syk1kz trading journal

[syk1kz]

Ok the butchered indicator works alot better at spotting current divergence. It actually works really well when used in conjunction with the higher value indicator.

 

http://img704.imageshack.us/img704/7244/eurusd27.gif

 

I am still looking for somebody to edit this properly so we can choose what time frames the average value comes from, as it stands the one i just modified wont work past M5 it will start doubling up using M5 twice.

 

The indi draws arrows and or alerts when it enters OB/OS

Edited December 13, 2010 by syk1kz

[syk1kz]

http://img138.imageshack.us/img138/1160/nzdusd.gif

[syk1kz]

http://img529.imageshack.us/img529/1373/eurgbp.gif

 

Looking for a reversal candle here

 

http://img808.imageshack.us/img808/4869/eurgbpo.gif

 

Also going to start exploring other pairs with higher spreads

 

http://img686.imageshack.us/img686/9585/chfjpy.gif

Edited December 13, 2010 by syk1kz

[syk1kz]

look how crazy this thing shows divergence when using m1 m5 m15 average on the m5 time frame.

http://img64.imageshack.us/img64/3929/eurusda.gif

[alright]

In this demo shorthttp://i56.tinypic.com/30ct9io.jpg

[syk1kz]

ah now that looks nice. just remember to wait for the candle formation to appear and close as extra confirmation, engulfing is the most likely on such a low TF.

 

I am playing around with new settings and will get back to you guys with what i hope to be increased signals without to many looser trades being included.

 

Stay tuned.

 

http://img64.imageshack.us/img64/4163/audusdy.gif

 

Here is the butchered indicator if anybody wants it, M1,M5,M15 will all use M1,M5,M15 to get the average, anything higher than m15 will use the current TF + next highest. Hopefully somebody will edit this soon. I have not updated the first post because this indi is hardly working as it should but i was more interested in m1 stoch than m30 when trading m5. If you dont want m1 and prefer m30 do not download this.

 

http://mir.cr/I8PFPG8V

Edited December 13, 2010 by syk1kz

[syk1kz]

Since its alot more touchy now i am considering adding the cross OUT of OB/OS along with the CS formation to my signal to increase the chances. Along with Divergence present in OB/OS for the MTF stoch. this means we want divergence inside OB/OS on the MTF stoch and consider using the top or normal stoch as you normally would, enter when it crosses out. I am open to suggestions and criticism here. Since butchering that indi i have taken some weird positions testing out the divergence. All failed including the EURGBP i posted before. But that's ok we can sort it out

[syk1kz]

IF you downloaded the butchered indi put it on 5,3,3 the lower settings really provide better divergence as TheBeast recommended.

 

I am using the MTF for divergence and the top as entry at this stage, since lowering the average the results and signals have become fairly skewed. I am looking for that extra confirmation via the signal cross over.

 

M15

http://img375.imageshack.us/img375/1954/eurusdf.gif

 

M5

http://img194.imageshack.us/img194/9351/eurusd2.gif

[syk1kz]

H4

http://img59.imageshack.us/img59/9664/eurusd4.gif

 

 

M5

http://img221.imageshack.us/img221/9568/eurusd3.gif

[syk1kz]

AU

http://img228.imageshack.us/img228/442/audusd.gif

GU

http://img217.imageshack.us/img217/9762/gbpusdc.gif

[syk1kz]

Funny how you think something is profitable and working well until you go f***ing around with it. I am still a little lost with since i edited the indicator, if i use the default indi i have little to no problem spotting an entry. I am going to play with this for the rest of the week and see what i can turn up. As it stands i am taking blind entries and getting stopped out on almost every trade. Default system or the initial release works fine so stick with that if you really want to use this. Until i can either convince myself that i am wasting my time or i manage to make it work using the lower valued indicator i will continue playing around with the newer butchered indi. I will only place trades on the standard system until i can work this out.

 

On another note i have come across an indicator today called stochastic wallaby which is almost 100% the same as what we are doing here. It uses multiple timeframes to give you an average and it is being used to detect divergence they are then using a higher or smoother stochastic to enter off. I cannot find much on google about this indicator and it would appear to be non commercial and not released until 2011

 

http://robbooker.posterous.com/how-i-trade-divergence-on-the-short-term-char

 

This is directly related to what i seem to be breaking.

