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Beginner Questions
3992

In my classification work on the bubbles/sausages I find the following…

[B]Candles that break away from the BB walk…[/B]

  1. Just before the opposite BB contraction.

  2. At the opposite BB contraction.

  3. Just after the opposite BB contraction.

[B]I also find that the parabolic sar crosses the mid BB…[/B]

  1. Well before the opposite BB contraction.

  2. Just before the opposite BB contraction.

  3. At the opposite BB contraction.

  4. Just after the opposite BB contraction.

  5. Well after the opposite BB contraction.

  6. NO crossing of the parabolic sar at all.

Each case seems to have its own special variation on the resulting price action afterwards.
So I am going to classify these situations very carefully and see if we can come up with a top quality exit formula.

As far as I know, this has never before been done with the BB.

[B]One classification is already complete…[/B] :slight_smile:

When the price action extends very greatly outside the BB, we place on our chart a new outer BB with standard deviation set at 3.3
This is exceptionally high, and if the price action actually reaches that, then we exit.
We are almost guaranteed that such an exit will give the best possible exit for that BB pattern!! :slight_smile: :wink: :smiley:

3993

Tymen,
An excellent article which is eternally relevant, providing even more impetus to the whole Naked Trading movement. To paraphrase a famous slogan; “It’s the Price Action, stupid!” Everything else is history.

The following quote from the article explains the reason why people like Graviton, yourself and some others on this forum are so successful; “[I]Top traders have many features in common - they are organized, disciplined, self reliant, and analytical[/I].”

The rest of us are still getting there…some faster than others.

Actually, given the importance of psychology on trading, I wonder if there is a certain personality type which is more suited to trading (e.g. like a Myers Briggs type INTJ etc). I am not trying to pigeonhole people; just wondering if those who are successful share common types/indicators.

3994

That would be great.

Woh there, first of all I definitely aint blaming the tools. As for why, I guess it’s because I attempt to trade non squeeze areas.

Thanks the for the link, I’ll give it a good read.

I see, but a time frame lower than 20M is still not recommended am I right to say so?

3995

Awesome work Mr.Wortel!

I suppose newbies who are devoted to learn this method, regardless of time needed to use it succesfully, will find this very very useful as we can not appreciate the slight signs in PA that allows for a better profit and improved overall R:R ratio.

It’s not easy to find what we have here nowadays. I know I should be using more basic methods but… I’m not going to implement this knowledge in Live until I’m not fully confident in me even if I need three years from now. I can be very patient if I know it’s worth it.

By the way that article is most interesting!

Just wanted to say thanks for your effort and keep encouraging you :slight_smile:

(reading page 265 at the moment and with no rush…)

3998

That’s good because it very well could take that long. Any business or higher education is usually approached with a 2 to 5 year plan anyway.

I wouldn’t wait that long to trade live though. The sooner you lose some money the better (Not saying you will lose, but it’s better than winning right away I think, it makes you more cautious). Get it out of the way so you can really get down to it.

3999

Hi!
To those who like to learn more about stop losses and risk management, please refer to the complementary thread by graviton which coveres SL and multi time frame trading.

It’s an excellent thread and very much a complement to tymen’s thread on BB DNA method.

It’s like the both of them are meant to be together! Greatly improves my trading i must say! :slight_smile:

4000

Tymen, what a pleasure to see you in great shape.
Once again, the Professor spoke, and gave us an idea, a tool like this, just for fun to impress us, (just kidding …).
But where will you find all these ideas, uh yeah I know, it’s your experience and your organization and your ability to analyze that you one allowed to reach this skill, you have the generosity of share with us.
How lucky we are to benefit from such teaching, such jurisdiction, which with those of Graviton, give us access to two high-powered mentors.
I hope that “big dogs” leave you to rest, and you’re the best of your form (which would seem to be the case).
Come on guys take advantage of that higher education does not necessarily copy it, but to integrate it to our personal trading plan, a trading plan is necessarily personal and responsive to everyone, because everyone is different.
Do not “copy”, but inspired you know, and teachings of our two Masters, and Graviton Tymen to progress, and possibly challenge ourselves.
Yeah, I know, the Frenchie is talkative …
Regards to all, work, Didier.

4001

Don’t worry about being talkative, Didier. :slight_smile:

You post is very welcome and you have a great gift of being able to encourage people!! :slight_smile:
This is obvious even in your private messages to me!! :slight_smile:

4002

I have also read [B]Graviton’s [/B]notes regarding stoploss management and take particular note of his emphasis on using the Average True Range - an excellent indicator for stoploss purposes.

The ATR can be added or subracted to the Linear Regression indicator to give a trailing stoploss line.
Although this line retraces, we never retrace in a stoploss.

I agree with [B]Graviton [/B]in never retracing a stoploss line.

Here is the computer program for a stoploss that I developed last year, using the Linear Regression as the base line, then adding or subracting a factor of the Average True Range…

indicator AAA_STOPLOSS_LONG ;
input reg = 14, av = 6, spread = 6;
draw res(“trailingstop”, solid_line, blue,2),
line_upper(“upper”, solid_line, blue,2);

vars line_mid(series), tr(series), atr(series), line_lower(series), i(number);

begin
line_mid := displace(linreg(close, reg), 0);
tr := truerange();
atr := mma(tr, av);
line_lower := line_mid - (1.5atr);
for i := front(line_lower) to back(line_lower) do
res[i] := movmax(line_lower, i, spread);
line_upper := line_mid + (1.5atr);
end.

If you like this one, you might ask [B]IronHeart [/B]to convert it to MT4 language. :slight_smile:

4003

Sure thing, I can do this without too much trouble - the magic date would be Sunday though.

4004

Thank you for continuing to post on this thread, [B]Vulcan Classic!! [/B] :slight_smile:
It is always an honour to have you here.
I very much appreciate it. :slight_smile:

Thank you for your counsel for [B]Aserat[/B], our new budding dentist!!

I am always thankful for others to give advice (this is not a one man thread), and not only does it take a lot of the strain off me but also allows me to get on to do further research into improvements. :wink:

4006

Soldier on, [B]Aserat[/B]!! :slight_smile: :slight_smile:

But never neglect your dentistry studies!!
And let [B]o990l6mh [/B] (practising dentist) be a mentor to you if possible!! :slight_smile:

4007

Why do you do this? :eek: - they have a much higher loss rate and I have labelled them as NO TRADE areas for those of lesser experience.

Why not trade the squeeze areas and get not only reliability but also the possibility of a BB walk with rapid profit generation as well. :slight_smile: :slight_smile: :wink:

I see, but a time frame lower than 20M is still not recommended am I right to say so?

You could really trade any timeframe, but I have found that timeframes below 15/20 mins generate small pip gains, so much so that the spread becomes a large factor in the gains.

4008

I know a squeeze area is identify as any area that is not a bubble or sausages, but it can be hard to determine in real time. This is most probably why I took some of them and it was clear in hindsight

4009

You are correct - this article is essentially mandatory reading for every person who wants to succeed!! :wink:
I should have put it up at the very beginning of this thread!! :o :o

… I wonder if there is a certain personality type which is more suited to trading …

Yes, I definitely think so. :wink:

Firstly the trading game attracts approximately the correct personality type, except the quick rich hopeful.
Then time weeds out the weaker personalities and those with extreme perseverence are the ones who stick it out and finally, after much fiddling and messing around, get their show on the road.

The personality type required is best described by [B]Tess [/B]as one having a rhino skin and by [B]Tonymand, Honorary FX Member[/B], as one who wrestles crocodiles for a living.

4010

[B]MANDATORY READING - read the second article in this hyperlink, entitled …[/B]

[B]“Tate on Trading - LTCM and the Quest for the Holy Grail.”[/B]

If you have read this article before - [B]then read it again[/B]. :wink: :wink: :wink: :wink:
As a school teacher, I say that revison is a very good thing >>>

Trading Game Newsletter

[B]Having the original article in my possession, I have found that the above version has been edited.
Below is the material that has been edited out of the original…[/B]

"It is undoubtedly true that we need entry signals or setups
to enter the market but their importance in trading is
vastly overrated. Tomes have been written about signal
generation, indicators move in and out of vogue, the
current trendy indicator appears to be the moving average
ribbon. Charts of price action are now being buried beneath
layer upon layer of coloured lines. It is as if by obscuring
raw price action traders somehow hope to divine its intent.

Yet Charles LeBeau author of The Technical Traders Guide
to Computer Analysis of Futures Markets claims to have
tested every possible combination of moving average
conceivable and found their performance to be little better
than random probability. In any serious testing trend
following indicators struggle to have a reliability of above
50%. The MACD histogram, which is thought to be among
the best of all indicators, often has a reliability of below
50%. I have personally run a test trading the SPI on an
intraday basis by tossing a coin in the morning and found it
to be profitable. It is extremely difficult for traders to
accept that the tools they use may not be as effective as
they thought, or that their methodology may have a
reliability below that of simply tossing a coin."

4011

Hello Tymen and all,

I’ve been practicing the DNA Method, and finally I realised that working 8h a day in a office, and taking care of my childs when I arrive home, the only TF that can suit to me is daily. I was almost crazy in other TF and I could not gain almost any pip.

But know with diary TF, I’have gain more pips than ever…considering that I am still newbie and just with around 3 or 4 months of experience ;-).

Thanks again Tymen.

By other hand, I will be the next week nearest from you and the assian member, I have a bussiness trip from Spain to China, and I will have to see the Final of the Futbol World Championship alone in the hotel at around 3.00AM…

Regards
Richardj

4012

Hola Richardj!

veo que también vives en España… si te apetece podemos ir ayudándonos mútuamente con el sistema de Tymen? dicen que cuatro ojos ven mejor que dos :stuck_out_tongue:

La verdad es que veo que tienes más experiencia y no me vendría mal alguna ayuda adicional y “cercana” con lo que no entienda. No puedo enviar mensajes personales aún pero ya buscaríamos una manera de ponernos en contacto!

Y venga que nos llevamos el mundial! :smiley:

Hi Richardj!

so you live in Spain too… if you like we could help each other with Tymen’s system? some say two heads are better than one :stuck_out_tongue:

The truth is I can see you are more experienced than me and I could use some additional and “nearby” help with the concepts I don’t understand. I can not send personal messages at the moment but we can always look for a way to contact!

And go go go the World Cup is ours! :smiley:

4013

De acuerdo Aserat, sin problema. Por favor, registrate en el foro multidiviseros punto com y alli podremos compartir nuestros datos de contacto mail, telefono, etc… Tengo curiosidad por hablar con otro español sobre Tymen y Babypips y por supuesto de hablar de forex.

Ok no problem. Please go to the forum multidiviseros and register on it. Then we can share our contacts, email, phone, etc I have curiosity to talk to other Spanish about Tymen and Babypipis, and of course to talk about forex

4014

Just wanted to say thank you to Tymen and the many others that have made this thread a little gem - I’ve spent several hours each day over the last week or so reading through this, and feel very rewarded for the time I’ve spent doing so.

I realise many of you have invested significantly of your time and of yourselves along with Tymen in this thread - I am sure the many readers of this thread all feel the same.

Sincere thanks to you all…

Apologies if this link is deemed off topic, but for me another way of summing up the value of concentrating on the price action and not filling your screen with tons of indicators -

Cheers