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walterw

Walter`s Forex "Trend Trades"

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Excellent work Walter, great explanation on the posts and videos.

 

I'm currently trying to translate the code into Tradestation so others can follow along, it still needs refining as I don't think it's smooth enough yet, but here's a pic to show you. I'll post the code when I get it working properly(hopefully tomorrow).

 

attachment.php?attachmentid=2645&stc=1&d=1188861081

 

Great thread, keep up the good work and thanks.

 

Blu-Ray

 

 

Super Blu-Ray ¡¡¡ I think that will be awesome to have it for TS... would this be compatible for Multicharts ? as I was thinking in giving a test to their forex version called MCFX wich has up to 5 years worth of history data and its a TS type soft with all the benefits wich that represents... thanks for that... cheers Walter.

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Super Blu-Ray ¡¡¡ I think that will be awesome to have it for TS... would this be compatible for Multicharts ? as I was thinking in giving a test to their forex version called MCFX wich has up to 5 years worth of history data and its a TS type soft with all the benefits wich that represents... thanks for that... cheers Walter.

 

Walter - if Blu can code it in EasyLanguage, it *should* transfer over to MultiCharts no problem.

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MT4 allows a maximum of 8 lines per indicator so that would be the 3 main lines and only five more, not much of a fantail.

 

Blu-Ray, like the way you put the black and yellow lines in the foreground, Magenta to the background, seems like the best way around to me.

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Walter - if Blu can code it in EasyLanguage, it *should* transfer over to MultiCharts no problem.

Oh ok so Multicharts should then read Easylanguage without problems... that sounds good...

 

MT4 allows a maximum of 8 lines per indicator so that would be the 3 main lines and only five more, not much of a fantail.

 

Blu-Ray, like the way you put the black and yellow lines in the foreground, Magenta to the background, seems like the best way around to me.

 

Hi Pyenner... If we can get just the VMA coded for MT4 with Becam`s calculation the emas of VMA can be manually added on MT4.. and then we can create a Template and we are on bussiness on MT4... cheers Walter.

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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!

 

 

Oh yes Nick and we will create our currency and trade it with Vma`s rainbow against eur usd and everything... ¡¡ should we call it banana so the pairs would be banana/usd banana/eur jejeje cheers

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Ok I will take a little parenthesis here to post some examples... unfortunately VT doesnt have much history... so at this time it will not be that much... If we get this indi on MT4 things will be more friendly...

 

One strategic thing to do here is trading on good volatile times of the day like the open London... look this video and compare the first example happens on a time of the day where we cant expect much moves, still was a nice trade... the second example happens right on the hot hours of europe and London trading.... cheers Walter.

Example.swf

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An outstanding presentation Walter. The way you have documented this powerful but simple methodology is to be congratulated. That you have chosen to disclose will bring you much good karma I am sure.

 

There is an indicator on the Ninjatrader platform (free charting) called Variable Moving Average. The Ninja VMA is alleged to be the VIDYA MA. Is this the same as the VT version? I would love to follow your explanation with real charts on any of eSignal, MultiCharts or Ninjatrader so a little more info would be appreciated especially in the light of VT's recent platform problems.

 

Again, congratulations!

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Right here goes:

 

I've coded it up as per VT's formula, when viewing TS alongside the VT version it's acts very similar, but it's not exact due to the slight variation in code between the ADX function in TS and the ADX function in VT.

 

Anyway, I think it's close enough, but if anyone wants to try and modify it further then send me a PM ( rather than clutter up this thread ) and I'll explain the discrepancy.

 

 

 

attachment.php?attachmentid=2654&stc=1&d=1188909132

 

NOTE: When installing it onto your chart you'll have to:

 

A): Change the colour of your background to grey.

 

or

 

B): Change the colour of the "VarMa" plot to a different colour than black.

 

 

Cheers

 

Blu-Ray

Fantail1.png.ecfaa12056182347ff724b4bff1f0b37.png

FANTAIL.ELD

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Absolutely gorgeous one ¡¡ I would say CLEAN...

 

You will see in coming posts that I will deal with the "iconic" setup... wich happens to be the one you just posted here... I see you are a fast learner Blu-Ray ¡¡ thanks for interacting, keep those charts coming in ¡¡ cheers Walter.

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Walter

 

Here's an example of the USDJPY that I was watching this morning, turned out to be a lovely move.

 

attachment.php?attachmentid=2656&stc=1&d=1188910476

 

blu or walter -

 

The question I have is where would you have initiated the short, where would your protective stop be and where would you exit for a profit? I realize this is pretty easy in hindsight, but I'm curious to see how to actually trade this setup in real-time.

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Absolutely gorgeous one ¡¡ I would say CLEAN...

 

You will see in coming posts that I will deal with the "iconic" setup... wich happens to be the one you just posted here... I see you are a fast learner Blu-Ray ¡¡ thanks for interacting, keep those charts coming in ¡¡ cheers Walter.

 

Thanks Walter, I'm looking forward to it as it looks a great method.

 

Cheers

 

Blu-Ray

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blu or walter -

 

The question I have is where would you have initiated the short, where would your protective stop be and where would you exit for a profit? I realize this is pretty easy in hindsight, but I'm curious to see how to actually trade this setup in real-time.

 

So far as the thread is evolving we had dealed with entries... in the example from Blu-Ray the Timing entry would happen exactly on the circle he marked as the black line crosses bellow the darkgreen thick line on the 1 min chart...

 

About exits I will be posting soon... this will deal with profitable exits as with stops.... cheers Walter.

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Here's Blu's Fantail on MultiCharts.

