Market condition - flat or trend? Which dominates? - page 3

 
SK. писал (а):
Xadviser:
SK. wrote (a):
The concepts of trend and flat are no exception. The boundaries of these concepts are blurred. In other words, these concepts rather express a trend determined on the basis of personal preference.

1. Thank you.

2. Totally agree, as I hold the same position. "... based on personal preference."

3. Do you have a track record with personal preferences (criteria)? Essentially there were two questions: what are the criteria? (preferably also why) and what is the result of these criteria?

I.e. we are not interested in the difference between the trend and the flat and not which of them is primary, but what is their relation?

You don't seem to have understood the leitmotif of my previous post.

Defining some numerical ratio in one way or another is defining a boundary, i.e. essentially defining a trend and a flat. In my previous post I tried to show that no immutable relation exists in principle. Specific definitions can be given only for a specific application to a specific trading system. I am not oriented on the notions of trend and flat in my developments. But if I had my own definitions, they would be suitable only for my system.
I would like to add my point of view to this. I have given up the notion of flatness altogether, because it is not mathematically formalizable. That is, if we proceed from the definition that the trend is an equation of a straight line, it is always a "trend". Only its parameters change, i.e. the slope angle. Therefore, the first place belongs to analysis of the sampling depth (value) used to determine these parameters. I went this way
 
SK. писал (а):
It seems that you did not understand the leitmotif of my previous message.

The definition of some numerical ratio in one way or another is the definition of a boundary, i.e. in fact, the definition of a trend and a flat. In my previous post I tried to show that no immutable relation exists in principle. Specific definitions can be given only for a specific application to a specific trading system. I am not oriented on the notions of trend and flat in my developments. But if I had my own definitions, they would be suitable only for my system, while for yours, I would still have to find my own.

I hope I understand :-)

Let me explain my thought (question) differently.

I have an opinion (not a firm one) that if you do accept some firm limits, it would not affect the RELATIONSHIP in any way (broadly, at least) with different sizes of given limits.

So I want to confirm my opinion, or refute it

 
Xadviser:

I hope I understand :-)

Let me explain my thought (question) differently.

I have an opinion (not a firm one) that if you do accept some firm boundaries, then it will not affect the RELATIONSHIP in any way (within wide limits, at least) with different sizes of the given boundaries.

So I want to confirm my opinion, or refute it

That's the mistake...

Well, take a deeper look at this question. Essentially, what are you trying to solve? You are trying to answer the question "Is fire a friend or foe?" without considering any other input. That is your mistake. Fire is an enemy if there is a fire, but a friend if you heat the kettle. It is impossible to answer the question without these additional conditions. You keep asking questions about the trend/flat ratio without reference to the specific conditions. And to get an answer with such inputs is impossible in principle - it violates the normal order of things.

 
SK. писал (а):
Xadviser:

I hope I understand :-)

Let me explain my thought (question) differently.

I have an opinion (not a firm one), that if you do accept some firm boundaries, it will not affect the RELATIONSHIP in any way (within wide limits at least) with different sizes of the given boundaries.

So I want to confirm my opinion, or refute it

That's the mistake...

Well, take a deeper look at this question. Essentially, what are you trying to solve? You are trying to answer the question "Is fire a friend or foe?" without considering any other input. That is your mistake. Fire is an enemy if there is a fire, but a friend if you heat the kettle. It is impossible to answer the question without these additional conditions. You keep asking questions about the trend/flat ratio without reference to the specific conditions. And to get an answer with such inputs is impossible in principle - it violates the normal order of things.

A useful fire is one that warms the pot, right?
Well, then...
There's also the Carnot cycle. Maybe try a degree of price compression? Look for market compression?
The idea, although physical, isn't crazy, because it's been used in computer science for a long time,
that the work of searching for data in a set can be calculated thermodynamically
thermodynamically as the work of compressing an equivalent volume of gas to the volume of data being searched.
Then Trend is sharp steam, and Flat would be crumpled steam.
(About steam pressure in the boiler See k./f. Volga-Volga, the episode with the race on steamers).
Then turn to power engineering, to its gas/water equations, take out enthalpy,
and you get the output of where the trend is sharp and where it's crumpled.

 
SK. писал (а):

You, on the other hand, continue to agonise over the trend/flat ratio without reference to specific conditions.

Always had some difficulty when communicating remotely..... (probably not much experience :-))

I'm just with the link .... to conditions (parameters), but is there a dependence on those parameters....?

For example, if you take the Zig-Zag indicator as parameters, then there is no flat at all (I didn't see any horizontal lines there :-)). And if we take a range and assume that movement in it is a flat, then we have movements inside and outside this range. We can measure these movements and get a certain ratio. It can be measured on a certain long period of time. If we change the range size, will the price inside/outside this range change on the same period of time?

