From theory to practice. Part 2 - page 54

 
Aleksey Nikolayev:


If you suddenly wanted to communicate something specific, you failed.

Absolutely not.

 
Aleksey Nikolayev:

If you think in the spirit of diversification of the existing system, then you should try to catch strong movements, after which the price gets stuck at a new level, not rushing to return.

The first thing that comes to mind is an obvious entry in the direction of channel breakthrough (with another width than in the initial system) and an exit upon the return.

I think that "directly" adding trendiness will not help. The magic oscillator, after breaching the channel, does not go further but hangs around in the same place for a long time, which is clearly seen in the picture.

A stop loss in pips from the entry price only makes it worse too. Well, this is typical of return processes/systems.


 
secret:

I don't think trend-following will help here. The magic oscillator does not go further after breaking through the channel, but hangs around long and noisy about the same place, which is clearly visible in the picture.

A stop loss in pips from the entry price only makes it worse too. Well, this is typical of return processes/systems.


Illustrative example++

 
secret:

I don't think trend-following will help here. The magic oscillator does not go further after breaking through the channel, but hangs around for a long and noisy time, which is clearly visible in the picture.

A stop loss in pips from the entry price only makes it worse too. Well, that's typical of return processes/systems.


As far as I understand, you have an exit when the oscillator returns to zero. And if the output is early - when it returns inside a channel narrower than your red?

In any case, I don't believe it is possible to build a good purely trending system. But maybe by adding it the drawdown will decrease a bit and the recovery factor of the original system of the topicstarter will increase.

 
Aleksey Nikolayev:

This is a very interesting question - exactly how big movements are made up of small ones. I studied it a bit on the basis of how a big zigzag is made up of a small one, but didn't find anything interesting.

I use different sized renders instead of the zig-zag for analysis. They too render all price spikes, but unlike the zig-zag, they are more natural. It is essentially a tick chart with a large tick value.
 
sibirqk:
I use different sized renders instead of zigzags for analysis. They also show all price spikes, but in contrast to the zig-zag, they are more natural. It is essentially a tick chart with a large tick value.

If we are talking about bars of height not greater than a given, in this particular case, they do not seem quite convenient - there will not be a clear and unambiguous division of a large bar into several small ones (unlike conventional bars or zigzags)

One can also take various grids of levels with multiples of distance, but they seem to be somehow inaccurate (the result can slightly change when shifting the grids)

 
In general, the path itself is flawed. We take something and check it against the SB, if it is not different, it goes in the trash. We can say in advance that it is 100% impossible to find anything useful for trading in market charts. You don't have to suffer for nothing.
 
Wizard2018:
In general, the path itself is flawed. If you take/create something, check it to see if it is different from SB, if it is not - trash it. If we take one thing in advance, we can say that it's 100% impossible to find anything useful for trading in market charts. You don't have to suffer for nothing.

SB is an abstract mathematical object which does not exist in reality. Therefore,there are always differences from it, although usually they are not as large as we would like them to be. In addition, due to the non-stationarity of the price, they change over time.

 
Aleksey Nikolayev:

SB is an abstract mathematical object that does not exist in reality. Therefore,there are always differences from it, although usually they are not as large as we would like them to be. In addition, due to the non-stationarity of the price, they change over time.

Hmm... So, by definition it is impossible to earn on SB, and similarly on market BP because of non-stationarity. Do I understand it correctly? And if you bring BP to a stationary form, will anything change?

 
Alexander_K2:

Hmmm... It turns out it is by definition impossible to make money on SB, and similarly impossible to make money on market BP because of non-stationarity. Do I understand it correctly? And if we bring BP to a stationary form, will anything change?

It would turn into SB.