walterw

Hi Don... its diferent... so far till now I dont get the same horizontal effect as on VT.. but it is quite similar and the overall performance its good... obviously I am still in favor of optimizing this formula to emulate 100% the VT one... I dont know if someone is still working on this endeavour... cheers Walter

Today I will show some trades we could had taken... did not trade real time as I was experimenting between platforms VT and MT4 with Igorad version of VMAR for MT4 Here are the 5 min charts on MT4... you can see 2 nice clean "VMAR Icon" trades going on.. on the 1 min chart we can see how timing could be done on the MT4 version... the emas are slower than VT version so my traslation of the thick darkgreen line on VT happens to be the Thick Yellow line on MT4... entries where at the cross of black line to darkgreen line and exits was cross of bars to the thick yellow line... That would be a first possible reading on the MT4 version... cheers Walter.

I notice Igorad`s version for MT4 is more responsive than the VT version, wich could have its edge for timing on 1 minute... we will see as tests go by... what I like is that VMAR`s do rock ¡¡ cheers Walter.

I am testing VMAR on MT4 and Ninjatrader... So far they look quite similar... but unfortunately they still dont get near to the original VT horizontal plot performance... Any thoughts how to get to the exact match ?... thanks for all the great efforts ¡¡ cheers Walter.

I will test this today Momentom... thanks for all this great interaction ¡¡ about exits I will also agree with you that it may vary on diferent instruments... so far the last exit definition I posted actually was done on AUD/USD... wich fits perfect... probably the trader should had to make some visual testing on wich "color band" fits best for certain pair and use THAT level for his exits... that could be a simple way of determining exits levels.... cheers Walter.

Hey Z ... now we got it on the right platform ¡¡ About modifications Z and other followers... please do as much as you want ¡¡ I will love to see what new things will come out from this core VMAR idea ... even myself I am doing some modifications... so feel free to post ¡¡ 150 pips its not bad uhu.. jejeje.. thats the fun of trading ¡¡ cheers Walter.

Yes Armand it has the edge of shooting for some more pips... wich is able to give you a better relation with forex costs... glad you like it ¡¡... cheers Walter.

And a short video about them... cheers Walter. 4 trades today.swf

My four "VMAR Icon" trades today... I think charts talk more than a thousand words... cheers Walter.

Armand : you can use the T3 average there... try with a setting 5 or lower.. it will look very simlar to the Linear reg curve... with the CCI you can put 7/3 and only plot the signal... if you cant unplot the original, your signal would be your "CCI"... Mini Icon is nice, problem with it is forex costs... you need more larger moves to absorve their costs even on an ECN broker... thats why I evolved to a larger icon like the one I am presenting on the new thread... still for educational purposes this mini icon is a very nice excercise... Keep that up Armand I see you are doing some homework jejej... cheers Walter. whatever else you need just ask...

Here goes a short video about my revisited new "exit definition" I just like it a lot ¡¡ it makes my life much simplier to have one only exit definition... we will call it "The Exit".... cheers Walter. New Exit Definition.swf

Momentom : I did some more research today on this "exits" issues... I know I need to revisit my exit definition because I find to small the "scalper exit" as previously presented and to large the "traders exit".... looking at your input I find it very valuable... still this 6th band will not be much diferent to the "traders exit" wich is quite long... will work very well under momentum conditions but will give a lot of neutral results under low momentum conditions... Now Looking more charts today and I did 4 nice trades today :thumbs up: , even made real time videos but they got too large sized lol.. (will now post pictures of the trades) I came to some more interesting exit definition that could be THE EXIT... instead of having various exit alternatives that starts making definitions to complex and go against our simplicity target... This new optimized exit definition could be the bars themselfs crossing the thick darkgreen line... Below I post the exits of my four trades today all winners... So this could be a more medium term exit that could promediate my previous two exits definitions into one... Should we call it "The Exit" It would be the cross of the bars to the thick Darkgreen line... these are the small tweaks I was talking about and NO I will just do it on this same thread... cheers Walter. PD: Please Remember that this is still an open reasearch process... ALL INPUTS ARE VERY WELCOME...

