ProfLogic's Method

[Logic 10]

I'll get with the programmer to send me a template for NT 6.5 and 7.0. I'll post it on here if she sends it.

 

Bill

[Logic 10]

Attached is the Template for my indicator for NinjaTrader 7.0.

 

Sorry I don't have one for 6.5.

 

Bill Schamp

ERG_PL.zip

[forrestang 10]

Some observations on the primary trend for EU with regards to this thread. I think the pic is self explanatory, so post if something doesn't make sense.

[Logic 10]

Some observations on the primary trend for EU with regards to this thread. I think the pic is self explanatory, so post if something doesn't make sense.

 

Well stated.

Price is consolidating at a long term Prime Resistance top.

Prime PPF of Resitance is the confirming oscillation of that top.

[forrestang 10]

Well stated.

Prime PPF of Resitance is the confirming oscillation of that top.

 

So when would you know? Would you consider that PPF that occurred(the major one on the right of the chart) a Prime PPF to confirm that top?

 

Or would you need to see a LL created first?

[Logic 10]

So when would you know? Would you consider that PPF that occurred(the major one on the right of the chart) a Prime PPF to confirm that top?

 

Or would you need to see a LL created first?

 

You know when the Prime Oscillation is created and that is coordinated now at the price level at 1.4627.

 

A LL confirmes the PPF (LH)

Another LH is further confirmation of the top.

Another PPF (LH) is further confirmation.

 

The Ninja Trader template I posted has both the trading oscillations and Strength oscillations listed.

[Logic 10]

Here is the intraday chart for June Crude Oil as of right now and the trades that executed.

[forrestang 10]

I have an EU chart for some analysis.

 

First let me ask, is the idea to define the trend based on HHs and HLs? I am attaching a pic showing the basic trend that everyone has understood for a while. Is this how you would go about defining the trend similar to this pic.

 

 

Also once you have that HH or LL, is the idea to then enter on the next pb once that trend has been defined as shown in the picture? Also, you are willing to take countertrend trades against the direction of the OVERALL trend, as long as it matches the direction of the current leg you are trading correct?

 

Next, just attaching a picture of the EU action currently. Right now, there was a LL put in place, now we have a HH. So does that mean this current pa is just still stagnant and we need to wait for a trend to be put in place?

 

[Logic 10]

I have an EU chart for some analysis.

 

First let me ask, is the idea to define the trend based on HHs and HLs? I am attaching a pic showing the basic trend that everyone has understood for a while. Is this how you would go about defining the trend similar to this pic.

 

 

Also once you have that HH or LL, is the idea to then enter on the next pb once that trend has been defined as shown in the picture? Also, you are willing to take countertrend trades against the direction of the OVERALL trend, as long as it matches the direction of the current leg you are trading correct?

 

Next, just attaching a picture of the EU action currently. Right now, there was a LL put in place, now we have a HH. So does that mean this current pa is just still stagnant and we need to wait for a trend to be put in place?

 

 

The annotating of your chart is perfect. Look how my chart is different. I break the indicator up to Trading oscillations and Strength oscillations. If you want to talk about it, let's SKYPE.

[prby78 10]

I don't receive Crude Oil data and am new to Multicharts, so I am having a little trouble following the chart template. Is the following correct?

 

1. The price portion of the chart is 343 volume bars with labels based on the prime trading oscillations on the next fastest chart, which would be 49 volume bars.

 

2. The second pane is the ERG and ERG histogram based on the 343 volume chart.

 

3. The bottom pane is the ERG histogram from the 2401 volume chart.

 

4. A change in the color of the ERG histogram on the bottom pane shows a change in

SHORT term strength?

[Logic 10]

I don't receive Crude Oil data and am new to Multicharts, so I am having a little trouble following the chart template. Is the following correct?

 

1. The price portion of the chart is 343 volume bars with labels based on the prime trading oscillations on the next fastest chart, which would be 49 volume bars.

 

2. The second pane is the ERG and ERG histogram based on the 343 volume chart.

 

3. The bottom pane is the ERG histogram from the 2401 volume chart.

 

4. A change in the color of the ERG histogram on the bottom pane shows a change in

SHORT term strength?

