Hi guys, regarding increase the gain with some strategy for Tymen CBL method, that’s my 2 cents: I try this one since some days and want to have your return about it:
If you want to test multiple entry I purpose this one based on Dow theory, let me know what do you think, it’s not perfect but maybe sharing our ideas, we can find something.
Just a glimpse of my trading method based on the method of DOW.
I hope Tymen not mind me showing this graph, but I’m happy to show the possibilities of trade that this kind of situation allows.
What is important is not so much DOW, but the entrance, (CBL), and management of trade, with lots of different sizes, and how to profit from the price action that is in my opinion, but especially by very experienced traders, including Tymen and Graviton, the most important indicators, it is never late, and gives us the true meaning of the market.
Ask Graviton why he sees the market, very concretely, it appears without knowing why, apart from his years of experience, in short, he “feels” what the market wants to give it.
Never forget that we will not take anything to market, but we must wait until he wants to give us, do not force the market, let him come in our trading plan.
Sorry for the post a little long and a little off topic, but I believe that this can offer a different view, using the tools Tymen, Graviton and also Dodge, we have offered.
I do not remember who said: “Work, take the trouble, you will be rewarded”
Regards, Didier
Apologies still has Tymen:o
Thanks for the great idea IronHeart!
This should make things a bit easier for you 
I have updated my EA to allow for both Grid and Band trading at the same time.
YouTube - The Finest in Trend Trading - Grid Trading EA - Part V - Dual Trading Mode
DO NOT TRADE LIVE WITH THIS EA! THERE MAY BE BUGS, PLEASE TEST IN DEMO FIRST!
Edit: Updated attachment with bug fixes.
Final_Tymen_Variable_SL_Bands_Anti_Drag_Dual.ex4.zip (54.8 KB)
Try to zoom in a bit more about your area CBL.
I’ll just say, from what I see, yet simple, that for me your trade is valid, the loss you have is part of trading, it does not matter, because you control with your plan trading.
You know we’ve Dodge provided a powerful tool that you can parameterize a will, why not use it to manage your trade.
If you use a broker to 4 decimal places, we must change the settings and save them, asks for Dodge, he knows better than me explain how.
Regards, Didier.
Hello, I see that I am not alone to use DOW:D
Fair Trade !!!
Regards, Didier:)
Thanks dodge for the EA - this sure will make things easier to test!
I see some ideas around using the last swing high/low point to set SL, also a great idea!
We really do have some great minds on this thread!
Edit Just watched the youtube video Dodge, I take back what I said. This EA is GREAT! :eek:
Thanks didier,
unfortunately I use gft and their platform is not compatible with his EA. I’m glad I’m on the right track, I’ll try your idea and zoom in next time hopfully i get more of an insight.
You’re the best Dodge thanks, we can now exit regarding exact Tymen rules
cheers
Greg
Edit: work well with or whitout grid, but only on 5 digits, have error 4106 and 4107 on Activtrade, just in case !
One thing to consider, is that in my testing 2010 has been a great year for Tymen’s strategy, either multi-lot or 2-lot.
2009 however was a shocker.
I will hopefully be running a new set of tests with real tick data this week and post the results.
DodgeV83, amazing work as always.
Thanks for the latest EA Dodge!
I’ve been backtesting both methods and I’ve come to an opinion as to why the Tymen method may in some cases be superior to Grid trading. I think the issue regarding grid trading is that the trailing stop is taking out trades on whipshaws where the tymen method (without trailing stops) is not taken out on whipshaws. I don’t think the trailing stops are being properly set for grid trading.
Reviewing my notes from Graviton’s thread regarding multi-lot (aka grid trading) is to use the ATR to determine stops. If you are in TF with a 40 ATR, having a 20 pip trailing stop will stop you out early and that is exactly what you see with Dodge’s video. If the ATR is set to 2xATR + spread (as some use), Dodge’s demo trade will go to 100 pips. This is a significant improvement and also allowed the trade to follow the BB walk.
I haven’t tested this theory extensively and will do so later today and report my findings. If positive, I think a possible modification is to change the trailing and initial stops to be a fraction of the Daily ATR where the fraction is determined by the TF used to enter the trade.
NB, I actually traded multi-lot on the 4H and daily charts in 2009 and did quite well. I’m wondering what pairs and TF’s your testing was done on? I only traded majors and comdolls, no crosses last year. I’m thinking a big part of results are the result of pair selection.
Dodge you are amazing, when you’re resting, or you’re insomniac.
I confess that I have a little trouble to observe and understand all the changes that you give to your EA.
I try to hang, watch videos and look again, but my knowledge of English is not good enough for me to be quick to assimilate …:o
For the moment I am working with the 2nd version of the EA, which gives me complete satisfaction.
Again, congratulations!
Regards, Didier
[B]Hello everyone,[/B]
I awoke this morning with somewhat of an epiphany! I was looking at some charts I had in an MT4 demo account, attempting to look at some Trade Opportunities, but it only just hit me that the Win:Loss ratio for this method is [B]much higher than I anticipated![/B]
I observed that the only time we make a Loss is when the Price Action fails to hit the Middle Bollinger Band. With Tymen’s Standard 2 Lot Strategy, we exit one lot when we first hit the Middle Bollinger Band, and exit the second one at either the Outer Bollinger Band or via the Simple Exit Method for a Bollinger Band Walk.
However, I seem to have observed a slight issue, which may also be entirely due to limited observation from a small sample size. I observed that while there was a great probability of hitting the Middle Bollinger Band, in moving our initial Stop Loss after TP1 to Break Even, Price Action frequently stops us out before it hits the Outer Bollinger Band, leaving us with a TP1 only. [B]The fact that the middle Bollinger Band has a tendency to act as a Support/Resistance level, is our Achilles Heel in the search for TP2[/B].
