J, you are one of the few people I know that trades UsdMxn. It can make the likes of GJ & GNzd, look like a stroll in the park. I'm prohibited due to spread, but love the volatility.
(binned per thread starter's request) Trading system replication
- #348
- Oct 28, 2016 9:41am Oct 28, 2016 9:41am
- Joined Nov 2012 | Status: Trader | 12,211 Posts
AJ on setup with large bull volatility change. {image}
- #352
- Oct 29, 2016 9:23am Oct 29, 2016 9:23am
- Joined Nov 2012 | Status: Trader | 12,211 Posts
Volatility windows.
This time i have added ATR indicator and Bollinger bands to visually show additional ways to see volatility expansion. Perhaps some traders might have issues with finding volatility changes just from price observation, so ATR is generally alright solution to help.
Using volatility cycles in your favour can drasticly increase performance, especially becouse it is the only "logical" way to increase RR without precise positioning.
There are few ways one can approach strategically to it. Either by waiting for volatility expansion and then getting in following the "trend" in which way the volatility expanded, but going in with micro setup that is set in low volatility window, providing increased RR.
Or simply by getting in directly without micro, by having breakout of pattern on strong volatility change.
1.
2. TF downscaling is important. The key is some nice avarage numbers of candles in structure. Too many candles and you wont be able to spot the changes in volatility becouse the perspective will be too big. Too little and you will not be able to spot change due to most of time volatility will not change drastically enough to spot it. So the number of candles should be somewhere where you are able to see differences of volatility on legs up and legs down.
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This time i have added ATR indicator and Bollinger bands to visually show additional ways to see volatility expansion. Perhaps some traders might have issues with finding volatility changes just from price observation, so ATR is generally alright solution to help.
Using volatility cycles in your favour can drasticly increase performance, especially becouse it is the only "logical" way to increase RR without precise positioning.
There are few ways one can approach strategically to it. Either by waiting for volatility expansion and then getting in following the "trend" in which way the volatility expanded, but going in with micro setup that is set in low volatility window, providing increased RR.
Or simply by getting in directly without micro, by having breakout of pattern on strong volatility change.
1.
2. TF downscaling is important. The key is some nice avarage numbers of candles in structure. Too many candles and you wont be able to spot the changes in volatility becouse the perspective will be too big. Too little and you will not be able to spot change due to most of time volatility will not change drastically enough to spot it. So the number of candles should be somewhere where you are able to see differences of volatility on legs up and legs down.
3.
4.
5.
6.
7.
- #360
- Oct 30, 2016 1:24pm Oct 30, 2016 1:24pm
- Joined Nov 2012 | Status: Trader | 12,211 Posts
75% of setups, with DD less than aprox 20/25%.
Important statistical count this weekend: number of setups that perform with 20% DD or less of overall maximum SL size. Counting was done pip adjusted which means that there is little room for error where the actual DD number could range up to 30% (from 20/25).
Example of how count was done, based on max SL distance used as DD ratio in terms of %.
The results are consistent with 75% statistical edge that this system has on most areas (adjusted for volatility). Counting was done across 5 different pairs and TF on 663 trades/setups total, the important data gained from it was, 75% of setups performed with 20% of DD or less. This information is important of what to expect for pattern to behave, and to tighten the SL risk rather than using very large SL distances.
Example of setup with less than 20% of DD.
Important statistical count this weekend: number of setups that perform with 20% DD or less of overall maximum SL size. Counting was done pip adjusted which means that there is little room for error where the actual DD number could range up to 30% (from 20/25).
Example of how count was done, based on max SL distance used as DD ratio in terms of %.
The results are consistent with 75% statistical edge that this system has on most areas (adjusted for volatility). Counting was done across 5 different pairs and TF on 663 trades/setups total, the important data gained from it was, 75% of setups performed with 20% of DD or less. This information is important of what to expect for pattern to behave, and to tighten the SL risk rather than using very large SL distances.
Example of setup with less than 20% of DD.