Timing your entries

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I came across a strategy that helps determine the best times to trade and need a little help programming it. Here it goes

Essentially what I want to do is measure the highly volitle periods of a currency pair over the last month Using bollbands,and store the "high volitility times" for that pair to use as a filter for trade entries.

Here is an example:

EUR/USD 30 min chart

20 period bands @ 1,2 & 3 std deviations.

if you plot this on the chart you notice that there are certian times every day that the price breaks through the 2nd and 3rd deviation more often than other times. These are the time periods that I want to identify, down to about +- 15 min.

What i want to do is

1. determine what these times are ( more often than not they correspond with market openings/closings). some are longer than others (example the NY open is usually pretty high volume for the first 3 hours or so and the Asian market looks like a much shorter period.)

2. Store that data (Time frames ) to be used as a filter for trade entries.

The benifit of this would be to eliminate trades during boring market periods. We need action to make money.

Can anyone here help get me started. I can figure out the programming details but need an outline/gameplan to follow.

Thanks,

KK

 

51 views and not even a suggestion....

 

still nothing .... this can benifit all of us. All I need is an Idea of how to do it.

 

High volatility

I came across a strategy that helps determine the best times to trade and need a little help programming it. Here it goes

Essentially what I want to do is measure the highly volitle periods of a currency pair over the last month Using bollbands,and store the "high volitility times" for that pair to use as a filter for trade entries.

Here is an example:

EUR/USD 30 min chart

20 period bands @ 1,2 & 3 std deviations.

if you plot this on the chart you notice that there are certian times every day that the price breaks through the 2nd and 3rd deviation more often than other times. These are the time periods that I want to identify, down to about +- 15 min.

What i want to do is

1. determine what these times are ( more often than not they correspond with market openings/closings). some are longer than others (example the NY open is usually pretty high volume for the first 3 hours or so and the Asian market looks like a much shorter period.)

2. Store that data (Time frames ) to be used as a filter for trade entries.

The benifit of this would be to eliminate trades during boring market periods. We need action to make money.

Can anyone here help get me started. I can figure out the programming details but need an outline/gameplan to follow.

Thanks,

KK

Hi KK,

I like your idea,but wouldn't a volatility indicator do the same thing,say like Chalkins Volatility or maybe VQ.

Regards

mrtools

 
mrtools:
Hi KK,

I like your idea,but wouldn't a volatility indicator do the same thing,say like Chalkins Volatility or maybe VQ.

Regards

mrtools

the std deviation breaks give a much different timeframe than any volatility indicator I have seen. What i am trying to do is create a time filter. If you look at the chart with the bands it pretty easy to see when the times are. just need to know how to code it.

I was thinking like this...

If the price pierces the 3 dev band consistantly from 5 - 8 am during the past 30 days then thats when I want to trade. ( more price action)

also if there are periods like 2-5 pm when price rarely breaks the 1 std dev band then dont bother trading these times.

the questions are how do i measure how many times the price pierces the bands ? and how do i identify it as a stacitistacally significant time period for the next day ?

I have also noticed that (on eur/usd) on openings when the 2 and 3 std deviation bands are pierced more often, it usually sets the trend in that direction for the day.

So how do i say that when we have a morning with a significant push to the high bands that we only go long for the remainder of the day...

Also need to figure out how to set time to broker time in the EA. I tried calling a batch file but it dident work....any suggestions?

Thanks for all your help.

 

Great idea

Sorry, I wish I was a programmer so I could help on this one...I have been playing around with these BB std devs...I notice that when price does break the std dev 3(30 min chart), it will retrace back to usually std dev1 or the middle band then move on....I believe we could refine this idea further...let me know what you think.

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