Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Rande Howell

The Trader's Journey of Self-Development

By Rande Howell, in Psychology

Recommended Posts

Rande Howell    10

Rande Howell
Posted

The Mindset That You Brought into Trading

is NOT the Mindset That Will Bring Success in Trading

 

The Journey Begins – Stumbling Out of the Starting Gates

 

Traders begin the journey into trading with high hopes. They believe, with good training and enough screen time, they will be able to master trading and achieve their dreams through trading. They practice diligently in simulation, back-test their methodology, and/or use a trading organization’s “near money” until they clearly see that they can win at this game with their own money. Confident from their past experience of hard work and ambition having paid off in the past, they assume this ethic will lead them to success in trading also. Methodically, they have trained themselves to achieve their dreams.

 

Then they start trading live. Anyone who has been around trading for a while knows the war stories. The stories of blown-up accounts and the slow bleed of a thousand small cuts litter the landscape of the journey into trading. After the losses, fear takes up residence in the trader’s mind and self-doubt becomes the invisible partner riding herd over the trader’s mind. Even when they have a winning streak, they end up getting over-confident and giving back all their profits – and more. Somewhere the trader’s mind gets hijacked by fear or euphoria and an efficient trading mind is no longer in charge of the methodology that (on paper) gave them the edge to be profitable.

 

The Journey Hits a Critical Moment – Taking Stock of Yourself

 

By this time in a trader’s journey, they have chased the Holy Grail through different methodologies, the latest trading guru, the next “can’t miss” indicator, new platforms, and mechanical trading systems that take the emotion out of trading. But they still can't break through to the next level. By the process of elimination, some begin to realize that they are looking in all the wrong places for the missing ingredient to their success; the Holy Grail is not to be found “out there” in new systems or methodologies.

 

Rather, the Holy Grail is really a set of inherent, in-dwelling resources within the self. The rub is that traders have to find, excavate, and develop these elements of their potential. And that is uncomfortable to do on an emotional level, especially for someone who has avoided the heavy "emotional lifting" required to change beliefs about one’s capacity to manage the uncertainty of probability. Many traders stay stuck at this point in the evolution of themselves as a trader, either because they do not want to hold themselves responsible for their trading results or because they do not know how to change.

 

Unless you were lucky enough to win the genetics lottery for trading pre-disposition, there is really no choice but to re-develop the mind for trading. The first big AHA! moment for the emerging trader is recognizing that the problem with his trading is him (or her) – and that alone. Both emotionally and psychologically, this is a difficult task. Redeveloping the self that trades forces the trader to confront parts of himself that he or she has very successfully avoided for decades. The very psychological dragons that the trader has pushed out of working awareness in other domains of his life now stalk him as he trades.

 

The developing trader has to look into the mirror of the self and take stock. This is where he really needs to decide if his passion for trading has the emotional motivation to see him through confronting his fears and redeveloping his beliefs about his capacity to truly manage uncertainty. Unlike other areas of his life where there is so much "fuzzy grey" area about declaring "success", the condition of success in trading is black and white – it is your trading account.

 

If the beliefs you have about your capacity to manage uncertainty in trading are effective, the results will be reflected positively in your trading account. The reverse is also true. If the beliefs you bring to the management of uncertainty in trading are not effective, they will produce trading performances that show a capital drain on your trading account.

 

The Courage to Build Your Mind for Success in Trading

 

At this point the trader comes to understand that the mindset that he brought into trading is not the mindset that is going to produces success in trading. And if he is going to be successful in trading, his is going to have to commit to self-development. Self-development implies that the trader is going to have to build a mind for trading. There is no reason to feel embarrassed. Just about everyone comes to this moment in their journey into trading. It’s called paying your dues and waking up.

 

Generally, at this point a trader has been developing his technical side for three to five years; and he has read more than a few trader psychology books. At some point he realizes that he, and he alone, is the problem that keeps sabotaging his potential. So he decides to commit himself to self-development in the same way that he developed other skills for trading. He has been "in his own way", but he is finally ready to change.

 

This is a critical moment. Many people leave trading before they arrive at this intersection because they are unwilling to change. However, if the trader truly has a passion for trading, he also has the motivation to change.

 

Change Into What?

