Ray Barros Method Introduction

[gassah 10]

The forum's goal is to gather Ray and his students, and anybody else who has an interest in learning his techniques.

 

Links:

 

• http://tradingsuccess.com/blog'>http://tradingsuccess.com/blog
  
• http://tradingsuccess.com/
  
• http://www.barrometrics.com/index.php/
  

 

The best way for a newcomer to learn the material is to purchase "The Nature of Trends" (NOT) and the video "The Introduction of Barros Swing", both located at the second link. He also has an upcoming five month webinar that is phenomenal, for a much deeper understanding of the methodology.

 

It's only been a year since I've studied Ray's work, out of the ten I've been trading, so I'm not an expert and hope the trader's with more experience will offer their guidance. The forum is in its infancy and I hope to open threads covering the Barros Swing, Market Profile, Market Delta, Time/Price Windows, Market Analysis, Ray Wave, etc.

 

Rob

Edited March 17, 2009 by gassah

[brownsfan019 17]

Good luck w/ the new area Rob!

 

I have not purchased the book previously, but may take a look. Found it on Amazon for anyone interested.

 

Do you know if the author will be joining the forum?

Edited May 22, 2009 by Soultrader
Post reported for affiliate link

[gassah 10]

Do you know if the author will be joining the forum?

 

He's aware of us. I hope so.

 

Rob

[skor 10]

good luck Rob...I'm sure Ray Barros gave his blessing to you (for this forum) knowing full well your more than capable to discuss his Technics.

[trader1310 10]

Hi Rob

 

Thanks for starting this. You have my full support

 

ray

[BlowFish 10]

Good luck with the forum look forward to it with interest. Another great asset for TL!

[tradalai 10]

Hi Rob

I am a STC grad and will be happy to contribute if I can.

Understanding BarrosSwings should be the first goal and will need some software - Market Analyst (http://www.marketanalyst.com) with the Barros Indicators is the standard issue used with EOD and RT data.

BarrosSwings are covered in the BarrosSwings webinar and in NOT.

NOT contains allot of info (ie) it takes time to digest

 

gl ..

[gassah 10]

Hi Rob

I am a STC grad and will be happy to contribute if I can.

Understanding BarrosSwings should be the first goal and will need some software - Market Analyst

gl ..

 

Hi,

 

Thanks for joining and assisting. In addition to MA I also have the BarrosSwings in Tradestation. They don't always match-up and I suspect the Tradestation swings are inaccurate because I think Ray keeps an eye on the MA program. ESignal is apparently having trouble with the swings presently.

 

Rob

[Sherlock 10]

Good luck w/ the new area Rob!

 

I have not purchased the book previously, but may take a look. Found it on Amazon for anyone interested.

 

Do you know if the author will be joining the forum?

 

 

Thanks for the link :thumbs up:, just bought the book. Was not aware he had written books, must be about ten years ago I came accross a quote by Ray on "The ranking of a trend" and the implications for the trading scope thereof. :applaud: :applaud:

 

That became the backbone of my trading setup although I achieved this in a different way and am only using it for intraday futures trading. I really look forward to see how he applies it all to the EOD trading. The information I got from the preview of the book already indicated to me that his line of thinking is very much in line with my own. :thumbs up: :beer:

 

Sherlock

[Sherlock 10]

Hi,

 

Thanks for joining and assisting. In addition to MA I also have the BarrosSwings in Tradestation. They don't always match-up and I suspect the Tradestation swings are inaccurate because I think Ray keeps an eye on the MA program. ESignal is apparently having trouble with the swings presently.

 

Rob

 

Will the BarrosSwings in TradeStation work in TradeStation 2000i and where can you obtain these?

 

Many thanks, Sherlock

[gassah 10]

Will the BarrosSwings in TradeStation work in TradeStation 2000i and where can you obtain these?

 

There's information here: http://www.telemetrics.com.au/barrometrics/

 

You might be able to find an unlicensed version if you do a search.

 

Rob

[Sherlock 10]

There's information here: http://www.telemetrics.com.au/barrometrics/

 

Thanks, it certainly looks like it will work in TradeStation 2000i.

 

I am waiting for the book and will evaluate what he discloses about the logic. If I decide to use it then I'll get the licensed version. ( I have been burned once by some thing that deleted all my Easylanguage stuff and took me 5 weeks to recover from. It was not immediately apparent and it wiped all my backups on hard disks and infected both my computers. Downtime was far more expensive than having to fork out the money in the first place, I will not travel that road again: once was enough)

 

Regards, Sherlock.

[Sainttjames 10]

Hi Rob,

 

We briefly emailed each other about 2 weeks ago...Just wanted to drop a note to say thanks for starting this forum.

 

I've also attached an image of EURUSD with my version of the swings in eSignal. They're not 'perfect'....but they are damn close...and after studying NOT they serve the purpose that they are designed for.

 

-james

[traderveritas 10]

Sherlock,

 

I haven't found a no-fee Barros wave indicator ELD but have been using a variation that I like quite a bit. Take a look at this thread:

 

https://www.tradestation.com/Discussions/Topic.aspx?Topic_ID=74450

 

It is a very nice ZigZag indicator with quite a bit of functionality. One of its options is to use an ATR retracement. I have plotted 3 separate instances using 2 ATR / 4 ATR / 8ATR as a replacement for Barros approach of using different day settings. Clearly this doesn't duplicate his Barros swings, but offers a volatility based view of determining the different trend levels in the markets. I am reading NOT and am working on how / if this approach synchs up with Barros.

