The ideas that I trade by:

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MightyOne
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Postby MightyOne » Thu Sep 22, 2016 12:13 am

I've been working on BIAS logic:

Solution to outside bars? Switch periods! :lol:

Code: Select all

   HI_HAGO = (pmidpoint + phigh)/2;
   LO_HAGO = (pmidpoint + plow)/2;
   


Code: Select all

if(AUTO_MIDPOINT){
   //outside bar
   if(high > phigh && low < plow){Period_Choices = PERIOD_D1;}else
   if(high > phigh && low < plow){Mid = open;}else
   //inside bar
   if(high < HI_HAGO && low > LO_HAGO){
   if(close > open){Mid = low;}else
   if(close < open){Mid = high;}}else
   //no breakout
   if(high <= phigh && low >= plow){
   if(high > HI_HAGO && low < LO_HAGO){Mid = midpoint;}else
   if(high > HI_HAGO){Mid = HI_HAGO;}else
   if(low < LO_HAGO){Mid = LO_HAGO;}}else
   //BO & overlap
   if(high > phigh && low < LO_HAGO){Mid = LO_HAGO;}else
   if(low < plow && high > HI_HAGO){Mid = HI_HAGO;}else
   //BO & no overlap
   if(high > phigh){Mid = (HI_HAGO + high)/2;}else
   if(low < plow){Mid = (LO_HAGO + low)/2;}else
   {Mid = (high + low)/2;}
   
   }

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TheCrumpledOne
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Re: The ideas that I trade by:

Postby TheCrumpledOne » Thu Sep 22, 2016 12:24 am

Hello MO,

really appreciate the response, I will try my best to ask questions to gain more understanding on your imaginations. :)



I don't think of a trade as an entry but as the placing of a stop loss and the normalization of risk; normalizing risk "trails" your stop loss and that is why I have said in the past that "trading is simply placing and trailing stops".


It is good that once you enter a trade, you have a stop loss in place.
1) But do you enter a trade primarily because of this very good stop loss position?
("Very good stop loss position" here means price is very unlikely to reach due to your analysis)

Lines spacing is based on a percentage of the weekly median range.


2) Clarification: "Weekly median range" here means the current week's range? or is it the last week range? or the average of weekly bars for the past month?

I will calculate to give examples using EURUSD:
EU current week range (high to low): 90.5 pips
EU last week range (high to low): 134.5 pips
90.5+134.5+187.6+129.1= 541.7pip divided by 4 = 135.4pips (average of weekly bars for the past 4 wks)

Once this is clarified, I will calculate the percentages for the different timeframes (M1-MN)

The length of time that it takes for price to move through space, from one line to the other, determines the timeframe that you are trading;
like Point & Figure charting, the scale becomes the timeframe.


This is quite deep. hehe... I will try to break it down.

3.1) Does this mean that the faster the price move to get from one line to the other, the bigger the timeframe you will be trading on?
3.2) Is this example correct? If the EURUSD moved 300 pips during the day, it has determined that the timeframe I will be trading will be on higher timeframe (D1, W1, MN).
3.3) Can I have the indicator for Point & Figure charting please. I would like to see what it means to have the scale becomes the timeframe.

These are some questions I have for now, will write again soon. Thanks all for reading this post.

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Re: The ideas that I trade by:

Postby TheCrumpledOne » Thu Sep 22, 2016 1:44 am

Placed the EIGHTS indicator on the EG chart to get the sense of similarity... :)

eg chart.png
eg chart.png (40.62 KiB) Viewed 467 times

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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Thu Sep 22, 2016 5:25 pm

Maybe this will be of help TheCrumpledOne:

Step 1:
I was flashing through monthly charts when I saw this MN chart that had already made a strong move
a few months ago and noticed that it had been delivering low wicks.

The current candles close was resting peacefully below 00, on the MN chart anyway, and I had the idea that
the current price would move up a line or two.

Step 2:
Looking at the 5 minute (1.2% line spacing) I noticed that price was above the daily open line ("something").