 
Korey:

A useful fire is the one that warms the pot, right?
Well, then...
Then there's the Carnot cycle. Maybe try a degree of price compression? Look for market compression?
The idea, although physical, isn't crazy, because it's been used in computer science for a long time,
that the work of searching for data in a set can be calculated thermodynamically
thermodynamically as the work of compressing an equivalent volume of gas to the volume of data being searched.
Then Trend is sharp steam, and Flat would be crumpled steam.
(About steam pressure in the boiler See k./f. Volga-Volga, the episode with the race on steamers).
Then turn to power engineering, to its gas/water equations, take out enthalpy,
and you get the output of where the trend is sharp and where it's crumpled.


Hee...:)

I too, out of old habit, try to find analogies with previously studied physical processes. And, by the way, in particular, with thermodynamics, the laws of heat transfer... For example, it is preliminarily known that there is some mandatory heat input to change the aggregate state of matter. A metal, for example, when heated just heats up at first, then its temperature stops rising, but heat is consumed. During this period, the structure of the metal changes and it turns into a liquid. Further pumping of heat to the already molten metal again causes the temperature (liquid metal) to rise.

Now, the process of temperature stabilisation during a change in aggregate state is very much like a horizontal correction. Very similar to the 4th wave. And if you create a bimetallic model (steel rod inside and bronze pipe outside), when heating such an object, you get a classic 5-wave pattern:
1 heating the whole object, 2 stabilisation (melting bronze), 3 heating the steel rod and molten bronze, 4 stabilisation(melting steel), 5 heating molten steel.

Ice can also be melted, heated and vaporised. It would be about the same.

 
Korey:

Then there is the Carnot cycle. Maybe try a degree of price compression? Market compression to look for?
The idea, although physical, is not crazy, as it has long been used in computer science...

My opinion is that forex is a process. And process is physics, not mathematics. So perhaps your approach is quite applicable, as are other similar processes in physics.

And still the question is not about sharpness and crumpeness of the trend, but about the ratio of the length of the trade to the flat under given conditions (of the trend and of the flat).

 
Xadviser:

I'm just with the linking .... to the conditions (parameters), but is there any dependence on these parameters....?


I can't explain it more popularly. Apparently, I am a bad explainer.

I will try one last time:)
The conditions (parameters of a certain process) exist before the notions of trend and flat are born. Within the framework of some certain process, it is possible to define the notions of a trend and a flat. And it can be done based on one's own will. It can be done based on some calculated threshold in a trading system. For example, as a result of long calculations it turns out that:

if the bidding control algorithm A is switched on when the average regression line (calculated by 30 min. plot) slopes to 7p/hr,

and in this case

include the trading control algorithm B when the slope of the average regression line (calculated by 30 min. segment) exceeds 7 p/h,

this trading system produces the best results among all known ones at such ratios,

That's why for this particular trading system we may consider that

Flat is that part of the price flow at which the slope of the average straight regression line calculated for the price data at the 30 min segment does not exceed 7 p/hour. An excess of this angle indicates the presence of a trend.

 
SK. писал (а):

The conditions (parameters of a certain process) exist before the concepts of trend and flat are born. Within the framework of a certain process, it is possible to define the notions of trend and flat. And it can be done based on one's own will. It can be done based on some calculated threshold in a trading system. For example, as a result of long calculations it turned out that:

if the trading control algorithm A is switched on when the average regression line (calculated by the 30-minute plot) slopes to 7p/hr,

and at the same time

the B trading control algorithm to be on when the slope of the average regression line (calculated by 30 min. segment) exceeds 7 p/h,

this trading system produces the best results among all known ones at such ratios,

That's why for this particular trading system we may consider that

Flat is that part of the price flow at which the slope of the average straight regression line calculated for the price data at the 30 min segment does not exceed 7 p/hour. Exceeding this angle indicates the presence of a trend.

Never say "never" and "last" :-)

That's great! As a possible variant we have defined the parameters.

Now if we apply these parameters and look at a considerable (two years) period of time (T) and calculate time of being in a trend (T1) and flat (T2) T1+T2=T.

What is the ratio of T1/T2 in the measured T? And with other parameters at the same T? Will it change or remain the same?

 
Xadviser:

Now if we apply these parameters and look at a significant (two years applicable to the given parameters) time span (T) and calculate the time in trend (T1) and flat (T2) T1+T2=T.

What is the ratio of T1/T2 in the measured T? And with other parameters at the same T? Will it change or remain the same?


What's... for what? For my system? I said I am not guided in building a trading system by these concepts.

For your system? Well, that's where your cards are in your hands. When you find out, let us know, it will be interesting to hear.

In the general case, of course, it will be different.