A new expert with great potential - page 2
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
I read it... There's a lot of tricky stuff in there, but it's not sure it's all necessary or useful. It's for sale, and it's a different approach in this case.
Go here http://fx.qrz.ru/, download the software and you can make different digital indicators.
I don't think that by taking this particular indicator out of the context of the Digital System one can get anything promising out of it. In fact, it determines absolutely nothing by itself (some incomprehensible "reference" trend line)!
And one of the entry conditions there is defined as the interaction of RFTL with SATL .
Here is an example of an entry:
RSTL, RFTL, SATL, FATL pointing upwards. This is a very strong indicator of an uptrend. But the price has already gone quite far up from the blue RSTL line. A pullback down is possible. The STLM is also pointing upwards, and it reversed before it even reached the zero line, which also confirms a strong upward trend. But reaching the maximum values of RBCI and reversal downwards of FTLM tells about an imminent correction of the trend.
Conclusion: An uptrend is in effect. But it is dangerous to take up positions, as the RBCI and FTLM show the beginning of a possible correction. Because playing against the trend is very dangerous, the only option is to wait. Wait for the minimum FTLM and, only with the rising STLM, enter the market up. As long as it is out of the market. But out of the market only on the weekly chart. On smaller timeframes it is possible to play very short in both directions (STLM, FTLM have different direction).
//-------------------------------------------------------------------------------------------------------
I don't think that by taking this particular indicator out of the context of the Digital System you can get anything promising. In fact, it does not define anything by itself at all! And one of the input conditions there is defined as the interaction of RFTL with SATL .
Here's an example of an input:
RSTL, RFTL, SATL, FATL are directed upwards. This is a very strong indicator of an uptrend. But the price has already gone quite far up from the blue RSTL line. A pullback down is possible. The STLM is also pointing upwards, and it reversed before it even reached the zero line, which also confirms a strong upward trend. But reaching the maximum values of RBCI and reversal downwards of FTLM tells about an imminent correction of the trend.
Conclusion: An uptrend is in effect. But it is dangerous to take up positions, as the RBCI and FTLM show the beginning of a possible correction. Because playing against the trend is very dangerous, the only option is to wait. Wait for the minimum FTLM and, only with the rising STLM, enter the market up. As long as it is out of the market. But out of the market only on the weekly chart. On smaller timeframes it is possible to play very short in both directions (STLM, FTLM have different direction).
//-------------------------------------------------------------------------------------------------------
Interesting reasoning... I need a picture) Do you have some observations concerning these indicators?
.
So:
FATL (Fast Adaptive Trend Line) "fast" adaptive trend line is obtained using a digital low frequency filter (cream line on the price chart).
SATL (Slow Adaptive Trend Line) "slow" adaptive trend line is obtained using a digital low frequency filter of another order (blue
line on the price chart).RFTL (Reference Fast Trend Line) is a reference "fast" trend line (red
line).RSTL (Reference Slow Trend Line) is a reference "slow" trend line (blue
line).RBCI (Range Bound Channel Index) is a bandlimited channel index calculated with the help of a band filter (the second indicator from below is a light green
line).FTLM (Fast Trend Line Momentum) and STLM (Slow Trend Line Momentum) show the rate of change (fall or rise) of FATL and SATL (topmost indicator in the box, white and purple
lines).PCCI (Perfect Commodity Channel Index) is a perfect commodity channel index (the lowest indicator is the orange line).
So, the basic principles, which should be observed when developing a specific trading algorithm, are as follows:
- trade only in the direction of the dominating trend, the direction of which is determined by the "slow" adaptive trend line SATL;
- take into account the dynamic characteristics of the "fast" and "slow" trend, represented by indicators FTLM and STLM;
- use the information about the area of values (neutral, overbought, oversold, local maximum or local minimum) of the sum of dominating market cycles (index RBCI);
- consider the oscillator signals as secondary in cases, when the oscillator signals are secondary.
The basic rules for interpreting the above mentioned instruments are as follows:
line indicates a bullish trend on the market. -- a rising SATL
The starting
point ofa bearish trend reversal is a local minimum of SATL
- the point at which the sign
ofSTLM
changes from minus to plus is considered to be the end of a bearish trend reversal.-
a falling SATL
line indicates a bearish trend on the market - the point at whichSATL
makes a local maximum is considered to be the beginning of a bullish trend reversal .- the
point atwhich STLM
changesfrom plus to minus is considered to be the end of a bullish trend reversal - a close to horizontal SATL
shape indicates a neutral trend .STLM interpretation requires special attention
A couple of years ago I started to get into it and even traded on this system. But then I realized. That there are systems with the same (not insignificant) efficiency. BUT MUCH EASIER.