 

The template I posted was for NinjaTrader not MultiCharts.

Email me and I will send you the indicator and a template workspace for Multicharts.

(wm.schamp@pricephysics.com)

 

1. Price bars are 343 Volume Bars.

2. 2nd pane is Trading ERG & Trading ERG Histogram based on the 343 Volume Bars

3. Bottom pane is the Strength ERG & Strength ERG Histogram based on the 2401 Volume Bars

4. Change in color in Trading ERG or Trading ERG Histogram is where the primary Trade entries and Trade exits take place & specifically where Long Term Strength is confirmed from the Trading ERG.

5. Change in color in the Strength Histogram is where we see short term strength. We do not use the Strength ERG. Too long term.

[forrestang 10]

I break the indicator up to Trading oscillations and Strength oscillations. If you want to talk about it, let's SKYPE.

 

When you have an opportunity, could you further explain this?

[prby78 10]

I break the indicator up to Trading oscillations and Strength oscillations.

 

When you have an opportunity, could you further explain this?

 

Yes, please. I second the request.

[Logic 10]

Yes, please. I second the request.

 

Check above post.

I did.

[prby78 10]

Check above post.

I did.

 

Great! What was the post number?

[Logic 10]

Great! What was the post number?

 

#111

 

 

Minimum 20 character post.

[prby78 10]

Re: Strength Histogram

 

Yes, I understand where it is on the chart and what its based on, but I was hoping for more information on how it is used in your method.

 

As I recall from wading through the mess in that other forum the largest volumeframe was used to determine Primary Trend: Bull or Bear. Or am I mistaken? Does the Strength Histogram replace that?

 

I noticed that most of the trades you've shown were taken in agreement with the color of the strength histogram. So do you use the strength histogram as a filter?

 

Any insights you're willing to share are appreciated greatly.

[Logic 10]

Re: Strength Histogram

 

Yes, I understand where it is on the chart and what its based on, but I was hoping for more information on how it is used in your method.

 

As I recall from wading through the mess in that other forum the largest volumeframe was used to determine Primary Trend: Bull or Bear. Or am I mistaken? Does the Strength Histogram replace that?

 

I noticed that most of the trades you've shown were taken in agreement with the color of the strength histogram. So do you use the strength histogram as a filter?

 

Any insights you're willing to share are appreciated greatly.

 

I'm on SKYPE. It's easy to share my sreen to show you. Picture is worth a thousand words you know. Let me know if that works. Email me at wm.schamp@pricephysics.com and I will forward you my contact info. I do SKYPE every afternoon after trading.

[clmacdougall 11]

Is their an ebook available as previously mentioned by ProfLogic?

[Logic 10]

Is their an ebook available as previously mentioned by ProfLogic?

 

The email address above I killed due to spam.

Email me at trading.computer@gmail.com and I will send you the current EBook information.

[kalalex 10]

Hi Logic,

 

I just finished reading THE thread from ET and finally got some basic idea.

 

Before I could ask some questions with specific setups I wonder if you could do me a favor.

 

I took the indicator from the other site and wonder if this looks right compared to your chart especially histogram part?

 

I don't have old data and couldn't compare my chart vs yours that you posted here.

 

If this doesn't look right or if you have updated version could you please share it?

 

This chart is from 1-18-12 and time's pacific time. It's 2401 volume.

 

Thank you.

[Logic 10]

Hi Logic,

 

I just finished reading THE thread from ET and finally got some basic idea.

Before I could ask some questions with specific setups I wonder if you could do me a favor.

I took the indicator from the other site and wonder if this looks right compared to your chart especially histogram part?

I don't have old data and couldn't compare my chart vs yours that you posted here.

If this doesn't look right or if you have updated version could you please share it?

This chart is from 1-18-12 and time's pacific time. It's 2401 volume.

Thank you.

 

One thing I've found in the many years of using these charts is that real time data and historic data are different. This is why I've always stated that the key to trading is learning to read a chart and that begins with a chart constructed with Constant volume bars. You've done that . . . well done!