 

Many traders have attempted to change with no long-term gain. The battlefield of self-development is littered with programs that promise change. Many programs deliver a sense of energy (called a seminar high). When you leave these programs, people literally feel as though they could conquer the world. They leave the training in a state of high energy, they are goal oriented, and they are razor-focused on success. And after walking over burning coals or another seemly impossible mind-over-matter obstacle, they are certain that nothing can stop them. They feel on top of the world. They have the affirmations, the success visualizations, they have learned some NLP, they have done some hypnotic guided meditations that released their higher self, and they have become the spiritual warrior of success.

 

No matter how great this euphoric state feels, this is a dangerous state of mind to develop for practice in trading. Euphoria (which is what these programs generate) is just as dangerous to success in trading as fear. Euphoria is an emotional state that makes a person believe with certainty that the good times are going to roll on forever. It is the same emotionally-based state of mind that hedge fund managers or proprietary traders fall into that causes them to blow up their accounts (i.e. JP Morgan’s $2.5 billon dollar loss).

 

The mind that needs to be developed for trading is rooted in an emotional compound state called disciplined impartiality. In the same way that fear creates a belief in the certainty of things going wrong and euphoria creates a belief (cognition linked to emotional state) that the good times are going to keep rolling, disciplined impartiality creates a state of mind that believes in the certainty that probability is on your side as you manage the trade well.

 

Notice the difference here in how the emotional states work. Fear and euphoria produce a bias of predicting certainty of the future as if it were real. Disciplined impartiality produces a mind that manages the probability of what future may come. Fear and euphoria are trying to control the outcome of probability as if it were a certainty. Disciplined impartiality is aimed at controlling the state-of-mind to manage the probability of outcome.

 

Setting Course for the Journey of Self-Development

 

First and foremost, as you explore how to develop the self for trading, look for ways of calming down the excitatory process of emotional arousal – not cranking it up. The more emotionally aroused you are, the more difficult you will find it to create the calm, patient states of mind necessary for trading. Next, look at the way the system is teaching you to achieve success. Are you being asked to produce high-energy states where you can “feel” the energy of success that makes success happen as you envision it? Or are you being trained to develop a state of mind that is receptive (or open) to what life (or the markets) are willing to give you and then to seize the possibility?

 

Trading demands calm, patient states of mind that can seize opportunity when it appears. This is the self-development that works well in trading. It is the difference between the way the American cougar hunts compared to the hunting style of the African lion. The cougar waits in patience for the prey to appear in her ambush zone and then she pounces. This is the kind of strategy that works well in trading. On the other hand, the African lion chases the prey in teams. This high-energy “chasing the trade” strategy sucks the trader into trades and positions that take him out of the state of mind that keeps probability on his side. Ultimately, the trader has to develop a mindset that encourages him to wait to see what the markets are willing to give him and to also conserve energy and capital to trade another day.

 

Understanding the mind that needs to be developed can really help you sort out HOW you go about building that mind. What tendencies are you bringing to your trading mind as it observes the markets? What aspects of your psychology do you need to develop in order to get into the zone where effective trading occurs?

Share this post

Link to post
Share on other sites

koyasan    10

koyasan
Posted

Rande....enjoyed your article and thought provoking as always, though it takes a few reads to really get to grips with what you are saying. If I have got this right, once a trader is 'good enough' (to use the term in the Winnicott sense) on the TA side the only (and greater) challenge to success is the mental game which you define as , " redeveloping his beliefs about his capacity to truly manage uncertainty". The goal as you see it is to develope a mindset of 'disciplined impartiality" which is possible for the trader to achieve if he is motivated by a passion for trading. I'm with you so far and would not disagree.

 

On the TA side I think there are a lot of traders who have sufficient knowledge re strategy,set ups, money management , back testing etc which is not reflected in their trading accounts. If anything I probably spent more time on TA looking for 'certainty' as a way to avoid the mental stress of 'managing uncertainty'. After all if I had a surefire strategy then there is no stress in the execution. Equally when I am under more stress managing uncertainty it explains why I might go back to working on the TA side of the equation. I agree with you that there comes a point in our trading when we realise that it is now time to spend more time on the mental game..the TA side is 'good enough' to make money.