Step 3:
I defined a two-wide area where the initial order (1/3 size) must be triggered.
(price can fall up to 9 lines at this point in time)

Step 4:
Pull the trigger & decide if I am going to commit (keep pulling the trigger) or abandon.
(price can fall 4.5 to 3 lines).

Step 5:
Every decision to hold is a decision to buy more (same size throughout).
(going for 1 line on the MN chart...more if I am feeling lucky)

this_morning.png
this_morning.png (47.13 KiB) Viewed 914 times

Sacrophage
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Re:

Postby Sacrophage » Thu Sep 22, 2016 5:38 pm

MightyOne wrote:Solution to outside bars? Switch periods! :lol:


I prefer to use an offset. Once you've taken your first loss from this Sin wave action, offset your normal bias +/- X % or X pts. Can't be whipped by the same action again. Trick: +/- X can actually be randomized...

Other solution is to change SL and adjust size accordingly. Only issue with this is Spread/SL % change could be significant if trading small lines, so take into account in calcs.

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Re: The ideas that I trade by:

Postby TheCrumpledOne » Thu Sep 22, 2016 8:15 pm

Hi MO,

appreciate the assistance. :)
I've tried setting up what you see in your charts (see picture 1)

MO setup.png
MO setup.png (39.4 KiB) Viewed 901 times


I am not used to line bars so I switched to candlesticks to see the wicks on the monthly timeframe (see picture 2)

Step 1 low wicks.png
Step 1 low wicks.png (47.45 KiB) Viewed 901 times


I saw a strong move down a few months ago, I hope we are talking about the same strong move (see picture 3)

Step 1.1 strong move.png
Step 1.1 strong move.png (47.71 KiB) Viewed 901 times


On the monthly chart, I did not see any candle close below 00 line. (see picture 4)

Step 1.2 month closes.png
Step 1.2 month closes.png (15.13 KiB) Viewed 901 times


Step 2:

I looked at both our M5 chart and noticed that the numbering is different, e.g. your daily open is at line 09, and my daily open line is between 12 and 15, what settings should be used on my EIGHTS indicator? (see picture 5)

Step 2.png
Step 2.png (38.55 KiB) Viewed 901 times


Q2: In this case the "something" is the daily open line, can "something" refer to others beside daily open line?

Step 3:

I'll be using your picture since there's difference in the lines on mine.
I defined a two-wide area where my initial order is 0.22 lot.

I've used an example of a $3000 account and my risk is 1%= $30
1/3 of $30 is $10. from line 15 (entry) to 00 is about 15x3pips(per line)= 45pips.
Lot size $10/45 pips = 0.22lot.

(please see picture) Please advise me if I am wrong...

Step 3.1 two wide area.png
Step 3.1 two wide area.png (67.48 KiB) Viewed 901 times


Q3 In this case, should my stop loss be at the daily open line or the 00 line?

Thanks again MO for your guidance.

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Re: The ideas that I trade by:

Postby salezyakuku » Fri Sep 23, 2016 11:45 am

TheCrumpledOne wrote:2) Clarification: "Weekly median range" here means the current week's range? or is it the last week range? or the average of weekly bars for the past month?

Clarification:
Average is the sum of a list of numbers divided by the number of numbers in the list.
Median is the value separating the higher half of a data from the lower half.

In Eights we use:
MightyOne wrote:The weekly range is the 4th smallest range of the last 6 weeks

or median from 3 weeks after we remove 2 smallest and 1 biggest of the last 6 weeks :).

TheCrumpledOne wrote:I looked at both our M5 chart and noticed that the numbering is different, e.g. your daily open is at line 09, and my daily open line is between 12 and 15, what settings should be used on my EIGHTS indicator? (see picture 5)

Added Version 13a with new MightyOne code: HERE
Last edited by salezyakuku on Fri Sep 23, 2016 6:46 pm, edited 1 time in total.
"I only see my goals, I don't believe in failure 'Cause I know the smallest voices, they can make it major"

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Re: The ideas that I trade by:

Postby TheCrumpledOne » Fri Sep 23, 2016 2:37 pm

Hello salezyakuku,

appreciate your contributions. :)

and thank you for your clarifications.
so, if below are the weekly pips from high to low:

Week 1: 200pips
Week 2: 250pips
Week 3: 320pips
Week 4: 350pips
Week 5: 400pips
Week 6: 500pips

4th smallest range is 350pips, and that is my weekly median range.

