NexusFi: Find Your Edge


Home Menu

 





Factor of N


Discussion in Trading Journals

Updated
      Top Posters
    1. looks_one Eric j with 121 posts (195 thanks)
    2. looks_two zt379 with 12 posts (5 thanks)
    3. looks_3 Fat Tails with 11 posts (12 thanks)
    4. looks_4 shodson with 8 posts (3 thanks)
      Best Posters
    1. looks_one Eric j with 1.6 thanks per post
    2. looks_two Fat Tails with 1.1 thanks per post
    3. looks_3 Big Mike with 0.8 thanks per post
    4. looks_4 zt379 with 0.4 thanks per post
    1. trending_up 33,659 views
    2. thumb_up 223 thanks given
    3. group 8 followers
    1. forum 164 posts
    2. attach_file 190 attachments




 
Search this Thread

Factor of N

  #61 (permalink)
 Eric j 
NY
 
Experience: Advanced
Platform: Esignal, MBT navigator
Trading: Currencies
Posts: 2,507 since Jun 2009
Thanks Given: 1,396
Thanks Received: 2,576


zt379 View Post
First to thank you for the idea here.
Secondly to show a combo of 5min and 80min (experimenting with time frames)
to see if I'm understanding the concept properly?

The 5min chart is the section covered by the rectangle (randomly selected )on the 80min.
Blue arrows = long entries as per your switch bar criteria.

Switch bars:
Aqua for long = down bar followed by up bar followed by break of up bar high.
Magenta for short = up bar followed by down bar followed by break of low of down bar.

Buy: on switch bar when LTF (5min) MACD < 0 and HTF (80min) MACD > 0.
Sell: on switch bar when LTF (5min) MACD > 0 and HTF (80min) MACD <0

Does that all sound correct?

Many thx.

No . The longer timeframe Macd histogram defines the trend and the direction to take trades in . The shorter timeframe Macd histogram defines a retracement and possible signal into the direction of the longer timeframe . The Macd hisogram has 2 different duties in factor of N . The switch pattern has no function in this method and is only a heads up to a possible trend interuption although you can use it for a signal if you find it useful .

The premise is ....
1. there exists an overall bias or trend .
2. there exists dips and rallies counter to the overall bias or trend that
represent opportunities to join the overall trand .

I would be very careful with anything lower than 15 min. for a shorter timeframe because you pick up lots of noise and junk signals . You can apply the above premise as a template and build your own multi timeframe system using other oscillators or none at all .

Im glad you like it , maybe try trading it exactly as Ive described and then take the concept and explore other ways to define the trend on a bigger timeframe and other ways to define dips and rallies on a smaller timeframe . I thinks its totally possible to trade < 15 min. but in the present form it doesnt work well at all possibly because the histogram picks up data too late . Try heiken ashi , swing level breaks or other price action approaches that do not depend on an algorithm to define themselves .

Attached Thumbnails
Click image for larger version

Name:	$EURUSD  9_1_2010 (240 Min).jpg
Views:	163
Size:	119.8 KB
ID:	19547   Click image for larger version

Name:	$EURUSD  9_1_2010 (15 Min).jpg
Views:	183
Size:	107.1 KB
ID:	19548  
Visit my NexusFi Trade Journal Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
ZombieSqueeze
Platforms and Indicators
Exit Strategy
NinjaTrader
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Online prop firm The Funded Trader (TFT) going under?
Traders Hideout
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
37 thanks
NexusFi site changelog and issues/problem reporting
24 thanks
GFIs1 1 DAX trade per day journal
22 thanks
The Program
19 thanks
  #62 (permalink)
 zt379 
UK London
 
Platform: NT
Posts: 2,031 since Sep 2009
Thanks Given: 1,544
Thanks Received: 1,924

Eric.
Thanks for the reply.
I think I have it but perhaps didn't explain it succinctly,
so thanks for the clarification.

You had "cancellation" trades and, if I may ask,
are you using any particular criteria to determine this?

Many thx.

Reply With Quote
  #63 (permalink)
 vegasfoster 
las vegas
 
Experience: Intermediate
Platform: Sierra Chart
Broker: Velocity/IB
Trading: 6E
Posts: 1,145 since Feb 2010
Thanks Given: 304
Thanks Received: 844


Yeah, I am looking at your charts and I don't really understand the "rules" either, or are you just following a general principal and adjusting your trades based upon discretion? It's cool if you are, I just don't want to go mad trying to unlock the secret, if there is no secret to unlock, you know what I mean? Thanks in advance for clarifying.

