The real problem with your trading system. - page 2

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Zion_Lion:
certainly. See attached files below.

Here are the instructions written by the author of the tick candles.

"After installing in your Indicators-list, do the following :

Open a simple M1 chart (EUR/USD if you want to trade this one)

Put the LogTickData-indicator on this "naked" M1 chart (enable DLL)

Drag the PostTickData-indicator into the same chart on the Price-window (enable DLL)

and choose your own preferred ticks per bar on the inputs-tab, (15 if you wish a 15-tick bar chart)

but 33 - 133 - 233 are more random tick charts and the 133 is the one i use most.

Then you open the offline-chart !TickEURUSD, M5 (leave the time as is)

This chart will start to collect tick data and you will see bars starts to form.

Wait until sufficient bars has formed, and then add your favorite indicators.

PS. Always leave the leading M1-chart open, don't close it !!

There is one big disadvantage on this system - once you close MT,

you must wait again building new data to produce a new actual tick

chart."

My words...

As the author mentioned, data is collected only in real time. So you must wait for new ticks in real time in order for the candles to form.

Leave your computer on all day and night. When you return home, there should be loads of tick candles for you to check out and configure your favorite indicators to.

You may or may not have to change you indicator settings since the candles are now measured differently than on a time frame chart.

To manipulate the amount of tick data in each candle, go into the "posttickdata" input settings, and change the number to whatever you like.

If you change the number of ticks, you must open a new offline chart each time you change the amount.

Any currently opened tick chart will just freeze until you switch the "posttickdate" input setting back to match that tick chart.

Or, simply open multiple charts with both indicators, and make as many tick charts as you like.

GodSpeed

thank you for sharing

 

so by tick you mean renko right?

 
qwertymyfx:
so by tick you mean renko right?

A new renko brick is only added per time period.

Tick candles are added regardless of time period.

 

Hi Zion_Lion,

Again thanks for your great posts, do you have any more details of your systems? It seems that trading in ticks rather than time has huge advantages - and I couldn't agree more about volume charts being misleading for forex as there is no centralised forex exchange for accurate volume data (unless trading futures of course)

 
fxtrader77:
Hi Zion_Lion, Again thanks for your great posts, do you have any more details of your systems? It seems that trading in ticks rather than time has huge advantages - and I couldn't agree more about volume charts being misleading for forex as there is no centralised forex exchange for accurate volume data (unless trading futures of course)

You are more than welcome.

My system is based on the moving average and my forecast formula; which is still in the works. (Got set back by a personal matter. Hoping to throw some forecasts on here again within a week or so.)

I personally believe that the smoothed MA is the best tool for forex trading. Some indicators don't work on the tick chart, and I feel that the MA of any type is the best indicator for the tick chart. For obvious reasons.

Anyways...

On a tick chart, I found that opening a higher tick count chart can help reveal where my system works best. Once I know that, I then slowly work down in tick counts, multiply the MA accordingly and tweak a tad, until the sensitivity is giving me the best entry points and exit points.

For example;

I open a 20tick chart and set my MA lines at 40 and 10 (just an example, I dont actually use these settings)

If those settings look better than other settings, than I move to a 10tick, multiply the moving averages by 2, making them 80 and 20.

Then down to a 5 tick, with 160 and 40 MA's, for comparison,

Since I am dividing the tick count by 2, I also must multiple the MA's by 2 in order for each chart to be equal. Simple math.

These 20tick, 10tick, and 5tick, look almost identical and have identical MA reactions.

The only difference is that the lower the tick count, the higher the potential for an earlier the entry point if the MA's are tweaked, because there is less wait time for a new candle to close and the MA moves faster. ( I showed this in my pictures.)

And in the case of this example, I would tweak the 5tick MA's until I can get the best entry points. I might drop the 160 to 144, and the 40 to 31 (example only) or as low as I can go without risking getting false signals and worse exits points that i did on the 20tickchart.

I compare all charts to ensure I have the best settings.

So it is basically make the system as sensitive and safe as possible.

I can't say that the earlier entry is always too many pips earlier; but I can say that about 5 or 10 pips earlier sounds common. Maybe 15 if the market is moving fast enough.

 

Thanks Zion_Lion for your tick chart ....

it is true... your indicator is not same as RENKO ......

renko is like a range bar... but your tick indicator is different , its based on tick movement ........

Thanks again

 
azam575:
Thanks Zion_Lion for your tick chart ....

it is true... your indicator is not same as RENKO ......

renko is like a range bar... but your tick indicator is different , its based on tick movement ........

Thanks again

No problem.

Hopefully it helps, even a little bit.

GodSpeed

 

so if this is the case, why isn't everyone trading it?

 
vosterfxandy:
so if this is the case, why isn't everyone trading it?

That is a broad question. The main reason is probable because brokers do not offer tick charts.

Both time frame candles and tick candles can make a person money.

Which is chosen all depends on the trading system and style.

 
Zion_Lion:

The big problem with this is, for traders, is thatthe market isn't measured in time, or time frames. It really may seem that way; but it's not.

Perhaps some have gotten so accustomed to visually seeing their charts in time frames, that it became a regular and unconscious belief that that is just how to trade; in time.

.

Problem is that measuring with and/or in a "time frame" is not accurate; not even close.

Sure you might get a fair idea of the next trend direction, or even maybe some indicators might fire off some reasonable signals. However, the market is not measured in time and most indicators simply lag because of it.

The candle tick chart offers an unprecedented way to really "dissect" that whole 15, 30 , 60, etc., minute gap of time. It is literally like an opening up and peaking into the markets fine tuned movements. The candle forms because X amount of ticks in price has occurred, not simply because X amount of minutes passed. When using a tick chart, trading makes a lot more sense, and indicators are much more accurate.

In other words, instead of the candle representing a range of time, it represents X amount of movements in the price.

.

Hello again,

With this system of logging ticks, time disapeares completly from the equation.

The notion of volume vanishes too. I know that in Forex volumes are not too relevant, but they might help you during consolidation and before breakouts come.

It seems to me that even the trend lines would make no sense, because you will not have a slope, and also no moment etc.

The repainting of some indicators are due to continuous averaging process, it's not a question of time. The same way those indicators will be repainted with tick logging system.

In a way, you switch the referential system from our cartezian one to the more delayed or contracted referential of the market. For example, it could last 3 minutes between two ticks in Earth referential, when you can deduct that the market is stalling, while in your system the two ticks are not separed by time factor, so you lose some relevant informaton.

Now, the ideea of considering ticks, but taking account of time , is a good one, since averaging is more exact and statistics are better in a larger n body system than in a reduced one, meaning that you can predict better the movement of the macroscopic object (the market) by means of microscopic behaviour (ticks). The only problem is storage and mathematical processing capabilities.

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