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walterw

The Chimp`s new "Futures Scalps"

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Lucky last pix 13 and 14.

This was a pattern where all the majors move up at once.

The exception is USDCHF which is a inverted pair, it goes down when the rest go up. If you get access to the sensible pair CHFUSD it would be easier to use because it would go up when EURUSD goes up. Anyway thats the reason you may see me going short in USDCHF and long in everything else.

Trading is about working, there are no shortcuts.

Happy Hunting

Bruce

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Oooops! I hope that The Chimp is not angered with us by to have soiled this subject of futures with forex, jeje. :embarassed: But your answers are very useful, PYenner, thank you very much. Excellent information in your post #94. :thumbs up:

 

I guess you should open a thread about these researches...

 

Agustín

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Hi Cattus, Hi Pyenner... very interesting info... no problem with postings, we are not that strict, otherways it would be imposible to do all what we did so far... flexibility is a good policy sometimes...

 

Cattus : I DO trade centripetal trades, actually thats my expertise in futures, but I do it in a diferent graphic context, you may want to check this threads :

 

http://www.traderslaboratory.com/forums/f34/the-false-break-trade-1994.html

http://www.traderslaboratory.com/forums/f34/the-lazy-trade-1942.html

 

so far I trade with this charts, using keltners and regular cci.... Now this new graphic context looks good, so I may start doing some live trades with it, I actually already did some...

 

 

I share Bruce perspective in the selection of pairs for forex... so far I am on Eur/Jpy for my research as it has a nice range and at least with EFX, spread goes from 1 to 3 pips, so its a very nice pair to get a good scalping strategy runing...

 

take care Cattus and thanks Bruce for the good info ¡¡ Love to hear your scalping results ¡¡ cheers Walter.

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Cattus

The results look better than they actually were, there was a lot of drawdown allowed in those trades which is how I avoided taking losses, but it is seriously stupid to allow big drawdown. So they are actually a bad example of how to trade. But I have wanted to post sometime for a long time that shows fx really can be traded, which many people doubt. So fx is for real and so is Walter a for real trader.

Unfortunately the market still has hard lessons to teach about defects in your thinking and in your understanding, so I still take too many losses in the real world. Thats why I am here learning better entry timing and better thinking from Walter.

 

Walter

Thanks for your tolerance. My live trades are done in Australian time which is 13 hrs ahead of gmt and further ahead of est, so its too much work to present the trades as examples, plus I mix a more aggressive style with your safer style, discretionary. But it has been going like 4 trades for 20 pips on a modest day, up to 12 or 20 trades when the markets are moving like the good old days and thats when it gets to be fun, in sync with the moves...

Your 5min/1min entry is a major asset that allows for clean fast low stress trading. I always assumed that later entry meant less profit but it is giving a far more consistent entry that also lets you stop out quick if it doesnt look to be developing as it should. Has me wondering why I ever wanted to trade any other way. Thank you.

 

Bruce

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Cattus

The results look better than they actually were, there was a lot of drawdown allowed in those trades which is how I avoided taking losses, but it is seriously stupid to allow big drawdown. So they are actually a bad example of how to trade. But I have wanted to post sometime for a long time that shows fx really can be traded, which many people doubt. So fx is for real and so is Walter a for real trader.

Unfortunately the market still has hard lessons to teach about defects in your thinking and in your understanding, so I still take too many losses in the real world. Thats why I am here learning better entry timing and better thinking from Walter.

 

Walter

Thanks for your tolerance. My live trades are done in Australian time which is 13 hrs ahead of gmt and further ahead of est, so its too much work to present the trades as examples, plus I mix a more aggressive style with your safer style, discretionary. But it has been going like 4 trades for 20 pips on a modest day, up to 12 or 20 trades when the markets are moving like the good old days and thats when it gets to be fun, in sync with the moves...

Your 5min/1min entry is a major asset that allows for clean fast low stress trading. I always assumed that later entry meant less profit but it is giving a far more consistent entry that also lets you stop out quick if it doesnt look to be developing as it should. Has me wondering why I ever wanted to trade any other way. Thank you.

 

Bruce

 

Hi Bruce.

 

I have experimented in forex something like you as described for it. The market always have the reason... it is hard to learn this...

 

I supposed that your results on that period occurred because you did not put stop losses, but it is very different in a real account, we fall in panic if we do not put them... anyway, you experimented with good systems, only you needed to optimize them... and the master to do that is here: hello Walter! I am experiencing much improvement in my operations with the lessons of Walter... thanks buddy :thumbs up:...

