Thank you Dunhill, you are very kind,
I just happen to read your thread, and it is an interesting method. Thanks for sharing. I haven't read completely your descriptions, however, would you mind describe it in chart to make it clearer? Here I attach my chart. I took 2 fractal points to draw the fibo retracement. Please have a look, is it correct? Thanks zappata
I have been thinking about your method again and I found that it is very interesting The most interesting part is the wavelength or grid size. May be we should call this Adaptive Martiangle System
Okay, from my intepretation of your method:
I choose 2 fractal points as the wavelength (red box). Then put the modified Fibonacci Retracement. It's a downwave, so I short 0.1 lot at 0.618 level with target -0.382. When it increase to 1.618 level, I short again 0.2 lot with target 0.618. When target reached, I close all trades. Please correct me if I am wrong.
I got some problems:
- so, I just choose any 2 consequtive fractals right? (the red box)
- from your doc file:
1-Buy 0.1 lot @ 0.618 level with target the -0.382 level if reached
2-If not buy 0.2 lot @ 1.618 level with target 0.618 level if reached close all positions.
Does it suppose to be SELL, not BUY? Sell 0.1 lot at 0.618 with target -0.382.
- What's the minimum wavelength (grid size)? Is 5 pips allowed?
- What the recommended maximum progression level? Is 5 secure enough?
I'd like to discuss this method further with you and everyone.
Thanks for your contribution & your interest.
This is the right way to implement my system, but I have to explain 3 things:
1- With my experience, we should choose min Wl=5 pibs & max according to your account size.
2- You should take positions in both directions, because this will help you to get pibs for buys directly (for example) while accumulating stagged lots for sells. For that, you need 2 charts (one for buy & one for sell) to avoid complicating your charts.
3- In order to take entries in 2 directions, I recommend to begin to take 0.05 lots instead of 0.1 at first.
By the way I like your Idea about the name & I will suggest this name:
Adaptive Abdullah grid.
Hope that answers your questions.
May the pibs be with you
I remarked in your last chart that you used a up wave to execute sell grid, you should use sell wave to execute sell grid. I think you are using Fibonacci expansion in your grid you should use Fibonacci retracement.
I would like to transfer this thread to another area of thi forum: Suggestion for a manual trading system with the name "Adaptive Abdullah grid". Is it possible & how to do it.
Thanks in advance.
Amazing also that I'm a fan of bill williams ideas & his book trading chaos & the new trading dimensions. I think the most important ideas of him are:
1- The fractal definition as he describing perfetly the emotions mechanic of the market.
2- His amazing way of defining the minor & the major turning points of the market with the use his five magical bullets.
3- His definitions of the five dimensions of the market.
4- Explaining perfetly the underlying structure of the market.
The importance of these 2 books is not the use of the techniques he propose, but understanding the structure of the market behavior & the best use of our mind structure to create/invent/developp/improve systems that are not traditional techniques which make 95% of the traders loose their accounts & also their minds/health/life/families/.... .Please do not understand me wrong, I have nothing against trendlines, oscillators, ... but I have everything againt the traditional ways of implementing them & the use of them in traditional known ways which (I'll repeat) make 95% of traders loose their money.The market behavior is in fact random but the underlying structure of it (the traders emotions) is not & can be forcasted to the pib. Dancing with the maket tones is my favorite hobby. I'm trading for fun, what if that fun is making me money also & improve my mind power & my immagination & my style of life.
Before I close this post I would like to introduce the book "Bird watching in lions country" For Mr. Dirk Dutoit, I highly respect this man because when I read his book it was a turning point for me as a trader. I understand now the right way of using the leverage & that I should enter the market at his exhaution with low gear & more gear with more exhautuon. I understand that there is many ways to ride the maket sea (maybe ocean), But one way to get out safe is to make profits by dancing over the market waves flow whenever they are present. Our duty as traders is to create systems which are synchronized with market underlying structure of the market & our minds (point a la ligne)
Beleive me it's not poetry.
See you soon
Sorry for replying rather late.. Great to see how this thread has progressed..
Currently, i'm auto trading this method using 5th element blessing EA in which i set the EA to start (buy n sell) at a fibo level and the pipsteps are equivalent to the distances between the 61.8s... sometimes, i take the distance of the .118s n .618s.. However, the disadvantage is when the swing size changes.. using the EA, i start with small lots in which the intial lots depends on the swing size of the seed wave.
When i manual trade, i will normally play out the reversals only. So, i start my staging at 261.8 with bigger lots and double up the lots if price increases to the next .618s. My tp method is similar to yours. The advantage with manual trading is that whenever i close a trade. i look for the next swing size.
Based on elliot wave n fibonacci, a particular impulsive wave terminates at either 261.8 or 461.8. If the seed wave / first wave is projected accordingly, this relation can be clearly seen.
Btw, this is using fibo retracement.
The only problem with creating an EA based on this method is how to code the EA to recognize the swings. If this can be resolved, a powerful EA is in the making..
Another interesting thing that i'm studying at the moment is projection based on retracement.. I'll dwell on this soon..
P/s: I'll post some charts by today.
Btw, zapata, it will be great if we can chat through ym since we seem to have a common interest.
Please check my screen shot. I used the Fibonacci Retracement and change the value as in your description:
a) Fibonacci retracement modified as follows:
-Remove all levels except 0.618. Add the levels 1.618, 2.618, 3.618, 4.618, 5.618, 6.618, 7.618, 8.618, 9.618, 10.618, & -0.382 as first target.
Could you post your screenshot to make it clearer? Thanks.
Yeah, I am agree with you, we could change the name of your strategy with Adaptive Abdullah Grid
By the way, sorry I am a bit late in replying lately. I am still out of town and the only connection that I got is only dial up
Looking forward to seeing your screen shot explanation
Attached a typical grid