HGI used with Hurst charts

[Pedro2]

Hi everyone who took time to look at my posting involving Hurst indicators with HGI. I am a little blown away actually that it attracted such a response in less than 24 hours. Certainly thanks to everyone who took the time to post their comments. I felt they were very positive.

At this time I would like to make some helpful remarks on the feedback I have had so far.

1. I feel I have some similar thinking to Bob in that I trade mainly on 240m charts. And when considering taking a trade like to just drop down to 60m to see if there is support there.

2. I see the Hurst lines supporting Bob's HGI to a big extent and filtering out the positive sigs to the not positive sigs. As a thought maybe a programmer who was involved in HGI programming could add the use of Hurst lines (TMA) to filter out sigs that are not positive? So that when a up (buy) Rad or big arrow appears when the white Hurst line is above the Yellow line. The up Rad or big arrow does not appear. The reverse for sell. There would be less confusion and less repainting for the newbees maybe. Only a little bit of logic required there to the HGI indicator programming. I am sure that would make life easier for dummies like me. Just a thought. Please some thoughts on that idea would be appreciated. Bob if you are reading this post then some comments from you certainly is appreciated.

3. Now some little bits of information to think about. The Hurst and TMA indicators only update the chart on Open of a bar only. WHY? Well because if one updates on close repainting happens all the time and for me confuses my poor brain. The open of a bar is just that, constant. Where as the close alters constantly. In my opinion you only need to update at the end of every bar. So why not update a few micro seconds later on open of the new bar which is a constant. Yes there is some repainting on the faster time frames. 5m 15m 30m. And yes it is a little more challenging on those times But 240m and 60m to me is great and repaint is absolute minimum if there at all.

Well that is all I can think of for the moment. Hope that answers some questions......

Regards,
Pedro2

[Pedro2]

I had a thought just after I sent the last post.

If Hurst could be easily programmed into HGI to reduce or eliminate false sigs nearing the end of a run. Would that not be very helpful to Steve who said he was going to create a HGI EA. If Hurst cannot be programmed in HGI then maybe Steve you could program Hurst lines into your EA? In other words if looking at HGI sigs you could then compare with Hurst lines to see the signal is valid? Just a idea that has come to mind? Although I have done some programming in BASIC, Quick Basic, Pascal plus a very little in MLQ4 code. The idea may not be practical. I will leave it to the experts. Thanks everyone.

Regards,
Pedro2

[slowkey]

Hi Pedro,

Running the template in the fxblue trade simulator gives you a sense of how trading this is in real time would be. Difficult on the smaller time periods. These averages do move around a lot on the lower time periods. Looking back over the last 5 or 11 bars is just that and the indicator is going to move as it smooths based on the average. However on the four hour the short MA periods of the indicator do seem to give some aid in trading Bobs HGI as you state. News will blow this out of the water but under normal conditions the TMA centered averages do seem to offer some help. News will blow any system out of the water.

These are averages and in the trade simulator on the smaller periods they are updating quickly and changing with bar activity to an extent that it would make it difficult to use this on smaller time periods to predict anything with out a lot of judgement. Yes I will admit that I was really impressed by the visual back testing but when you put this in the simulator it is real apparent how this works on the lower time periods. Not necessarily repainting but doing what averages do based on their math ... Recalculating based on the last 5 to 11 bars depending on which one you are looking at.

On the lower time periods. I really like Bollinger bands. Looking at these on the lower time periods can point out areas where you would expect runs to retrace based on deviation and volatility. They look pretty nice in the simulator. They are easy to understand.

It is hard to get a precise look at HGI in a simulator but you can try out a few things and get a sense of what is happening. The simulator modeling is not up to real time but it can be helpful. You absolutely have to use the most precise method of modeling ... every tick.

The four hour below from the simulator.

EURUSDH4.png

Edit ... I tend to use longer averages on smaller time periods in indicators because they will overlook a lot of the noise. On higher time periods short averages work nicely. Less noise. Don't think that would help in this instance because Pedro is modeling Hurst charts. "After some study and some brain work I found that TMA indicators can exactly simulate Hurst displaced moving averages." That in the context of a 4 hour or 60 minute chart as he stated in a previous post.

I will be taking a look at Bollinger bands for trading intraday in my own thread.
Pedro I appreciate you sharing your ideas and this may well have application on the four hour and maybe the 60 minute.

Cheers,
Doug

[Pedro2]

Very good info Doug. Mind you I was aware of some of the things you talk about because I have used Hurst for trading for sometime now. But over many years it is the best I have come across for myself to stop my mind arguing with me about getting into trades and also getting out.

My mind would say hey it has gone up 30 pips and I think that is about it and get out and TP. When I did TP then it would go up another 100 pips. But now I do not even think of getting out until the Hurst lines have crossed. Then and only then do I put in a take profit with confidence. Usually about two thirds the distance it has already traveled.

Hot news items can make the run from the Hurst line cross to the end longer or shorter to some degree. I think that is normal and to be expected.

Pedro2

[spotdespot]

Thanks for the clarification Pedro - I am very pleased that you confirmed what I suspected but wasn't certain of - namely the recalculation at higher timeframes is largely irrelevant. Fantastic news.

One other thing I noticed that hasn't been mentioned is that if the TMA lines are tight together and clearly "trending" then signals seem to be valid regardless of the configuration of the lines (sometimes difficult to tell which line is above which in these cases anyway). A good example is in Doug's last chart post around the 6th/7th December.

I'm away for a week but look forward to having a good play with this in the New Year.

Have a good holiday/Christmas everyone.

Cheers,
Dave.

[rivelrivella]

Hi everyone,
.............
Below I have put a screen shot and all the indicators, instructions, templates to get you up and running.
............
Although Hurst displaced MA's give you the length of each run once halfway through the price run. It does not give you the strength of the run starting. This is where Bob's HGI does its magic. Hurst gives me the length of the run before it is finished and Bob's system give me a good idea of its strength on breakout which Hurst does not. I forgot Hurst gives me the buy and sell arrows to ignore on the HGI chart also. So knowing the length of the run and any arrows to ignore is the icing on the cake in my opinion.
!

Hi Pedro,

First Thank you for your precious contribution here.
I refer to your first post in this thread. You posted a chart with 2 lines crossing each others.
You joined a rar file containing 8 mq4 indicators.

My question is simple: Do I need all these 8 indicators ? Or I could attach only just 2 for these 2 lines ? (What are their name exactly )
- Do you think they work fine for lower TFs (M15 or H1) ? Eventually have you other parameters values for these TFs ?

Thank you again

[Iamshakey]

Thank you Pedro and all. . .

Okay, let's see if i get this right. The white MA is above the dotted MA, and an HGI down arrow paints. This indicates that the white MA is at its apex away from the mean. . . say 2 or 3 deviations or something.

When you enter the short and the white MA crosses down through the dotted, this represents the mean.. .

The mean indicates that this is the halfway point of the move because price should reach about an equal distance or deviations the other side of the mean. . . Is that basically it?

If the Hurst can do this even HALF as good live as it does on look back, that is quite a feat

This could be very awesome

Shake

[BobbyT]

I had a thought just after I sent the last post.

If Hurst could be easily programmed into HGI to reduce or eliminate false sigs nearing the end of a run. Would that not be very helpful to Steve who said he was going to create a HGI EA. If Hurst cannot be programmed in HGI then maybe Steve you could program Hurst lines into your EA? In other words if looking at HGI sigs you could then compare with Hurst lines to see the signal is valid? Just a idea that has come to mind? Although I have done some programming in BASIC, Quick Basic, Pascal plus a very little in MLQ4 code. The idea may not be practical. I will leave it to the experts. Thanks everyone.

Regards,
Pedro2

Another excellent advantage to adding Hurst to HGB would be the TP calculation. Thpse of us that have been testing HGB have seen huge amounts of pips disappear in retraces. If TP levels could be calculated and set when the lines cross this woild go a long way to protecting those green pips. Couple this with the HGBBM and we have a much more secure system.
And the filtering, oh the filtering. That would be the icing on the icing

[Fmfx]

Thank you Sir Pedro for sharing your idea with us, it is indeed an icing on the cake

I played with your template on a small live acc last week and i must say; HGI with Hurst is simply amazing, it completely takes out all other doubts.

With your permission, i shall be posting live setups this week for constructive purpose.

Pips be with us!
Highest regards
fm

[oliverjp]

Hi Pedro

Many thanks for the simplified pointer to Hurst. I had heard of him but never looked too much into his views of the cyclic nature of virtually all traded products. What I find particularly interesting is what you were saying about estimating the potential profitability of a trade once you are in it. I see considerable potential here to create some code that gives you a TP2 or TP3 to aim a residual part of the trade at.

Looking at several charts, it seems to work much of the time. Am I understanding this part of the logic correctly before I start coding?:

• After a few candles into a Buy trade the indicators should have settled and if the trade took place "correctly" (i.e. entered when gold over white for a Buy, etc.), then you can wait for the next low fractal and then later indicator cross. Measure from the cross to the low of the low fractal and then it's reasonable to expect Price/Action to hit (about) double that measured number of pips at some point shortly thereafter.

I see this as a potentially very useful add-on for quite a few EAs.

All the best

Jeff