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JohnTaylorHK
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Hi guys, Whilst it is very nice to have the rules laid out like this, there is one very important fact that is often missed when discussing any "wave" theory details, and that is the accuracy of the ZigZag algorithm being used. The only non-subjective ZigZag algo that I know of is Zeiss' Fractal Wave Algorithm (FWA), which underpins Dow theory, upon which most if not all of this work is based. Now FWA is notoriously difficult to program, and there are many "programmer decisions" to be made. All of which again lead to subjective ideas of what a ZigZag is, and hence how the waves themselves are formed. This is one of the few pieces I have seen that makes the point that "mean follows price" and NOT (by definition) the other way round. This, of course, questions all mean reversion strategies which seem naive in light of this fact. Best John (Manila)
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Hmpft! Will try again with the attachment, problem with the "upload button" not being on the screen :haha:
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Hi Larry, thanks for the great insight! My studies have shown that volume is more fractured than I first thought, in that 70% of the volume may be concentrated in several disparate areas. In this case (I attach the current EURUSD 1 day volume heat-map), how would the rule apply. FYI, I use this to show points of support and resistance, and don't usually display the colors, just the lines at which volume changes by a significant percentage. Further to your post, what action do you recommend if price is within the zone, since there is no directional information at this point (is we treat the zone as an attractor then the play is obvious). Best John
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Introduce Yourself Here - Don't Be Shy!!
JohnTaylorHK replied to trading4life's topic in Beginners Forum
Was this a charge for verifying some documentation? -
Stop! The biggest (and only) question in forex is which way the price is going. If you think it will go down, sell, if you think it will go up, buy, else do nothing (stand aside). Whether you study technical charting, fundamentals, both or neither, you will only make money if the price goes your way. Binary options are no different, except you either lose your stake, but only get back say 80% of your bet if you win. You also typically have to take bets offered within a particular timescale, whereas in retail forex, your other choice, your timeframe is open. You can cut your trade to avoid losses, or let it ride to improve winnings. Pleas,please,please take the time to study at least the market basics first, there are many sites that have such info, including traders lab. Take also a peek at Forex Trading Online: Foreign Exchange (FX) Trading | Currency Trading, do some papaer trading, get used to the chosen platform, then commit real cash. Best of luck! John
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Hi JT, You may consider some poker-based rules that a lot of folks use: 1. When your account reaches 50% profit, withdraw half of that profit. 2. GOTO 1 You will see that your balance increases, but that, within a few iterations (4) you safeguard and return your capital. If you maintain 2 accounts with the same broker, and are confident they won't automatically fund margin calls from this account, then simply transfer this money to the "holding" account. If not then you will pay transfer charges. e.g. start with $1000 BF Profit Bank CF Holding 1,000.00 500.00 250.00 1,250.00 250.00 1,250.00 625.00 312.50 1,562.50 562.50 1,562.50 781.25 390.63 1,953.13 953.13 1,953.13 976.56 488.28 2,441.41 1,441.41 2,441.41 1,220.70 610.35 3,051.76 2,051.76 Best John
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Smoothing Color Change in MA Signal Line ?
JohnTaylorHK replied to Aston01's topic in Technical Analysis
Hi Aston, I have been using a heat-map approach to determining support and resistance for my grid trading application. This technique could be adapted to MAs, Please see my last blog post here and then PM me if you are interested in pursuing. Best John -
Going Live but Not Wanna Use Tradestation
JohnTaylorHK replied to feng2088's topic in E-mini Futures
Happy to help you port the system to another platform, just PM me Best John -
Software to Calculate/Chart Correlation from Streaming Data?
JohnTaylorHK replied to maxplanck's topic in General Trading
I have implemented this in MetaTrader. The correlation was actually from the same price series, trying to find patterns that repeated and then capitalising on what came next. Results were inconclusive, mainly due to the other external factors you mention. -
Unfortunately, unable to vote in the poll as there is not "Yes I have read it and found no benefit". Ingot54, what you say about market manipulation is 100% on the money.
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Trading live is different to paper trading. This is largely psychological, but there are a few mechanical differences in the way demo servers behave versus live servers. My suggestion would be to analyse every trade against your strategy: - Was it entered according to a plan? - Was the entry point correct? - Was the exit point correct? If you are not making a 2:1 win to loss after 6 months, reconsider your strategy. If you are making a 2:1, and still losing money, then your exits or stops would be suspect. Analyse your trading signals. Would the entries get you in at a disadvantageous price, whilts looking good on the chart? Similarly for exits. Do you use market orders or limit orders? If the latter, consider the former. If you are sure of the setup, limit orders are proactive, market orders reactive. My first big losses came in futures trading, which caused me to step out and paper trade for almost 18 months. Remember 90%+ of day traders are not successful in the long term. Early success leads to overconfidence. Early failure leads to the feelings you have right now.
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Strategy B has worse performance since it took longer to make the same amount of money
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Would you rather lend your cash to someone for a week to earn $100, or to someone else for a month. Lending for a week only means I can get a risk-free return for the other free weeks, and is hence the more rewarding strategy.