 

There is also a hidden caution in your post which suggests it is probably pointless to concentrate on the mental game until you have demonstrated competency on the TA side. Not sure how you would measure this but I agree with the sentiment. Just wonder how would you recognise someone who is competent on the TA side but dos'nt believe it and what about the person who has the mental game but not the TA? On this latter point since the TA side is probably easier is it theoretically possible that the journey for you to become a successful trader is a shorter one? That's a serious question because for me it might help to clarify the process of how to become a successful trader.

Share this post

Link to post
Share on other sites

MightyMouse    12

MightyMouse
Posted

Understanding the mind that needs to be developed can really help you sort out HOW you go about building that mind. What tendencies are you bringing to your trading mind as it observes the markets? What aspects of your psychology do you need to develop in order to get into the zone where effective trading occurs?

 

Rande,

 

Is this possible or practical? If someone's mind isn't currently suited for trading wouldn't it make more sense to find a suitable vocation or talent for that person's mind rather than go through all the trouble to learn TA then get to work on developing his mind to be able to properly observe the markets so that it is more suited for trading?

 

Besides which TA and the proper mind will likely get a trader to be a breakeven trader but no more than that. Traders have or develop a knack for finding other traders to buy inventory from them at high prices or sell to them at low prices. They know how to find those traders that are pressured to buy or sell at the wrong times. TA or traditional TA will will not get you there.

 

BTW, I am not questioning whether or not you can help someone develop their mind.

 

MM

Share this post

Link to post
Share on other sites

steve46    12

steve46
Posted (edited)

Yeah well I have a couple of observations of my own regarding a trader's "self-development"

 

I believe that past a certain point in life it becomes impractical, and most certainy unlikely, that a person will make the very significant changes required to become reasonably good at this business......sports analogies are near and dear to me, probably because I have some life experience is that arena.....just to pick one, it is well known that if you can't learn to hit a major league curve ball, unless you can throw one (unless you are a pitcher) you aren't going to make it in that sport...it matters not whether you "understand" what you are looking for, how the curve ball is thrown, etc.....you either can or cannot hit that pitch.... there is no middle ground....

 

As a pursuit, I believe that this business (trading on a daily basis) is similar.....up to a point one can find, and receive education, mentoring, and technical expertise, but there is a critical element that is found in one's psyche (in some of us anyway) that cannot be taught or learned unless you have at least "a seed" of that intangible "something" within you to begin with....

 

Now to be realistic, we cannot all be Michael Jordan (basketball)...or Nolan Ryan (baseball) but we can maximize our own potential, whatever that is.....from my point of view the "real" question is......is that potential (the maximum that we might achieve)......enough.

 

Its up to each person of course to make that decision. In my own classes after number of months of trading in a supervised environment I asked each student to go out on there own and try to make a reasonable living....I suggest to them that they should be able to do that within about 6 months.

 

In my opinion, if a person cannot make significant progress within a reasonable amount of time, given sensible restraints in terms of capital.....they probably should look elsewhere for a vocation...

 

Good luck

Edited by steve46

Share this post

Link to post
Share on other sites

Rande Howell    10

Rande Howell
Posted
Rande....enjoyed your article and thought provoking as always, though it takes a few reads to really get to grips with what you are saying. If I have got this right, once a trader is 'good enough' (to use the term in the Winnicott sense) on the TA side the only (and greater) challenge to success is the mental game which you define as , " redeveloping his beliefs about his capacity to truly manage uncertainty". The goal as you see it is to develope a mindset of 'disciplined impartiality" which is possible for the trader to achieve if he is motivated by a passion for trading. I'm with you so far and would not disagree.

 

On the TA side I think there are a lot of traders who have sufficient knowledge re strategy,set ups, money management , back testing etc which is not reflected in their trading accounts. If anything I probably spent more time on TA looking for 'certainty' as a way to avoid the mental stress of 'managing uncertainty'. After all if I had a surefire strategy then there is no stress in the execution. Equally when I am under more stress managing uncertainty it explains why I might go back to working on the TA side of the equation. I agree with you that there comes a point in our trading when we realise that it is now time to spend more time on the mental game..the TA side is 'good enough' to make money.

