0, 2.0, 3.0, but I use them as follows below.
The main feature of indicators is that they consider volumes.
MA window depends on a timeframe considered.
For example, if the 5 min TF is used, the MA parameter is 288 (as yours)
if the 1 min TF is used, it is 1440. So on.
Difference between these indicators is that Market Statistics is VWMA only, but the second takes into consideration the BB volatility (i.e. VWMA+BB, volume+volatility).

Best
D.P.

P.S.

Need time to rethink of it.
It will be continued a little bit later.

Trading logic on DRMA

Closing on profit.
Logic seems to work.

Not a terrible start on the increment trader.

Default settings...

Reasonable.

Almost 50 trades closed, almost a $100 in the green and 1 trade bagging less than a buck on draw.

Default settings - trading update.

Still not bad.

A couple hundred pips and no real hurt.

I've definitely ran with worse.