ADAPTING NB10.2A FOR LOWER TF & RM TRADING - 10.2A CTS

[atharmian]

Coolncalm,

I read through your and NB10.2A strategies and also looked at NB10.2A indys (TMA Slope and DWM Pivots), comparing them with yours.

So, is there anything in your strategy that prevents it from being used in all TFs? Do we necessarily have to use Extreme/Fast TMA indys in TFs lower than H4/D1 but use TMA for H4/D1?

Basically, is there a way to combine NB into your CTS? The main philosophy difference I see pertains to you trading ranges, which in NB would be CT (S)- counter trading strategy, a minor confusion with your CTS. I say minor because range trading may not always imply counter trend trading.

Regards,
Athar.

[disbellj]

atharmian,

Thank you.

See CoolNCalm's notes in post 1 and the downloads in same post for descriptions. My headers should be seld explanatory if you've read the notes. Also, you can look into the code. For instance, I try to name my variables something that pertains to the strategy, so when you see this code for Market Bias, it should be almost as understandable as the English that I read to make it:


if(TF3Pivot[j]>TF2Pivot[j] && TF2Pivot[j]>TF1Pivot[j] && TF3Pivotdirection[j] == "Up") { MarketBias[j] = "UT"; MarketBiasColor[j] = ColorUp; }
if(TF3Pivot[j]<TF2Pivot[j] && TF2Pivot[j]<TF1Pivot[j] && TF3Pivotdirection[j] == "Down") { MarketBias[j] = "DT"; MarketBiasColor[j] = ColorDown; }
if(TF3Pivot[j]>TF2Pivot[j] && TF2Pivot[j]>TF1Pivot[j] && TF3Pivotdirection[j] == "Down") { MarketBias[j] = "UT-RR Stg 1"; MarketBiasColor[j] = ColorUp; }
if(TF2Pivot[j]>TF3Pivot[j] && TF3Pivot[j]>TF1Pivot[j] && TF3Pivotdirection[j] == "Down") { MarketBias[j] = "UT-RR Stg 2"; MarketBiasColor[j] = ColorUp; }
if(TF3Pivot[j]<TF1Pivot[j] && TF1Pivot[j]<TF2Pivot[j] && TF3Pivotdirection[j] == "Down") { MarketBias[j] = "UT-RR Stg 3"; MarketBiasColor[j] = ColorUp; }
if(TF3Pivot[j]<TF2Pivot[j] && TF2Pivot[j]<TF1Pivot[j] && TF3Pivotdirection[j] == "Up") { MarketBias[j] = "DT-RR Stg 1"; MarketBiasColor[j] = ColorDown; }
if(TF2Pivot[j]<TF3Pivot[j] && TF3Pivot[j]<TF1Pivot[j] && TF3Pivotdirection[j] == "Up") { MarketBias[j] = "DT-RR Stg 2"; MarketBiasColor[j] = ColorDown; }
if(TF3Pivot[j]>TF1Pivot[j] && TF1Pivot[j]>TF2Pivot[j] && TF3Pivotdirection[j] == "Up") { MarketBias[j] = "DT-RR Stg 3"; MarketBiasColor[j] = ColorDown; }
if(TF2Pivot[j]>TF3Pivot[j] && TF3Pivot[j]>TF1Pivot[j] && TF3Pivotdirection[j] == "Up") { MarketBias[j] = "UT-R"; MarketBiasColor[j] = ColorUp; }
if(TF2Pivot[j]<TF3Pivot[j] && TF3Pivot[j]<TF1Pivot[j] && TF3Pivotdirection[j] == "Down") { MarketBias[j] = "DT-R"; MarketBiasColor[j] = ColorDown; }

As far as conclusions one can draw? When I look at the charts, I see high probability setups near Fast Lines like CC talks about. I also see an instance in his revised notes where the picture shown looks like a loser, but without me knowing how to calculate all terms CC uses, I can't make many conclusions at this point in time. So what you see are DEFINITIONS of everything I have ascertained of the strategy. A variable has to be declared ("Hey, I'm a variable. I'm one of 5 types, and of these 5 types you can do anything with me. Name me what you want. Choose what type of variable you want me to be. I want to please you and do what you want me to do" LOL), then it must be defined ("This is what my name means"), and then it must be compared with something to make a rule ("I am greater than this other guy over here, definitely not equal, so don't that count for something?" LOL). Once you have a rule, you get him together with his buddies, and together they are a gang ("We own this! if we don't say do it, it ain't gettin' done. If we say do it, it gets done" LOL). Now at the moment, we are getting the gang together. They haven't all met yet. We must have the one who is putting this gang together to give feedback. All I can do is go get the members I'm told to go get, and bring 'em back, and say "Here you are boss, what you want me do now?" LOL. So that's where we are at at this stage, and I hope you get a laugh out of it cuz I sure did.

