Tick charts for the es

Discussion in 'Index Futures' started by MacroEvent, Jul 10, 2005.

  1. I have an new es system that I am testing out for intraday trading only, and I have had several traders that know of my strategy for this with a linear regression line that say I should use a tick chart. I am using a 3 minute chart at this time with a 25 period linear regression line, so I am trying to find out what tick levels that other traders are using for shorter time frame equivalent indications? Any suggestions and opinions good or bad would be appreciated-------------thank you in advance!
  2. As I say, whatever works, use it.

    Personally, I see no advantage of tick charts over any other time frame charts.

    I have used them, and I do like them ... however, there's no "magic" in any timeframe.

  3. See I think there is no real advantage also but who knows, maybe someone here has a good reason why they are working for them over a timeframe chart.
  4. MacroEvent,

    The traders that know your strategy and recommended a tick chart...

    What tick levels did they recommend ???

    Did they do some sort'uv backtesting to come to the conclusion of recommending tick charts ???

  5. They use 144 and 288 on the er2 and 333 and 750 for the es, but these are for systems that use indicators other then the LR line. They have backtested and currently profitable trade systems with the products listed above, just with different indicators for trade entry and exit. I think the main point is they feel that my new LR line strategy will have a more pure plotting if done on a tick chart versus a time based chart. There may be some merit to what they are saying-----------I will have to do some checking today to see the differences with charts side by side at different settings.
  6. DaveN


    Tick charts have the characteristic of moving more smoothly. Especially in shorter timeframes, you'll have very few of the wide ranging bars that you'd see in time charts. This can be good or bad. Some traders have learned to read these types of time bars and can do very well.

    I find that time bars can tend to skew systems (compare the ATR or Keltner bands on time versus tick bars). You're building a system, so this is not as important as if you were trading with some discretion: with tick bars you need to learn to watch the pace at which your chart develops. There's always information in that.
  7. Good points------------ today I observed realtime that a 288 tick chart for my new es LR line system worked very good. I will watch various settings close to this number of ticks to see if the results continue for a few weeks. I did notice that the LR line movements were smoothed out somewhat with the 288 setting and that worked for today. I want to see the LR line actions during some erratic market behavior and some choppy days to note the differences to a 3 minute chart set up-------------so far the tick chart change looks encouraging.
  8. Ended the day with a setting of 333---------that is it, new setting worked noticeably better then a 3 minute chart.