Develop a trading system that is unique based on mkt structure

rvlv

Active Member
#1
HI friends






Aim of this post is to develop a trading method -system in Amibroker.

here is a video that gives insight into a different concept.
The concept comes from a professor who is more than 20 years into markets and was involved in optimization.
The system uses stuff that has in built predictive value in market for trading purposes.
Interesting point is what brings predictive value to trading method or its components?

https://www.youtube.com/watch?v=iQ57rrRZSq8

This is a system 85% success -tested using Ninjatrader.

what does the system use? it uses trend trading as foundation.
it uses SMA 50 , a modified MA15. market structure. multiple timeframes are used.
they is some special pivots.
Long entry uses for basis MADiff(dIFF BETWEEN MA50 & MOD EMA15) Must be less than 15 ticks to qualify entry and the retracement candle and mod ema15 must be less than 4 ticks for trigger entry. MADiff,volume,slope of MA50,Slope ofMod ema15 IS DISPLAYED ON CHART LEFTSIDE TOP.
The candles get marking based on support by stochastics,cci,order flow on multiple time frames.
We look for retracements into a well defined trend.
See the second pic. if the candle c is more than 4 ticks away from modified ema15,trade is discarded.
reason? more distance the retracement candle C stays away from mod EMA15,MORE RISKY IT IS TO TAKE THAT ENTRY-TRADE.
One concept that is really attractive is
background color of chart based on price hitting a resistance on higher timeframe or price hirttting a higher timeframe support giving an established bias to buy.
The system uses range bars.
a 2/3 rds candle closing above a ma50 and ma15 modified gives a bias.
The beauty of the system is it proves beyond doubt that the support resistance and pivot lines-ma50-modified ma15 method successfully beats most known indicators.
Rule Dont trade with an unbroken pivot-that is too risky-avoid big risk.
you dont take a long trade with a falling ma50 line. you also dont take a short trade into a rising ma50 and a rising mod ema15.
ps I dont like ninjatrader as my pc cant handle its demand for enormous memory space.
 
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rvlv

Active Member
#2
hi friends

here is some info by mike sullivan on the right line trading system-an intraday system.

The Right Line methodology in a nutshell...

The Right Line Trading platform has exact entry indicator signals but these signals only occur after the platform has
assessed market structure, order flow and performed fractal analysis (indicators assimilated data from multiple time frames); it’s all done automatically. This makes entry signals remarkably accurate.

Website: http://www.rightlinetrading.com/

4 main Trading Setups
uses range bars.

ABC Continuation [ABC]
Power [Pwr]
Momentum [Mom]
3LineBreak [3LB]


Target 1 = 6tix
Target 2 = 10tix
Target 3 = 10tix trailing stop

Will annotate these on charts when/where the occur.
My usual trading hours will be 7:30am - 10:00am EDT
---------------------------------------------------------------
ABC Setup...


Has an Elliott Wave element to it. It's a market structure setup based on Order Flow Asymmetry.

The 'A' is a sign of a beginning of a trend with starting off with 2 consecutive matching Green/Red candles.

The 'B' is always going to be colored purple. This is the turning point bar
where buyers/sellers try to turn the market/trend.

The 'C' is the engulfing candle that states the trend is still in tact.
The engulfment is based on candle body only, not wick.

This setup is best taken on first instance in an up/down trend.

This trade was from 11/27/2013 and went for a total of 14tix.
In this case you would have achieved T1 of 6tix, T2 of 10tix, T3 4tix for a total of 20tix or $200 on 3contracts.

-----------------------------
Power Setup...


Noted as an Arrow symbol on chart.
Signifies a minor retracement in an existing trend, usually to the 15MA.
Again classified as a continuation trade in an existing trend.
Want 15MA to stay color of trade. Green for long / Red for short.

On the 3LineIndicator below chart you have OrderFlow, Stochastic, Momentum from top to bottom.
Stochastic is ok to be off due to the retracement. As long as OrderFlow and Momentum are in direction of trade is all we need.

We look to take the first 2 instances for they are your best chances of profitability with trend.

This trade was from 11/25/2013 and went for a total of 36tix. Classic Pull Back to the 50MA and was rejected.
In this case you would have achieved T1 of 6tix, T2 of 10tix, T3 26tix for a total of 42tix or $420 on 3contracts.
------------------------------------------------
Momentum Setup...




Noted as an '+' symbol on chart. Mark calls it an 'X' as well.

We look for price to stall and/or go sideways towards / into the 15MA. Never chase price
for a trade, let it come back towards the 15MA. Sort of a mini sideways channel.

This trade was from 11/25/2013 and went for a total of 19tix. Price stalled into the 15MA.
The 15/50MA's stayed Green along with the Order Flow and Momentum on 3LineIndicator below.
In addition to the Momentum indicator, you also have an ABC structure as well. An added bonus!

In this case you would have achieved T1 of 6tix, T2 of 10tix, T3 9tix for a total of 25tix or $250 on 3contracts.
-------------------------------------------------

3LineBreak Setup...


Trades are best taken with a price move through the 50MA.
So you want at least a 2/3rds piercing of the 50MA to take trade.
The candle body is outlined, yellow for short + blue for long, to show
agreement on all 3 indicators on the 3LineIndicator.

These usually occur on those fast price action transitions from long to short or
short to long cycles. I find this an easier way to engage a trade rather than
sitting on hands and waiting for a pull back / regression trade to the 15MA

This trade was from 11/26/2013 and went for a total of 19tix.
The 50MA was sloping down most of morning session. There was a brief price move above the 50MA
but didn't last long and came back down in the direction of the trend. This created a nice 3LB setup,
Order Flow, Stochastics and Momentum were in agreement and pulled the trigger!

The move went for 19tix.
In this case you would have achieved T1 of 6tix, T2 of 10tix, T3 9tix for a total of 25tix or $250 on 3contracts.

---------------------------------------------------------
 
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rvlv

Active Member
#3
a missed point here

The candles get their color based on momentum and stochastics.
There are ribbons at bottom of chart for stochastics,momentum etc.
moving average you see are sma50 and ema15.
================================================
Entry of trades is controlled by rules of MADIFF<=14 TICKS AND (C-EMA15) <= 4 TICKS
What does this mean?
==================
MADIFF is gap between sma50 and ema15.
we dont take trade if madiff goes above 14 ticks.(we only take trades when madiff is less than 14 ticks)
we dont take trades if (close -ema15)distance exceeds 4 ticks (we only take trades if c-ema15 is less than 4 ticks)
these two conditions fix high probability trades. we enter trades fairly early.

most beautiful thing is
chart gets background color for uptrend os downtrend based on what price is doing on next higher timeframe with respect to support or resistance.
support if on higher tf price crosses above a resistance,we get light green color background.
if price cross below support, a pink color will appear.
This can be coded in Amibroker.
Price & support-resistance interaction on immediate higher timeframe forms unfailing leading indicator.
 
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