 

There is also a hidden caution in your post which suggests it is probably pointless to concentrate on the mental game until you have demonstrated competency on the TA side. Not sure how you would measure this but I agree with the sentiment. Just wonder how would you recognise someone who is competent on the TA side but dos'nt believe it and what about the person who has the mental game but not the TA? On this latter point since the TA side is probably easier is it theoretically possible that the journey for you to become a successful trader is a shorter one? That's a serious question because for me it might help to clarify the process of how to become a successful trader.

 

Koyasan

 

What an interesting post. It is our nature to look outside the self for solutions to problems. Until a trader comes to understand that they are both the problem and the answer, they do not take self development seriously. Trading is about the intersection of platform, methodology, and mind. Mind does not sit outside of the trading -- it is part of the trading. Each element is essential, but the development of mind is neglected. Until this need is addressed, there is a weakness in the system. If a trader were to recognize this need early and address it, then a much shorter path to consistent profitability becomes a real possibility. But they have to come to have place value on and need of self development first. Most people I work with have traded for a number of years and can produce paper profits easily and they really understand the mechanics of successful trading. When they come to the conclusion that they need to build the mind, it can be done in fairly short order. So there can be a shortened path, but the trader has to see the need and push through their resistance. Meanwhile the markets really don't care what story the trader brings to the arena. How the trader approaches the uncertainty is what matters. Better be prepared both in skills and mind.

 

Rande

Share this post

Link to post
Share on other sites

Rande Howell    10

Rande Howell
Posted
Rande,

 

Is this possible or practical? If someone's mind isn't currently suited for trading wouldn't it make more sense to find a suitable vocation or talent for that person's mind rather than go through all the trouble to learn TA then get to work on developing his mind to be able to properly observe the markets so that it is more suited for trading?

 

Besides which TA and the proper mind will likely get a trader to be a breakeven trader but no more than that. Traders have or develop a knack for finding other traders to buy inventory from them at high prices or sell to them at low prices. They know how to find those traders that are pressured to buy or sell at the wrong times. TA or traditional TA will will not get you there.

 

BTW, I am not questioning whether or not you can help someone develop their mind.

 

MM

 

You brought this vocation notion up a while back in response to a guy I was working with that had a strong ability to build businesses. And you were dead on. The guy did become a profitable trader and he has now bought a business that he can grow. Trading is sideline now. What he discovered was that he loved being in the nitty, gritty of building businesses and was not nearly as well suited for trading. He could make himself do it, but it was a waste of perfectly good talent. His miscalucation was that trading was a business that was capital intensive. He expected to be able to apply his acumen to trading as a business and build it. He did not realize that he would have to redevelop his mind to become a trader. What he learned in working with me has served him well, but it is being applied to business rather than trading now.

 

From what I've seen, the person has to have genuine passion for trading to make the endeavor worthwhile. Because you are going to have to go through some serious development to build the skills, both technical and mental, to become successful. I believe most anyone can accomplish that if they are so motivated. But to sustain that motivation, I find the necessary ingrediant to make it worthwhile is passion for what they are doing.

 

The major problem I see is a fear based mentality that is brought into trading with the hopes that they can escape the limitations they have been experiencing in other areas of their lives. After being sucked into trading by some serous misguided promises, they get into trading and find that facing their dragons are no longer avoidable. Sooner or later, we have to face up to our fears -- whether its in trading or in other areas where we experience limitations based on our beliefs.

 

I really appreciate the insight you have brought to the discussion of trader psychology and want to acknowledge you were dead on the money about suitable vocations.

 

Rande Howell

Share this post

Link to post
Share on other sites

Rande Howell    10

Rande Howell
Posted
Yeah well I have a couple of observations of my own regarding a trader's "self-development"

 

I believe that past a certain point in life it becomes impractical, and most certainy unlikely, that a person will make the very significant changes required to become reasonably good at this business......sports analogies are near and dear to me, probably because I have some life experience is that arena.....just to pick one, it is well known that if you can't learn to hit a major league curve ball, unless you can throw one (unless you are a pitcher) you aren't going to make it in that sport...it matters not whether you "understand" what you are looking for, how the curve ball is thrown, etc.....you either can or cannot hit that pitch.... there is no middle ground....

