Kudos to MMs

[Kassz007]

Quote from nitro:

There are many ways to trade the third unit. For example, I could only have a position in OFV if it coincides with FV. Or, I could use OFV to be it's own system, but only if FV has two units on, etc etc etc. Right now, I am doing exactly this, only if there are two units on, does the third unit logic kick in (hence its name ), but it can go long or short regardless of what FV says, only its own internal logic of OFV vs SPX. So if third unit kicks in, I am long or short either 3 or 1 unit, never 2. So unit 3 logic is entering and exiting two units at a time, either pealing off 2 units of an existing FV position, or going back to full position with FV. This logic will start as of tomorrow.

If this logic had started today, OFV would have gone long 2 units at 1222 as stated in the post above (leaving short 1 unit).

Yikes, my head is spinning. I'm no longer able to follow along here, but I wish you good luck nonetheless.

 

[nitro]

Quote from Kassz007:

Yikes, my head is spinning. I'm no longer able to follow along here, but I wish you good luck nonetheless.

I know. It is too complicated at this point. Thanks for the well wishes, they are appreciated.

FWIW, if the third unit is not on, it is very easy to follow. Only the third unit complicates things enormously, and only when OFV is whipping back and forth, which it is now.

 

[nitro]

SPX, 1222.42. FV, 1128.55. OFV, 1226.20. <- Note that OFV is above SPX, with a FV below SPX. That means when OFV goes live (tomorrow), we would be just short one unit because OFV overrules FV on the short time frame after I put on the initial three units. It controls 2 of the three units after that.

 

[nitro]

SPX, 1216.33. FV, 1128.21, OFV, 1225.90.

 

[nitro]

For those that understand code, here is the simple C# logic that controls the third unit (this is close to the actual code but simplified for actual position management and execution)

    void HandleThirdUnit(double SPX, double OFV)
    {
        if (position == Position.flatPos)
        {
            if (OFV > SPX)
            {
                Debug.Print("OFV = {0} Buy at {1}", OFV, SPX);
                position = Position.longPos;
            }
            else if (OFV < SPX)
            {
                Debug.Print("OFV = {0} Sell {1}", OFV, SPX);
                position = Position.shortPos;
            }
        }
        else if (position == Position.longPos)
        {
            if (OFV < SPX)
            {
                Debug.Print("OFV = {0} Sell at {1}", OFV, SPX);
                position = Position.shortPos;
            }
        }
        else if (position == Position.shortPos)
        {
            if (OFV > SPX)
            {
                Debug.Print("OFV = {0} Buyt at {1}", OFV, SPX);
                position = Position.longPos;
            }
        }
    }

So OFV does not know what the actual macro position is, only whether it is long or short unto itself. HandleThirdUnit is only called if the macro 3-unit flag has been set.

 

[nitro]

Quote from Kassz007:

Yikes, my head is spinning. I'm no longer able to follow along here, but I wish you good luck nonetheless.

Also, remember, you don't have to follow how I trade FV, OFV (and perhaps soon CFV) - you can look at the numbers and basic idea and make use of them to suit your own style. Or you can see sort of what I am doing, and mix it...

 

[nitro]

SPX, 1218.28. FV, 1137.79. OFV, 1236.11.

 

[stock777]

the only thing more obnoxious than the market itself is this thread

 

[nitro]

SPX, 1233.25. FV, 1158.97. OFV, 1294.29.

 

[nitro]

Quote from nitro:

SPX, 1233.25. FV, 1158.97. OFV, 1294.29.

The OFV logic is live. We were short two units into today, so OFV only bought one back at 1233.25 (normally it controls two units at once). It can now sell short two units if OFV drops below SPX.

This is matched against the 1172 entry, so -61. Still short one unit from 1220, which OFV does not control.

Note how volatile OFV can be from day to day, but it stays relatively stable intra day.