Anyone use my method?

[patoo]

Have the basics. I would appreciate any updates you have to add to the original journal.

Thanks again. ( I am going to be up all night backtesting!!)

 

[no_pm_please]

Stopped out at 1268.75.

 

[saico]

Quote from saico:

Should be a signal.

Out at close: +3.50

 

[no_pm_please]

Quote from polpolik:

Hey, npp, I think you should start a new journal based on your original divergence indicators. I'd like to see it once again. I've been reading up on your old post from 2 years ago - I'm gonna try to set it up and see how it goes.

How's trading full time working out for you? more or less the same result or do you find yourself "pressured" to make more money to compensate for the job?

Hi, trading has been going well. I don't feel much pressure, but that's probably just me. Playing someone else's music with them as a critic is stressful. Trading and waiting to see if you pay or get paid is pretty boring by comparison. My old job didn't pay well so it wasn't like I miss it. I've put a few dollars in the bank so it's not like I'm gonna starve if I have a few losing months.

npp

 

[no_pm_please]

Quote from akawesson:

Hi, and thanks for posting your system! One question: the change from volume-based Chaikin to price-based CCI means that volume is no longer a factor. I'm curious what lead you to remove volume from a system that was originally based on divergence between price and volume. Was it perhaps related to the change from SP to ES for signal generation? Thanks.

When I used the volume on the ES it didn't give very accurate signals. I played with different indicators until I found the CCI. The divergences are pretty clear and easy to see. That was the only criteria. I switched to the ES from SP because it didn't make much sense to watch one market and trade another. In the end I think it's easier to trade off just the ES.

The whole method boils down to this:

1). SP/ES doesn't trend very often (2-3 trending days per-month on average).
2). SP/ES trends start getting old (ADX crossing above 30).
3). After a trend starts aging look for a loss of its momentum(divergence any way you want to see it).
4). Then look for it's last gasp (move in the direction of the trend until it has a bar that stops going in the direction)
5). Keep the risk relative to the volatility (1/3 of Keltner channel width as measured the bar before entry).
6). Sometimes you'll get in early on a new trend. If so, trail your stop to get all you can (parabolic trailing stop).

 

[no_pm_please]

Quote from patoo:

Have the basics. I would appreciate any updates you have to add to the original journal.

Thanks again. ( I am going to be up all night backtesting!!)

I posted the updates earlier in this thread. Good luck with backtesting. I've tried to automate the method for years and have given up. In the end you'll see it's very hard to come up with a objective way of measuring divergence.

 

[cvds16]

what's your win% for the last year ? and how many trades do you have about each month ?

 

[no_pm_please]

Here's today's trade.

Reward 3.75
Risk 2.0

Reward:risk ratio 1.8

 

[no_pm_please]

Quote from cvds16:

what's your win% for the last year ? and how many trades do you have about each month ?

Win % from beginning to the end of November is 74.8%.
This averages 18 trades per month. The size of the winners is larger than the losers.

Seems to be more mechanical traders here than in the past. I don't think this is easily coded.

npp

 

[Ditch]

Ensign has a study called "divergence" that automatically detects divergences on any parameter you like