 

He also has a shitload of charts up relating to the divergence.

 

http://content.screencast.com/users/robbooker/folders/Snagit/media/88acdb7f-3119-4ed9-9c30-60849efa4cd2/12.13.2010-10.31.46.png

 

Has anybody seen or heard of this indi ?

[syk1kz]

I am going to try and mimic the settings and see if i can get a close average to his average. i notice he is using 7,3,3 which is clearly shown in the top left corner of the indi window. I am guessing he is waiting for the 30,10,10 stoch to come out of OB or cross over, i don't know for sure and i cant find any live stats to visually backtest where he enters. Stay tuned

[syk1kz]

Seems like i over looked the NZD data trade we could of taken this morning. A simple scan with the eyes tells me the EA would of nailed this trade for an easy 25pips which is all i ever aim for unless its NFP news or something equally as big.

http://img709.imageshack.us/img709/2655/nzdusdc.gif

 

Anyway we have more news we can trade tonight with the EA. The news EA is on linked on the first post if you still need to get it.

 

To set this up it is quiet simple once you have done it a few times, like everything.

So lets go through the settings, what they mean, and what we should be settings them to.

http://img87.imageshack.us/img87/9595/capturetp.jpg

 

NewsTime - this is the time the news will get released using your brokers GMT offset. The easiest way i find to set this is obviously get the date first and set that. Then use your market watch clock to get your brokers local time. Go to forexfactory and dailyfx and use the economic calendars and instead of using you local time use your brokers time which will make it extremely easy to identify which times you need to use.

 

The difference between my broker and my local time is 8hours

http://img641.imageshack.us/img641/5593/59393105.png

 

This means instead of using GMT+10[my local time] i use GMT+2 on the calendar so the times match the brokers market watch. This makes our time settings easier to deal with.

http://img214.imageshack.us/img214/2407/37882636.png

 

Now that my brokers time is being displayed on the calendar we look for high impact news which is marked HIGH/RED on both DFX + FF calendars. I will trade HIGH on dfx but never RED on FF without DFX agreeing that it is indeed worth while looking at. To make things easier you can just use the

www.dailyfx.com/calendar/

one

 

So after looking at the calendar we note both FF and DFX are saying watch out for tonight

http://img840.imageshack.us/img840/6488/54679068.jpg

 

So all we do is grab the calendar time which is set to our brokers time, so for the first release using my brokers time is 11:30am today which is almost dead on 10 & 1/2 hours away

 

this means our news time gets set to whatever the calendar now displays, for me 11:30

http://img80.imageshack.us/img80/8254/captureyv.jpg

 

From this point on the rest is simple.

 

Activate Time - How long before the news hits we want the OCO pending orders to be set. I prefer 10 which means 10 seconds before our NewsTime the EA sets a pending buy and sell order at the same time.

 

Take profit - need to x10 for 5 digit brokers

 

Stop loss - as above

 

Lots - guess

 

Movement To Entry - When the EA sets pending orders using the activate time, this is how far we want the orders set from the current price, 10 is 10pips either side

 

Expiration - deletes the pending orders after X seconds if not triggered.

 

I suggest saving the settings once you have set them so all you need to do it edit the date and time and you are good to go.

 

I also suggest trading major news only as outlined above. Anything less than HIGH/RED is useless. Also make sure your broker supports news trading or you will not get good results even on demo. gomarkets and or gotmoneyfx both work well, gotmoney works better than gomarkets in my experience.

 

So my news EA for todays GBP now looks like this

http://img829.imageshack.us/img829/894/captureww.jpg

 

Then after saving i simply edit the time only after i reload it. Easy and once you have the calendar setup this takes less than 5 minutes to setup for some nice spike trading. You will need one EA per news event per pair, so if you want to trade 3 pairs on tonight GBP news you need the EA on every pair you want to trade.

 

Some points to take note of are high spread pairs do make a difference. So for tonights GBP news i would trade GBPUSD / EURGBP etc but not GBPNZD or GBPAUD since the spreads are pretty high.

