Algorithmic ''centrifuge'' - page 17
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I agree. I have an opinion, not necessarily correct, that it is impossible to build a profitable system being in the market permanently, that is turning over. Maybe I'm wrong, but I don't think so :) So, the system should wait for an entry point with a higher probability of making a profit than a loss. But when closing a trade, you cannot wait for the same probability in the opposite direction. That is, we enter when we are sure of winning, and exit as soon as there were the first doubts that something goes wrong.
1. Regarding the price movement pictures I would like to add: It is necessary to take into account the time frame. If it is M1 - the second picture may indicate a low volume of liquidity in the market and as a consequence - a low stability of price movement. The higher the timeframe - the more pronounced trend becomes and this is probably a positive factor for opening and holding positions. However, you should check the dynamics on several timeframes in order not to make a mistake and not to mistake the threshing for a trend.
2. Agree. Constantly being in the market and flips speaks more of a lack of strategy and understanding of the market as such. I do not recognise strategies that use only graphical reference points. Without an understanding of market processes and adequate interpretation it is a guessing game, not a system.
We need to understand the types of market dynamics, to classify and for each type to select indicators and their values. And use them to collect signals for the TS.
Pay attention to the code I wrote to you. It has only one parameter - the minimum number of points between extrema. Add there a minimum time between extrema and with these two parameters you will manage the size of the desired waves. This is better than Zig-Zag.
It's even more complicated than that. I have come to the conclusion that there are essentially no perfect points. EVEN IN HISTORY.
This is a mistake that I have made. You need to identify the areas of dynamics and divide them up for each TS. You can make money on two types of dynamics - trend and flat. Corridor, gaps and flail are excluded. Therefore - the task of finding ideal points turns into the task of finding "Ideal Deal Dynamics". They are much easier to find and define (conceptually, not technically). And where exactly to enter on these speakers is less important. Entry will be made as soon as they are identified by the right indicators.
Great, but I don't understand by what means do you intend to highlight areas of dynamics? Price movements, volumes, anything else?
Great, but I don't understand by what means do you intend to highlight areas of dynamics? Price movements, volumes, anything else?
1. For timeframes above M15 we should look for trend and flat areas. At M1, analyze the tick history and identify the hammer. Each trend has its own signature.
2. After finding the speakers on the history - we proceed to the stage of selecting the indicators and their values for each speaker.
3. Combining the trading signals for entry/exit based on the selected indicators.
It is all a theory so far, and we should think how to implement such an analysis of the dynamics signatures.
Dynamics is the simplest phenomenon, meaning a two-way movement of values - forward and backward.
The simplest method of analysing dynamics is the number of moves forward (price rises), the number of moves backward (price reversals) per unit time and the amplitude of the moves.
There are questions:
How do you distinguish between trend and flat?
What should the tick history show?
What is a thresher?
number of moves forward (price rises), number of moves backward (price reversals) per unit time
Is this an oscillation period?
There are questions:
How do you distinguish between trend and flat?
What should a ticking history show?
What is a thrashing?
A trend is the predominance of the amplitude and number of movements in one direction. It is not difficult to count the movements on the tick history and determine the trend by the numbers.
A flat is the absence of the dominance and amount of movements in one of the directions.
The tick history shows only one thing - the dynamics of price movement.
A flop is an absolutely pronounced phenomenon on small TFs. It takes place on markets with low liquidity. The price does not move steadily, because the volumes are small.
Is it a period of oscillation?
Trend
Flat
Tick story
Thresher
How do you plan to identify and distinguish this?