Manually trading SAFT to see if its profitable

[slipshod]

Having compared some examples with the time-based data I'd have to agree - MTF_RenkoLiveCharts_v1.0 is creating false candles. The funny thing is that ER_RenkoChart_lite is obviously a version of RenkoLiveCharts as well. The sourcecode for it would have to be available somewhere!

[dakuki]

Am just having it decompiled by a service. Might take 24 hours though.

[slipshod]

Ok no worries. If it is indeed derived from RenkoLiveCharts then I _should_ be able to fix the bugs in that EA. Otherwise I'll try to get the new volume method into the decompiled indi, but that'll likely be quite difficult.

[dakuki]

Hello Slipshod

I guess you are sleeping now in Australia!

Here is the decompiled mq4. file for the Renko EA.

Unfortunately we will not be able to load it with data on the weekend.

Anyways, looking forward to this one and have a great weekend,
Dan

[slipshod]

... and here is the revised MTF_RenkoLiveChart_v1.0s with no more "invented" renko bars

Sleep? It's only 1.15am here, the night is young! I've corrected the download in the previous post as well.

Btw a small profit on my trades today as nothing wanted to run very far (yet) ... but a 68% win ratio for the day makes me pretty happy. That's now 4 "win" days versus 3 "loss" days trading this method, overall win% at 43 and average win pips vs loss pips about equal. Here's how it looks:-

saft-20120824.png

I'm hoping that lousy day mid-week taught me a few lessons about how to (and how not to) trade this. I definitely think there's a lot of potential here, the key is getting rid of the need for subjective discretionary decision-making as much as possible.

Have a great weekend, will be back on Monday ready to rip into this again

[dakuki]

Hello Slipshod!

Thank you for this!

I have compared the revised MTF RENKO to the one I posted (now decompiled above).

Even thought the differences are very small, the one I posted still wins the day. I am using Renko for a long time and you will see that bar formation, divergencies, even bar coloring still favors the ER_RenkoChartLite.

I hope you can apply your volume magic to that one, PLEASEEEEEEEEEEEEEEEEE!!!!

A good weekend to you too!
Dan

[slipshod]

That's very odd, I'm not seeing any differences at all - the two are identical on the charts I've compared. Could you post some screenshots?

I really must sleep now, but I'll add the volume "magic" to the other renko indicator sometime over the weekend, its pretty easy to do. I'd prefer to use the "MTF" one though, as it can produce multiple renko timeframes simultaneously, so from one M1 chart running the EA I can load 3 different offline Renko charts with varying box widths.

[dakuki]

You are right. I am sorry. It was because I had taken a screenshot from the 1st, then when I reloaded the first after having tested yours it gave same results. So for now lets stick to yours. Will test next week sometime again and let you know if any difference.

For now have a great weekend in this beautiful country of yours where I have never been yet.

Cheers,
Dan

[slipshod]

After a couple more days of unspectacular trading I think I can be pretty confident that the basic SAFT method - trendline breaks accompanied by OBV breaks (regardless of which OBV is used) will produce losses more often than wins. SAFT has no allowance for sideways consolidations, and as I've noted previously the market just loves to false break.

Yet we see reversals all the time, no matter what timeframe you look at. Its not hard to go back over a chart with the OBV indi attached & draw trendlines spotting break after break leading to profitable reversal trades.

Therefore I'm thinking that something else is needed as a filter to prevent entries on false breaks or when the market isn't trending. Renko/Constant Range Candles help a bit, but are not enough.

Over the course of this week I'll be experimenting with different ideas, if I find something reliable I'll certainly post it here.

[MichaelM]

Read the FF thread again... gg53 has shared more of his insight on how to prevent killing your account