Hi all As I've promised an example chart to show how powerful a slower tick charts are. This is today trading in the ES. 8 trades 7 winners 1 loser, all of them are 100% valid according to PBP. I've only made trades 2-4 (3 trades) because I had to leave early, so only winners for me today.
I feel dumb but I don't see any trades listed on your chart other than the buy at 115 and the sell at 115'300. Is each PBP setup a "trade" then? Are you still liking the Heikin-Ashi candles then? Nice work. edit - between arrows 4 and 5 I see a couple slope-color-changes. Did you not count those as LHs and LLs?
Hey Ironfist--don't feel dumb...lol, I must not have shared that the trades are located inside the blue circles--all are longs. Also, should be noted that zb is quite slow, so far fewer trades in a session--although I have seen some sessions that totally rock! pkchilly
Hey Amitman--Great trades! Where'd you find the "ticks remaining" indicator? I've often thought that would be so helpful to see! I'll look it up, but just thought it was very nice! pkchilly
Ok well here's my first question of the evening: When there are things that look like LHs, LLs, HHs, or HLs in a slope that isn't changing colors, do you still count them as LHs, LLs, HHs, or HLs? Example:
Iron fist don't get confused. The color of the candels is not affacted by the slope of the HMA so there where no slope changes where you think there were. Edit: this was an answer to your previous post. To your last post, I think that's exactly why we use HMA's for, to help us avoid all the little highs/lows and see just the major tops and bottoms. Of course, idieally you should be able to watch price action alone without any indicators help but at least on the start HMA's are very good. The only reason I'll might be using this H/L is to tighten my stop when I feel the trade is not acting like I've expected.
For the rest of the week I'm only going to take perfect PBP setups in my demo account trading. I will compare this against taking everything which is easy to backtest (manually) and I can do it after the close for the day. Right now since I will be setting much lower profit targets than before I'm afraid that one or two large losses will cause me to finish the day negative. Before I didn't really have this fear because in addition to an occasional large loss I also had a few large (20-45 tick) trades for the day. Here is an example of what I'm afraid of. This trade had a Max Profit Range of 2 ticks:
Yes it is. I set my candles to change color based on HMA slope. That's how jjrvat does it in the examples he posts, too. edit - I'm not using Heikin-Ashi candles. I know they follow their own slope rules.
Ok this scalping thing is scaring me I need to come up with an algorithm for profit targets and stop losses as a function of some percentage of the height of the previous wave or something. Or maybe I should just pick some arbitrary number like 5 ticks, since looking at my previous results my average profit per trade is like 2-3 ticks despite having 10-30 tick trades on average.