And for your example, after we remove 2 smallest (Week 1 & Week 2 above) and 1 biggest (Week 6), we are left with:

Week 3: 320pips
Week 4: 350pips
Week 5: 400pips

So, it is the average of these 3 (320+350+400 divide by 3= 356 pips) or take the middle value (350pips)?

thank you, I've downloaded and applied the latest version 13a (see picture)

thanks salezyakuku.png
thanks salezyakuku.png (46.57 KiB) Viewed 803 times


I can see the comments is very similar (see pic below). that's good. I will give more replies soon. Thanks again.

EN EIGHTS indicator setup.png
EN EIGHTS indicator setup.png (41.89 KiB) Viewed 803 times

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Re: The ideas that I trade by:

Postby salezyakuku » Fri Sep 23, 2016 2:46 pm

TheCrumpledOne wrote:Hello salezyakuku,

appreciate your contributions. :)

and thank you for your clarifications.
so, if below are the weekly pips from high to low:

Week 1: 200pips
Week 2: 250pips
Week 3: 320pips
Week 4: 350pips
Week 5: 400pips
Week 6: 500pips

4th smallest range is 350pips, and that is my weekly median range.

And for your example, after we remove 2 smallest (Week 1 & Week 2 above) and 1 biggest (Week 6), we are left with:

Week 3: 320pips
Week 4: 350pips
Week 5: 400pips

So, it is the average of these 3 (320+350+400 divide by 3= 356 pips) or take the middle value (350pips)?

thank you, I've downloaded and applied the latest version 13a (see picture)

thanks salezyakuku.png

I can see the comments is very similar (see pic below). that's good. I will give more replies soon. Thanks again.

EN EIGHTS indicator setup.png

The weekly range is the 4th smallest range of the last 6 weeks = median from 3 weeks after we remove 2 smallest and 1 biggest of the last 6 weeks.
350pips is correct value (median). It is calculated in Eights indi (Range in comments).
"I only see my goals, I don't believe in failure 'Cause I know the smallest voices, they can make it major"

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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Fri Sep 23, 2016 5:47 pm

TheCrumpledOne

) The current candles "close" is the current price.

) Risk is always a dollar amount.
If your lines are 1.2% apart and your entry is 1/3 size then your space triples (3.6%).
Push the button again and your space is 1/2 of 3.6 (1.8%)
Push the button a third time and your space is 2/3 of 1.8% (1.2%)

So, when you scale in, you are basically entering on an H4, dropping to an M5, and then landing on an M1.
Look at it as the importance that price goes up now rather than a little later.

Once you reach 3/3 then you lose very little space moving from 3 to 4 to 5 to 6, 6 to 8 to 10 to 12, etc.

) "two-wide" is a distance of two lines...it makes more sense if you are looking at one of these 2 line reversal charts:
It's a bit messy because I wasn't planning on posting it :lol: |-6 -7 -8|is the area that I marked on the bar chart.

How did I select the area? It is simply the two areas above the low of -9.
-9 to -7 is the reversal from the low and you have as high as -6 to go long.
There was a breakout at -5 and price went as high as -4 so our new entry area is |-5 -6 -7|.

You can use the same method for adding size or you can use the breakout.

USDJPY_M5_1p2%_KAGI.png


) Trust the bias.
If you are experienced and you see something different then do something different.

) "Something" is anything.
The important part is that you use it once you define it.

The only thing that is "wrong" is moving your "something" up and down in a small area while trying to interpret "above" and "below";
If your something is the daily open and you move the line to the low pivot breakout then only move the line down for the rest of the day.

) Did I miss something?
If you needed a hammer then you would reach for it without thinking & if you didn't need it then you wouldn't even think about the tool; the same with technical analysis.

USDJPYM5.png
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