 

As a pursuit, I believe that this business (trading on a daily basis) is similar.....up to a point one can find, and receive education, mentoring, and technical expertise, but there is a critical element that is found in one's psyche (in some of us anyway) that cannot be taught or learned unless you have at least "a seed" of that intangible "something" within you to begin with....

 

Now to be realistic, we cannot all be Michael Jordan (basketball)...or Nolan Ryan (baseball) but we can maximize our own potential, whatever that is.....from my point of view the "real" question is......is that potential (the maximum that we might achieve)......enough.

 

Its up to each person of course to make that decision. In my own classes after number of months of trading in a supervised environment I asked each student to go out on there own and try to make a reasonable living....I suggest to them that they should be able to do that within about 6 months.

 

In my opinion, if a person cannot make significant progress within a reasonable amount of time, given sensible restraints in terms of capital.....they probably should look elsewhere for a vocation...

 

Good luck

 

Most of the traders I work with are not seeking to be a master trader. Instead they are seeking to be competent enough to earn a living -- what I call a professional trader. I find a huge gap in methodology teachers ability to train aspiring traders. They can teach the TA and mechanics of trading, but they don't know how to touch the underlysing self limiting beliefs that the trader brings to trading. Unless those are deconstructed and reconstructed into higher functioning beliefs, then you are right, they either have it or not.

 

My hope is that a new frontier in trader training will emerge where solid methodology teachers recognize that it is part of their training to get at this psychology part. In the same way I found very few therapists know how to produce long term change, I find that too with "trader psychologists".

 

Steve, I hope one day you and I talk. Everything I've read of yours tells me you are a good teacher and a credit to an aspiring traders learning how to trade. In much the same way that Gail Mercer of Traders Help Desk and I have begun working together to work with the whole trader -- my hope is that we can explore that also.

 

Rande Howell

Share this post

Link to post
Share on other sites

steve46    12

steve46
Posted (edited)

Thanks Rande for the kind words

 

Until recently I had decided not to teach again. Unfortunately I was one of those folks with an account at MF Global, so I was taught a "lesson" of my own about trust. Fortunately I have been able to recover much of my account so the damage was minimal.

 

What I have decided to do in future relates to this incident. Based on what I have learned I decided to see if it was possible to take a small account (less than $10,000) and make a profit. I have never tried it myself and in the past I have counseled folks not to try...especially for newbies, I think it puts a bit too much emotional strain on a trader and that seems to have a negative effect on their ability to make good decisions. In the process of working on this problem I came upon something unexpected. I learned a simple technique that seems to insulate a person from the many negative thoughts that can intrude, both before the trade, after they are filled on their entry and during the management phase..

 

Now as this last part of my test process comes to a close frankly I am surprised that this process seems to work with relatively inexperienced folks. In fact I am so encouraged that I may give teaching another try and if so I will contact you..

 

