Thomas DeMark Sequential System

saurabhkurichh · #**131** 23rd August 2008, 10:39 PM

Hi friends,
I have been following this thread recently and all of u guys are doing a great job... thanks a lot to all
Kenneth sir , as "smart trade" sir pointed out that after the "9" there is a period of consolidation and there should be 13 bars with the low being lower than or equal to the low of their respective 2 bars earlier"..
In the afl provided in this thread so far all we can see in amibroker is the number 9 and then try to figure out the 13 bars manually..its a time consuming thing and also error prone.. if possible please write that kind of afl..sorry for troubling u

Smart trade sir.. till the time the above request is not done..could u manuall scan the nifty stocks and post if they are buy / sell mode

Smart_trade · #**132** 23rd August 2008, 10:55 PM

Quote:

Originally Posted by saurabhkurichh

Hi friends,
I have been following this thread recently and all of u guys are doing a great job... thanks a lot to all
Kenneth sir , as "smart trade" sir pointed out that after the "9" there is a period of consolidation and there should be 13 bars with the low being lower than or equal to the low of their respective 2 bars earlier".. In the afl provided in this thread so far all we can see in amibroker is the number 9 and then try to figure out the 13 bars manually..its a time consuming thing and also error prone.. if possible please write that kind of afl..sorry for troubling u

Smart trade sir.. till the time the above request is not done..could u manuall scan the nifty stocks and post if they are buy / sell mode

Hello Saurabh,

Would certainly try to scan nifty stocks and post the results.Small correction in yr above highlighted post.In a buy count down(countdown leading to a Buy signal) the close should be less than or equal to low 2 bars ago.Happy to know that you found the technique
interesting.

Best Wishes,Trade well !!!

Smart_trade

Smart_trade · #**133** 23rd August 2008, 11:13 PM

Quote:

Originally Posted by vvvv

i have the demark plugin for metastock.Im attachung nifty fut eod chart updated till yesterday.i think the analysis differs from the 1 people are posting here...also it is not the same as the amibroker AFL...
which is correct & which is wrong..
also sum1 has written sum metastock codes....is it correct????
as per my expert,,, most of the time it is detecting tops & bottoms at the wrong places.
sum1 here shud clarify the doubt.but i think this system has got gud potential but further study is needed.

Thanks for the plugin.I see that all AFL are identifying set up bars pretty well but when it comes to countdown,they seem to be not very clear.I prefer my metastock utility given by me in the begining of this thread and count setup and countdown bars with the help of moving the cursor till we get a full AFL.It takes less than 5 min to count in every chart.All setups after completing 9 bars mkt does not reverse.

Set ups are to be traded little differently.Mark TDST levels and see what mkt does with those levels and trade accordingly. Refer my earlier posts regarding trading on TDST.

I found that the system doesnot speek too often but when it speaks it speaks with deadly accuracy.Once you get a hang of it it becomes quite easy really.

BEST wishes,TRADE WELL !!!!!

sMART_TRADE

saurabhkurichh · #**134** 24th August 2008, 11:04 AM

Thanks a lot smart trade sir

saurabhkurichh · #**135** 24th August 2008, 11:33 AM

Smart sir.. if i am understanding the system right ..this is what i feel

( for buys )

1. wait for the "9" formation
2. wait for countdown of 13 condition based bars
3. if the 13th or any bar beyond that has a close greater than the open...buy

What would be the SL ....the lowest low of the countdown ???

Smart_trade · #**136** 24th August 2008, 01:10 PM

Quote:

Originally Posted by saurabhkurichh

Smart sir.. if i am understanding the system right ..this is what i feel

( for buys )

1. wait for the "9" formation
2. wait for countdown of 13 condition based bars
3. if the 13th or any bar beyond that has a close greater than the open...buy

What would be the SL ....the lowest low of the countdown ???

You are right Saurabh,make sure that the intersection takes place in 8th,9th or subsequent bar and start count down from that bar.

Buy entry is perfectly understood by you.

STOPLOSS :Identify a lowest low in set up and countdown stage(or further till you get a buy by close>open and substract that days range from the low of that lowest low day.This is your stoploss on closing basis.So if the mkt gives 2 closes below that level OR if mkt gives one close below that level and on the next day the close below the SL level day"s low is broken on downside in either of these conditions the stoploss is triggered.Get out fast if stoploss is triggred because in the words of Paul Tudor Jones "when the system fails it really fails ".

Best Wishes,Trade well

Smart_trade

vvvv · #**137** 24th August 2008, 01:44 PM

Quote:

Originally Posted by Smart_trade

Thanks for the plugin.I see that all AFL are identifying set up bars pretty well but when it comes to countdown,they seem to be not very clear.I prefer my metastock utility given by me in the begining of this thread and count setup and countdown bars with the help of moving the cursor till we get a full AFL.It takes less than 5 min to count in every chart.All setups after completing 9 bars mkt does not reverse.