 

Anyway, you Bruce has a good inputs to us about the characteristics of the pairs that it is a good idea to hear it experiences of you...

 

 

And thanks for the tolerance Walter... I am thinking about speaking also a little of futbol here... you know, Boca, River, Tigres... jeje :o

 

Saludos....

 

Agustín

 

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Walter

Should have said that it is your expansion entries that seem to deliver the clean consistent trading, just as you say. Sometimes pullback or icon entries are good too but when the pullback is messy I tend not to trust them for a clean entry, so maybe one trade in 4 is a pullback type entry that looks clean, most are early expansion type entries, depends on the strength of the day.

Bruce

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I have experimented in forex something like you as described for it. The market always have the reason... it is hard to learn this...
Exactly. Having 10 pairs to make sense of is hard, when you get your wires crossed it hurts. Like you, I seek the reasons but I am only half way there, need to reduce the complexity before the trader can use it without shooting himself in the foot too easily.
I supposed that your results on that period occurred because you did not put stop losses, but it is very different in a real account, we fall in panic if we do not put them... anyway, you experimented with good systems, only you needed to optimize them... and the master to do that is here: hello Walter! I am experiencing much improvement in my operations with the lessons of Walter... thanks buddy :thumbs up:...

Exactly, it was an experiment done without stop losses to mess up the picture. It could only be done with a large demo account. It is unrealistic for a small live account, that is why it is not good to post those records. Thank you for understanding.

Bruce

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Exactly. Having 10 pairs to make sense of is hard, when you get your wires crossed it hurts. Like you, I seek the reasons but I am only half way there, need to reduce the complexity before the trader can use it without shooting himself in the foot too easily.

Exactly, it was an experiment done without stop losses to mess up the picture. It could only be done with a large demo account. It is unrealistic for a small live account, that is why it is not good to post those records. Thank you for understanding.

Bruce

 

 

Thank to you, Bruce. Good commentaries yours.... :)

 

Agustín

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a nice indicator that shows very small lived divergences is BOP (Balance of Power) .

 

Hello Walter;

would you please post the BOP indicator, as implemented by ninja trader?

 

Take care.

Unicorn.

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And here some videos recapping some of todays trades... hope it brings more light...

 

Very nice presentation Walter; THANK YOU. :thumbs up::thumbs up::thumbs up:

 

By the way; on the charts you have adxvma(2,1,sma) and adxvma(6,1,ema)

 

I realize that the first number after the parenthesis is the adxperiods.

what is the second number, and what does the sma or the ema average?? :confused::confused:

 

And I do have a request for the video director and producer:

PLEASE let the time axis be shown in the chart window;

it is difficult to reproduce the chart if one does not know the time of day. :pc guru:

 

Looking forward to the next video;

 

cheers.

Unicorn.

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Very nice presentation Walter; THANK YOU. :thumbs up::thumbs up::thumbs up:

 

By the way; on the charts you have adxvma(2,1,sma) and adxvma(6,1,ema)

 

I realize that the first number after the parenthesis is the adxperiods.

what is the second number, and what does the sma or the ema average?? :confused::confused:

 

And I do have a request for the video director and producer:

PLEASE let the time axis be shown in the chart window;

it is difficult to reproduce the chart if one does not know the time of day. :pc guru:

 

Looking forward to the next video;

 

cheers.

Unicorn.

 

Glad you like them Unicorn, the number 1 means I am not using the signal line there...

 

I will check on that area of the videos... take care, cheers Walter.

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Unicorn

I may be wrong but I think BOP was written for use on volume charts only, not for time charts. It may not be portable if ami does not have volume charts. Not sure sorry.

Bruce

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I attach NT formula...

 

Thank you Walter. The ninja trader uses sma smoothing of the raw BOP values.

 

I was using ema smoothing.

 

Now I will follow your BOP divergences better.

 

regards.

Unicorn.

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I may be wrong but I think BOP was written for use on volume charts only, not for time charts. It may not be portable if ami does not have volume charts. Not sure sorry.

 

Thanks Bruce; I have not come across that point of view.

 

I have some additional information though;

 

given that the bop formula is

if (H>L) x = (C-O)/ (H-L) ; else x=0;

bop = ema( x, ema_periods); or bop = sma( x, sma_periods);

 

 

if you have volume data, you can compute the accumulation_distribution Oscillator

 

acc_dis_Osc = ema( (C-O)/ (H-L) * V, ema_periods) / sum(V, ema_periods);

 

Walter, could you plot that as well on your charts, to compare which one is better for spotting divergence, the BOP indicator or the accumulation-distribution Oscillator?