Reply With Quote
  #64 (permalink)
 zt379 
UK London
 
Platform: NT
Posts: 2,031 since Sep 2009
Thanks Given: 1,544
Thanks Received: 1,924

Here's a snap shot.
80min MACD > 0 (hence blue background)
5min MACD <0 (hence red background)

Look for longs on 5min in red zone using signal bar (aqua) to enter/
I think !?

Attached Thumbnails
Click image for larger version

Name:	$AUDUSD  8_31_2010 (5 Min)d.jpg
Views:	186
Size:	96.6 KB
ID:	19552   Click image for larger version

Name:	$AUDUSD  9_1_2010 (80 Min)d.jpg
Views:	164
Size:	86.5 KB
ID:	19553  
Reply With Quote
  #65 (permalink)
 Eric j 
NY
 
Experience: Advanced
Platform: Esignal, MBT navigator
Trading: Currencies
Posts: 2,507 since Jun 2009
Thanks Given: 1,396
Thanks Received: 2,576


vegasfoster View Post
Yeah, I am looking at your charts and I don't really understand the "rules" either, or are you just following a general principal and adjusting your trades based upon discretion? It's cool if you are, I just don't want to go mad trying to unlock the secret, if there is no secret to unlock, you know what I mean? Thanks in advance for clarifying.

No secret guys . The rules Im using have been included in the thread here BUT not all in one place or post , sorry . What Im trying to show is that you must first grasp this as a concept and then forge your rules for yourself . Multiple timeframes is a very powerful concept and what makes sense to me doesnt have to fit you , just me . I dont believe in adapting to someone elses ideas because they have developed something that fits them .

The concept for me is just to follow along in the path of the bigger pictures direction .

SO , the boiled down rules Im using here is to identify a signal , enter with a stop limit order 1 or 2 pips away from the benchmark candle ( the candle at which the variables are met ) , place a stop loss 1 or 2 pips ( or even 3 or 4 ) beyond the last swing level and place a target limit order equal to the stop loss ( 1/1 risk ) and I either get the target or a stopout .

But if a short benchmark sees a subsequent bar make a higher high before it triggers that order is cancelled ( cancellation ) and if a long benchmark sees a lower low before it triggers then that order is cancelled .

Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #66 (permalink)
 Eric j 
NY
 
Experience: Advanced
Platform: Esignal, MBT navigator
Trading: Currencies
Posts: 2,507 since Jun 2009
Thanks Given: 1,396
Thanks Received: 2,576


zt379 View Post
Here's a snap shot.
80min MACD > 0 (hence blue background)
5min MACD <0 (hence red background)

Look for longs on 5min in red zone using signal bar (aqua) to enter/
I think !?

Cant tell because I cant decipher the bars as close > open or close < open , but heres what I got . Im in eastern standard time NY so I would look to trade AU when it sees volatility so probably around 0100 - 1100 EST give or take . Forget the 5 min. its too fast use a 15 min. . I marked up on my chart where the longs would be from today .

You coulda got + 20 pips and 2 cancellations today with an exit at 1/1 risk .

Look into forming your own dead zone or no dead zone because theres always opportunities . I just want to be around when things are moving and my targets have a high probability of being hit .

PS , I dont take trades in a retracement zone that began in the low volatility zone ( dead zone ) . I establish this low volatility dead zone by looking at when the hourly range is highest and only look for trades during those times and ignore the rest .

Attached Thumbnails
Click image for larger version

Name:	$AUDUSD  9_1_2010 (15 Min).jpg
Views:	153
Size:	88.8 KB
ID:	19554  
Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #67 (permalink)
 zt379 
UK London
 
Platform: NT
Posts: 2,031 since Sep 2009
Thanks Given: 1,544
Thanks Received: 1,924


Eric j View Post
Cant tell because I cant decipher the bars as close > open or close < open , but heres what I got . Im in eastern standard time NY so I would look to trade AU when it sees volatility so probably around 0100 - 1100 EST give or take . Forget the 5 min. its too fast use a 15 min. . I marked up on my chart where the longs would be from today .

The coloured bars (aqua and magenta) only fire if the bar meets the criteria you gave.

Quoting 
You coulda got + 20 pips and 2 cancellations today with an exit at 1/1 risk .

thx Eric for the chart.

Quoting 
Look into forming your own dead zone or no dead zone because theres always opportunities . I just want to be around when things are moving and my targets have a high probability of being hit .

PS , I dont take trades in a retracement zone that began in the low volatility zone ( dead zone ) . I establish this low volatility dead zone by looking at when the hourly range is highest and only look for trades during those times and ignore the rest .

Thx I'll look into that dead zone.
I appreciate your feedback re the 5min, but so far I'm quite impressed, all be it that I put up the 5 and 80 combo just to understand the concept..

Here's the continuation from last chart just for reference..many thx..
Hope my charts are an intrusion.

Attached Thumbnails
Click image for larger version

Name:	$AUDUSD  8_31_2010 (5 Min)e.jpg
Views:	169
Size:	100.0 KB
ID:	19557   Click image for larger version

Name:	$AUDUSD  9_1_2010 (80 Min)e.jpg
Views:	158
Size:	85.7 KB
ID:	19558  
Reply With Quote
  #68 (permalink)
 zt379 
UK London
 
Platform: NT
Posts: 2,031 since Sep 2009
Thanks Given: 1,544
Thanks Received: 1,924

Eric.
Your chart p#66.
I don't understand?
The bar with first green arrow has a lower low.

The bar with 2nd green arrow does not have lower low but you cancel because you say it does have LL ?

what am I missing ?
thx

PS: I think you mean the trigger bar is the entry bar ?
And the trigger bar must not have a LL than the bar where your arrows are ?

Although the 2nd green arrow does not have a LL on the trigger bar but it also does not get filled at one tick above trigger bar.

The 3rd green arrow I see does have a LL on the bar with the arrow and the trigger bar (entry bar).

Apologies, I just wasn't sure which bar must not have the LL (for a long) and HH (for a short).
thx

Reply With Quote
  #69 (permalink)
 Eric j 
NY
 
Experience: Advanced
Platform: Esignal, MBT navigator
Trading: Currencies
Posts: 2,507 since Jun 2009
Thanks Given: 1,396
Thanks Received: 2,576


zt379 View Post
Eric.
Your chart p#66.
I don't understand?
The bar with first green arrow has a lower low.

The bar with 2nd green arrow does not have lower low but you cancel because you say it does have LL ?

what am I missing ?
thx

PS: I think you mean the trigger bar is the entry bar ?
And the trigger bar must not have a LL than the bar where your arrows are ?

Although the 2nd green arrow does not have a LL on the trigger bar but it also does not get filled at one tick above trigger bar.

The 3rd green arrow I see does have a LL on the bar with the arrow and the trigger bar (entry bar).

Apologies, I just wasn't sure which bar must not have the LL (for a long) and HH (for a short).
thx

No problem . The green bar with the up arrow would be the benchmark .

* The benchmark ( for a buy ) would be green and would come directly after a red bar .
* If the benchmark ( for a buy ) sees price trade above it then its " triggered " .
* If the benchmark ( for a buy ) sees price trade below it ( LL ) before it is triggered ( thats what Im referring to as a LL ), you cancel it .
* A LL is significant only if it is a LL to the benchmark ( for a buy ) if its not yet triggered .

And inverse for a short .

Again , these are criteria Im presently using and theres no reason you cant develop your own criteria and its important to test your own variables to find what is best for you and the instrument you trade .

Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #70 (permalink)
 Eric j 
NY
 
Experience: Advanced
Platform: Esignal, MBT navigator
Trading: Currencies
Posts: 2,507 since Jun 2009
Thanks Given: 1,396
Thanks Received: 2,576


This hasnt happened often but it happened twice today . Two trades are still open and both stops are 2792 , 1 winner 2 losers - 12 pips as of now . Range is < 100 pips today prolly due to the news and the holiday weekend coming up .

Attached Thumbnails
Click image for larger version

Name:	$EURUSD  9_2_2010 (240 Min).jpg
Views:	163
Size:	97.5 KB
ID:	19597   Click image for larger version

Name:	$EURUSD  9_2_2010 (15 Min).jpg
Views:	153
Size:	86.7 KB
ID:	19598  
Visit my NexusFi Trade Journal Started this thread Reply With Quote




Last Updated on November 5, 2010


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts