Walter`s Forex "Trend Trades"

[walterw]

Today was a "Big News day"....

9/7 08:30 US August average earnings 0.3% 0.3% 0.3%
9/7 08:30 US August non-farm payrolls 110k 92.0k -4k
9/7 08:30 US August unemployment rate 4.6% 4.6% 4.6%
9/7 10:00 US July Wholesale Inventories 0.4% 0.5% 0.2%

There are news that impact more than others... in this scenario the technical trader must understand that he is in a hostile context as any particular technique can be completely useles under this circumstances... why ? because most normal technical conditions get into equilibrium and work ok with a normal amount of players wich are having a "normal" performance of supply and demand... now when a news release happens, this normal amount of players is disrupted with an abnormal amount of players that actually where not part of this equilibrium... so in this case technical "normal" conditions will clean dissapear as the ecosistem in wich we where will be abnormaly overcrouded of strange criatures that come with very abnormal conducts...

Thats why a trader should understand that his normal trading ecosistem will sufer a hurricane during news where the ceiling of his method will blow out... what to do about that ? well.. there is a lot of nice things you can do: go shopping, cinema, coffee, park, swiming pool... gym etc... are you soooo greedy that even you cant take off during this hostile conditions, well you know what ? under this conditions your marvelous technique is useless... you cant beat this volumetric monster...

NOW if you know how to trade the news I take my hat off and congratulate you... if not STAY OUT ¡¡ there is plenty normal conditions to trade on.. and make your weekly targets without exposing yourself to a hurricane... even you have the advantage of knowing when the hurricane will hit land ¡¡ look at the econimic news calendar... thats a nice oportunity to take your agenda and plan some relaxing ¡¡



On the above chart I mark previous normal conditions... by FAR you already made your week... you know this news comes, you know your techinque will be useless... you know how much you can enjoy taking the day ¡¡

You should enjoy yourself more instead of trying to understand what that monster did... there is no technical explanation to what he did... because he doesnt work by technicals as by insiders fundamentals wich you and me will not ever have access...

When the market ecosistem comes back to normal conditions, then we are ready to work back on our normal succesfull methods...

Thats my input on this scenario... there is no need for mambos... just relax and trade on normal conditions, be smart, dont be suicide, give yourself a break.... cheers Walter.

[PYenner]

Making some progress on a simpler MT4 version using the iADX function.
Attached is a comparison of the MA0 base lines.
Yellow line uses iADX and has some adjustments, light blue is Igors mk2 for comparison.

Walter, the line ema's can be fixed up too, just needs time.
Cheers

[walterw]

Hi Pyenner... my question is,why is it that we cant still dont get the exact match of the vt version ? what does this formula on VT has specially on the horizontal effect ? I think Igorad`s second version its "almost" identical... but the horizontal effect still varies a little from VT`s ... any hint on the calculation ?... thanks for efforts... at this point I am sticking to Igorad second version as I am testing historical data..
cheers Walter.

[ztrader]

Originally Posted by walterw Hi Pyenner... my question is,why is it that we cant still dont get the exact match of the vt version ? what does this formula on VT has specially on the horizontal effect ? I think Igorad`s second version its "almost" identical... but the horizontal effect still varies a little from VT`s ... any hint on the calculation ?... thanks for efforts... at this point I am sticking to Igorad second version as I am testing historical data.. cheers Walter.

walterw & Pyenner,

I applaud you for making the effort on your attempts for a "perfect" - exact match of the VT version. This maybe an exercise in futility as the actual result of the conversion maybe affected by the codes and how it is executed in the respective platform. If one feels that the VT version gives him/her an edge in trading the method, then so be it and use VT. I think the MT4 version of igorad is more than sufficient to trade your method profitably. The looks would just have to be in the eyes of the beholder and trading results are always based on each individual trader's ability, regardless of graphics and systems. I use the VMA on NT and on MT4, only one of them lines now and it serves me well. Then, of course, my trading approach is completely different.

You are presenting a very viable method here. Please don't let the minor variance in the horizontal line takes you out of focus unless it is causing your trade to lose or giving up over 10 pips.

My 2 pips on the match. Is it match point yet at the U.S. Open [tennis] Championship?

ENJOY!

ztrader

[walterw]

Originally Posted by ztrader walterw & Pyenner, I applaud you for making the effort on your attempts for a "perfect" - exact match of the VT version. This maybe an exercise in futility as the actual result of the conversion maybe affected by the codes and how it is executed in the respective platform. If one feels that the VT version gives him/her an edge in trading the method, then so be it and use VT. I think the MT4 version of igorad is more than sufficient to trade your method profitably. The looks would just have to be in the eyes of the beholder and trading results are always based on each individual trader's ability, regardless of graphics and systems. I use the VMA on NT and on MT4, only one of them lines now and it serves me well. Then, of course, my trading approach is completely different. You are presenting a very viable method here. Please don't let the minor variance in the horizontal line takes you out of focus unless it is causing your trade to lose or giving up over 10 pips. My 2 pips on the match. Is it match point yet at the U.S. Open [tennis] Championship? ENJOY! ztrader

I completly agree Z ¡¡ really this very small ploting diferences doesnt have nothing to do with the overall argument... I did imagine that we will not get the exact match as how the platform does the calculation...

