It's the timeframe...gaddammit

[trdes]

I'm not making a blanket statement. A blanket statement is, again, using all, always, never, etc.

My statement is telling you that there are exceptions to your blanket statement.

I've seen strategies during testing where changing the time frame can cause a winning strategy to lose. This is extremely easy to do with NT, so I'm sure others have seen this as well.

No, I didn't file them away for times like this. And I can't get motivated enough to create an example for you. I refer you to earlier in our discussion where we both proclaimed how little we care about others believing us.

Finally, you've indicated that you make adjustments for the different time frames, so technically, you aren't running the same strategy. You've mentioned this previously, I didn't reply to it then, as I didn't think this discussion would continue as it has.

This is fine (ATR adjustments). But maybe you should have made that caveat known when you first made your blanket statement to the OP; maybe saying something similar to this, if not in these exact words:

"Hey OP, try adjusting the metrics in your strategy based on the ATR, since the ATR will change with different time frames--and affect you results. I've never seen a strategy that can't work on all time frames, as long as you adjust for the change in the ATR."

Here is my new response updated with the new goal post:

I had/have two main rebuttals:

1. The markets aren't fractals
2. A strategy can work in one time frame, and not another.

I have not suggested:

3. That strategies work in only one time frame.

I agree:

4. It is likely that a strategy can work in all time frames, if it is adjusted for each time frame.

Ok, I will accept this draft. Have a good night and thank you for the constructive criticism to my post.

 

[userque]

Ok, I will accept this draft. Have a good night and thank you for the constructive criticism to my post.

You have a good night as well; and thanks for accepting it like a pro. I'm sure you'll be there to correct me when I stumble.

 

[bpr]

That is fine. Every strategy I have works the same on every time frame I trade, the only adjustment is the ATR. That's my personal experience and I haven't seen an example to the contrary.

I don't understand why you can't just give me an actual example. You're making an absolute statement now as well, but not clarifying an example.

Do you have a strategy that works on 5,10,15,20 and 25 minute time frame, but on the 30 minute time frame it doesn't work? Do you have an actual example that you can state through personal experience? Or are you just not willing to do that?

do u mind explaining ATR adjustment ?
how do you use ATR to arrive at optimum timeframe for range/renko/tick/volume chart ...?

 

[trdes]

I am using ATR(I use the general indicator, default setting period 14 that most platforms provide) as a general guideline to be able to measure when I get a signal of how much baseline movement can I expect on a consistent basis, that's it. It isn't all inclusive nor my only target on a trade.

Just by backtesting and live testing, I've found that signals I get consistently get about 2x the ATR from the opening price of the signal candle at minimum.

If it's a range or kase chart, that's easy it would just be 2x the candle size. If it's a second, minute, tick or volume chart I would use the standard ATR indicator and 2x that.


The only thing that's changing is the chart size, so I just adjust my expectation accordingly. It doesn't change the effectiveness of my signal, just because I go to a smaller or larger time frame.


Hopefully that's clear.