Walter`s Forex "Trend Trades"

[brownsfan019]

And for those w/o this VT platform, is this easily represented in other charting packages?

[walterw]

	Quote:	brownsfan019
	Walter, What timeframe(s) are you using here and what market(s)? I'm curious if you've applied this setup to stocks, futures, etc. as well? I usually hang back on many of your threads with a watchful eye, but a moving average system intrigues me as I like them!

Hi Brown... at this point this research is pointed to forex, obviously all this methods could be eventually applied on other markets and time frames as well...

The charts so far posted are AUD/USD 5 minutes... cheers Walter.

[PYenner]

	Quote:	brownsfan019
	And for those w/o this VT platform, is this easily represented in other charting packages?

It uses function calls to VT's inbuilt Wilders ADX, Chande and MA functions.
Any other platform would probably need to have similar inbuilt functions if it is to run fast. Need to be expert in two platforms and languages I fear

[walterw]

And here a short video on Exhaustion... cheers Walter.

[walterw]

	Quote:	PYenner
	It uses function calls to VT's inbuilt Wilders ADX, Chande and MA functions. Any other platform would probably need to have similar inbuilt functions if it is to run fast. Need to be expert in two platforms and languages I fear

I am actually not using TS to full arround programing this, but this functions are not big deal on TS.. any basic programer on TS should be able to do it.. maybe Brown you can ask on the coding forum for some of our great programmers here at TL do it and add this nice code on TS... cheers Walter.

[walterw]

	Quote:	walterw
	I am actually not using TS to full arround programing this, but this functions are not big deal on TS.. any basic programer on TS should be able to do it.. maybe Brown you can ask on the coding forum for some of our great programmers here at TL do it and add this nice code on TS... cheers Walter.

Should I add that I still did not present the other powerfull aplication of this indicator on the timing side... cheers Walter.

[Don4]

walter, well my friend is it finally time. I tell ya most people would not believe how hard you have worked and the systems you have been through. It is my great honor to have got to work with you. You are truly a remarkable person!!!

[walterw]

	Quote:	Don4
	walter, well my friend is it finally time. I tell ya most people would not believe how hard you have worked and the systems you have been through. It is my great honor to have got to work with you. You are truly a remarkable person!!!

Thanks Don for this kind words... should you know you had made a great contribution into this system and it has been my pleasure to interact with you... and I know whats coming ahead its going to be absolutely awesome... the "Tokyo Gang" ¡¡¡ there we go ¡¡¡ cheers Walter.

[Nick1984]

My internet got capped so it took a while to go through all that but it was worth it. I love the simplicity of this Walter. You've taken a very simple novice idea and really expanded it to make it very useable.

When you first started posting about forex I thought that your small time frame might hurt you in the long term with some of the harsh spreads out there in spot FX but I think that the simplicity of your trend system along with the benefits of going on a longer time frame to help reduce the whipsaw effect will really pay off. I reckon you'll make your millions soon

That idea of buying an island somewhere in the pacific is still looking good. As the local chimp you can be the minister of finance of the little Bananna republic!

[walterw]

Ok,

Let me remind you the trend trade structure how it looks (as posted before) :

To open position :

_Trend Definition

_Pullback Definition (dips and rallys)

_Timing Entry Definition

To Close Position :

_Stop Definition

_Exit Definition

and also let me remind you that our target is "simplicity" and "optimization"...


now I will start with a new set of topics here as we already dealed with "trend definition", now we are ready to aboard the topic "Pullback (dips and rallys)" and "Timing Entry"...

This two are directly related... Timing comes right after the pullback, wich means that a pullback is the preamble of the timing entry in the trend trade structure...


Now here we have another BIG dilema (probably the bigest, the hardest) for the trend trader... and it is the "erratic morfology" of a pullback and its impact on "Timing"...

lets start with this question : what would be the ideal pullback for a trend trade ? the answer is : The ideal pullback would be a V shaped pullback...



now this ideal is so far from reality... actually this pullbacks have an "erratic morfology", what I mean with this is that they are not V shaped, thought some times they do contain V`s but from a morfologic stand point of view they are "erratic"...



Now, having an erratic morfology on the pullbacks wouldnt bother us if we didnt need to "Time" our entries on that mambo morfology... you see, we can say we are on a pullback very easy, BUT it gets hard when we have to do the next step of "Timing" our entry and getting in to a position in an effective way... here is where the trader starts to feel the frustration of knowing the trend and knowing a pullback is in place but NOT knowing when to enter and time his trade...


Now, lets analize and try to understand this "erratic" performance of a pullback... why erratic ? simple, market during a pullback is making a "pause" on his original direction (trend), and this pause will be a "chop" and not a perfect V... on this pause he has no rules, no time determination, no wave range, no intrascalp structure... no nothing... just "chop"

The old TA school tried to organize it in some beautifull patterns like flags, pennants, triangles and rectangles, well let me tell you if pullbacks had such nice clean morfologies we all would be multibillionaries some years ago already.. they do some times resemble this morfologies, but we have to accept the true fact that pullbacks are erratic in nature, because the market intrinsic structure gets erratic in that particular stage... its his nature, its natural... we cant get mad on him for being like that...

SO... having this reality and with the intention of playing the dips and rallys (trend trades ) we find that our "Timing" will be precisely situated exactly on the middle of a mambo of nobodies land : the "erratic pullback"

let me take some coffee... I continue on next post... cheers Walter.