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Beginner Questions
4655

Here is the code for the trailing stoploss +exit indicator for the [B]BB Profit Walk method.[/B]

There is both a LONG and SHORT code.
Depending on whether your BB bubble/sausage is a long or short price action, you load the appropriate version on your chart.

[B]The code for LONG [/B] >>>

indicator A_Stoploss_LONG ;

draw TS (“trailingstoploss”, solid_line, dark_green,2);

vars tgl(series), mid(series), tr(series), atr(series),
lower(series), i(number);

begin
tgl := wma(sma(close, 8), 4);

mid := linreg(close, 20);
tr := truerange();
atr := ema(tr, 15);
lower := mid - atr;

for i := front(tgl) to back(tgl) do begin

if tgl[i] >= lower[i] then
TS[i] := tgl[i]
else
TS[i] := lower[i];
end;
end.

4656

[B]The code for SHORT >>>[/B]

indicator A_Stoploss_short ;

draw TS (“trailingstoploss”, solid_line, red,2);

vars tgl(series), mid(series), tr(series), atr(series),
upper(series), i(number);

begin
tgl := wma(sma(close, 8), 4);

mid := linreg(close, 20);
tr := truerange();
atr := ema(tr, 15);
upper := mid + atr;

for i := front(tgl) to back(tgl) do begin

if tgl[i] <= upper[i] then
TS[i] := tgl[i]
else
TS[i] := upper[i];
end;
end.

4657

At the end of all this, the [B]BB Profit Walk method[/B] needs only 3 indicators to make it work >>>

[ol]
[li]The Bollinger Bands to allow you to see the bubbles/sausages.
[/li][li]The trailing stoploss + exit indicator just posted.
[/li][li]An temporary indicator to tell you if the bubble/sausage is safe to enter.
[/li][/ol]

This 3rd indicator is one I have yet to construct and it should not be nearly as difficult as what I have just done. :slight_smile:

This 3rd indicator simple measures the squeeze and tells you if it is <= 25% of the section in front of it.
If the squeeze is not equal to 25% or less than the previous expanded area, then it is unlikely that the next expansion will yield a successful trade.

So therefore, this 3rd indicator in necessary.
However, once you haved used this indicator to determine the safety of entry, then this indicator can be deleted from the chart as it will have no futher use in the trade.

I shall now post chart examples of the exit indicator to show how it works.

Then I have to construct the 3rd indicator and, to finish off, put all the latest entry rules together.

[B]Once that is done, the final PDF of this method can be designed and posted.[/B]

4658

Here is a LONG example >>>

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S = signal candle.
E = entry candle.
X = exit candle.

The trailing stoploss is given in green in a LONG trade.
The trailing stoploss is given in red in a SHORT trade.

From each candle point on the stoploss, an extension line is drawn.
If the live price action in the next candle crosses this line, you exit.

The final exit is shown with the blue extension line.

4659

Compare with the PSAR >>>

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As you can see, the exit of the PSAR is much lower, exiting at about the mid BB band.

The stoploss with the PSAR is also much more generous - too generous.

4660

Another LONG example >>>

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In this chart, I have also loaded the PSAR for comparison.
The PSAR in very inferior in both the size of the stoploss and the exit point.

4661

A short example >>>

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The stoploss has been calibrated so that it can come very close indeed to the price action but not allowing the extension lines to cross a candle prematurely.

In this case, the stoploss line is very close to the price action but the exit is still of very high quality.

4662

Comparison with the PSAR >>>

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Need I say more!!? :stuck_out_tongue: :stuck_out_tongue:
A very inferior exit and stoploss!!

4663

Another short trade >>>

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Same parameters as before.

4664

And yet another short trade >>>

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The area marked AA will be magnified next post.

4665

A magnified view of AA >>>

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The stoploss is finely calibrated and sometimes there is a near miss for the extension.
However, a near miss means that an extension further down the line gives a better profit. :smiley: :smiley:

4666

Have a look at this!! >>>

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You would think that candle R is such a strong retracement that it would bring the death of your trade.
However, not so!! :slight_smile: :smiley:

The stoploss goes around the low of the candle, so that any extension lines do not cross future candles.