This is a first nice example on how we can optimize our exit definition... I think Momentom you are on the right track here, as it will be able to take more decent profits on a move.. cheers Walter.

At this point this thread has presented the basic structure of a trend trade with the first basic readings of the VMA rainbow with its particular edge... Also we had presented the "surefoot" icon trend trade combined in the VMA rainbow aproach... Like a sinfony we presented the "leitmotif" and will try to keep posted on it here on this thread... On the other hand the sinfony can start showing its "Variations" this small tweaks that actually are optimizations from a core optimization... Could this Hack the simplicity of the overall aproach ? it may do so... thats why any variation to this basic aproach I will deal with it on diferent new threads so we dont get any mambo here... So basicly here I will keep adding examples of the above aproach presented, interactions on how we can optimize this core aproach are very welcome ¡¡ and I think more brains in a network fashion work better than one... only that my paralel research on variations will be presented on new threads... so I can keep this work here more clean and clear... I dont want to diminish the value of the above presented on the process of showing potential variations... The fact that we can optimize this doesnt mean that we dont have already something with its own value... so thats a small brief on how the future research process will be handled... cheers Walter.

And here a video about Icons on the VMA Rainbow... cheers Walter. Icon on VMA.swf

You guys amaze me ¡¡ so far cloned charts look interesting but must admit the obsesive horizontal effect still doesnt get that close... remember that this horizontal effect is our edge on this ecuation... I aprecciate so much your collaboration efforts ¡¡ I know we can get this formula with all its potential... someone would ask me why not just using VT platform, well unfortunately just yesterday I got 5 disconections events... lol for this guys, they should seriously get some upgrades on their system... on the other hand their forum is deserted... kind of very unsupported comunity, thats why Mt4 would be great... cheers Walter.

So how to read an Icon on a VMA rainbow context... Very simple, remember we are trading from a 5 minutes chart so we focus on that main time frame to find our "iconic trend trades"... On the below chart you will notice some icons being formed arround the VMA Rainbow... sometimes during the first intention move (cross) we still dont have the black line on the proper side of the magenta... but price action speeks for himself... he crosses with energy the magenta line, pullbacks to this rainbow and then he is ready to travel... he has the potential of an "entire" move... You know how many icons from the vma rainbow you have per week ? by the dozens.... I want 20 bucks per week/contract... can you become enough disciplined just to take Icons ? well let me tell you they are "surefoot" trades because in the worst scenario you will get a very tight stop against a great potential on this trades... so that is the most "surefoot" trend trade on our aproach... taking the icon from the begining of a prospect move... cheers Walter.

I will have to agree with you momentom on the implemetation of a little more tolerance like taking a slower ema for closing positions... actually thats the idea here to make some interaction about this issues...and I would love to hear what results some manual backtesting would give you... obvioulsy my scalper exit is really that... its a quick scalp... I am working on a paralel aproach that will be 100% aimed for scalpers but I think I want to finish presenting all this before getting into that, even opening a diferent thread for that scalping variation will be more organized... Thanks for interacting momentom... had you seen any setup this evening ? cheers Walter.

For some of you who already had been following some other of my threads... you might be already familiar with my "Icon" trade pattern... well actually its not mine... its old as TA... I only just revisited and tried to show on diferent presentations, some threads that deal with it are this http://www.traderslaboratory.com/forums/24/walter-s-first-forex-research-various-1916-2.html other from a scalper view http://www.traderslaboratory.com/forums/f24/the-mini-icon-trade-2147.html here I did use this classic pattern on diferent contexts... Once again let me explain what an Icon is.. An Icon is the first continuation after a cross... Very simple pattern that is present in all the fractal structure of the market... if we had to describe its formation we would say we have a 1rst intention wave, take a little brake and resume on the same direction... Now that we are talking about "trend trades" the icon is a form of trend trade... but the true edge of the Icon relies on the fact that he is situated on the begining of a move... not on an old instance of a trend but on a prospect bran new move ahead... There is no guarentee that the move will develop, but you clearly know you are on the best spot if the move will actually do so... Thats what the Icon can do for you... he can select the best places for our trades, we can become more selective as we take an "iconic trend trade"... So let me expand on how to read this Icon on the context of our VMA rainbow... on next post cheers Walter.

