Walter`s Forex "Trend Trades"

[momentom 10]

Thanks z

At least no one is telling me off for saying "8 period ADX" is actually 15 period ema, not yet anyway.

 

Are you saying that each line of the rainbow is an ema that has been smoothed by a 15 period ema?

[PYenner 10]

Ema may be the worst option, largely ignores older data.

Wma or vanilla ma might give more weight to older data and need fewer periods?

[PYenner 10]

Are you saying that each line of the rainbow is an ema that has been smoothed by a 15 period ema?

Line 1 = Black = 2 period ema

Line 12 = Green = 24 period ema

Line 49 = Magenta = 100 period ema

 

But... the price for all of these is "VarMA"

Still sorting out how Price=VarMA is put together.

The intermediate stages in making up VarMA seem to use 15 period ema.

It may be more like there is an array of 15 period ema prices, one for each bar.

Line 1 takes a 2 period ema from that array.

Line 49 takes a 100 period ema from that array.

An ema of an ema, modulated is one word for it.

But there is also conditional stuff that gives the flat region.

[PYenner 10]

Line 1 is like a 16 period ema of close prices.

Line 49 is like a 115 period ema of close prices.

[PYenner 10]

The underlying reasoning may not have been reasoned out.

Just hit or miss, trial and error. Plug n Play.

[walterw 10]

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.

[PYenner 10]

Its doubtful if taking an ema of an ema achieves anything.

Maybe someone forgot to keep it simple.

[PYenner 10]

Trying to sort out the wheat for the chaff...

Agree, the flat area is major.

[walterw 10]

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

Icon on VMA.swf

[walterw 10]

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.

[walterw 10]

 

My solution so far is an entry into the 6th colour band of the rainbow on the 1 minute chart - CYAN in my case - as my profitable exit.

 

 

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.

[walterw 10]

Re: Exits

Great stuff Walter as I said.

 

May I offer this comment. As an ex floor trader, my big problem since leaving the floor over 15 years ago is staying in a trade long enough even though I am a scalper. Exiting on the re-entry into the rainbow of the 1 minute chart looks like exiting very early. That's OK if there is a quick re-entry but there is often not. Maybe a little more optimisation could help here.

 

I tried using ATR stops at first to help me out but looked to the rainbow for a proper solution wanting to remain faithful to your concept.

 

I then looked at each band according to its colour to try and match the ATR.

 

My solution so far is an entry into the 6th colour band of the rainbow on the 1 minute chart - CYAN in my case - as my profitable exit. I have only eyeballed this and have not done a proper backtesting - needs some decent programing in MultiCharts.

 

What do you think?

 

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.

 

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...

[walterw 10]

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

[walterw 10]

My four "VMAR Icon" trades today...

 

I think charts talk more than a thousand words... cheers Walter.

[walterw 10]

And a short video about them... cheers Walter.

4 trades today.swf

[Armand 10]

Very nice Walter...clean, simple and more than 5 pips! Thanks for sharing this...Armand

[walterw 10]

Very nice Walter...clean, simple and more than 5 pips! Thanks for sharing this...Armand

 

 

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.

[momentom 10]

These exits are quite difficult but very important.

 

Your small sample size does look good but I'm not confident in THE EXIT until I see at least 100 trades on each of, say, 4 different pairs.

 

I had a look at THE EXIT on less correlated non FX markets and it did not work well as many markets move sideways on the 1 minute after the break and you would be stopped out just before the real move began. Perhaps looking at non FX is a mistake and perhaps THE EXIT is OK with only FX. The entry methodology is so nice with any market and I, for myself, would like to see a generic exit that also works with any market. I think Guppy had some that may be worth looking at. I will on the weekend.

[ztrader 10]

igorad has just converted and posted his MT4 version of Fantail VarMA at TSD

 

Take a look at his snapshot.

 

ENJOY!

 

z

[momentom 10]

Here's a template I did for Ninjatrader Fantail. It uses NT studies that are there and creates the Rainbow. Let me know please if you find any anomalies.

FanTail.zip

[ztrader 10]

Here's a template I did for Ninjatrader Fantail. It uses NT studies that are there and creates the Rainbow. Let me know please if you find any anomalies.

 

Thanks momentom. I will keep you posted.

 

z

[PYenner 10]

Z

 

Amazing effort from Igorad.

There are similarities and differences, still its a big chunk of work done.

[ztrader 10]

Z

 

Amazing effort from Igorad.

There are similarities and differences, still its a big chunk of work done.

 

Yes, he did and yes, it is a good start. We can modify from what he has done. Because of my trading style and system of scalp n trend [with due respect to Walter's Trend Trades], I have already done a modified stripped version of it to suit. It has already cranked up over 150 pips on GJ short earlier. Thanks Walter.

 

ENJOY!

 

z

[walterw 10]

igorad has just converted and posted his MT4 version of Fantail VarMA at TSD

 

Take a look at his snapshot.

 

ENJOY!

 

z

 

Hey Z ... now we got it on the right platform ¡¡

 

Yes, he did and yes, it is a good start. We can modify from what he has done. Because of my trading style and system of scalp n trend [with due respect to Walter's Trend Trades], I have already done a modified stripped version of it to suit. It has already cranked up over 150 pips on GJ short earlier. Thanks Walter.

 

ENJOY!

 

z

 

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.

[walterw 10]

Here's a template I did for Ninjatrader Fantail. It uses NT studies that are there and creates the Rainbow. Let me know please if you find any anomalies.

 

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.