At this point after comparing lots of charts between VT and MT4 I made my mind and decided to drop VT and stick too Igorad`s second version of the indicator on MT4 that really performs very well... so at this point I will not deal any more with the programing issue as to the trading methodology that has a very nice clear performance...

So once again thanks to Igorad for his great contribution and other programmers on this great attempt... cheers Walter.

[PYenner]

Originally Posted by walterw Hi Pyenner... my question is,why is it that we cant still dont get the exact match of the vt version ? what does this formula on VT has specially on the horizontal effect ? I think Igorad`s second version its "almost" identical... but the horizontal effect still varies a little from VT`s ... any hint on the calculation ?... thanks for efforts... at this point I am sticking to Igorad second version as I am testing historical data.. cheers Walter.

When I read the VT manual on the ADX Bemac was using, it said that an "8 period" ADX actually used a 15 period ema. That explained why people were getting different results on different platforms. A further problem is that ema's can be done different ways which seems to be the case with VT and MT4. The reason the slow Magenta line is slower than VT, is because MT4's ema uses more than double the periods it claims to use.

My first hope had been to make a version that used no function calls and could then be ported to any platform with identical results. I gave up when I realized it would mean coming up with my own ema routine. Who needs it?

It was only after Igor did his first version and did the hard work for me that I made another attempt. I was late getting his second version and got only a few hours on the VT chart before VT shut down for 5 hrs and stayed down over the weekend. So I don't know how well Igor2 compares to Bemac because I have not beeed able to compare them. Then the fantails stopped working in MT4. I am guessing I may have to rename the tpl files to get them going again??

Regarding Igor2, the order of the lines can be reversed so that the important yellow lines are on top of the rest of the rainbow. The ema period can be fiddled to better match the speed of VTs emas. They might also be done as sma's which should port perfectly to other platforms, the main difference is in the way the yellow band folds over during a reversal. Using sma's gives a sharper bend that sticks up higher. It would help to have both versions going to see what matters.

I will be doing a fast 5 line version for myself using sma's for the lines simply because the fantail and template is too slow for my system which is already overloaded with a home made indicator. I hope to be able to adjust it to perform like Bemacs and then work on optimizing the flat area performance.

Hope to also tweek Igors ema periods closer to VTs, but can't do that while VT is giving me no market feed.

[PYenner]

z

Like you, I have my own system which I will be sticking with but I will be adding the VMA to it and adding Walters methods.

I cant use the fantail on top of what I am using which already has the hourglass coming up when prices move fast and I get the message "price out of date" when I try to close. Don't need that bit.

So I need a fast version for myself and others may also need that.
A version that can port directly to other platforms with identical results would also help people talk the same language when discussing tactics.

I also have concerns with the MT4 platform especially the charting language and its dubious implementation. If something better came up I would be glad to switch. So the idea is to keep things portable for the future.

Since I will be depending on the VMA indicator I will be pulling it apart to see if it can be improved, that is just me. Need to understand what I am relying on so I can judge when not to rely on it. Knowing when to stay out is close to being critical, its the make or break of trading.

[momentom]

Here is what I finally settled on. Its The eld that Blu created imported into MultiCharts. I'm content with the horizontal line. The dotted lines is the ATR stop.

I am currently using it (with a few other things) to trade the DAX off this 377 volume chart. If Walter opens a non FX thread for the rainbow, I'll be happy to share - don't want to contaminate this one. Thanks again Walter, its a great addition to my toolbox.

[PYenner]

Please evaluate MT4 ADX_VMA indicators.
They have only the three main lines, not the whole fantail.

It is the performance of the Yellow base line that matters.

There are two files, one was tweeked to give more extreme flat lines for use in scalping 1Min charts.
The other is for 5Min or whatever charts, it is closest to Bemac's.

The 1Min indicator has-

ADX_Periods=24 gives more flat
VMA_Sample_Bars=24 gives more flat
Undershoot=40 alternative is 20
MA12_Periods=32 Bemacs crossover line used 24, 32 puts it further out from the base line
MA49_Periods=99 Similar to Bemacs outer line but using smas here, Bemac used emas

The 5Min indicator has-

ADX_Periods=16
VMA_Sample_Bars=8
Undershoot=40
MA12_Periods=32
MA49_Periods=99

Rename ADX_VMA_Eval_5Min_mq4.txt to ADX_VMA_Eval_5Min.mq4
Ditto for ADX_VMA_Eval_1Min.mq4

Tweek mainly the first two variables.
Avoid extreme numbers, no zero, no negative numbers.
Find out what works for you.
Cheers

[walterw]

Originally Posted by momentom Here is what I finally settled on. Its The eld that Blu created imported into MultiCharts. I'm content with the horizontal line. The dotted lines is the ATR stop. I am currently using it (with a few other things) to trade the DAX off this 377 volume chart. If Walter opens a non FX thread for the rainbow, I'll be happy to share - don't want to contaminate this one. Thanks again Walter, its a great addition to my toolbox.

Nice Stuff momentom ¡¡ I like to see how you can perfectly use this tools on other instruments... we can perfectly start a new thread so we can expand horizons on the aplication of Vmar on other instruments and in combination with other methods... thanks for your inputs, will be anxiuos to see how you trade with this tools... cheers Walter.