Set ups are to be traded little differently.Mark TDST levels and see what mkt does with those levels and trade accordingly. Refer my earlier posts regarding trading on TDST.

I found that the system doesnot speek too often but when it speaks it speaks with deadly accuracy.Once you get a hang of it it becomes quite easy really.

BEST wishes,TRADE WELL !!!!!

sMART_TRADE

all i wanted to know which one is correct...the plug-in or ur metastock formula??? have to follow only 1...
since uve been trading on it,,,,wht is ur win/loss ratio

Smart_trade · #**138** 24th August 2008, 07:33 PM

Quote:

Originally Posted by vvvv

all i wanted to know which one is correct...the plug-in or ur metastock formula??? have to follow only 1...
since uve been trading on it,,,,wht is ur win/loss ratio

Hello vvvv,

My metastock utility is correct.Regarding plug in and AFL, I am not conversant in programming and metastock codes and so unable to comment on correctness or otherwise of these programmes and rectifying the same. My utility is in very crude form but it serves my purpose pretty well.

Regarding win/loss ratio and winning trades /loosing trades it gives over 70 % success rate. It catches the top and bottoms very well but I have never been able to sit on the position for next 4 months to realise full potential of the trade. The stoploss normally is about 100-150 nifty points and it can give profits of over 400-500 nifty points..I use it as an indicator because lets accept it very few traders can hold the position for 4-5 months and hold it for gains of over 500-600 nifty points with 150 points stoploss and I am not amongst them so never realised the full potential of the system.The system gave a buy signal exactly on the day of the bottom in July 2008 and already in profit over 500 nifty points,I have traded this signal but have I realised the full potential ?The answer is NO I have traded in and out atleast a dozen times thus reducing the gains !!!

Let me sum up by saying that I have made much more money on the system than I have lost on it and I am happy

Best wishes,Trade well,

Smart_trade

vvvv · #**139** 24th August 2008, 09:01 PM

for smart trader,
since u r following ur metastock indicator , makes more sense to follow ur indicator.
so many questions & doubts has been raised...still unable to understand wht is TDST & setups & countdown...anyway if all the rules which u practically follow in trading can be compiled together at 1 place for ready reference as now we have to search for a long time to find & clear ur doubts.i thnk ull be able to do this better than others as u have put ur system to use in the market.
applied ur indicator on the chart
u have a zigzag kind of indicator...does it look into the past for plotting.also there is a buy & sell count oscillating between 1 & o.
how to correlate the stuff.
also the 13 bar count is not there ....i may be wrong...
can an exploration be made by u with ur 9 bar & 13 nbar counts in metastock
sorry if i sound like a novice & repeat the same stuff over & over again

kenneth · #**140** 24th August 2008, 09:02 PM

Quote:

Originally Posted by saurabhkurichh

Hi friends,
I have been following this thread recently and all of u guys are doing a great job... thanks a lot to all
Kenneth sir , as "smart trade" sir pointed out that after the "9" there is a period of consolidation and there should be 13 bars with the low being lower than or equal to the low of their respective 2 bars earlier"..
In the afl provided in this thread so far all we can see in amibroker is the number 9 and then try to figure out the 13 bars manually..its a time consuming thing and also error prone.. if possible please write that kind of afl..sorry for troubling u

Smart trade sir.. till the time the above request is not done..could u manuall scan the nifty stocks and post if they are buy / sell mode

Hi saurabhkurichh

Add the following to the AFL

Sell = Sell13Signal AND NOT BuySignal;
Buy = Buy13Signal AND BuySignal;
PlotShapes(Sell*shapeDownArrow, colorYellow, 0, H, -H*.001);
PlotShapes(Buy*shapeUpArrow, colorBrightGreen, 0, L, -L*.001);
dist = 1.0*ATR(10);

for( i = 0; i < BarCount; i++ )
{
if( Buy[i] ) PlotText( "BA-13\n@" + C[ i ], i, L[ i ]-dist[i], colorGreen,colorBrightGreen );
if( Sell[i] ) PlotText( "SA-13\n@" + C[ i ], i, H[ i ]+dist[i], colorRed,colorPink);
}

Regards
Kem

The Following User Says Thank You to Smart_trade For This Useful Post:
saurabhkurichh (24th August 2008)

The Following 2 Users Say Thank You to Smart_trade For This Useful Post:
kenneth (24th August 2008), uasish (24th August 2008)

The Following User Says Thank You to kenneth For This Useful Post:
saurabhkurichh (24th August 2008)