 

Now the indicator. Whatever indicator you use it shouldn't be confined to a range. The Sto and MACD are range bound and that is why they are worthless. Most other indicators are just as worthless for the same reasons. This is why I use the Ergodic. It is not because it is range bound not because it has some magical power.

 

Now that I've set the ground rules and explained what I learned digging through and watching over 40,000 hours of real time data, I can tell you the key. Take ANY indicator that isn't range bound, apply it to the chart, adjust it to show you the extreme oscillations and make it smooth to ease you into being comfortable with making decisions on what is shown on the chart. Then watch that chart to establish your confidence in making decision based on those oscillations.

 

The chart you posted is as good as any and if you learn to read it you will be consistently profitable. If you want to play with the parameters in your off hours to see if you can improve on them . . . go for it. That is a good way to learn the indicator.

 

Since posting that thread on that other website, I've tweaked the parameters and improved on them. I've even had a programmer create a program that will read the chart in real time. It will label the entries, exits, reverses, stops and exits in real time. It will display trade alerts on the screen and send trade and exit alerts to my email.

 

A new day is dawning.

[kalalex 10]

One thing I've found in the many years of using these charts is that real time data and historic data are different. This is why I've always stated that the key to trading is learning to read a chart and that begins with a chart constructed with Constant volume bars. You've done that . . . well done!

 

Now the indicator. Whatever indicator you use it shouldn't be confined to a range. The Sto and MACD are range bound and that is why they are worthless. Most other indicators are just as worthless for the same reasons. This is why I use the Ergodic. It is not because it is range bound not because it has some magical power.

 

Now that I've set the ground rules and explained what I learned digging through and watching over 40,000 hours of real time data, I can tell you the key. Take ANY indicator that isn't range bound, apply it to the chart, adjust it to show you the extreme oscillations and make it smooth to ease you into being comfortable with making decisions on what is shown on the chart. Then watch that chart to establish your confidence in making decision based on those oscillations.

 

The chart you posted is as good as any and if you learn to read it you will be consistently profitable. If you want to play with the parameters in your off hours to see if you can improve on them . . . go for it. That is a good way to learn the indicator.

 

Since posting that thread on that other website, I've tweaked the parameters and improved on them. I've even had a programmer create a program that will read the chart in real time. It will label the entries, exits, reverses, stops and exits in real time. It will display trade alerts on the screen and send trade and exit alerts to my email.

 

A new day is dawning.

 

It looks like you've come far since the thread in 2009.

Also it's seems that you advanced from trading just pullbacks after HH or LL (that's the basic concept I took from the other thread about your system).

 

If you think I should stick with the indicator I have and be proficient with it

could you post an ES chart, preferably 2401 volume, so I can at least have a chart to base off for comarison.

I know you said it can by ANY non range-bound indicator but it's a CONFIDENCE thing from knowing mine's close enough to yours.

[SunTrader 10]

Watching over 40,000 hours of real time data works out to - a typical long day of 12 hours of screen watching over 3333 days or 13.332 years if 250 trading days/year.

 

So unless this is covering a far greater period than 13+ years "Billy needs a new hobby and/or just see the light of day".

 

Unless a fat finger was involved in calculations. But then again you don't care for time, now do you?

[Logic 10]

Watching over 40,000 hours of real time data works out to - a typical long day of 12 hours of screen watching over 3333 days or 13.332 years if 250 trading days/year.

 

So unless this is covering a far greater period than 13+ years "Billy needs a new hobby and/or just see the light of day".

 

Unless a fat finger was involved in calculations. But then again you don't care for time, now do you?

 

12 hours per day X 20 trading days a month X 12 months a year X 15 years = 43,200 hours.

 

The first 9 years it was more like 16 hour days and that doesn't count the typical 15 hour weekends reviewing the weekly data for any errors.

 

Billy's focus was to create a consistently profitable trading program. I did. So I guess all those hours were worth it. I get a kick out of all the hundreds of traders that have made fun of my work over the years that are still trying to put a consistently profitable week of trading together. A typical neurosurgeon's time in training is well under 15,000 hours but people say I couldn't accomplish what I've accomplished with nearly 3 times the time involved.

 

:doh: