The start of another great week. This strategy is a work-in-process. I presented the strategy on a 3 minute chart with 4 indicators. Three indicators to get you into the market, and those three and the SuperTrend to get you out. And then the continuation trade.
Last week, I was tweaking the indicators and playing with the charts. I was looking for better parameters for varying market conditions. Three indicators to aline for an entry and stay alined until exit. On a 3 minute chart this seems more difficult than a 30 minute chart. Or a range chart. The one theme that's present in all the charts is that the moving average element of FTZ_SharkTrend stays in the trade the longest while price action stalls or reverses the other two.
I want a simple strategy. I want this strategy to center around the trend, the FTZ_SharkTrend. I have deliberately tried to avoid two time frames in this thread; trading one against the longer time frame. I introduced the 30 minute chart and today I will post the 6E 18 range chart. Personally my trading style caters to the higher time frames and staying in the trade with the SharkTrend.That is what I am working with currently. All viewing members need to find their trading style and time frames.
Today on the 3 minute chart, I sim traded to noon with a tighter stop and I got stopped, 1 for 3. The trade I did live, I had a wider stop and stayed in the trade until the other two indicators stalled. I watched the 30 minute chart stay with the short trade all day.
To the attached images and on to Tuesday.
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As requested, and because I'm liking your system and approach and is very complementary to mine, I've attached my YM charts for the day. I've removed the SharkTrend arrows, I like the Supertrend ones best. I've used your two color schemes placing two TSI4JeffFromTMFT indicators on. The bar coloring from the ESFXtrader is great. On the 20 bar chart, the white bars are lining up nicely with trend change. On the 8 bar chart it more often signifies congestion. The coloring in general is quick to see, reassuring in a trade, and confirming, when you take an anaSuperTrend trade in the 'grey' zone.
The anaSuperTrend (my all time favorite indicator) was 4 for 4 on the 20 bar chart and 6 for 21 on the 8 bar chart. I'm still studying that more closely to see how using the other indicators might have helped me stay out of the bad ones and in the good ones longer. (My first target is generally no longer than the chart's bar length, often smaller. But had some great runners today, on both charts, in what was a pretty narrow daytime range day of 83 points.
One note that you may already know, you can put harder, easier to see stop lines on anaSuperTrend (as I did on the 8 bar chart) with formatting. I like the dotted line for flow, but the horizontal dash for placing trailing stops more easily. Picture included too.
You mention in your post that the FTZ_SharkTrend colored dot moving average is keeping you in your trades longer. Do you wait for the dot to 'close'? As I said I'm still studying how the other three indicators best work with the anaSuperTrend, for my style and range bars.
The following 2 users say Thank You to rpm123 for this post:
Thanks Patrick for your post. Your information has given me more to think about on how to approach the trade. And another way to enter the trade is with the Supertrend, since the SuperTrend can be used as a stand alone strategy. I had left the SharkTrend arrows on the chart even though I wasn't using them. Indeed the SuperTrend arrows would have more value. Tuesday, I will put your YM charts up on the screen and use the ST arrows.
I was waiting for the SharkTrend dot to close. Especially to enter the trade. In retrospect when viewing the SharkTrend, if you stayed with the trade through the white bars and the neutral background, you can rack up some points. I need to find the balance between risk and reward with the SharkTrend. You have given me a new perspective to study tomorrow. Enter the trend with the SuperTrend and stay with the trade with the SharkTrend?
Thanks again Tiberius
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Wow, thank you @Tiberius. A little more detail on my approach. I know most people watch a larger chart and trade a smaller chart, but I generally enter on the 20 bar chart, take off 10 quickly, and use the 8 bar chart to manage my runner. I use the 8 bar to manage my first target as well, in that if it goes 16 ticks against me, I might not stick around for my 30 tick catastrophe stop. I'm working on your same last question, getting out on what signal, or discretionaly - It's hard to ignore a long tail. I had paired anaSuperTrend with TSI Jeff TMFT indicator before, but I had never seen the other two you use, and they are very helpful visually. Don't forget to try the jtRangeMarker. It helps visualize the potential of a new range bar - up and down.
The following user says Thank You to rpm123 for this post:
Thanks Patrick for the update. I have your YM templates up on my trading screen. I have turned off the SharkTrend arrows and turned on the SuperTrend arrows. I am trying to understand all the bells and whistles in the SharkTrend and I colored the MA plots in the box of the indicator specs. I sim traded this morning: in with the SuperTrend, stayng with the SharkTrend, out when the SuperTrend arrow painted, hitting the ST stop.
Other than that I am watching the interplay of the indicators with a newer perspective. And I am also watching the YM and 6E.
Hi Fat Tails and zeller4, I understand from Sharky's Classroom that you coded the FTZ_SharkTrend indicator. FT being you, Fat Tails. And Z being you, zeller4. I am trying to understand the parameters (line items) of the indicators and how it relates to the plots on the chart, so I can tweak the indicator for the chart. If you have the inside scoop on the SharkTrend, I could use your help.
I attached an image of the FTZ_SharkTrend with the indicator plots. I will ask a series of questions with my interpretation of the answer and you can correct me if I am wrong. If I can guess correctly.
1) The dotted (dark cyan, maroon) EMA line on the chart? It is MA1 smoothed by MA2 in the "parameters"?
2) The solid (orange, green) line?? I have no idea what this is or how it calculates. Maybe ATR period? Multiplier?
3) The painted price bar? Like the SuperTrend....calculated from the ATR period and multiplier? Maybe MA1 and/or MA2?
4) The arrows?? Calculated like #3...the SuperTrend?
Thanks for your explanatory help........................Tiberius
Last edited by Tiberius; June 7th, 2011 at 02:57 PM.
Reason: Ask @Zeller4 this question
Unfortunately, I have not coded this indicator. I have never named any indicator after myself, my head is not that big.
I think that @sharky or @zeller4 may have coded it. Probably they used some of my indicators or I may have even helped them with the code, but I have no clue, how the indicator works and I don't even have it installed on my machine.
If you post the indicator, I may have a look and answer some of your questions, but you may just as well directly address the author(s).
The following user says Thank You to Fat Tails for this post: