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Animal Farm (Renko system)

  • #621
  • Sep 8, 2016 2:11pm Sep 8, 2016 2:11pm
Carrying on with our 25 EURUSD chart. Here is the possible EW count - using the AO as a guide.

The largest wave is Wave three . It has an internal divergence which is actually wave 3 4 5 on a smaller degree.

The AO pulls back to a minimum of zero in a wave 4, then wave 5 follows and makes a larger AO divergence.

Attached Image (click to enlarge)
Click to Enlarge Name: EW 25.jpg Size: 371 KB


The market should move up now, likely sideways into a larger correction.

Here is the zoomed out view... something that should always be checked.

Attached Image (click to enlarge)
Click to Enlarge Name: EW 25 zoom out.jpg Size: 393 KB
  • #622
  • Sep 8, 2016 11:08pm Sep 8, 2016 11:08pm
The market has been in a lengthy sideways correction.
I entered with a pending order at 1
LOC closed half that order after a move of 8 and moved the stop on the second half to lock in 1 pip.

My initial stop loss is 8, so this strategy gives a bit better than a 1: 1 and still leaves that second half free to run.

Attached Image (click to enlarge)
Click to Enlarge Name: 25 CT locked in.jpg Size: 388 KB


All I am doing is trying to read the market and ambush it if it wanders into my traps. Maybe I will get another rally here and the stop will move
up below a fractal at 8 if one forms there. No matter I can't lose on this trade now. I have my minimum target.

I do expect a drop though and I have a pending sell order at - 6 and another one way back at -5 (where the larger degree wave would break out if it does.)

I live in the Rockies which is a terrible time zone to live in when you want to catch the London Market. Trading is so much easier when it is moving and you can dance with it. When even small size bricks take 80 minutes or an hour to form, pending orders and a good trade manager are essential tools to have available.

The Renko AM indicator tells me how long a brick takes to form and that also helps read the energy in the market at a glance.

.
  • #623
  • Sep 9, 2016 3:07am Sep 9, 2016 3:07am
Hi All,

Internet is back and I took some time away from unpacking and sorting things out.

My charts for the day.

AUDUSD
Really itching to short it but not before -2 forms.
Attached Image (click to enlarge)
Click to Enlarge Name: AUDUSDM2.png Size: 94 KB


EURCAD
Not sure what to do with it, the -2 is much higher than I expected it to be.
Attached Image (click to enlarge)
Click to Enlarge Name: EURCADM2.png Size: 85 KB


EURUSD
Really itching to short it but not before -2 forms.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDM2.png Size: 74 KB


NZPJPY
I'm hammering this one.
Attached Image (click to enlarge)
Click to Enlarge Name: NZDJPYM2.png Size: 66 KB


USDCAD
Looks like a nice, quick, counter trade is forming.
Attached Image (click to enlarge)
Click to Enlarge Name: USDCADM2.png Size: 70 KB


XAUUSD
Trades from tonight. All three closed in profit or BE (the last one).
Wab, are you familiar with a free trade management EA that can do fractal trailing stop? I'm a bit hesitant to pay 90$ for the LOC EA.
Attached Image (click to enlarge)
Click to Enlarge Name: XAUUSDM2.png Size: 64 KB
  • #624
  • Sep 9, 2016 10:29am Sep 9, 2016 10:29am
Before I look at your charts Rea, here is the final trade of my 25 (2.5 pip) EURUSD charts as I try to fine tune LOC to that brick size.
(I used the EURUSD because it has a small spread.)

This chart shows the power of trading the higher brick frame and using the RM and HH HL LL LH to help identify the entry points.

This is very important chart.

I set a pending order at the point where I was pretty certain the next down move would be confirmed.
Then, I went to bed and left LOC to manage the trade if it happened.

Attached Image (click to enlarge)
Click to Enlarge Name: 25 EURUSD nice run.jpg Size: 416 KB


This time I had it correct. The market messed around for about ten hours before the price filled my pending order. At that point LOC placed stops, took profit on the first half and moved my stop to lock in a pip on the second part. That took about four minutes to get into a none-losing trade position.

The, LOC moved my stop down fractal by fractal, keeping it one pip above each new fractal at -6 -8 - 10 and finally stopping out at -12.

A nice run for a total of 29.5 pips. (The whole trade took about an hour and ten minutes.)

Now here is the eye opener:

Attached Image (click to enlarge)
Click to Enlarge Name: 10 pip same order.jpg Size: 359 KB


Look at the same chart on a 10 pip brick structure and see how easy the higher brick frame is to trade using a lower brick frame.

The -1 fractal on the ten pip chart is the same one I used (on the -5 fractal) for the pending order on the 2.5 pip brick chart.


Really study the above trades. Use a good management strategy. This will ramp up your scores.

I can't monitor a chart for 10 hours to get an action for one hour - LOC saves me from having to do that.
  • #625
  • Sep 9, 2016 12:01pm Sep 9, 2016 12:01pm
Quoting Reamasesa
Hi All, Internet is back and I took some time away from unpacking and sorting things out. My charts for the day. AUDUSD Really itching to short it but not before -2 forms. {image} EURCAD Not sure what to do with it, the -2 is much higher than I expected it to be. {image} EURUSD Really itching to short it but not before -2 forms. {image} NZPJPY I'm hammering this one. {image} USDCAD Looks like a nice, quick, counter trade is forming. {image} XAUUSD Trades from tonight. All three closed in profit or BE (the last one). Wab, are you familiar with a...
Hi Rea. Looks like you are doing okay with your charts.

AUDUSD ... yes watch for the - 1 and a reversal brick with a wick.
EURCAD is likely going to break that previous high. check the AO.
EURUSD check the AO again I think you are in a corrective wave and a bull trend will resume.
NZDJPY is in a sideways consolidation but you are doing well. I would think a bull will resume. Watch the AO which is currently cutting back and forth over the zero line.
USDCAD in a counter trend. Look at the bearish divergence on the AO. Could be a good short coming up.
Good job on the XAU. AO says to be careful now as this was a counter trend and it is getting old.

I don't know of any fractal trailing ea but I might know where to find one.
You can achieve much the same results with a trailing stop loss on the green alligator line.

I love LOC partial and think it worth the price, but test the ideas before you commit to anything.

I will see if I can find that fractal trailer for you.
  • #626
  • Edited 3:14pm Sep 9, 2016 12:09pm | Edited 3:14pm
Maybe try this one Rea.

http://fxrel.com/fractal-trailing-stop-expert-advisor/

You will have to experiment to see how it works. Good luck
  • #627
  • Sep 10, 2016 10:15am Sep 10, 2016 10:15am
I modified the Road Map code a bit to change the line settings.
I thickened the horizontal lines and thinned the heavy Zig Zag lines.

It is a matter of personal choice but I didn't like the heavy diagonal lines on my charts.
To me less clutter on a chart is more desirable as it is the price action that I am really interested in.

I don't think of RM as an indicator as much as it is a good identifier of structure. The fact that it numbers
each fractal, identifies many of the E lines and color codes the trends and counter-trends is a real bonus
when it comes to discussing trades.

The "skinny" version of RM is attached.
Attached File(s)
File Type: ex4 road_map_v04 mod.ex4   53 KB | 484 downloads
  • #628
  • Sep 10, 2016 11:47am Sep 10, 2016 11:47am
Just a little note on trailing stop strategies:

In my opinion, there is no perfect strategy for trailing stops. I like to use a fractal stop or a trailing stop based on one of the Alligator moving averages. Usually the green lips line of the Alligator. I also like to trail a stop two bars + a pip.

Which is best?

Thanks to Bill Williams, the Alligator and Fractals are very well connected.

In a corrective wave a Fractal stop holds up better - but we really shouldn't risk trading in corrective waves. In an impulse/trend wave there is little to chose between the Fractal Trailing stop and an Alligator Lips Trailing Stop.

(I also like a partial profit option with my stop strategy, but that is just my preference. I am still weighing the pros and cons of that approach.)