Take for instance an example of a trade on the Daily Time Frame, using Tymen’s Standard 2 Lot Strategy.
[B]Scenario A[/B]
[ul]
We make our CBL, and have an inital Stop Loss of [B]275 pips. [/B]
[/ul]
[ul]
The trade goes according to plan, and hits the Middle Bollinger Band, located [B]300 pips[/B] away.
[/ul]
[ul]
We close one of our lots, bagging a tidy 300 pips, and then we set our Initial Stop Loss to Break Even (our Entry Point).
[/ul]
[ul]
The Price Action retraces, coming 20 pips above our Entry Point, stopping us out, and then proceeds to the Outer Bollinger Band, located a further [B]300 pips[/B] away. Since we have been stopped out, our profit remains at [B]300 pips[/B], as opposed to a total of [B]900 pips[/B] that we would have earned had we not been stopped out.
[/ul]
The above scenario produces a [B]Risk:Reward ratio of 1:0.55[/B], with our risk being our stop loss for two lots - [B]2 x 275 = 550 pips[/B] and our reward at [B]300 pips.[/B]
[B]Scenario 2[/B]
[ul]
Instead of waiting for TP2 to emerge, we conservatively opt to close [B]both lots as soon as the Middle Bollinger Band is hit[/B] due to the very high probability we have of this happening.
[/ul]
[ul]
We agree to stick to this Trading Plan, and fore-go the potential [U]straight runs to TP2[/U] and [U]extremely profitable Bollinger Band Walks[/U]
[/ul]
[ul]
In the above trade, we decide to close both lots at TP1, when the Middle Bollinger Band is hit, leaving us with a total profit of [B]600 pips.[/B]
[/ul]
The above scenario produces a [B]Risk:Reward ratio of 1:1.10,[/B] with our risk being our stop loss for two lots - [B]2 x 275 = 550 pips[/B] and our reward at [B]600 pips.[/B]
This brings us to the following dilemma. Do we fore-go our [B]assured, relatively high Risk:Reward ratio[/B] by only closing one lot at TP1, in search of the profit at TP2, OR do we conservatively lock in our profit with both lots at TP1,[B] providing us with a much superior Risk:Reward ratio?[/B] It really makes you ponder, when you consider that in some cases, the Bollinger Bands are asymmetric, with TP2 being only marginally further than TP1.
I wish I had charts to better illustrate my point, but as I have examinations, this is not a priority for me at the moment.
Any feedback would be much appreciated,
xXTrizzleXx
that was some great informative stuffs guys. now if anyone is kind enough to take a look at the two charts below and let me know where i have gone wrong.
i’ve entered at the white line, price at 79.64, stop loss at the red line, 79.45.
the horizontal line showed the opposite bb contracting before i made the order.
and…
where would you make your entry on this trade? i gotta say the results from my backtesting on this method was great, however when i go live with it, there has been mistakes after mistakes on my part.
one reason could be that im a new trader, young, impatient and eager to see returns on my investment. a deadly combination i’d say.
after these losses, im quite keen to follow the old wisdom of trading daily and 4 hours time frame now. however, as my account is small, it is wise for me to do so when the stops are easily half my account size? and tymen said, one of the advantage of trading these higher time frame was that we could set our stop loss and take profit levels and walk away from the computer. but as we found out, the first tp1 point is the mid bb, and the mid bb is constantly moving as the price action goes, how does one set these limit order appropriately?
thanks in advance guys
cheers
DodgeV83, would you beable to post your templates for this system. I noticed you were using one called cleanpivotbb. I noticed some other onces in your videos also and if at all possible could post these I would greatly appreciate it.
[B]ada ighty,[/B]
In the first trade, you will notice that you were in a Bollinger Band Bubble,which had the probability of turning into a Bollinger Band Sausage. Tymen’s extensive testing shows that trading the Bollinger Band Walks, and the movement of price action soon after it, has [B]a much reduced Win:Loss ratio[/B], producing about [B]half as many winners as losers[/B]. He has thus suggested that we stick to trading [B]squeeze areas[/B] which are the areas separating the Bubbles/Sausages. Additionally, you can see that in the squeeze area of your first chart, there is not much distance for Price Action to move between the Bollinger Bands. This is part and parcel of trading on such a [B]small time-frame,[/B] and thus it will be advisable for you to switch to a 1-hour time-frame our higher, which has much greater distance between the Bollinger Bands, and a higher Win:Loss ratio due to reduced noise.
The same applies for your second trade. You will notice that you are in a Bollinger Band sausage, and will thus suffer from the [B]reduced Win:Loss ratio[/B].
Hope this helps,
xXTrizzleXx
Hi xXTrizzleXx, I had this thought a while ago too but never really pursued it.
The cold truth is that that there is a high percentage chance of hitting the mid bollinger band and significantly less chance of hitting the opposite band - this is exactly what I have experienced with all my backtesting. My pursuit of the opposite band normally takes me out of the trade with a break even.
This is especially true if we are trading non-squeeze areas but sometimes also true for squeezes.
Closing out a trade completely on the mid-BB is something I am excited about testing, feel free to help me test and we can post our results soon.
The problem with exiting at the mid BB is the potential loss of a substantial return. These returns over the medium to long term protect your account when on those occasions where PA retracements occur soon after entry and hitting your SL for 2 lots giving you a nasty loss (especially if you trade the 4 Hr). That said however I remember Tymen saying at one point many years ago earlier in the thread that if the mid BB is against the direction of trade at TP1 it is unlikely that PA will continue towards the opposite BB therefore exit both lots. If however the mid BB is heading in the same direction of PA at the mid BB, keep the second lot running as chances are the PA will continue twds the opposite BB.
cheers