Trading Chaos - (Rrofitunity) - page 2
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CAn you explain your scalp system ...regarding TF,entry point,TP,SL,exit point ?
and your indicator too ? so everyone here who expert on EA can help you
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Forex Indicators CollectionTime Frame: M5
Currency: Any
Indicator: Alligator Indicator with just the Jaw Line
Take Profit: 4-6 pips, usually 4 Pips
Entry:
1 Pip above Bullish Divergence bar for Longs
1 Pip below Bearish Divergence bar for Shorts
StopLoss: Still working on this, so far have not used SL, but manually close trade if -15 Pips. Also for buys I usually use the closest fractal - 1 pip or for sells the closest fractal + 1 pip.
I will need help from you all to fine tune the strategy and tweak it to be as succesful as possible then maybe code it into an EA. thanks,
OK, after a few minutes closed the Scalp for +4 pips. All this exercise is to give you guys an idea how the strategy is used so you guys can understand. For some reason I am not able to write it down on paper but I can visually show you much better, prabably because the rules are very loose right now, no solid rules yet. I am hoping I will get some help here to make the rules solid and try to follow to the T and see how that works out. Thanks everyone,
So the above post shows the step 1 of the strategy. The second step is to look for Bullish or Bearish Divergence Bar. In this example we look for bullish. As shown in the image below. Once you see this bar on the next bar open a buy stop or markey buy order 1 pip above the high of this divergence candle.
So we got price running away from the blue line of the alligator at a very steep angle, then we saw a bullish divergence bar and now finally we put the buy order 1 pip above divergence bar and put stop loss in this example at the most recent downward pointing fractal. You can see it in the attached image.
Finally we see the whole picture, you guys see what I am talking about now?
I will try to post today EURUSD's behaviour in steps...
In this image we see that the price pull away from the blue line at a very steep angle, I draw 2 red lines, 1 red line on the price and 1 on the blue line, as you can clearly see the two are almost going in opposite direction. The bigger the angle the bigger the chance of the price pulling back to the blue line or rubber band snapping back. I think this step will be the hardest part to code, not sure how an angle between the price and blue line can be coded
Strangley enough they got rid of the AC (accelerator) from the chaos system in the last book.
They said it was not up to the job of faster moving charts which I am sure must apply to forex so they only use the AO now.
I must admit I like to see my gator with 3 lines and a full set of teeth !!
In fact there is another set up that uses 4 lines. I will find out what the other one is for you.
Mart
Thanks mart, I donot use the AC or AO for this strat, the pull away and pull back works pretty well for a scalp here and there.
OK , Keep the thread going this is very interesting.
The 4th jaw line is a 5 simple close +3 shift (purple)
It gets in quicker than a down fractal (if you use them ) with it's cross of the green line.
But a lot later than a reversal bar. although a bit safer
Mart
Here is the 4th jaw you mentioned attached to M15 chart. For some reason I never liked the MA cross strategies. Moving Averages are always either too lagging behind price action or too ahead of the price action. I like to rely on price action only. But here is the chart with the 4th line.
trading against the trend like you are doing will eventually kill you. The alligator is meant to show you when you should be in the market, but you are supposed to trade in the same direction. If the green line is below the jaw you are looking to short and vice versa. You may have noticed by now that the price can move 100 points in a few minutes and often does. If it does so when you are buying when you should be selling you'd be pissed, since you are not using a stop loss. You'll look back at your screen and be negative over $100. So you are trying to make $4 whilst at any time the trend can continue and you can lose $100. That's not a very good risk/reward ratio. Just trade in the direction of the trend. Use Brain Trend or heinken Ashi to time your entry and start collecting those 100 point moves. Sure sometimes the trend will die on you but over all you should come out in profit and that's what matters.
Also, you cant use a pic of fractals to make it look they are timing the market. Fractals are not as good as they look, you have to remember that the signal is two bars delayed. If Fractals worked as you suggest then all one would have to do to make a million is sell whenever a sell fractal shows up and the alligator is in sell mode. Alas, that is not the case.