 

We also have USD news tonight in the form of FOMC which will be great for this EA, a SL/TP of 25/50 is not unrealistic from the spike. This one news event can make the whole thing worth it to me when trading high volume.

 

http://img683.imageshack.us/img683/6913/eurusdq.gif

 

http://img340.imageshack.us/img340/7962/eurusd2z.gif

 

Please post any questions or comments

[syk1kz]

ok so he has updated that chart i posted before, looks like i was right and they enter when the bottom stoch crosses over

 

Original

http://content.screencast.com/users/robbooker/folders/Snagit/media/88acdb7f-3119-4ed9-9c30-60849efa4cd2/12.13.2010-10.31.46.png

 

Updated

http://content.screencast.com/users/robbooker/folders/Snagit/media/e42e99c5-7eb3-4ea6-8068-3cf2edd41d7f/12.13.2010-14.30.57.gif

 

Butchered Indi

http://img828.imageshack.us/img828/4350/eurusdxa.gif

 

Looking very close to me

Edited December 14, 2010 by syk1kz

[syk1kz]

Took a small hit but the winner made up for it. This was using the news EA

 

http://img718.imageshack.us/img718/595/capturewtd.jpg

[syk1kz]

Indicator has been updated by Stovedude and now allows the choice of time frames when defining the average. This means you could trade the M30 time frame with M15 H1 & H4 hour average stochastics if you wanted, or the daily timeframe with the M1,M5,M15 even if it is a little bit silly. Point being it is 100% customizable with every aspect and can probably be changed to suit your own style. Updated system link in post 1

http://img828.imageshack.us/img828/7956/gbpchf.gif

Edited December 14, 2010 by syk1kz

[syk1kz]

no time to trade this since i have to leave but my fantasy trade for the day is shorting this when bottom stoch comes out of OB.

http://img72.imageshack.us/img72/6913/eurusdq.gif

 

I am butchering my own system somewhat, the MTF settings i have are 5,3,3

[syk1kz]

Fantasy trade update

 

Would of entered on one of those red lines, i assume my stop would of been against the high, but again who knows what i would of done.

 

http://img811.imageshack.us/img811/1954/eurusdf.gif

 

Anyway enough fantasy im going to look for higher time frame setups i think.

 

On another note the EA had 1 loss and 1 winner today. FOMC was not triggered it deleted both pending orders. using proper R:R and with the high % of wins this takes it is quiet profitable and its very unlikely to have consecutive loosing trades if we are smart about what we trade. That does not mean we will win them all but the winners consistently outweigh the looser's, consistency is what i am after, how about you?

 

http://img821.imageshack.us/img821/1244/capturewn.jpg

[syk1kz]

http://img262.imageshack.us/img262/8619/eurusdn.gif

[syk1kz]

top divergence didn't play out at all.

 

Attempting this on a higher time frame with a 50sl 100tp. I am using 5,3,3 for the MTf indi, the other settings are visible on the charts

http://img703.imageshack.us/img703/6819/gbpchfd.gif

 

http://img63.imageshack.us/img63/9215/gbpaud.gif

[syk1kz]

http://img94.imageshack.us/img94/5107/eurchf.gif

[syk1kz]

some potential missed setups using higher timeframe

http://img823.imageshack.us/img823/6402/eurcad.gif

 

http://img607.imageshack.us/img607/5702/usdchf.gif

[syk1kz]

I was bitten on the hand by something which makes typing extremely annoying. It's all puffy and weird looking i have no knuckle on my right hand :( I have been playing with the settings and i think i have finally resolved the issues. I am going to post some updates later.

 

I jumped the gun a touch here but the hourly convinced me to do so

 

http://img146.imageshack.us/img146/5107/eurchf.gif

 

http://img718.imageshack.us/img718/1346/eurchf2.gif

[syk1kz]

fast markets +50

http://img844.imageshack.us/img844/9721/eurchf3.gif

[syk1kz]

EURCHF hit +60 before reversing to the entry. Just need to work out a reasonable SL/TP now i think.

 

hitting this counter trend, again jumping the gun but i entered using the hourly

http://img535.imageshack.us/img535/1517/audnzdx.gif