Here is a chart that shows how nicely and how closely the Fractal Stop and the Alligator Lips stops work. Sometimes one is a bit better than the other but that is the luck of the draw as far as I can determine.

Attached Image (click to enlarge)
Click to Enlarge Name: Stops.jpg Size: 383 KB


In some future charts, I will use the Lips trailing stop to illustrate its use.

I will be offline until Tuesday, so don't expect anything until then.
  • #629
  • Sep 11, 2016 7:03am Sep 11, 2016 7:03am
Thanks Wab,

I'll post my charts later on today.
Stupid EA ate up all the profits again, thankfully, some of my basket trades are still active so the account might survive this if I tread carefully.


As for the Fractal EA, thanks but I already tested it, and it's not doing what I want it to do (it also went bat crazy when it needed to handle opposite trades on the same chart).
I'll try the Alligator Jaws, they seem to keep a trade longer than the other two.


Thanks.
I'll be reading the last several pages over and over for the next few days.
  • #630
  • Sep 11, 2016 10:38am Sep 11, 2016 10:38am
The Alligator trail works well in impulse wave, sometimes better than the Fractal Trailing. It doesn't work well in a corrective wave where the market has too many overlapping waves. So you have to get that impulse /correction, trend/counter trend, thing clear in your analysis.
  • #631
  • Sep 11, 2016 11:09am Sep 11, 2016 11:09am
Quoting Wab
The Alligator trail works well in impulse wave, sometimes better than the Fractal Trailing. It doesn't work well in a corrective wave where the market has too many overlapping waves. So you have to get that impulse /correction, trend/counter trend, thing clear in your analysis.
Thanks.

That is something I'm looking forward to working on.
  • #632
  • Sep 11, 2016 2:07pm Sep 11, 2016 2:07pm
Here are my charts.
Stupid EA had managed, again. to vanquish all the profits so not a lot of trades.


AUDUSD
What a lovely move, not sure how to trade it now, though.
Attached Image (click to enlarge)
Click to Enlarge Name: AUDUSDM2.png Size: 94 KB


EURCAD
I completely missed this one, I was expecting it to go down.
Attached Image (click to enlarge)
Click to Enlarge Name: EURCADM2.png Size: 87 KB


EURUSD
Only had enough equity for one trade instead of three.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDM2.png Size: 73 KB


NZDJPY
I'm hammering this one.
Attached Image (click to enlarge)
Click to Enlarge Name: NZDJPYM2.png Size: 66 KB


USDCAD
Didn't have enough equity to trade it.
Attached Image (click to enlarge)
Click to Enlarge Name: USDCADM2.png Size: 73 KB


XAUUSD
Only one trade and it went straight to SL.
Attached Image (click to enlarge)
Click to Enlarge Name: XAUUSDM2.png Size: 66 KB
  • #633
  • Sep 12, 2016 1:05am Sep 12, 2016 1:05am
Quoting Wab
I modified the Road Map code a bit to change the line settings. I thickened the horizontal lines and thinned the heavy Zig Zag lines. It is a matter of personal choice but I didn't like the heavy diagonal lines on my charts. To me less clutter on a chart is more desirable as it is the price action that I am really interested in. I don't think of RM as an indicator as much as it is a good identifier of structure. The fact that it numbers each fractal, identifies many of the E lines and color codes the trends and counter-trends is a real bonus when...
Wab,

I didn't noticed any changes, sorry.
Here's mine with adjustable E lines.
I think I can make the zig zag adjustable, too, not sure.
Attached File(s)
File Type: mq4 road_map_v04.mq4   31 KB | 458 downloads
  • #634
  • Sep 12, 2016 9:15am Sep 12, 2016 9:15am
Quoting Reamasesa
{quote} Wab, I didn't noticed any changes, sorry. Here's mine with adjustable E lines. I think I can make the zig zag adjustable, too, not sure. {file}
I see a difference, I think it is a point thinner

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_5.png Size: 87 KB
  • #635
  • Sep 12, 2016 12:39pm Sep 12, 2016 12:39pm
Quoting eurix
{quote} I see a difference, I think it is a point thinner {image}
Ah, I see, thank you.


