Provide pointers on position sizing algorithms for my red light green light scalping indicator

Discussion in 'Technical Analysis' started by 1a2b3cppp, Jul 13, 2018.

  1. Points print in real time. Here are some charts allowing you to see.

    I'm thinking buy 1, then buy 1 more after a 2 point travel against you.

    Guys this is half joking. But if we could get a good position order instruction for marginal entry it might be helpful.

    Forget the colors for now, I'm still changing them. Point above bar is go short, point below is go long. So best possible entry is first trade of the bar after the dot.

    Obviously this is countertrend. I want to make something that is with the trend but that's impossible.

    We are mostly just concerned with identifying bottoms when they occur.

    If you can find the low of the day and leave a runner on (stupid) you could make a lot of money
  2. 6-28 ES
  3. It blows ass when there's a bunch of long bars.
  4. I mean it's pretty close to intermediate tops and bottoms sometimes offering at least a few points in there.
  5. Realistically we're talking about one line of code here. My indicator is nothing complicated.

    This idea is, maybe if this might be a top, how can we add to a short to make it go in our favor, and if it's not a top, when do we get out?

    No bollinger bands here (yet). @Handle123
  6. Identified the bottom of day.
  7. SteveH


    The ES will end you doing this. You need high volatility to add.

    I've said it over and over but here goes again:

    If you're not a proven, stone cold futures pro, stay away from the ES when the VIX is below 17.
    murray t turtle and Lou Friedman like this.
  8. Why?
    murray t turtle likes this.
  9. Handle123


    Finding the low? have a better chance of finding 2 headed quarter, I have often done it but never my intention and way too soon taken profit. Homeruns not my style for scalping, consistency of doing singles, letting long term for homeruns.

    Am I seeing this wrong? lots of losses if you leave orders in till filled. Does not look like you have any rules for average swing lengths, so on a day where market trends one direction all day, you lose your account.

    Completely wrong on not making trades with trend, can be done as you using some type of oscillator for counter trend? With trend, one has to determine whether in chop or true trend by slope of the bars, and where BB is handy if all the bars remain above the 20sma.

    Have you figured out in minutes of the distance of a trend in "time"? So like a trending wave is so many points, then counter wave(retracement) is so many points, wave 3 is so many minutes/points, along with 4 & 5. A reason to know averages of time in a trend is a filter to stop you from losing your account. Let's take an example of 20 minutes in first 90 minutes, so one ave perhaps trend changes every 20 bars and you can identify at least 3 waves, so more than half of suspected swing is over, so the amount of time we give a trade to work out reduces a little like an hourglass.

    The areas we want to avoid is taking the last signals of a trend as trend is changing. Some can be found through price action of "rounding extremes", a huge bar and no closes beyond this huge bar and forms congestion, longer the congestion, better chances of price going up. Markets drops most often in patterns of upside down "V", don't need oscillator for this, same with "V" at bottoms.

    I will never advise anyone to average down and take multiple positions against original until you are very profitable and extremely knowledgeable chartist. And heavy amount of back testing, took me maybe more than most to understand averaging down and fully understand breaking down of price. Understand and keeping many stats/probabilities.

    What I do find interesting on your charts are the dots but perhaps not in what you were considering but ideal places to draw trend lines, find the highest high, define trend, wait for downtrend and downsloping trendline to sell the trendline bounce, risk is tight and rewards are greater. Oscillators are used by those who not done enough chart study, I see many losses in what you thinking of working on. Find a happy moving average if you unable to read trend without moving averages, upsloping trend lines on trending up market on lows to buy, downsloping trend lines in down trend to sell. BB and outside bands move and I see them as moving trendlines, can do it a bit different with strong trends where price completely above 20sma, put in another BB of like 10, 0.8 so when price hits bottom BB and trend is up, buy low and sell high. And back test till you don't have any questions.
    birdman likes this.
  10. The idea is to find a place where a flip of direction for 1.5 points or more is likely. That's the goal. Working on it for a while.
    #10     Jul 14, 2018