Interesting moniker SDC. I own a company with those letters.
Interesting idea and one I think might work. I have done similar things with unbounded indicators such as the DPO indicator. I created dynamic levels based on past historical data. The reason I did this was there wasn’t a way to program an EA to use this indicator as the value could be anything.
You might consider using the mean value of the bar as it will constantly change till the close but is more stable then the low or high. You’re looking for the bands to widen during sharp up or down trends to give the price more room to run but when the price weakens you want the bands to collapse to meet the price.
Some BB’s allow H-L-O-C values as well as functions like the RSI and formulas which would give you what you’re looking for without all the coding. I’m not a programmer and I only copy and paste until I achieve the desired results. Wish you luck.
I just set up my stop hunting strat’s trades :p, im ready to go. Trying something similar to what your trading Shr1k, but on GBPUSD. Watch out, I may steal another steak dinner from you :p. lol
To borrow from something about 400 pages back on timing entries on the lower TFs …
a 2:1 on the weekly (although I have my concerns) should be the equivalent of a 10:1 on the Daily - so could we use the Daily to time the entry?
Again, it’s all probability if you use 2 standard deviations, you’re likely to get an entry at the extremes comapred to using 1 SD but horses for courses…
BTW (sidenote) - did you ever use fundamental analysis in your trading of GU originally?
This week I have the following - any thoughts?
I’m just going to follow the trend as it clearly cost me last week on AU and NU on missed trades and as I’m only checking once a day, I have other ikntraday stuff to get on with
UJ short
Uchf short
EURNZD neutral
EG long
EA Neutral
EChf long
EU long
EJ long
GChf long
GU long
GJ neutral
AChf long
AUDCAD long
AJ - difficult decision on this one
NU long
NJ long
Do you have a rough target percentage that you do on this per week?
Anyway, I have some money that I can throw in for this so I’m going to do a little 52 week experiment see if I can’t get it going well at around 5% per week. I have other day trading stuff that I mainly concentrate on but this suits me perfectly for something with little maintenance needed as a longer term thing. I know you trade it more actively than that…
San,
I thought it was interesting that you mentioned the 10:1 bolls on the daily as a replacement for the 2:1 on the weekly.
I’ve been studying two trend trading strats both based on the dailys and 9 to 10 ma plays a key roll in both.
First is Ed Ponsi “FX-Ed Trend Technique”. Price riding the 10 ema on the daily is a major component of his “FX-Ed Trend” strat.
The second strat uses the Ichimoku indicator which uses the average of the high and low price for the last 9 periods, not quite the same as the regular 9 ma but close.
So after reading your post earlier today I flipped up an EU chart with the 10:2 bolls and it pretty much gives the same triggers as Ed Ponis strat and the Ichimoku.
Something about the 10 period moving average on the daily, almost looks like the big money might also be looking at the 10ma!
Yep, I was just thinking about too funnily enough after reading Phoenix’s post in one of the other threads.
There is some thought that an up trending pair should be in the top half of the bollinger but when comparinf different TFs, it’s easy to misrepresent the trends.
The 10 MA has to be a pretty strong trend though - you’ll see a numbe rof times it gets faked out on the Daily chart but perhaps his 50% ATR stop loss covers some of that.
I suggest you also try that strat on a non trending pair to see the fake out points. EUR/USD was a trend trader’s dream so any trend following method wiould have worked on it in the last few months
I also spent a good part of last week reading the Ponsi book and studying the FX-Ed strategy, as it had been referred to by ThePhoenix in another thread. The only issue I had was the filter he recommends of ten candles above the 10 EMA before considering a trade. It really leaves every few trading opportunities, in my opinion.
But you’re right about the 10 EMA, it does seem to form strong SR.
Here’s a PDF from one of the earlier Ichimoku threads here at BP, nothing bootlegged… LOL
Check it out, I’ve found it really interesting and I think it also could be a neat long term trending strat.
PS: The ichimoku/kumo methods described in the PDF seem to offer more trading opportunities than FX-Ed. There are weak and strong entries, also different time frames, 4h, daily or weekly.
Once I put Rui’s BBstop indicator on my charts I left it there. It shows one side of a 10:2 (I think) BB band so its based on the slope of a 10 MA. If price is above the dots trend is up if its below trend is down. I have looked at just trading that one indicator on a 4hr chart. As with any single indicator its not great by itself but it does not seem to fake out as much as some things I have seen, If you [B]wait for a candle to close after the flip[/B]. I have been using it for confirmation and as a get out signal.
I agree, with all the MAs on there it turns into spaghetti and I can’t make any sense of it. In that vein, I offer my current chart template below. I took RCs setup of using 2:1 bolls off the LWMAs. However, since the MAs were off the HA candle hi-lo anyway, I simply tied the bolls to this value and actually eliminated the LWMA lines altogether! I felt this was fine, since RC had mentioned setting entry orders and TPs off the 2:1 upper and lower boll lines.
As always, I can’t get out of bed without a std Bollinger so that’s there, along with dotted lines demarcating the recent Daily High and Low.
I actually tried adding the EMAs for the Ponsi strat, but no color combination I could come up with made things any less a mess after adding 10, 20, 50 and 200 EMAs to the chart. A possible alternative would be running one of my instances of MT4 with those indis, should that strategy prove appealing.
I’ve always been baffled by all these guys with their Kumo-clouded charts and just figured it was more pretentious, indicator-happy silliness that didn’t do anything to help one trade better.
But now that I have started reading this interesting PDF I will definitely study it all the way through to give myself a chance to learn it. Thanks!
MP,
I thought the same thing, all just a bunch of crazies gone wild. But the more I read and study the ichimoku kinko PDF the more I started to understand what was going on. Actually I think I like it more than FX-Ed’s strat. Read the whole PDF, the good stuff comes at the end with the case studies.
My thoughts are try to play a multi-time frame strat with the kumo. For example, kumo on the daily telling me it’s in a bullish trend. Then look for pullbacks to the kumo on either the daily, or the 4h chart and then only trade long in the direction of the daily trend.
I think it can be used as a short-term strat and a long-term position trading method.
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