Thanks again

Steve

Edited by steve46

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
Go To Topic Listing

  • Topics

  • Posts

    • RJo
      Better Daily Range indicator for MT5

      By RJo · Posted

      A custom Better Daily Range indicator for MT5 is now available on the Metaquotes website and directly in the MT5 platform. https://www.mql5.com/en/market/product/103800 The Better Daily Range indicator shows the previous trading day's price range on the current day's chart. Many traders mark out the previous day's high, low, and the current day's open before trading. This is not an average true range indicator (ATR). This is not an average daily range indicator (ADR). This is a daily range indicator (DR). This indicator shows horizontal maximum and minimum range lines. If your broker-dealer's MT5 platform shows Sunday bars, Sunday bars are not included as previous days. In other words, Monday uses Friday's price data (skips Sunday). This indicator also shows two 25% (of range) breakout lines: one that is 25% higher than the maximum range line, and one that is 25% lower than minimum range line. A middle range line is also shown. Immediately after the daily close of your broker-dealer, all five range lines update to the new daily values.   Many traders only trade during times of high volume/liquidity. The Better Daily Range indicator also shows five adjustable time separator lines: A local market open time line (a vertical line), A local market middle time A line (a vertical line), A local market middle time B (a vertical line), A local market middle time C (a vertical line), A local market close time (a vertical line), and A local market open price (a horizontal line). The location of the local market open price depends on your input local market open time. In other words, you input your desired market open time according to your local machine/device time and the indicator automatically shows all five session lines. When your incoming price bars reach your input local market open time line, the indicator automatically shows the price to appear at your input local market open time. If your broker-dealer's MT5 platform shows Sunday bars, the time separator lines do not show on a Sunday. Immediately after midnight local machine/device time, the five session time lines (vertical lines) are projected forward into the current day (into the future hours) and the local open price line is erased. The local open price line reappears when the price bars on the chart reach your input local open time (your local machine/device time).   The indicator has the following inputs (settings):   Chart symbol of source chart [defaults to: EURUSD] - Allows you to show data from another chart symbol other than the current chart symbol. Handy for showing standard timeframe data on an MT5 Custom Chart. Local trading session start hour [defaults to: 09] - Set your desired start hour for trading according to the time displayed on your local machine/device operating system (all times below are your local machine/device operating system times). The default setting, 09, means 9:00am. Local trading session start minute [defaults to: 30] - Set your desired start minute. The default setting, 30, means 30 minutes. Both the default hour and the default minute together mean 9:30am. Local trading session hour A [defaults to: 11] - Set your desired middle hour A for stopping trading when volume tends to decrease during the first half of lunch time. The default setting, 11, means 11:00am. Local trading session minute A [defaults to: 00] - Set your desired middle minute A. Both the default hour and the default minute together mean 11:00am. Local trading session hour B [defaults to: 12] - Set your desired middle hour B for the second half of lunch time. The default setting, 12, means 12:00pm (noon). Local trading session minute B [defaults to: 30] - Set your desired middle minute B. Both the default hour and the default minute together mean 12:30pm. Local trading session hour C [defaults to: 14] - Set your desired middle hour C for resuming trading when volume tends to increase. The default, 14, means 2:00pm. Local trading session minute C [defaults to: 00] - Set your desired middle minute C. Both the default hour and the default minute together mean 2:00pm. Local trading session end hour [defaults to: 16] - Set your desired end hour for stopping trading. The default setting, 16, means 4:00pm. Local trading session end minute [defaults to: 00] - Set your desired end minute for stopping trading. Both the default hour and the default minute together mean 4:00pm. High plus 25% line color [defaults to: Red]. High plus 25% line style [defaults to: Soid]. High plus 25% line width [defaults to 4]. High line color [defaults to: IndianRed]. High line style [defaults to: Solid]. High line width [defaults to: 4]. Middle line color [defaults to: Magenta]. Middle line style [defaults to: Dashed]. Middle line width [defaults to: 1]. Low line color [defaults to: MediumSeaGreen]. Low line style [defaults to: Solid]. Low lien width [defaults to: 4]. Low minus 25% line color [defaults to: Lime]. Low minus 25% line style [defaults to: Solid]. Low minus 25% line width [defaults to: 4]. Local market open line color [defaults to: DodgerBlue]. Local market open line style [defaults to: Dashed]. Local market open line width [defaults to: 1]. Local market middle lines color [defaults to: DarkOrchid]. Local market middles lines style [defaults to: Dashed]. Local market middles lines width [defaults to: 1]. Local market close line color [default: Red]. Local market close line style [Dashed]. Local market close line width [1]. Local market open price color [White]. Local market open price style [Dot dashed with double dots]. Local market open price width [1].
    • RJo
      Logarithmic Moving Average indicator for MT5

      By RJo · Posted

      A custom Logarithmic Moving Average indicator for MT5 is now available for MT5 on the Metaquotes website and directly in the MT5 platform. https://www.mql5.com/en/market/product/99439 The Logarithmic Moving Average indicator is a moving average that inverts the formula of an exponential moving average. Many traders are known to use logarithmic charts to analyze the lengths of price swings. The indicator in this post can be used to analyze the logarithmic value of price on a standard time scaled chart. The trader can set the following input parameters: MAPeriod [defaults to: 9] - Set to a higher number for more smoothing of price, or a lower number for faster reversal of the logarithmic moving average line study. MAShift [defaults to: 3] - Set to a higher number to reduce the amount of price crossovers, or a lower for more frequent price crossovers. Indicator line (indicator buffer) can be called with iCustom in Expert Advisors created by Expert Advisor builder software or custom coded Expert Advisors: No empty values; and No repainting.
    • RJo
      Semi-Log Scale Oscillator indicator for MT5