And look at the exit - very high up indeed!!

4667

Congratulations Tymen!

I’m very impressed by this… in a few days you made a custom indicator and coded it yourself to give even more better exits than the PSAR, does it take into the equation ATR? wow

Indeed all of us in DNA Pack are very grateful for your work as Merchantprice said before.

I have one question: now that you found this indicator… wouldn’t it be better to switch to this trailing stoploss once we are clearly in a bubble/sausage when we are using DNA CBL method?

Wish you all the best :slight_smile:

4668

Wow Tymen, your work truly amazes me!

I’ll look forward to coding this indicator as soon as I can.

Aserat, I would think the same thing.

If a CBL entry is taken in a squeeze and PA manages to clear the opposite band, causing it to expand, then surely we can use this indicator to exit the potential sausage/bubble?

4669

Is it safe to say the respective indicator for the long/short will replace the PSAR from now though?

4670

The PSAR was meant for the DNA method proper.

For the DNA method, you should stick with the PSAR for the first few candles after the extreme until both indicators start to line up with each other.

If they do that, then you can switch over to the trailing stoploss + exit indicator.

4671

wow! Tymen I hope you dont have to sell your indicator just like many others on the net. I almost bought one amounting to more than $1000. Glad Ive found your thread.
Btw, I just finished reading your candlestcik thread 1 and 2.

Are those candle stick strategy still effective compare to the BB DNA or BB walk profit? Is it possible to use them all?

Thanks again. I pray for your good health. This is the only way I can pay you for your unselfish effort and heart.

4672

Tymen, my friend, I tell my friend, OUR FRIEND, must you stop giving us all these improvements, we will become “World Champions” and it will require us to share with you, the trillions of dollars :eek: that we will win because of you …
Seriously, I wish in my name, but also on behalf of all, (I think) to thank you sincerely for all that you showed us, and everything you offer us, despite the hard work that you claim , you persist and sign again, and still further improvements, and new enhancements that make this thread a rare gem and precious … …
The final PDF will be enormous transmission of knowledge and experience, I can not wait to see what wonderful work, concentrated in a document, which will, has no doubt the Bible and the bedside book of good numbers of us, and also those who have the courage to read, learn, and assimilate all that beautiful yarn that you have started to share all your experience, and I think we should Remember Graviton, who also contributed much to many of us, and continues to do on its own thread.
Gentlemen, I have but one word: BRAVO, CONGRATULATIONS and THANKS THOUSAND. (We said a word …:p)
Regards, Didier.:slight_smile:

4673

After the past three weeks, I’m beginning to come to the conclusion that breakouts of bollinger band squeezes are not very reliable on the 15m TF. What I have noticed is that frequently boll breakouts consist of two different kinds of movements, neither of which lead to walks and both of which usually retrace to failure.

The first type of breakout is the Big Spear, wherein price moves suddenly many pips in a single candle. We’ve all seen this; sometimes it’s the result of news, other times it is simply price breaking out of a tight squeeze. Regardless, the steeper the spike, up or down, the greater the retrace. This makes getting in on the Entry candle impossible. Many times, price just meanders back up.

The second type of breakout is where we get both our signal and entry candles but the bolls really never continue to expand. This has been happening to me [I]all the time[/I]. Price seems to be moving well on that signal candle, but instead levels off and we get flat-line price - followed by a retracement back to our stop a few candles later.

What I’m wondering is if this type of price action is similarly seen on the higher TFs or if BB DNA signals get more reliable the higher TF (I know this has been stated in the past). In practical experience, have many traders here seen better luck trading off the hourly and 4H TFs? I am strongly considering leaving the 15m TF behind altogether, even though I am only trading squeeze breakouts and CBL entries off level bolls.

4674

Merchant Prince - I only use the Bollinger DNA method in 1 hour and 4 hour charts myself. I haven’t looked too closely at the 15 min charts using them but from what I’ve seen they wouldn’t seem to be as reliable. I’m doing fine with the 1 hour charts mostly - I find it’s an ok balance between reliability and the number of entries I get (I’m getting about 10-15 trades a week so far).