Simbasystem-gbpusd - page 3

[SIMBA]

[Michel]

SIMBA:
What is the trend?

The trend is NO NOISE,if you are able to understand it,you will have gained

A LOT ,if you do not understand it,it does not matter,you will never realize

the joy of systematically earning from the markets,any markets...

Please see the attachments ..Blue is up,Red is down,the rest is noise..

...And take care with the mirror ,what you see is not reality

Regards,

SIMBA

Hi Simba,

Thanks for your efforts to attract our attention to what may be the most important thing for trading and even much more for a whole peacefull life.

But I think the pig https://c.mql5.com/forextsd/forum/16/dancing_with_lions.bmp is wrong : in the reality, people are lions but are thinking they are cats and see themself as cats. In this terminology, egos are elephants, precisely because we are always thinking to be poor cats; but once the lion is found, the elephant is no more needed and can be droped...

There is a nice story from Antony De Mello telling the case of a little eagle living with chikens on the ground and believing he was himself a chiken too, until the day he sees an eagle flying in the blue sky ...

Best Regards.

[SIMBA]

Michel:
Hi Simba,

Thanks for your efforts to attract our attention to what may be the most important thing for trading and even much more for a whole peacefull life.

But I think the pig https://c.mql5.com/forextsd/forum/16/dancing_with_lions.bmp is wrong : in the reality, people are lions but are thinking they are cats and see themself as cats. In this terminology, egos are elephants, precisely because we are always thinking to be poor cats; but once the lion is found, the elephant is no more needed and can be droped...

There is a nice story from Antony De Mello telling the case of a little eagle living with chikens on the ground and believing he was himself a chiken too, until the day he sees an eagle flying in the blue sky ...

Best Regards.

HI MICHEL,

You can believe you are a chicken-being an eagle-with only "opportunity cost" risk.

BUT,If you are a chicken,and you believe you are an eagle,you are going to risk everything -your life-without any edge,in fact,with a negative edge.

Believing is ok,but being is better .So,prepare yourself.See you tomorrow,now I definitely have to go to sleep 02:34AM is too late,tomorrow at 10:30 AM CET we have UK RETAIL SALES YOY,and I am sure that ,since 08:00 we are going to see nice-and profitable_ moves

Regards,

SIMBA

[SIMBA]

The Basics

Hi everybody,

UK data was GBP favorable(theoretically) and Cable has been unable to break out the 09:05(CET) Highs ?MMM..Something is not quite right here,interesting day ahead,I am sure,I am getting no signals from my system and I have set my alarms,just in case, so I will invest some minutes in the Forum.

OK,back to my system,let`s start with questions and answers..And I can assure you that I am not joking,they are very serious questions,many people fail at trading for not having a clear personal answer to these questions..

1-Why do we have the right,as traders,to make money? A doctor makes a contribution to society/customers healing people,and,consequently he is paid for his/her services..A similar argument can be said for a teacher,a policeman a manufacturer..even for a soccer player..when Ronaldinho helps FC Barcelona to win,he is giving tons of pleasurable endorphines to his fans..

SO,Why do we think we have the right to make money as traders..please take some moments and check within yourself if you have a clear and personal answer before I explain mine.

MY ANSWER:You have the same right as an insurance company has.An insurance company takes a risk that a customer does not want to have,in exchange for money,and they earn money at the end of the year,ONLY IF THEY KNOW HOW TO PRICE RISK.

As a speculator you are taking other people`s risks,AND,IF YOU KNOW HOW TO PRICE THEM,you can make money,and you deserve to make it,you are either helping an importer/exporter cover their exchange rate risk,or providing liquidity to an otherwise "big spread" market,or whatever,in any case your intention is not relevant to "society"(aka as THE MARKET),what is important is:A- your function-buying other people risks,and B-If you do it well or not.

What do you think that an insurance company takes risks because they have a divine calling to help other people?They take risks because first-there is a demand for it and second-because they think they can price them in order to both cover the demand and make money at the end of the year.

It is obvious to me that there is a demand for traders-the more liquidity,commissions,etc,the better for the "society"/market-so,I want to focus on the second point..How to know what risks we can/should take and which ones we should avoid taking..an insurance company does not price the same a "life insurance" policy for a healthy 20 years old female than for a 80 years old smoking/drinking and licencious male..So,second question..

2-What is Price?Take some moments,again,to meditate about this question.

My personal answer,and,consequently the cornerstone of my trading philosophy and system is that ...

PRICE= SIGNAL+NOISE

SIGNAL has information relevant to the pricing of risk,it tells you WHERE THE MARKET IS( NOT WHERE IT WILL BE),and,since prices are either trending or ranging,SIGNAL should give us the information regarding these 2 points,so that we can take an acceptable risk..just checked the market,it is still nowhere,not moving and not signalling(12:01 CET),so,I will continue.

NOISE is,by definition,random and irrelevant,but for the fact that NOISE is your friend...if you know it and your trading competitors don`t,you have got yourself an edge..and same as an insurance company actuarial statistics,you need some techniques/indicators to do your job as trader

3-WHAT indicators DO WE USE :First,the basic system..we use 2

For GBPUSD 5MINUTES trading,we use SATL 4 HOUR timeframe to define the trend..market has started to move ,now @1.9656,still no signal..and WILLIAMS PERCENT R set at 90 periods,with-5 and -95 lines for timing.

Please check the attachment ,I will continue later.

Regards,

SIMBA

[SIMBA]

Basic Reasons

OK,back to writing,we are at an interesting market crossroad,no trade today.

1-WHY DEFINE THE SIGNAL BASED ON 4H TF?Because it is very representative of the actual marlet movements,having short and long interesting minitrends,WITH ACCEPTABLE RISK,so,the market noise,USUALLY, does not imply a level of risk(unfavourable price movement against trend direction) higher than 100/130 pips,with related rewards usually ranging form 300 to 1000 pips,please check basic simba3.gif attached.