As far as the indicator, I've already went over it. I guess the long and short of it is, please read CC's stuff, the attachments on post #1, the thread really, since by doing so maybe you could help me or others better understand, and oh yeah, read my previous posts that have been posted that talk about how we got here. I believe I've posted pretty well on each step I've taken.

Kindest regards,

Don

Don,

Great work with speed here ...

Can you explain all the columns and the trading conclusions one can draw?
Perhaps keep all such notes and updates in one post with some sticky kind of reminder, so we can all just refer to the running summary in a single post as many other authors do ?

I have downloaded this Indy again...last one did nothing (no display.) Can you also include some implementation and background notes in above summary?

Cheers,
Athar.

[atharmian]

Don,

Thanks for your reply...I guess the development is still early, and we need to get the Buy/Sell rules clarified so they can then be coded by the likes of you !

What I meant by adding documentation in one place was just that- I have read all your postings, but it helps to bring everything in one place. Maybe you can start your own thread with a Post #1 that defines all the updates and main points like all other developers.

There is a lot of good work going on but much of it, I am afraid, gets lost in various cross-threads and postings. But then most voluntary (e.g. open source) work is like this ...

Best Regards,
Athar.

[coolncalm]

Hi Don,

You did succeed in making it a bit muddier

All the zigzag-based semaphore indys repaint, but some can be made more tolerable than others. In tweaking the ATeam, I noticed its H1 (white) alerts occur on 3 levels, and I ignored/blacked out the unneccesary level 1 but used the more informative levels 2 & 3 (each white circle on the chart should have a 2 or 3 written in it). Maybe the blacking out led to your conclusion that GrossPeriod=60 is totally disregarded which may not be quite accurate as can be seen from the example charts I posted.

If for coding or resource efficiency reasons you choose to use the SEMA4X indy instead, then it may be useful to ignore both the levels 1 & 2 alerts which tend to occur too early and find a way to use only a level 3. Else, the trades may be triggered on false highs/lows.

Cheers,
CC

[disbellj]

CoolNCalm and all,

Since it's muddier, I'll try my best to figure it out. BUT ya'll gotta work with me here too. I have made a video to explain each column.

http://tinyurl.com/disbellj

CoolNCalm, you started with saying use SEMA4X on all timeframes, the equivalent of highest high or lowest low over 96 bars on each timeframe. Then ATeam muddied the waters by changing to to using highest high or lowest low over 12 bars on each timeframe. BIG difference.

int GrossPeriod=60;
int GrossPeriod2=240;
int GrossPeriod3=1440;

changed in init to:
if (Period()==60){GrossPeriod=60; GrossPeriod2=240;GrossPeriod3=1440;}

GrossPeriod is used as timeframe to change ExtMapBuffer1 and 2's values, which are blacked out.
GrossPeriod2 is used as timeframe to change ExtMapBuffer3 and 4's values, which are White.
GrossPeriod3 is used as timeframe to change ExtMapBuffer5 and 6's values, which are Magenta.

Since the code reads that when on H1 chart, that H1 ZigZag is blacked out, H4 is White, and D1 is Pink, and you are using alarm for SEMA4X on H1 in most recent template, I recommend us using 96,1,1 ZigZag on H1 instead of 12,5,3. As far as the higher timeframes, we can use ZigZag 12,5,3 if you want, 96,1,1 if you want, or whatever you want. I just need a definitive answer.

And please read my past post concerning formulas I need you to give me, taking my example and changing to your intentions, so that I may know how to calculate wiggle room. I gave examples that either need OK'd or changed please. The example and your changes can be simple, but I need them for buys and sells for fastlines and pivots, including wiggle room (second parenthesis below?) and :
FastLine Buy StopLoss = ((Ask-H1bottomFastLine)+(H1BottomFastLine-H1ZigZag96)/Pips) + Volatility Pips. Need this info before we can proceed. Thanks.

Kindest regards,

Don

[coolncalm]

Coolncalm,

I read through your and NB10.2A strategies and also looked at NB10.2A indys (TMA Slope and DWM Pivots), comparing them with yours.

So, is there anything in your strategy that prevents it from being used in all TFs? Do we necessarily have to use Extreme/Fast TMA indys in TFs lower than H4/D1 but use TMA for H4/D1?

Basically, is there a way to combine NB into your CTS? The main philosophy difference I see pertains to you trading ranges, which in NB would be CT (S)- counter trading strategy, a minor confusion with your CTS. I say minor because range trading may not always imply counter trend trading.

Regards,
Athar.

