AHG - Profitable Strategy for Struggling Traders

Discussion in 'Journals' started by Anekdoten, Jul 19, 2007.

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  1. Hi guys!

    First of all I want to say this is a great thread! I I got a lot of good advice form Anek and other posters and now I want to share something with you that helps me a lot in my (sim) trading.

    I know you hate indicators but because it helps me for my entries combined with all the other stuff (trendlines, DT, DB, Piscuy entry technique) maybe it can help some of the newer day traders like myself.

    I use a MACD with the settings 3,10,16.

    The slower line of the MACD is telling me if the trend is up (above zero) or down (below zero). The faster line lets me look for entries (pullbacks/rallies against the trend).

    If the faster line crosses above zero and the slower line is below zero I am starting to look fo a short. The trigger is when the faster line turns down( up in case of pullback in an uptrend) and the entry is 1 tick below the the low of the trigger bar. The trigger bar is marked with a dot on the price chart and the entry bar is marked with an arrow on the price chart.

    I marked the turning points of the faster line on the macd histogram with an up or down arrow.

    Very important!! The use of the indicator is only a visual aid for me! I think if you have enough screen time than you can toss this indicator away.

    If you have any questions please let me know.

    I have attached fridays price action.

    The time is New York + 6 hours
     
    #5821     Jan 5, 2008
  2. second chart.
     
    #5822     Jan 5, 2008
  3. third chart
     
    #5823     Jan 5, 2008
  4. Final chart
     
    #5824     Jan 5, 2008
  5. Jaxon

    Jaxon

    chart
     
    #5825     Jan 5, 2008
  6. Good stuff, Thanks for your work once again
     
    #5826     Jan 5, 2008
  7. Hi billdobson,

    Here is a spreadsheet that i compiled a list of Tick and Volume Bar Count Average per session (3-day and 30-Day) and its related Average time (in secs) per bar...

    Many traders do not attempt to trade 30 second bars yet they trade 1000V bars on @ES which is close to 30 second bars (pl. see chart)... Even 3000V bar on @ES is close to 80 seconds bar...

    In order to generate this data, first I computed 3-day Average and 30-Day Average of Number of Bars on various Tick (89,233,610) and Volume (1000,2000,3000) using @ES.D and @NQ.D charts. I only used RTH data to avoid the Time distortion during Globex session. Then derived the Time per each bar using (405 min *60 sec).

    It should provide some idea for traders who use Tick/Volume charts and equivalent bar times...

    Regards,
    Suri

    <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1737684" border =0>


     
    #5827     Jan 5, 2008
  8. jychiu

    jychiu

    Hi,

    I have made some enhancement to the 3 Bar Reversal Showbar with the feedback from Suri, Anek and Jaxon. The enhancement includes the following :

    1) Contract minimum tick to cater for various contracts using TradeStation function MinnMove/PriceScale as pointed out by Suri.
    2) Signal dot either as offset to High/Low as preferred by Anek and Jaxon. Personally I like it within the price bar as magic tick.
    You could choose this offset option as "Yes" or "No" in one input variable.
    3) suri 3 Bar Group Pattern. In the suri book Section 2.2, there is a pattern related to this. However, this pattern is more related to the High and Low and Close of the last two bars.
    (Note : You could select different color code for the two patterns).

    It is then timely for me to show the 3 Bar Reversal patterns used in my program:
    [​IMG]

    The definition for the 2 patterns are as follows :

    3 Bar Reversal Pattern
    Low(1)>=Low(2)
    Low(3)>=Low(2)
    Low(3)<=Low(4)
    High>High(1) trigger magic tick
    Note : I have deleted one definition of Low>Low(1) in the previous version

    suri 3 Bar Reversal
    Low(1)>Low(2)
    High(1)>High(2)
    Close(1)>Close(2)
    High(3)>High(2)
    High>High(3) trigger

    Credit go to suri on this 3 bar group reversal pattern, hope suri will grant me permission to show this pattern in this thread.

    As we are looking at the turning point in price action, the 3 Bar reversl pattern will probably capture good percentage in the turning point. By adding suri 3 Bar Reversal, it might help to capture in some cases as the pattern look at the relationship of high, low and close of the last two bars in addition to highs of the second and third bar.

    As we all know the turning point might not have 3 bar reversal patterns at the times, other patterns could be 2 bar reversal and matching high/lows, I will look at them later.

    Chiu
     
    #5828     Jan 6, 2008
  9. jychiu

    jychiu

    Here is the following code for the ELD :
     
    #5829     Jan 6, 2008
  10. jychiu

    jychiu

    Here is the text file of the ELD file :
     
    #5830     Jan 6, 2008
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