Follow The Bouncing Pip - page 108
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
ready
Well is everybody ready for a new week. I see the thread is busy on the weekend. so I just wanted to say that it is dedication like that, that will pay off in the end.
FANTASTIC WORK.
I had some spare time this weekend so I tried to port the ZigZag Validity indicator from MetaStock to MT4. I still have some problems with it since I'm not familiar with the MetaStock functions. The posted version of the indicator still needs some work. Maybe someone here can help me out ( I included all my notes in the code ).
I also found the following ZigZag indicator which might be of some more use.
In fact the Validity indicator might not be needed.
I'll also try to port the ZigZag Trend indicator from MetaStock and I'll code the idea presented by igor:
post #1053
Anyway, here they are.That's fantastic nix,
will test it during live action
Nix , is there any chance to look in to ZigZag Trend indicator ?
It should be better as signals can be directly tradable even without other indicators.
Taken from plutumtrading.com
The Zigzag Trend (ZZT) indicator turns Zigzag into a directly tradable indicator. It gives always valid indications about the trends of prices. Whether back-testing or trading live, whether studying historic prices or the evolving current price trend, Zigzag Trend will give you clear and valid indications about trend direction.
No matter where Zigzag is heading to, no matter which direction any of its legs points to (or .. does not point to), a ZZT with the same parameter setting will give you correct and valid information, so that you can either use the tool as a stand-alone indicator or incorporate it in any other analysis tool, technique or strategy plan.
Price retracements do not necessarily constitute trend reversals. Shallow corrections can be considered as micro-trends or simply as noise. In the picture above we have used a 20% Zigzag of close which indicates a strong uptrend but hesitates each time prices move lower. A characteristic example is the correction of the last period (the section marked with an ellipse and a question mark) when Zigzag has stopped plotting for about 45 days. The Zigzag Trend indicator on the other hand is never fooled by noise and in this case it shows that the main up trend remains valid.
Here is the picture even thou it's on weekly timeframe but it could be interesting to see it on much shorter timeframe.
Zigzag Trend vs. Zigzag : During corrections Zigzag either stops plotting (as it does here), or gives revisable signals. On the contrary, ZZT cannot be mislead. In this case it shows that the uptrend continues.
Thanks a lot nix
Sincerely,
ChampionFx
Review
Replies in red.
I also ran the backtest using 5% trade size so that the average risk is less than 3%. The starting balance was $10,000.
The results are profit 8751, drawdown 7%. The number of trades remain the same. Also the win rate is 41% wins. Largest win 2589 on 0.5 lots($500), largest loss 510 on 0.4 lots, average win 1219, average loss 170.
Actual risk is not 10% unless the stoploss is 100. If the average stoploss is 50 then the risk is 5%. The trade size is 10% and you are willing to lose half of that with an average 50 pip stop loss.
RobertActually, that's not true. This function uses a constant % risk of your account. If you use 50 or 100 pip stop loss, the $ amount will be the same. That's why the lot size changes. For example:
A $25k account, using 1.5% risk, that means you are willing to lose $375. The function uses stop loss * pip value to determine how many lots will equal $375. So, a bigger stop loss will mean a smaller lot size. Conversely, a smaller stop will mean a larger lot size. Tight stops will mean that you may not be able to make a purchase, because your leverage would be too large.
If you use a 5 pip stop loss on the GPB/USD, at 2.0071. With a 1.5% risk on a $25k account would mean a lot size of 7.5 lots. The same stop loss with 3% risk would mean a lot size of 15 lots.
So, unless you are altering both the stop loss and the risk percentage, then you must view this function using a constant risk. I can build in more logic to review the leverage used on the account to determine if the purchase can be made, which would probably help in this case. But suffice it to say that using this function with a small stop loss and a large percent risk will probably get you a lot of rejected orders.
Thanks,
burn0050
Below..in blue, is a quote from Burn0050...
Print it out and tape it on your wall.
as traders...uhh..successful traders, I mean... we need to concentrate on DD to benchmark the robustness of a system...(I said that)
If you are to survive the various non-yielding conditions that the lovely FX market will present to your trending OR your ranging OR your breakout OR your reversal EA's, you must have a plan and expect these day's to arrive. What will you do when they arrive on your desktop in front of you? How will you react?...how will you trade?...
Will you survive? Can you extract or skim the money from the market that it can give you...time & time again? How broad are your horizons? What do you expect from trading? Are your expectations too high?
Would you be happy with a minimum of 25% yield on your total portfolio capital per year and not exceed 15% DD on that capital? Would you be able to trade with that for 10 years? I know for a fact that this is the most possible that you could have made, if you look at the last 10 years...do not let anybody tell you differently. Prove me wrong.
Size and plan your trades to survive....lower your expectations....Trading is not Gambling.
ES
P.s. This bouncing system, reminds me of Malibu Beach early in the AM...all the surfers wading out and guaging the wakes....they are trying to catch that big wave...they try...and try...and sometimes they get it...and ride that beatiful ride all the way in...
Money management will probably lower the return, but should also lower the drawdown
I had some spare time this weekend so I tried to port the ZigZag Validity indicator from MetaStock to MT4. I still have some problems with it since I'm not familiar with the MetaStock functions. The posted version of the indicator still needs some work. Maybe someone here can help me out ( I included all my notes in the code ).
I also found the following ZigZag indicator which might be of some more use.
In fact the Validity indicator might not be needed.
I'll also try to port the ZigZag Trend indicator from MetaStock and I'll code the idea presented by igor:
post #1053
Anyway, here they are.Hi Nix,
The zig zag validity indicator is not working properly.