      By RJo · Posted

      A custom Semi-Log Scale Oscillator indicator is now available for MT5 on Metaquotes website and directly in the MT5 platform. https://www.mql5.com/en/market/product/114705 This indicator is an anchored semi-logarithmic scale oscillator. A logarithmic scale is widely used by professional data scientists to more accurately map information collected throughout a timeframe, in the same way that MT5 maps out price data. In fact, the underlying logic of this indicator was freely obtained from an overseas biotech scientist. A log-log chart displays logarithmic values on both the x (horizontal) and y (vertical) axes, which generally produces a straight line that points up, down, or remains flat. A straight line is not very useful for trading markets because such a straight line is so smoothed that actual price values that appear over time are very far away from the line study. In contrast, a semi-log chart is only logged on one axis--generally, the y axis. Such a semi-log chart is well suited for trading markets because the time (x) axis is preserved in its original form while at the same time, providing a graduated y scale where the distance between price increments progressively increases as price rises higher (and decreases as price falls lower). This allows us to establish a zero level for a low price, clearly view trends on straighter angles, and clearly observe amplified price spikes at high prices. Accordingly, this indicator employs a semi-log scale on the y axis only. This indicator is anchored because it allows you to specify a start time for calculation of price bars. The settings are as follows: Year.Month.Day Hour:Minute - defaults to 1970.01.01 00:01 - if left on default setting, the indicator automatically detects the earliest price bar in chart history--even where the year 1970 is not in history. Notes appear in the indicator settings window. Size of first pip step to log - defaults to 135 - this default is suitable for higher timeframes such a MN1 (monthly), while 5 is suitable for lower timeframes such as M1 (minute). Ultimately, optimal settings will depend on the timeframe that you attach the indicator to, the level of price volatility within that timeframe, and start time that you choose. Remember... The semi-log formula calculates from low to high, so your start time must always be a major swing low. Again, notes appear in the indicator settings window. The standard (built-in) MT5 indicators that can be applied to the "Previous indicator's data" can be applied to this indicator. Indicator lines (indicator buffers) can be called with iCustom in Expert Advisors created by Expert Advisor builder software or custom coded Expert Advisors. The log scale Open, High, Low, and Close prices are buffers: No empty values; and No repainting.
    • RJo
      Gann Candles indicator for MT5

      By RJo · Posted

      A custom Gann Candles indicator is now available for MT5 on the Metaquotes website and directly in the MT5 platform. https://www.mql5.com/en/market/product/126398 This Gann Candles indicator incorporates a series of W.D. Gann's strategies into a single trading indicator. Gann was a legendary trader who lived from 1878 to 1955. He started out as a cotton farmer and started trading at age 24 in 1902. His strategies included geometry, astronomy, astrology, times cycles, and ancient math. Although Gann wrote several books, none of them contain all of his strategies so it takes years of studying to learn them. He was also a devout scholar of the Bible and the ancient Greek and Egyptian cultures, and he was a 33rd degree Freemason of the Scottish Rite. In an effort to simplify what I believe are the best of Gann's strategies, I reduced them into one indicator that simply colors your preexisting price bars when those strategies are in-sync versus out-of-sync. This greatly reduces potential chart clutter. Also, I reduced the number of input settings down to only two: FastFilter, and SlowFilter Both FastFilter and SlowFilter must be set to 5 or more, as noted in the Inputs tab upon attaching the indicator to your chart. Gann Candles works on regular time-based charts (M5, M15, M20, etc.) and custom charts (Renko, range bars, etc.). The indicator does not repaint. When using the default settings, blue candles form bullish price patterns, gray candles form flat (sideways) price patterns, and white candles form bearish price patterns. The simplest way to trade Gann Candles is to buy at the close of a blue candle and exit at the close of a gray candle, and then sell at the close of a white candle and exit at the close of a gray candle.
    • RJo
      Anchored VWAP with Standard Deviation Bands indicator for MT5

