Scoobs and squalou: what a combo

[SWG123]

I don't think it needs beautifying. Would be nice to be able to see it without squinting though!

George's improvement is perfect for that. You can specify the font, color, and SIZE. If you increase the font size you'll need to increase the ydelta parameter so the lines don't squish together.

Here's a slight mod to George's change. I removed the Comment()-based display, since George's text replaces it. I also added an "up/down" arrow for "long/short" to make it a bit more visual, fixed a minor error I introduced, added a few missing pairs from the TradePairs input, and added code to clean up George's text when you remove the indy.

I'll see your changes and raise you an automated currency pair lookup....

For those of you who want the option to trade anything your criminal has to offer, but can't quite remember all the symbols, I added code to populate the list of currencies automatically if the parameter passed (TradePairs) is blank.

The request to add an alert to this thing should come pretty soon. :>

BTW, clever reuse of the GetArrow() procedure....

George

Great stuff guys - what a great forum this is.

[SteveHopwood]

I noticed earlier that the highest/lowest indi does not update the yellow lines if the level is breeched during the current month.

It does not matter much, but I have fixed this and added an updated indi to post 1.

[garyfritz]

Well obviously I have some learning to do with this method. I tried several trades today, and almost every one of them tagged my entry, then promptly reversed: AUDCHF at 0.9551, AUDCAD at 1.0760, GBPCAD at 1.5920, etc. Not sure if today was a particularly bad day or if I just made particularly bad choices. Maybe Monday morning is a bad time to add new positions?

[GT3RS]

Well obviously I have some learning to do with this method. I tried several trades today, and almost every one of them tagged my entry, then promptly reversed: AUDCHF at 0.9551, AUDCAD at 1.0760, GBPCAD at 1.5920, etc. Not sure if today was a particularly bad day or if I just made particularly bad choices. Maybe Monday morning is a bad time to add new positions?

I have been lurking for a while on this thread, but this is my first post.

First off, a bit of the usual butt kissing to say thanks to Steve for posting this and to everyone else for contributing!

Seems like a very simple trading idea. Buying highs and selling lows is also difficult to do psychologically and feels very uncomfortable, so that adds further strength to it IMHO.

I do wonder if it might be best to only take initial positions in the first day or two that the D1 RSI busts above/below 55/45? After all, we're talking about D1 charts here with an entry on H1, and even with D1 bias, a D1 retracement could go on for a few days without taking the RSI into ranging mode.

I also want to think about correlations a LOT with this strategy - but I'm not going to try to teach grandmother to suck eggs on that one!! In fact, I'd appreciate some lessons on egg sucking myself!! Lol!

Just thinking out loud here guys, so would welcome feedback.

[spotdespot]

Thanks Steve for this method - certainly very simple and trying it out now. Thanks to all the indi mods from everyone too.

I had one trade just now that didn't perform as expected on AUDJPY. I applied the Waiting to buy EA, set the TradePrice where you see the green dotted line and SL where you see the red dashed line. The EA instantly took a trade and suspended itself. Could this be because price had actually closed above the TradePrice within the last hour?

I expect it to effectively set a buy stop at the TradePrice and only hit it if price reversed back from the D1 resistance.

There are 2 buy "arrows" there as I tried it again to ensure I hadn't just done something spectacularly dumb, which is always possible ......wait don't tell me I have....

EDIT: Yes I have - note to all people who are dumb enough not to notice you need to change the magic number for each trade. Thought of editing to remove embarrassment but I deserve it.

Also note this will only become apparent when one of your trades has been triggered - so you can add as many waiting to buy/sell trades with the same magic number and not notice until one of those trades is triggered.

Deleted the attachment as irrelevant now.

[garyfritz]

I've been thinking about this. I'm not sure (given my vast experience and huge success so far ) that the RSI indi is a good way to spot good candidates.

My understanding is that we're looking for a good strong trend and we want to jump on. The RSI indi is supposed to find those good trending pairs. But look e.g. at a D1 chart of AUDJPY. AJ has been on an almost uninterrupted tear for two months, running up almost 1000 pips. Sure sounds like a good candidate. But the RSI has been dropping for a few days, so the indi doesn't list it.

I see a couple of ways to view this:
* It's in a pullback. If it resumes its trend, the RSI will start increasing again and that's the time to jump on. Let the market show that it's serious about continuing the trend. At most, set an entry beyond the recent high so the EA jumps in as soon as the trend resumes.
* It's in a pullback in a monster trend. This is the perfect place to jump on with low risk. Maybe even enter on a limit order below the uptrending market, to grab a low-risk entry point.