Attached is a version in which one can decide what would the ..... impulse? line width might be.
Attached File(s)
File Type: mq4 road_map_v04.mq4   32 KB | 556 downloads
  • #636
  • Sep 14, 2016 3:38pm Sep 14, 2016 3:38pm
Thanks for tinkering with Road Map Rea. Most useful. I really have to learn more MQL.

Here is a EURUSD 2.5 pips brick trade, using a 5 smoothed median shifted 3 (otherwise known as the Alligator's lips) trailing stop.
I added a pip to give it a bit of room as that sometimes keeps you in for another wave.

Note how LOC Partial takes profit on the first half at 1.12494 then trails the rest of the order until it is stopped by the green Lips line.

By the way, I set LOC to take off half of the order, you have the option to take off any portion that you want to at any level that you select.
Taking off a partial profit at a Fib target level and letting the rest trade on is something you can consider. You can also have move up a stop to lock in a whole trade at a Fib level, or wherever you select. It is very versatile.

I like to lock in a no-loss profit as quickly as I can then, the rest is free trade.

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD scalp.jpg Size: 100 KB


Maybe it will go lower, in which case a fractal trailing stop is better. Have to wait and see.
  • #637
  • Sep 14, 2016 3:56pm Sep 14, 2016 3:56pm
Quoting Wab
Thanks for tinkering with Road Map Rea. Most useful. I really have to learn more MQL. Here is a EURUSD 2.5 pips brick trade, using a 5 smoothed median shifted 3 (otherwise known as the Alligator's lips) trailing stop. I added a pip to give it a bit of room as that sometimes keeps you in for another wave. Note how LOC Partial takes profit on the first half at 1.12494 then trails the rest of the order until it is stopped by the green Lips line. By the way, I set LOC to take off half of the order, you have the option to take off any portion that you...
Hi Wab,

Hope you had a nice time

I was wondering about that 2.5 pips brick size. My broker doesn't allow placing orders too close to the price, and with my size of an account.... well, I aim for larger amount of pips because of the small order size.
Wasn't your starting point a bit too early?


Thanks.
  • #638
  • Sep 14, 2016 4:24pm Sep 14, 2016 4:24pm
I did start a bit early.

I actually used RM on the M1 chart to enter. The 2.5 or (25) brick size smooths out the M1 nicely. That way I can monitor the Renko Bricks and when I feel that they are going to follow a M1 HH HL LL LH I am in.

We all develop our own methods and end up trading our understanding.

Basically, I am trying to catch signals on Ten Pip Bricks such as reversal bricks, Saddle points and Fractal break outs, mostly in the direction of the trend. Then I trade them on the lower 2.5 brick frame. I only have to get a one brick move on the Ten to lock in a profit on the 2.5 and that is proving to be a nice combo.

If the trade starts to look good on the Ten Brick Frame after a 2.5 entry, then you can carry on with it there.
  • #639
  • Sep 15, 2016 5:55am Sep 15, 2016 5:55am
Quoting Wab
I did start a bit early. I actually used RM on the M1 chart to enter. The 2.5 or (25) brick size smooths out the M1 nicely. That way I can monitor the Renko Bricks and when I feel that they are going to follow a M1 HH HL LL LH I am in. We all develop our own methods and end up trading our understanding. Basically, I am trying to catch signals on Ten Pip Bricks such as reversal bricks, Saddle points and Fractal break outs, mostly in the direction of the trend. Then I trade them on the lower 2.5 brick frame. I only have to get a one brick move on...

Hi Wab,

Didn't mean for it to sound like I'm putting you or your system down or anything, not being able to identify huge whipsaws is making me a bit bitchy at time, I apologize.



Thanks.
  • #640
  • Sep 15, 2016 10:57am Sep 15, 2016 10:57am
NO problem Rea. FX is a beast at the best of times.
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