Price-o-Meter Current Price Action Speed Indi

[renexxxx]

Apparently I’m exceeding the size of characters allowed in the “IncludeSymbols”. My broker Tallinex has a “ecn” suffix which only allows for 23 pairs or 207 characters. Any chance we can expand on the size or not sure this would help, add a suffix input?

No we can't exceed the size of the string parameter input fields. This is set by Empty4. But you can leave IncludeSymbols empty -- in which case it will take all your symbols selected in your Market Watch panel. You can refine them, by excluding certain symbols (list them in the ExcludeSymbols parameter) or by excluding certain currencies (list these currencies in the ExcludeCurrencies parameter).

[traderduke]

RENE
thanks, that will work!

[RisklessPips]

Trading results and preliminary conclusions week ending 12th August

In a previous post I started showing some test results for PoMTrader which have led to some conclusions (more of which below) and added new horizons for more tests next week.

I unfortunately suffered some technical hitches starting Wednesday which mean the results of my testing from Wednesday thru Friday are at best only indicative and at worst misleading. I am therefore not posting those results, but I will highlight the conclusions arrived at because they seem to support results from tests carried out earlier in the development cycle which were never published.

Conclusions

1) PoMTrader works best in a fast moving general market environment. It is therefore important to keep the user variable "Average PoM a timeframe has to exceed" at a high level. In my tests this has been 100%.

Think of it like this. A modest house will appreciate in price when an area is gentrified and made more popular by an influx of money buying other properties in the area. The property itself hasn't changed but the general uplift lifts all prices.

Likewise, when the general market explodes, (particularly in early NY session) the prices seem to all rise (or fall) above their ATR's on the back of the higher market volatility. PoMTrader captures these beautifully.

2) PoMTrader should only be set to trade fast moving symbols, in the fast moving general market environment. I have therefore made the range of PoM values that the price must lie in before a trade is taken 100% - 110%.

We already know the ATR is a local Support and Resistance marker. Therefore when price has exceeded 100% it has broken thru the S/R level. In trading this is indicative of a breakout and a move you may want to get on board.

If the symbol has not broken S/R, a breakout strategy would not enter that trade in this or any other method.

3) Use PoMTrader to trade ONLY one TF at a time.

M15 is the Goldilocks timeframe using the setfile I have currently configured. M5 is too hot and M30 is too cold - both lose money on this configuration. This implies they could make money on another configuration. That is my belief. Why so ?

At the moment PoMTrader is taking trades for up to 70% of a TF. On the M5 that is 3.5 minutes on M30 that is 10.5 minutes. It then starts to sweep for profits at 90% elapsed time. On M5 that is at 4.5 minutes on M30 that is at 13.5 minutes.

Such variability in parameters means one TF acts very differently from another given a single common setfile. By watching price action on the different TF's and understanding the principles underlying PoM, a user can tweak the setfile to optimise it for that TF.

Question - Can different TF's deliver better results than others ? I have no conclusive answer yet.

Trade Management / Exit Logic Enhancements

We came up with some behind the scene changes to plug loss leaks even as the trader is polling prices during each candle's lifetime. Briefly, Rene has made these changes :

1) if a trade is already hedged and the original exits in profit, the hedge is instantly stopped out - we don't wait for it to go to its SL

2) If a trade is in profit at end of candle, but has not met the threshold of the user defined value for sweeping profits it goes to break even. this ensures if it was in profit and reverses at least it will not start losing money.

3) Break even includes accounting for the spread so that changing spreads during the life of a candle are catered for.

4) A hedge matches the original trade exactly in terms of RRR. We are not trying to secnd guess the market, but we are saying if the original direction was wrong and the price was stopped out we have a good chance of recouping the entire mess by going to the hedge's TP at the same RRR as we lost on the original trade.

Next Week Testing

This coming week I will be testing PoMTrader in 3 different environments for 3 different test cases.

1) All symbols on M15 with hedge
2) All symbols on M15 without hedge
3) Session relevant symbols (Asia, Euro and US) on M15 without hedge

Expectations

I test PoMTrader with minimal hands on - (I only change the SL and TP levels by reference to the Average ATR shown on the grey averages bar. I use a factor of 1.5 to give me the SL and TP values I should be using)

Using the values indicated in this post - i do not expect a huge number of trades. However I do expect a win ratio of between 60 and 70% given the loss leak plugs I refer to above.