I'm not sure which is most likely to succeed. Steve's Sq/Scoobs approach uses the first method, placing entries above a trending market. That can certainly work, as long as the trend keeps steaming along. You might get bit (like I did) if the market chooses your entry price as the perfect moment to reverse or pull back, but in a strong trend, betting on the trend to continue is the smart bet.

In any event, I think the RSI indi has too short a horizon. The RSI being high and rising for a day, or two or three, doesn't really tell you what you want. I think you want the ones that rise or fall smoothly and strongly. The RSI in the last few days isn't irrelevant but it doesn't seem like as strong an indicator as a strong trend. Or am I misunderstanding the intent?

[SteveHopwood]

In any event, I think the RSI indi has too short a horizon. The RSI being high and rising for a day, or two or three, doesn't really tell you what you want. I think you want the ones that rise or fall smoothly and strongly. The RSI in the last few days isn't irrelevant but it doesn't seem like as strong an indicator as a strong trend. Or am I misunderstanding the intent?

It is early days, so I might be wrong, but here is what I think:

• 1) You are over-complicating what is a simple idea. If you do not think the Rsi is sufficient for identifying the trend, then use a different method.
  2) You are being impatient. A trending market can consolidate for days on end (yes, I know you know this, but are you listening to yourself reminding yourself about this?). Some trades will inevitably retrace after piercing a support/resistance - the level has previously been s/r at some stage in the relatively recent past. The fact is, your are trading the trend and usually the trend will resume. If you cannot be patient and wait for this to happen, then this method is not for you. You also need to be able to trade lot sizes sufficiently small that the account will easily withstand a retrace - not something many traders addicted to 'risking x% of the account on a single trade are good at (that is not an accusation, merely a comment). The real success from this method has come from stacking the trades when a trending pair makes a powerful move.
  3) You appear to be ignoring the advice of a professional floor trader and the experience of a few of us who have found the D1 Rsi 20 to be a highly effective trend-spotting mechanism. For sure, it has been in the couple of years since scoobs first introduced us to the idea.

Just because this is working for me now, does not mean it will work for you if it does not feel natural to you. Nor does it mean that it will always work for me, but for now I am trading up a storm and having a great time.

[gaheitman]

In any event, I think the RSI indi has too short a horizon. The RSI being high and rising for a day, or two or three, doesn't really tell you what you want. I think you want the ones that rise or fall smoothly and strongly. The RSI in the last few days isn't irrelevant but it doesn't seem like as strong an indicator as a strong trend. Or am I misunderstanding the intent?

It is early days, so I might be wrong, but here is what I think:

• 1) You are over-complicating what is a simple idea. If you do not think the Rsi is sufficient for identifying the trend, then use a different method.
  2) You are being impatient. A trending market can consolidate for days on end (yes, I know you know this, but are you listening to yourself reminding yourself about this?). Some trades will inevitably retrace after piercing a support/resistance - the level has previously been s/r at some stage in the relatively recent past. The fact is, your are trading the trend and usually the trend will resume. If you cannot be patient and wait for this to happen, then this method is not for you. You also need to be able to trade lot sizes sufficiently small that the account will easily withstand a retrace - not something many traders addicted to 'risking x% of the account on a single trade are good at (that is not an accusation, merely a comment). The real success from this method has come from stacking the trades when a trending pair makes a powerful move.
  3) You appear to be ignoring the advice of a professional floor trader and the experience of a few of us who have found the D1 Rsi 20 to be a highly effective trend-spotting mechanism. For sure, it has been in the couple of years since scoobs first introduced us to the idea.

Just because this is working for me now, does not mean it will work for you if it does not feel natural to you. Nor does it mean that it will always work for me, but for now I am trading up a storm and having a great time.

Isn't the point of the RSI in this system to identify whether or not a pair is trending as opposed to ranging? The 45/55 filter lets you know that it isn't stalled, giving you the hope that when it passes through an S/R level that it will continue and not just use the level as a new Hi/Lo of the range it is in.

George

[SteveHopwood]

I have added a bit to the Waiting EA's. I am finding that I want the Rsi display on the chart that is hosting the Waiting EA, so I have added code that does this.

[SteveHopwood]

EDIT: Yes I have - note to all people who are dumb enough not to notice you need to change the magic number for each trade. Thought of editing to remove embarrassment but I deserve it.

Hehe. If you knew how many hours I had spent on my development machine hunting down 'bugs' that were causing trades to be closed the instant they were open, only to find that they were being closed by a different EA for whom the trade met its closure criteria, you would feel less embarrassed.

Coding for Empty4 is such fun.