INGOT'S RAINBOW ... A Position Trading Strategy

[pelican]

Grob

Try getting metatrader via another MT broker demo. Try an Alpari demo as works for Cosgrove and copy your indicators/templates accross.

Go into Stochastic settings go to levels and add in the two levels you want.

Hope this helps

Pelican

[cosgrove]

To echo pelican,

I downloaded the north finance demo myself and I think that their data feed and price do not play well with longer timeframe charts that include weekends. I would switch to a different demo platform. I know that Alpari's doesn't act like that, and I think that FXDD's and IBFX's are fine too.

[seth817]

Do you need to have a huge account in order to do longer term trading?

I have gotten the impression from reading on this forum that longer term trading stategies are reserved for the people who have huge accounts.

I plan on opening an account of about $5,000.oo us.

Should i stick with the shorter time frame strategies?

In the babypips school this is listed among the disadvantages of long term trading:

"Bigger account needed to ride longer term swings."

[metalhead trader]

Originally Posted by cgjedi

The original MT4 template files are found a few pages back. I wanted to take it to the next step and write indicators for the method. What this allows is:
1. Easier customization of the various parameters
2. Easier access to the data when writing EAs

The zip file contains 2 parts: the indicators themselves and the template file that specifies the indicator settings for a chart. Just place the unzipped directories into your existing MetaTrader directories.

The Rainbow MMA
The RainbowMMA is split into 5 indicators. This is because an indicator is limited to only 8 data buffers but the MMA has many more than 8. Each indicator displays a portion of the entire Rainbow. Each has a StartColor and an EndColor that the indicator will automatically determine the range of shades between. You can also tweak each individual MA period, the MA method and the price type it is based on.

The included template file contains color settings from Ingot's original doc. The colors have been modified slightly since the indicators automatically determine the range between the start and end colors. But it should not be that noticeable. In any case, this would allow someone to come up with their own color scheme and save it to a template quite easily. For example if you would want, say, a range of grays or a sepia tone scheme or ....

Stochastic Threads
This indicator also is split into separate indicators. There's an 'LTF' (Low Time Frame), 'HTF' (High Time Frame), and 'MTF' (Mid Time Frame). Again, this had to be done because of the 8 buffer limit per indicator. The MTF is just an indicator to catch the mid-time frame stochs as well as the all important 14 time period.

Each indicator has a start and end color setting. Although it's not as important as for the Rainbow MMA, giving a slight range of shades to the LTF and HTF does make the behaviour more clear and easy to follow for the various periods.

The next step? Writing an EA to give an email alert when a pair generates a signal.

Some Programming Questions
While this goes a long way to improving customization, I was stumped by several things. If someone can give me some pointers, I'd appreciate it. Since an indicator is limited to only 8 buffers, there seems to be no way to write an indicator of indicators ie. an indicator that would collect the 5 indicators and apply settings to them all at once. I tried looking at what "scripts" can do but they have no access to displaying indicators at all. There also is no access to programatically save/load template files from a script. If anyone has any experience with these things, could you give some tips?

AW the indicators wont open

[cgjedi]

+++Updated+++

I made some improvements and fixed a few display issues. The major improment is the ability to show multiple time frames in a single chart. The original Stoch Thread newsgroup by Spudfyre (see link on first page) eventually began to discuss seeing multiple time frames on a chart. However, I wasn't that thrilled with their implementation of the idea.

Their indicator kept the same value across a higher timeframe which results in a stair step look which can be confusing to follow. Instead, the version I wrote will display the higher timeframes as a line chart. This way you can be on a 4H chart and see the stochastics for the 4H, the daily and the weekly at the same time. You can then really get a sense of what the overall trends for the time periods are doing.

There are 3 additional indicators with a suffix of "_multiTF". So attach those to the chart and they will use the original ones behind the scenes.

There is a new input for specifing Timeframe. In other MTF indicators I've seen, you have to put in the actual number of minutes per time period. Who knows how many minutes there are in a week off the top of their head? I sure don't. So instead, you just enter the chart code you'd like ie. M30 or D1 or W1. If you want it to automatically change when a chart changes just input "Chart". I think that's a lot more user friendly.

There's a new template file that shows an example of how the charts go together. Let me know if there's problems or anything else that you'd find useful.

[Jimmy]

Originally Posted by cgjedi

+++Updated+++

I made some improvements and fixed a few display issues. The major improment is the ability to show multiple time frames in a single chart. The original Stoch Thread newsgroup by Spudfyre (see link on first page) eventually began to discuss seeing multiple time frames on a chart. However, I wasn't that thrilled with their implementation of the idea.

Their indicator kept the same value across a higher timeframe which results in a stair step look which can be confusing to follow. Instead, the version I wrote will display the higher timeframes as a line chart. This way you can be on a 4H chart and see the stochastics for the 4H, the daily and the weekly at the same time. You can then really get a sense of what the overall trends for the time periods are doing.

There are 3 additional indicators with a suffix of "_multiTF". So attach those to the chart and they will use the original ones behind the scenes.

There is a new input for specifing Timeframe. In other MTF indicators I've seen, you have to put in the actual number of minutes per time period. Who knows how many minutes there are in a week off the top of their head? I sure don't. So instead, you just enter the chart code you'd like ie. M30 or D1 or W1. If you want it to automatically change when a chart changes just input "Chart". I think that's a lot more user friendly.

There's a new template file that shows an example of how the charts go together. Let me know if there's problems or anything else that you'd find useful.

Very nice work.

Wow, cgjedi, you've done a lot of great work here. Thanks for sharing this with us.

I've seen the stair step look on charts and I also found it very confusing.

The new input for specifying the time frame sounds great.

I can't wait to try it.

[cgjedi]

Thanks and you're welcome. I just found this thread a few days ago - just in time to read that Ingot54 was going to be leaving. When I read the Stochastic Threads by Spudfyre, I noticed that when he left that forum last summer, it didn't last too long and he hasn't been heard from since.

I hope discussion continues on this forum because I really think this strategy has great potential and would like to hear what people are doing with it.

And maybe with these new indicators, Ingot54 will be persuaded to stick around a little while longer too.

[Dirk Nowpipski]

Hello everyone,

Doing my own analysis I came up with these 2 ideas:

GPY/JPY looks like its ripe for a long trade as the daily chart shows a nice tight rope. The Weekly chart also shows a tight rope forming in oversold territory. Still gonna wait a day or two on this but to me it looks like its a good candidate to go long in a day or so.

EUR/JPY also looks like its ripe for a long trade. Daily chart shows a very nice tight rope in oversold territory, and the Weekly chart shows a nice rainbow long trend. Still going to wait a couple more days on this but if all goes right, it looks like another good candidate to go long.

Thoughts anyone?

[Cdawg]

hi Dirk,
I would just like to comment about your chart #1 for the EUR/JPY. That chart in my opinion confirms the power of Ingots rainbow strat.

If you look at the tight rope formation (about the 28th of DEC), that woulda been a nice ride down some 300+ pips, and it still hasn't come out over the 23.6 line even though that might be considered trading against the trend.

Though I am still very VERY new to this, but that looked to me like a picture perfect short opportunity, please feel free to correct me. I'm just beginning to demo play with this, but when i see something like that, it gives me alot of confindence going forward.

Cheers and thanks for posting up your set-ups.