Besides. Somewhere I saw a freely available Expert Advisor for about - this method with the same indicators.
STLM interpretation requires special attention
The interpretation of the STLM requires special attention.
- A positive STLM indicates a bullish trend and a negative STLM indicates a bearish trend. - The STLM is a leading indicator.
- a local STLM low always precedes a local SATL low.
- the local maximum of the STLM always precedes the local maximum of the SATL.
- the STLM reaching its extremes is a necessary but not sufficient condition for the SATL curve to reach a top or bottom.
-A rising STLM with a rising SATL indicates an accelerating bullish trend.
- a horizontal and positive STLM with rising SATL indicates an established bullish trend.
- the greater the absolute value of the STLM, the greater the potential for a bullish trend.
- falling STLM with falling SATL indicates an accelerating bearish trend.
- a horizontal and negative STLM with rising SATL indicates an established bearish trend.
- the greater the absolute value of the STLM, the greater the potential for a bearish trend.
- a rising fast trend line FATL with a rising slow trend line SATL indicates a strong bullish trend in the market.
- a falling fast FATL when the SATL is falling slow indicates a strong bearish trend in the market.
- a rising FATL with a falling SATL line indicates either a bullish correction in a bearish trend or a consolidation.
- a falling FATL when the SATL is rising indicates either a bearish correction in a bullish trend or a consolidation.
- The start or resumption of movement in the same direction of the FATL and SATL lines indicates either a trend reversal or the end of a correction and resumption of price movement in the direction of SATL.
PCCI is an indicator showing the degree of divergence from the mathematical expectation price. That is, if it is more than 1, we should wait for the correction downwards or assume it at confirmation of other indicators. In any case, it is worth straining. If PCCI is less than 1, then vice versa.
In general, I think this indicator is worth considering only on the daily chart, it is really informative there. On other timeframes it is unlikely. In general, less than on the 4-hour charts in my opinion there is little sense to watch. If STLM, FTLM go in one direction in the pair, it is better not to play against them.
If STLM goes up(down) only play up(down). Add on a reversal of fast indicators FTLM,RBCI from extremes down(up).
A couple of years ago I started to get into it and even traded on this system. But then I realized. That there are systems with the same (not insignificant) efficiency. BUT MUCH EASIER.
Besides. My idea of the free access Expert Advisor is based on the same method with the same indicators.
Yes, the system is serious... If you want to know if it's good or bad, you'll never understand it. Do you have a link to this Expert Advisor? If its exact name, may be it will be searchable on the net?
A couple of years ago I started to get into it and even traded on this system. But then I realized. That there are systems with the same (not insignificant) efficiency. BUT MUCH EASIER.
Besides. I don't know why I decided to become an expert advisor, but I was just trying to understand the method I was using.
In general, it should be studied. There is nothing to say here. If you have any statistics on this theme, maybe someone has worked or is working with it? Not advertising posters, of course. Everything is always good in advertising))
I didn't use it. The signals there are very complicated, imho. There is a document online with a detailed description and screenshots. Try searching for the document "mysystem.doc". If you can't find it, I can e-mail it to you from home tonight.
Let me tell you this: it produces good signals if the cutoff periods are selected properly, and you should regularly perform spectral analysis on the raw data.
The signals can be as simple as that: buy when FATL, SATL, RSTL, FTLM and STLM point up and close when FTLM makes a local maximum.
The problem is that quotes are not a stationary process, which means that the spectrum is time-varying and the cut-off periods are constantly changing :-(
I didn't use it. The signals there are very complicated, imho. There is a document online with a detailed description and screenshots. Try searching for the document "mysystem.doc". If you can't find it, I can e-mail it to you from home tonight.
Let me tell you this: it produces good signals if the cutoff periods are selected properly, and you should regularly perform spectral analysis on the raw data.
The signals can be as simple as that: buy when FATL, SATL, RSTL, FTLM and STLM point up and close when FTLM makes a local maximum.
The whole difficulty is that quotes are non-stationary process, which means that the spectrum floats in time and the cut-off periods are constantly changing :-(
Yes, thanks, I found this document and read it... Lots of stuff, takes effort and time to study. But it is possible to trade with simplified scheme, as you advised, I too have come to the same conclusion, and it is even possible to make a pluautomate using EA, with which this top was started)