That would be great man ¡¡... thanks for your help... cheers Walter.

So I step here into the "surefoot" trend trades... Lets start by using plain logic... when do you have more probabilities of traveling more distance ? when you "start" traveling or when your journey its at half way or when its about to finish ? well sounds stupid question uhu ? the answer its simple... when you "start" traveling you have more probabilities of traveling more distance... This is a plain true that some traders actually dont understand... why ? there can be lots of answers for that... maybe the most classic would be this :they dont know really on what stage of the journey they are situated... other they do know but greed its so bad they cant help it... BUT here statistics will play a great roll in favor of those that will only play from the start and not from old trends... The temptation is great sometimes as the reasonig you may argue is, there is great amount of strength... this will keep going UP ¡¡ I can make more $$$$ I will be so much richer if I keep trading on this magnificent super move... Walter says there is momentum ¡¡ (he also warned about exhautions)... so this game of compulsive proportions many times finishes playing against your most valuable interests... Man in his human nature does that over and over again... he plays against himself, he is expert on that... will you let that natural aspect also play on your trading ? So I know we may difer on this opinion with some fellow traders.. but so far in my experience.. playing from the start of a move is more conservative than playing when she is quite possibly exhausted or already not that fresh... I continue on next post... cheers Walter.

At this point of the thread we had covered this definitions from a "Trend Trade " : To open position : _Trend Definition _Pullback Definition (dips and rallys) _Timing Entry Definition To Close Position : _Stop Definition _Exit Definition We explained the simplicity and optimization we had been able to get thanks too the VMA rainbow... wich I consider it a very powerfull indicator... Now this "trend trades" have some tricks in terms of selecting the ones with the most potential success... you DONT need to trade all the setups you see... its better to be selective and trade the best ones, the ones that offer more potential of success... For example let me make you reason on how you can work so little every week (being selective ) and have a very decent lifestyle trading forex... if you make (like my target) $20 per contract/week with 5000 contracts (low volume on forex) you can make 400k per month... not bad for any normal lifestyle... so why bothering trying to trade everything ? its much more smart to focus on the most classic trades... I call them the "surefoot" trades... on the next post I start talking about the "surefoot" trend trades... cheers Walter. PD: any conventional "Tokyo Gang" member should be able to make without any stress this monthly figures :hmmmm: anyway if you manage to make 5 digits you will be accepted jejeje

And a short video on Stops... cheers Walter. Stops.swf

So now I have to talk about _Stops ... and with that definition we basicly would had covered the entire presentation of the classic structure of a trend trade... Stops for me at least is the absence of the original argument for wich you opened a trade... in simple terms, you opened a trade because you had an argument, that argument disapeared, why should I still be on the trade ? Staying because of hope, tolerance, balls... bla bla bla its not really intelligent if actually your argument clean disapeared... If you get disapointed maybe its time to mature and understand that you have to love them, show them your apreciation and greatfullnes to stops, as they are responsable for your survival on this bussiness without them chaos and defeat is present... stops are our friends, and friends some times can give you some headaches... still your friends... So let me give you an example of a stop criteria that for me makes sense... if crossing the black line to the darkgreen was my entry... the oposite cross its telling me that things just did not work.. so get out. On this example I probably would not had taken this trade since I dont like the potential "exhaustion" as I already explained on previous post.. but lets say for example I went long on our Timing entry criteria... well the oposite cross would tell us that the argument for wich I took the trade its not any more there, there are no more reasons to stay in the trade and your friend mr Stop keeps your equity protected from a real serious drawdown in the case you become stupid enough to stay inside... So that would be in this case my stop definition... cheers Walter.

Glad to hear that Don ¡¡ Hi Derek, glad you like this thread... about Bemac`s formula I had open this thread on TSD http://www.forex-tsd.com/indicators-metatrader-4/9423-fantail-vma-mt4.html asking for help coding into MT4 ... I hope some charitable coder can help us... so we can have it on MT4 wich is a much more friendly platform... in that thread you can see Bemac`s formula being posted... so far here Blu-Ray has been able to code it into TS... so I think he is more enlighted into how the formula really works... cheers Walter.