As for the Pips each scenario delivers - I am hopeful !

If you would like to carry out your own tests using the latest code - this is now in Post 1. Be advised there may be other changes coming along depending on the ongoing tests and some ideas we are bouncing around.

Charles

[jasonckb]

擷取.PNG

Hi All,

Very strange thing found. I use GP live and today is Wed, however, the W1 shows 6% of time elapsed......any bugs?

[RisklessPips]

Hi All,

Very strange thing found. I use GP live and today is Wed, however, the W1 shows 6% of time elapsed......any bugs?

My installation (also GP) is showing 47% elapsed

Charles

[jasonckb]

Hi All,

Very strange thing found. I use GP live and today is Wed, however, the W1 shows 6% of time elapsed......any bugs?

My installation (also GP) is showing 47% elapsed

Charles

Mine is 7%, that means the 4 is missing

[jasonckb]

Fixed when I use currency chart rather than XAUUSD and 1 min chart

[RisklessPips]

Hey SHF, we didn't go away - just been testing PoM and now we can reveal a few truths, opinions and roll the thing out for your entertainment

The latest code updates, setfiles and updated user guide are in post 1 - please read the update notes on that post (update 5) as PoM has changed considerably, from a functional perspective, since the last release.

Notes

1) In volatility terms August is a dead month. PoMTrader depends on volatile movements for meaningful activity and so in the absence of that volatility we took the opportunity to bug fix, tweak the code, amend the logic and enhance the functionality. I will therefore not be posting test results from August as they are too variable and dependant on what we were trying to remedy at the time.

2) September has started of a little better in terms of volatility and therefore PoMTrader has been running 90% hands free from the 1st. Starting today i will post a daily summary of the accumulative test results, with supporting evidence posted once a week at end of week.

3) I have used 2 ECN brokers. One of these charges a flat rate commission, the other has a variable rate commission structure dependant on traded pair. - This as you will come to understand has an important impact on PoMTrader's nett results. I have not tested PoM on market maker crims - results for those, where spreads are typically higher cannot be confirmed by my testing.

4) PoMTrader has been tested on M5, M15 and M30 timeframes. Using it on higher (or lower timeframes) may yield different results.

Observations

1) Trading Forex is hard work. Trading Forex candles is harder work - but undoubtedly it can be done.

2) The premise behind PoM is "Capture pips when price moves faster than would normally be expected." These moves are typically short lived and akin to scalping.

3) Because of (2) above, PoMTrader is geared to capturing frequent fractions of pips. PoMTrader will never capture huge pips per trade. It however attempts to capture frequent fractions of pips which hopefully build into a regular stream of pips per week.

4) Trading candles teaches price action like no other method I can think of. It also teaches the importance of recognising a trader's "true cost of business."

5) Broker commissions and spreads are often overlooked. however, if you are looking for fractions of pips per trade, a large commission and / or spread makes it difficult to be profitable. For those interested in the math take the commission + spread on any of your trades and divide that sum by the ATR of the pair. This will tell you the opportunity or true business cost of that transaction. The higher the value of your answer, the more volatile price needs to be for the trade to be profitable. (By the way anything above 5% is on the high side ! )

Brokers charging a flat (or high) commission rate (+ a spread) require pushing the profit taking envelope per candle to a level that is close to the ATR. In other words, in order to recover business costs with such a broker PoM has to capture pips close to the ATR of each traded pair. The ATR is at the extremes of price movement and therefore fishing for pips here is makes an already difficult task even harder.

6) Please note PoMTrader can take a huge number of trades per day, but only one trade per pair per timeframe at a time.

Anyway enough already

Here are September summary results up to and including yesterday. I will update these daily and provide the underlying stats on a weekly basis.

No hedge configuration - (Flat rate commission broker)

No hedge configuration.png

Hedge configuration - (Variable rate commission broker)

Hedge Configuration.png

Charles

[MathiasJ]

Hi RisklessPips and Renee!
This is really interesting stuff!

I follow with great interest!
BR
Mathias

[bazze]