On the image you can see at the bottom the BINAIRY indicator that works correctly for MT4.0. It jumps from -1 to +1 or vice versa when an amount of procentage is crossed.
As I explained already we do not use a zigzag indicator in this indicator we develloped.
But is does the same thing as the SR ZZT in metastock wich is the one on top.
I took a chart on a daily period so a few pips more or less would not interveen in the reading.
As you can see the bottom indicator (in MT4 and the top indicator in MS do the same thing. Both use the value 0.5%.
The zig zag validity indicator (magenta) is also on 0.5% but jumps continiously up and down for no reason.
I know you said it needs some more adjustments or is a beta version but I wanted to say this so people would not use this indicator at this moment because it is doesn't function as needed.
regards..iGoR
That's fantastic nix,
will test it during live action
Nix , is there any chance to look in to ZigZag Trend indicator ?
It should be better as signals can be directly tradable even without other indicators.
Taken from plutumtrading.com
The Zigzag Trend (ZZT) indicator turns Zigzag into a directly tradable indicator. It gives always valid indications about the trends of prices. Whether back-testing or trading live, whether studying historic prices or the evolving current price trend, Zigzag Trend will give you clear and valid indications about trend direction.
No matter where Zigzag is heading to, no matter which direction any of its legs points to (or .. does not point to), a ZZT with the same parameter setting will give you correct and valid information, so that you can either use the tool as a stand-alone indicator or incorporate it in any other analysis tool, technique or strategy plan.
Price retracements do not necessarily constitute trend reversals. Shallow corrections can be considered as micro-trends or simply as noise. In the picture above we have used a 20% Zigzag of close which indicates a strong uptrend but hesitates each time prices move lower. A characteristic example is the correction of the last period (the section marked with an ellipse and a question mark) when Zigzag has stopped plotting for about 45 days. The Zigzag Trend indicator on the other hand is never fooled by noise and in this case it shows that the main up trend remains valid.
Here is the picture even thou it's on weekly timeframe but it could be interesting to see it on much shorter timeframe.
Zigzag Trend vs. Zigzag : During corrections Zigzag either stops plotting (as it does here), or gives revisable signals. On the contrary, ZZT cannot be mislead. In this case it shows that the uptrend continues.
Thanks a lot nix
Sincerely,
ChampionFxHi guys..
Where can I get zig zag trend or ZZT indi? Looking nice.
will test it during live action
Nix , is there any chance to look in to ZigZag Trend indicator ?
It should be better as signals can be directly tradable even without other indicators.
Taken from plutumtrading.com
I would like to clear out some things and give you a bit more help or pointing out some contradictions.
On that site plutumtrading they claim that the zigzag validity can not be use in backtest because of the dynamic last leg....
The problem is a bit that raftopoulos has made severall indicators before he came to his last version SR ZZT that DOES NOT re-paint.
The formula in metastock that DOES NOT RE-PAINT is this one:
amnt:=Input("%",0.2,100,1.7);
md:=1;
vr:=CLOSE;
zz0:=If(md=1, Zig(vr,amnt,%), Zig(vr,amnt,$));
zz1:=Ref(zz0,-1);
zz2:=Ref(zz0,-2);
tr:=ValueWhen(1,zz0>zz1 AND zz1<zz2, zz1);
pk:=ValueWhen(1,zz0zz2, zz1);
PU:=If(md=1,tr+Abs(tr)*amnt/100,tr+amnt);
PD:=If(md=1,pk-Abs(pk)*amnt/100,pk-amnt);
res:=If(vr>=PU AND zz0>zz1,1,
If(vr<=PD AND zz0<zz1,-1,0));
res:=If(res0,res,ValueWhen(1,res0,res));
res
This formula can be used in backtesting with no problems. Again there is no re-painting element what so ever.
If you find other versions on metastock that do not look identicaly the same like this formula, then they are previous versions that did re-paint themself.
But again if one wants to devellop the same SR ZZT indicator as raftopoulos did in MT4.0 then DO NOT USE the zigzag indicator because the zigzag in MT4.0 does not do the same thing as the zigzag in metastock.
Important: I would like to say this again, this indicator ST ZZT is absolutly not worth trading as a stand alone indicator.
In metastock one can very easy do a backtest to optimize the so called ideal % reversall. No pair or index or future nore any certain time frame over longer period of time shows a smooth equity curve. On the ideal values, it end everytime with a profit but the drawdowns are WAY to heavy ( even with S/L T/P and trailing stops) (whatever plutum may claim in there results).
Believe me, you can do some googling on my name and raftopoulos and you will conversation with raftopoulos already 2 years ago. So I know this indicator true and true.
regards..iGoR
I said this in another way...you are correct and I can agree.
No pair or index or future nore any certain time frame over longer period of time shows a smooth equity curve. On the ideal values, it end everytime with a profit but the drawdowns are WAY to heavy ( even with S/L T/P and trailing stops)
I said this in another way...you are correct and I can agree. No pair or index or future nore any certain time frame over longer period of time shows a smooth equity curve. On the ideal values, it end everytime with a profit but the drawdowns are WAY to heavy ( even with S/L T/P and trailing stops)
As fundation it can produce an nice equity curveover a longer period of time.
One can nicely see the continious momentum over a these 7 years on the euro.
I post this image specialy for you ES because I have the feeling on what you wrote continiously about systems, that you feel or say it is impossible to devellop systems that perform well over a longer period of time.
This equity curve is over 7 years. If you have more data I would like to take it even further back.
(14.500pips profit with only 1 contract NO compounding strategys and 3 pips spread)
regards...iGoR
so igoR...you have traded this live for 7 or 10 years and have banked this purported profit and never seen less than 15% DD...?
ES