Hi Athar,

The notes do say there shouldn't be anything preventing you from using the strategy on other timeframes as the principles are not necessarily H1-specific. Its just that the lower you go, the easier it is to get whipped and the higher you go, the harder it is to get into trends early. But the choice is yours.

That said, I am not sure what specifically you may be seeking to combine - entry, exit, direction? If you place both strategies side by side, you will see a lot of similarities (full trend pivot definitions, trend-following, pullback entry, etc) and then you can mix and match based on your preferences. Or do you mean asking Bob if we can write a single strategy that contains both elements? There are so many different ways that people trade that a single document may not be able to illustrate all of the combinations of both strategies equally for all kinds of traders. For me the only viable solution for seamlessly combining and trading both strategies is an EA that is written to trade both strategies.

MultiBob by Baluda is a bot that aspires to make it possible to trade NB10.2, NB10.2a and CTS altogether! You can contribute on its thread to ensure that it achieves that grand objective while the effort here continues to aim at a CTS-only development.

Cheers,
CC

[coolncalm]

Don,

We are working with you!
Okay, lets say I go with your understanding of the ATeam - how else do you explain the white alerts that occur on H1 only in the charts I posted? I will like to know. Like I said, I'm a poor coder so I need to learn from you here.

[disbellj]

CC,

Like you said, ATeam doesn't have alarms. The SEMA4X in latest template is giving you alerts.

As far as your coding of ATeam, it looks like the person that coded it knew what they were doing, and instead of having 3 periods (aka number of bars to base obtaining highest high/lowest low, aka periods 5, 13, 34 like in Semafors indicator, ATeam using one period: 12. It however uses 3 timeframes which is calls Period (capital P). I can see where you can get mistaken if you didn't write it, but by looking at it, it pretty clear to me the intentions of it. It gives ZigZag on current H1 timeframe (H1 in this case, number 1, blacked out), gives white for timeframe 240 (H4, number 2, White), gives magenta for timeframe 1440 (D1, number 3, Pink).

So the alerts are SEMA4X. Do you currently use SEMA4X to get alerts for higher timeframes, or do you use higher timeframes alerts yet, since you don't have alerts in ATeam, AND is this just an idea in progress, not been traded long enough to ever get an alert even over 96 days, let alone 96 weeks or 96 months LOL? (to me 96 for higher timeframes, if an idea and not what you've been using might be a bit high?)

Kindest regards,

Don

Don,

We are working with you!
Okay, lets say I go with your understanding of the ATeam - how else do you explain the white alerts that occur on H1 only in the charts I posted? I will like to know. Like I said, I'm a poor coder so I need to learn from you here.

[coolncalm]

If Wiggle Room is simply distance between FastLine indicator lower band and bottom Semafor (which may be above or below FastLine lower band) in a buy, and this is placed below FastLine lower band, if Semafor is below FastLine, then SL would be figured, best as I can tell, top to bottom:
Buy StopLoss Example:
Distance from price (Ask) now and lower FastLine is 15 pips. The Semafor is below the FastLine 20 pips. So formula would be:
StopLoss = (((Ask-LowerFastLine) + (Lower FastLine - Semafor))/Pip) (divided by Pip to make whole number, or 1 place decimal/double) + Volatility Pips (as whole number, or 1 place decimal/double)

Don,

Great thinking to start with. We are heading somewhere with this The process will be fairly iterative, I believe.

Hmmm, using Semafors (instead of the the lowest low below the Fast line in this case)...now since they repaint, won't using them beg the question "which level?" As you find the Sema4x more code-friendly, I would suggest you use the third level and upwards.

Regarding the formula, the Volatility Allowance should be "the average pip distance between a pair's price highs/lows beyond (below in this case) its specified (lower in this case) Fast line and the Fastline", making the formula (as described in the Clarifying Notes):
StopLoss = (Ask-LowerFastLine)/Pip + Volatility Allowance Pips

If the average distance cannot be calculated and stored, it will be difficult to get a scientific figure for Volatility. The iterative way will then be to use the following formula suggested by you and test it extensively on each pair to iteratively get the most approximate:
StopLoss = (((Ask-LowerFastLine) + (Lower FastLine - Semafor))/Pip) (divided by Pip to make whole number, or 1 place decimal/double) + Volatility Pips (as whole number, or 1 place decimal/double)
where Volatility Pips is a user parameter input for each pair.

Attached is my copy of NanningBob's write-up on pair volatility. If you do not yet have a grasp on NB10.2a, I suggest you visit this thread before continuing as CTS is based on and complements NB10.2a: http://www.stevehopwoodforex.com/phpBB3 ... f=37&t=662

Cheers,
CC

[coolncalm]

A graphical summary of the volatility pair grouping is attached.