 

Hope this is helpful.

 

Mike

[Sherlock 10]

Sherlock,

 

I haven't found a no-fee Barros wave indicator ELD but have been using a variation that I like quite a bit. Take a look at this thread:....

 

Mike

 

 

Mike,

 

I am running TradeStation 2000i and use IB as broker and am not with TradeStation securities. As such I cannot see what is written in the thread you are mentioning. Would it be possible for you to post / private message / email me the text of the *.ELD so i can convert? It surely looks promising.

 

Personally I am using something else but this may throw a different spin on longer timeframes.

 

Many thanks, Sherlock.

[Sherlock 10]

Sherlock,

 

Here is the text of the indicator. There may be some functions which need to be included but I can't say for sure which those are.

 

I haven't done this before, so hopefully this will work.

 

 

This will need quite some work to get it going under TradeStation 2000i: for startes all the comments made the whole thing too long and then i started to run into some reserved words of later versions of TradeStation, possibly version 8 or so.

 

Was still worth the experiment and if I have more time I may have another go at it as some time in the future.

 

Sherlock

[BlowFish 10]

If you want a flexible zig zag indicator you might want to look for Clyde Lees Swing_Lee_II. By changing parameters it can detect swings using lots of different methods.

 

Traderveritas it might be worth attaching the code as a text file as the forum software strips out a lot of the white space if you paste into the message.

[Sherlock 10]

If you want a flexible zig zag indicator you might want to look for Clyde Lees Swing_Lee_II.

 

Thanks for reminding me of those.

 

I looked at those a long time ago, together with the Pitchfork. Never did anything for me at the time but I'll dig them out again and will see if I can mimic the chart posted by Mike.

 

Sherlock

[BlowFish 10]

The nice thing about them is that by altering various parameters you can use a whole lot of different algorithms to determine what constitutes a 'swing'. It also has a function that prints volume on each leg. Seems potentially very useful to me though I haven't got round to finding a use for it!

[Sherlock 10]

The problem with zig zags ( imho ) is that the market can drift sideways for quite a while and you get too many false signals with resulatnt whipsaws.

 

I am more of a momentum player: when the momentum is at an extreem swing often it is an exhaustion of the move and you do a counter trend trade. However there is a fine line there, if it goes a tad further then you have moved into a parabolic move which (imho) is something you should never go against.

 

Sherlock

[traderveritas 10]

If you want a flexible zig zag indicator you might want to look for Clyde Lees Swing_Lee_II. By changing parameters it can detect swings using lots of different methods.

 

Traderveritas it might be worth attaching the code as a text file as the forum software strips out a lot of the white space if you paste into the message.

 

Blowfish,

 

I have attached the TS indicator to this post. I also apologize to all for cluttering up the thread with the inline posting. I can't find a way to edit or delete the post to clean things up. If I am missing something obvious let me know.

 

Gassah, since you started the thread if you can delete my post with the TS ZigZag indicator I would appreciate it.

 

Mike

ZigZagFibs v2.5 Rev3.1.txt

[traderveritas 10]

The problem with zig zags ( imho ) is that the market can drift sideways for quite a while and you get too many false signals with resulatnt whipsaws.

 

I am more of a momentum player: when the momentum is at an extreem swing often it is an exhaustion of the move and you do a counter trend trade. However there is a fine line there, if it goes a tad further then you have moved into a parabolic move which (imho) is something you should never go against.

 

Sherlock

 

Sherlock,

 

One of the useful things that I got from NOT recently was Barros comment that the appearance of reversals (I guess this would be the zig) in one timeframe (his parlance of the 5/18/... day swings) is a warning of a coming end of trend in the next higher timeframe. I found this to be obvious once he stated this but something that hadn't occurred to me before. In the context of the ZigZag indicator I mentioned with multiple ATR levels I now look for the lower ATR indicator to show zig-zags and start thinking that a larger ATR reversal could be in the works. I then can look to other indicators, price/volume action for confirmation and trade entry.

 

Mike

[Sherlock 10]

Mike

 

Am not familiar (yet, hope so to become soon) is the EOD and longer period trading so cannot comment on that.

 

However intraday is fraught with fake outs and these are treacherous and in my honest opinion on the shortest timeframes (let's say below 500 - 800 ticks) Barros rule does not apply.

 

More often than not it turns out to be just the high, the low or the hesistation around the open of the day and depending on the momentum those moves mean either a continuation or a reversal.

 

If you are on the wrong side then it will cost you dearly and it is a tricky business to ensure you enter at the correct side. Breakouts intraday are now a no-no in my book as the times it makes a big loss have outweighed the gains (even if these were parabolic).

 

Sherlock

[bigbird 10]

Hi,

 

I have read NOT and found it to be quite relevant to my trading. However, I'm unable to apply the techniques because I'm using the NinjaTrader platform that does not have Barros Swing. I tried programming the indicator based on the information given in the book but have met with some roadblocks. Does anyone have the source text from Tradestation or any platforms that can be shared for me to implement in NinjaTrader? I do not have Tradestation to read eld or els files directly. Thank you.

[gassah 10]

Hi,

Does anyone have the source text from Tradestation or any platforms that can be shared for me to implement in NinjaTrader?

 

The Tradestation code isn't accessible in my indicator. I wouldn't seek out the Tradestation code because it doesn't match what Market Analyst produces.

 

Rob