 

Firstly, thanks to Walter, and secondly, thanks to Blu for the eld.

 

Entry was Walter's criteria (I hope) and exit was based om the benetration of price into the Rainbow. (see arrows)

 

This looks like shooting fish in a barrel :-)

2007-09-04_EUR_USD_1.thumb.jpg.84d6652a5c99f0f7d228320e2f844e7f.jpg

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Walter, the great strength of this methodology for me and other rule based traders is that setups can be defined VERY precisely. This means that pulling the trigger is easy and the best trade locations can be achieved if your setups are a bit aggresive.

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Walter, the great strength of this methodology for me and other rule based traders is that setups can be defined VERY precisely. This means that pulling the trigger is easy and the best trade locations can be achieved if your setups are a bit aggresive.

 

Hi Momentom... thanks for your kind words and I am very glad you like the system... I believe it has great future... I defenitely agree on the quirurgical precision you have on the timing there is no double guess here and the cleaning of noise is just outstanding... about your posted chart :thumbs up:

correct ¡¡ thats how this works... love to see this charts guys... keep them coming ¡¡ about exits I will soon post... cheers Walter.

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Walter,

 

Felicidades! nice thread on Trend Trades. I did a quick improvised over RMMA on NT to plot the VMAs. Take a look at the trade chart on ER2 today. BTW, RMMA and VMAs are not part of my system (yet), I just thought I get a quick visual overview of it.

 

Gracias,

 

ztrader

5aa70dfaab151_RVMAimprovised2.thumb.jpg.8441161b56ea4f5d7a4916bd255be70e.jpg

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Walter,

 

Felicidades! nice thread on Trend Trades. I did a quick improvised over RMMA on NT to plot the VMAs. Take a look at the trade chart on ER2 today. BTW, RMMA and VMAs are not part of my system (yet), I just thought I get a quick visual overview of it.

 

Gracias,

 

ztrader

 

 

They look pretty good ztrader ¡¡... I did test NT with forex data, some time ago quite friendly chart platform... even with tick charts, unfortunately I am not good programing on their language... how do you find the prospect potential of this horizontal VMA lines ? cutting down noise... cheers Walter.

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I will start posting here on the topic "Closing Positions" ...

 

This includes :

 

_Stops

 

_Exits

 

 

I always consider this topic more individual, thought to really make a system we must actually include how are we going to close our trades...

 

but why more individual ? because believe it or not closing a position is where you can see the traders personality, you can see how much tolerance he has to certain type of risks, from his $ amount on acct, his psiche and his character (patience, faith, optimism, etc)... its quiet subjective a traders profile in this arena... but anyway its good to have one good clear TECHNICALL criteria to stick too and trade by the rule...

 

I want to make clear that at this point this thread still is on a research process, wich means I am still open to modifications...

 

What I will present here in terms of exit methods its what has until now pleased me the most... but by no means this can be the best way of exiting...

 

Remember that I am very biased to make $20 per contract/ week on a consitent basis... so that really has some impact on my exit systems...

 

I think today Momentom has made some advances of how we can read an exit... its pure logic... the inverse movement has to be taken into acct here...

 

Now remeber when we talked about expansion/contraction ? well if your trade will succeed, she actually needs expansion to happen... so contraction after that will be the sign that she is probably over...

 

Now let me give a word on RRR (Risk Reward Ratio )... this is the backbone of trading... it is the reason you can take relaxed stops... so the ideal trade is one that actually takes good profits...

 

Dont get me wrong when I say that I aim $20 contract/week, this doesnt mean that I will limit my profit potential... its more of a bussiness target that organizes my vision of my trading... so letting a wining trade keep running its not conditioned by my fixed target... yes it afects wich trades I take, and wich trades I simply dont take... I like more the "shurefoots" wich we will talk later...

 

so I will take some cofee and continue on next post... cheers Walter.

 

PD : I love cofee ¡¡ :coffee: :thumbs up:

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So lets first talk about _Exits ... that is from a succesfull trade...

 

I am more of a scalper minded... so I like to lock in some good profits when they are there...

 

Now taking an exit I am convinced its directly related to momentum conditions and here comes into play the traders discretionary reading of momentum and his experience in sensing this..

 

The first basic exit criteria is when the bar gets inside the rainbow crossing the black line... lets call that the "scalper exit"... its the most sensitive and fastest exit, normally leaving a lot of money on the table, but it can be usefull when we sense there is not much momentum in the market..

 

 

attachment.php?attachmentid=2666&stc=1&d=1188947997

 

The second basic criteria is more of the "Traders Exit" ... in this case is the inverse action to our entry criteria as the black line crosses back the thick darkgreen line...

 

attachment.php?attachmentid=2667&stc=1&d=1188948280

 

in this case we stay inside much more, we have the expectative of having a big move... if we can sense momentum on the market, this is the best shot...

 

So both exits have to be discretionally used... depending on momentum conditions, if small momentum is perceived "scalper exit" its the most recomended, if strong momentum conditions are perceived it would be wise to use "traders exits"...

 

I know we can develop some intermediate alternatives... would be nice to hear what your creativity tells you on this manner...

 

So with that sayed we have two exit criterias to be used according to momentum conditions... remember that the rainbow on the 5 min chart gives us very clear hints on momentum as previously discussed... cheers Walter.

5aa70dfade798_scalperexit.thumb.png.809e3b4888a1c49c415f1c5b31d964a7.png

5aa70dfae58c9_tradersexit.thumb.png.89f5ccafe1689b66c5150ddc85b2cd2c.png

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