      By RJo · Posted

      A custom Anchored VWAP with Standard Deviation Bands indicator for MT5 is now available on the Metaquotes website and directly through the MT5 platform. https://www.mql5.com/en/market/product/99389 The volume weighted average price indicator is a line study indicator that shows in the main chart window of MT5. The indicator monitors the typical price and then trading volume used to automatically push the indicator line toward heavily traded prices. These prices are where the most contracts (or lots) have been traded. Then those weighted prices are averaged over a look back period, and the indicator shows the line study at those pushed prices. The indicator in this post allows the trader to set the daily start time of that look back period. This indicator automatically shows 5 daily look back periods: the currently forming period, and the 4 previous days based on that same start time. For this reason, this indicator is intended for intraday trading only. The indicator automatically shows vertical daily start time separator lines for those days as well. Both typical prices and volumes are accumulated throughout the day, and processed throughout the day. Important update: v102 of this indicator allows you to anchor the start of the VWAP and bands to the most recent major high or low, even when that high or low appears in your chart several days ago. This is how institutional traders and liquidity providers often trade markets with the VWAP. This indicator also shows 6 standard deviation bands, similarly to the way that a Bollinger Bands indicator shows such bands. The trader is able to set 3 individual standard deviation multiplier values above the volume weighted average price line study, and 3 individual standard deviation multiplier values below the volume weighted average price line study. Higher multiplier values will generate rapidly expanding standard deviation bands because again, the indicator is cumulative. The following indicator parameters can be changed by the trader in the indicator Inputs tab: Volume Type [defaults to: Real volume] - Set to Tick volume for over-the-counter markets such as most forex markets. Real volume is an additional setting for centralized markets such as the United States Chicago Mercantile Exchange. VWAP Start Hour [defaults to: 07] - Set according to broker's or broker-dealer's MT5 server time in 24 hour format. For example, in the New York, United States time zone, 07 is approximately the London, United Kingdom business open hour. VWAP Start Minute [defaults to: 00] - Set according to broker's or broker-dealer's MT5 server time in 24 hour format. For example, 00 is on the hour with no delay of minutes within that hour. StdDev Multiplier 1 [defaults to: 1.618] - Set desired standard deviation distance between the volume weighted average price line study and its nearest upper and lower bands. For example, 1.618 is a basic Fibonacci ratio. Some traders prefer 1.000 or 1.250 here. StdDev Multiplier 2 [defaults to: 3.236] - Set desired standard deviation distance between the volume weighted average price line study and its middle upper and lower bands. For example, 3.236 is 1.618 (above) + 1.618. Some traders prefer 2.000 or 1.500 here. StdDev Multiplier 3 [defaults to: 4.854] - Set desired standard deviation distance between the volume weighted average price line study and its furthest upper and lower bands. For example, 4.854 is 1.618 (above) + 3.236 (above). Some traders prefer 3.000 or 2.000 here. VWAP Color [defaults to: Aqua] - Set desired VWAP line study color. This color automatically sets the color of the start time separators as well. SD1 Color [defaults to: White] - Set desired color of nearest upper and lower standard deviation lines. SD2 Color [defaults to: White] - Set desired color of middle upper and lower standard deviation lines. SD3 Color [defaults to: White] - Set desired color of furthest upper and lower standard deviation lines. Just to clarify, popular standard deviation bands settings are: 1.618, 3.236, and 4.854; or 1.000, 2.000, and 3.000; or 1.250, 1.500, and 2.000. Examples of usage *: In a ranging (sideways) market, enter a trade at the extremes of the standard deviation bands (SD3) and exit when price returns to the VWAP line study. Trade between SD1Pos and SD1 Neg, alternately buying and selling from one standard deviation line to the other. In a trending (rising or falling) market, enter a buy when a price bar opens above the VWAP line study, and exit at the nearest standard deviation band above (SD1Pos). Optionally, repeat the same trade but substitute SD1Pos for the VWAP, and SD2Pos for SD1. Reverse for sell; or Trade all lines (VWAP, SD1Pos, SD2Pos, and SD3Pos) in the same way. Again, reverse for sell. Indicator lines (indicator buffers) can be called with iCustom in Expert Advisors created by Expert Advisor builder software or custom coded Expert Advisors: No empty values; and No repainting.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.

  I accept