2-WHY USE SATL AS A NOISE FILTER? Well it is not necessary,you can use,among others NONLAGMA,HULLMA,JMA,etc,etc,but,in my experience,I have found that SATL is more responsive than the usual others,giving advanced signals for entry/exit and keeping you on the trend.I am sure that people intimately acquainted with NONLAGMA,etc,tweaking and changing the paramaters will probably arrive at a similar result(or better) than with SATL,if,so,please be so kind to post them. Please check basic simba2.gif attached.

3-WHY WORK ON A LOWER TF?Because the MTFSATL ON 4H SETTINGS,will allow you to trade ,on ANY lower TF,1M,5M,15M,30M,..your favorite pet oscillator/macrossover/price-ma cross..WITHIN A SECURITY NET,you will be able to take the signals that go with the trend,entering at oscillator favorable points.Please check basic simba4.gif and basic simba5.gif as an example of different combinations,By the way,basic simba5.gif looks interesting..but RISKY.

4-WHy USE WILLIAMS %R? I like it ....And it works.It is very responsive,and taking into account the fact that we ,usually, trade within a trend being responsive is a great advantage for an indicator(if trading against the trend excessive reponsiveness by an indicator will give numerous false signals).The settings at 90 periods for 5MIN TF have been calculated using the DIGITAL FILTER GENERATOR first for the dominant DAY period (nice peak at 93 periods),and second for the inmediately higher TF -for 5M,the next higher Tf is 15 M-where we have a nice peak at 90 periods.you could use only 5M period to find a peak at 73 periods,and it will be theoretically right,but I have found 90 periods for 5M to be very consistent and reliable,and consistency is what we are looking for.

So,there is nothing new under the sun,my simbasystem is just the same old story of " buy dips in a rally-sell peaks in a downtrend "..well,my friends,what more can you ask for? and..How many consistently profitable traders do you think are there that use a different strategy..yes there are top/bottom pickers,and break out traders,and some of them survive making money year after year..but this is the exception...the majority of profitable traders use a variation of this strategy..the majority of the others are the ones that pay our bills.You decide to what group you aspire to belong..

Since there is more in the universe than what we can grasp with our philosophy,dear friends,I have to tell you that the difference in my approach-my raison d`etre-lies in the fact that the indicators we use have been chosen because I have found them to be the best both at determining the Trend and at timing profitable entry points..which is,of course being open to discussion,and I will be the first to adopt any new improvement..if consistent.

By the way my GBPUSDsimba system is more complicated-an indicator check to avoid"change of trend" whipsaws-and several different timing indicators,but,for a few days let me start from the beginning,the basics,and once you discover that they can make money consistently,we will advance.

In my next post I will include the MTFSATL indicator so that you can use it with the standard WILLIAMS% R included already in MT4 platforms.

Regards,

SIMBA

[SPANISHTRADER]

[SIMBA]

[SIMBA]

Indicators-basic

OK my friends,

I will post the only additional indicator you need for making money in GBPUSD --#MTF_xpMA_v2SATL--(by the way,you need 2 other indicators,that I include ,to make it work),besides the standard ones included in your platform and your common sense .

Before posting it ,I want to thank several people,I didn`t create this indicator,I just tweaked and modified the work of others ,who deserve all the merit,and,since I am not a programmer,all the code mistakes are my own(do not worry the indicator works).My only merit was realizing,as a trader ,the merits of 3 different threads in this Forum,and having the "lucky balls" to spend several hours to create a mixed indicator being a non programmer,and,unbelievably,making it work(the code can and should be improved,it works properly,exactly as it should,but I am sure somebody can clean it )

First,Newdigital for his eye opener thread on digital indicators,where I discovered SATL,and,of course the creators of the indicator that work at finware.Thanks.

Second,Keris for his MTF thread which gave me several practical answers

to questions that were basic to my conception of MTF trading,and for all the indicators he created and posted,which I have used to "MTF" both xpMA and SATL.Thanks.

And third but not last,CODERSGURU, for his xpMA thread where he showed again that his ideas and programming capabilities are as exceptional as he surely is as a person .Thanks.

Basically,I used Keris Mtf Moving average as a mold,I "introduced" xpMA versatile capabilities into this mold,and,then ,I "introduced" SATL into the equation...

I didn`t modify any of the copyrights(How could I dare ? ),so,the copyright that appears is the one for Keris(the first mold),it is my personal opinion that the real merit relies on all the people just mentioned..so it is up to them if they want to jointly copyright it ,or whatever ,the merit relies on ALL of them,not on a single one.

Ok,I attach the 3 indicators,the 2 basic that "form" the one we are going to use,and the template -NEXT POST-you need for the BASIC simba system.Please do not trade this template ,for the moment,we are at market cross roads(see the attachment MARKETCROSSROADS.GIF),this is the basic method,the advanced one will help you avoid these "cross road" times(killing fields)..but you need to start from the beginning..enjoy the ride....FIESTA.gif

Regards,

SIMBA

[cementman]

Simba..thank you so much for your time and help but it seems that there is some thing missing on your template..shouldn't some indicators be on the price window itself..it shows like that on my MT does any body else have the same problem?

[SIMBA]

Template Problem

cementman:
Simba..thank you so much for your time and help but it seems that there is some thing missing on your template..shouldn't some indicators be on the price window itself..it shows like that on my MT does any body else have the same problem?

Hi cementman,

Try to put the 3 previously posted indicators in ..experts/indicators,then compile them and then,reopen the Template..it should work ,if not,please inform.

Regards,

SIMBA