 

I know we do not want to be indicatorists, but the concept of divergence itself is based on comparison to an indicator's values, be it momentum, trend or volume indicator.

 

Take care.

Unicorn.

 

NB. Amibroker can handle volume charts.

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Walter, could you plot that as well on your charts, to compare which one is better for spotting divergence, the BOP indicator or the accumulation-distribution Oscillator? .

 

Hi Unicorn.

 

Did you ask to Walter for this kind of example?

 

I think that would be great that you download the NinjaTrader, because with your knowledge you could help to evaluate this software...

 

Regards.

 

 

Cattus

5aa70e236a9f4_ExDivEURJPY.thumb.png.c56f06b9231c4c3b74c8531d46a754a8.png

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Thanks Bruce; I have not come across that point of view. Amibroker can handle volume charts.

Unicorn

MT4 does not have volume charts, so my thinking was that if emas are to be implemented properly with volume in MT4, then the ema step period has to be based on a 22 tick bar (say) not on a 1min bar interval.

If that is not done, some of the benefit of a volume chart gets lost when you use MAs. Now I don't know if the internal MA functions in either AMI or NT are smart enough to do that, change to volume bars when used on a volume chart. I get the impression that NT might be doing that. It was just a cautionary thought that went thru my head.

It may impact on the effectiveness of BOP in volume charts versus BOP on time charts, got the impression it was intended for volume charts.

 

Thanks for the info, as you say ema should be better than sma.

Bruce

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Cattus : I DO trade centripetal trades, actually thats my expertise in futures, but I do it in a diferent graphic context, you may want to check this threads :

 

http://www.traderslaboratory.com/forums/f34/the-false-break-trade-1994.html

http://www.traderslaboratory.com/forums/f34/the-lazy-trade-1942.html

 

Hi Walter.

 

I will read those threads.

 

Thanks.

 

Agustín

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It may impact on the effectiveness of BOP in volume charts versus BOP on time charts,

 

Good day Bruce;

only a test by Walter comparing the volume chart to the tick chart and the effectiveness of the BOP can tell that.

 

Thanks for the info, as you say ema should be better than sma.

 

I just pointed out that my using ema smoothing resulted in different values from Walter's BOP values (using sma smoothing). I have not compared the divergences yet.

 

By the way I have posted a message on " The Chimp`s "Forex Trades" " thread, that should interest you; heck it might keep you a little busy; :):)

 

 

Take care.

Unicorn.

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Did you ask to Walter for this kind of example?

 

Yes Cattus, Thank you.

 

is that the accumulation-distribution_oscillator(14) at the bottom (ADL)? it is usually shaped a lot more like the BOP; sometimes it shows a better divergence. Need more time evaluating it though.

 

I think that would be great that you download the NinjaTrader, because with your knowledge you could help to evaluate this software...

 

I am not using NinjaTrader, but I do read the code, at least I understand it enough to notice the difference in indicator implementations.

 

Take care,

Unicorn.

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Yes Cattus, Thank you.

 

is that the accumulation-distribution_oscillator(14) at the bottom (ADL)? it is usually shaped a lot more like the BOP; sometimes it shows a better divergence. Need more time evaluating it though.

 

 

 

I am not using NinjaTrader, but I do read the code, at least I understand it enough to notice the difference in indicator implementations.

 

Take care,

Unicorn.

 

Hi Unicorn.

 

I attached a pic about the ADL box. And also, the text of the code. I can not find if the ADL is 14 or it have other number. May be you can distingue it better than me.

 

Cheers.

 

Cattus

ADL.thumb.png.3faae9d6c1d582d93e97ef798cb10596.png

ADL code.doc

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Unicorn : so far BOP outperforms ad and chaikin... remember to take care on momentum conditions, as they may diverge and then still keep going on the same direction... counter trend trades demand good momentum discernment skills... cheers Walter.

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I attached a pic about the ADL box. And also, the text of the code.

 

Hi Cattus;

 

this is the accumulation_distribution Line, a summation of the value since the beginning of the chart. It is not the oscillator; that's why it does not require the 14 bar input.

 

It is also a different from the BOP based computation because it uses

 

((Close- Low) - (High - Close)) / (High - Low) * Volume

 

instead of

 

(Close- Open) / (High - Low) * Volume

 

 

regards.

Unicorn.

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Hi Walter.

 

I will read those threads.

 

Thanks.

 

Agustín

 

Cattus, thats what I actually trade live... I just dont post any more those so I can get my focus here on the forum into new stuff... cheers Walter.

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