The single most important chart in your setup, and why

March 17th, 2020, 07:32 PM

Grantx

I wouldn't know either and I doubt it matters in my world. It works for me and is easy to understand so if you figure out how to put laplace to practical use I would be grateful to hear from you.

At least i am honest about it...
and it probably, in your use case, doesnt matter to a great degree...

they are both symmetrical
one has data stick closer to a lower move, and slightly more chance of bigger moves
the other the moves are a bit more distributed and under performs on the outliers

given that most investors are not playing the outlier events, it probably matters less in practice (the way your using it)
and most of the papers are more for fitting simulation and complicated math prediction models... which the guy trading doesnt use (and if they did, probably would be wasting serious time doing math)...

i guess you can get a feel for the difference if you look at the two of them in those overlay charts
laplace has a narrower taller center and fatter wings..
you probably are mentally adjusting the gaussian in practice towards that end anyway..

March 20th, 2020, 11:15 AM

vmodus

Since I am an algo trader, regular time based charts are my bread and butter. I'm recycling an image from my journal earlier tonight:

This has a custom OBV indicator, ATR and ADX, which I am currently using to explore a trading idea.

I actually prefer playing with raw data. Range bars have sucked some of my time away and I'm learning about point and click charts, since I received a free book from TASC on the Wyckoff method.

~vmodus

are those your custom OBV/ATR/ADX? like the idea of the colors makes it a little easier to quickly read.

-P

March 20th, 2020, 12:21 PM

MiniP

are those your custom OBV/ATR/ADX? like the idea of the colors makes it a little easier to quickly read.

-P

Thanks! The OBV is a custom indicator, but I got (borrowed, stole) the idea of coloring from the ADX. If you use TradeStation, you can just open that code and borrow it. Otherwise here is the calculation in plain English/pseudocode:

Code

If OBV > {OBV of 1 Bar Ago}
then set plot color to green
else set plot color to red

My code uses a Case statement, but if/then/else works too.

~vmodus

The single most important chart in your setup, and why

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The single most important chart in your setup, and why