Tick Scale vs Time Scale

[ironchef]

So, basically, you're asking if anyone is using non-time based charts...

I use a volume chart for my execution/fast chart which is similar to a tick chart. I like it as it's a proxy for volume and also gives a bit more granularity when watching price movement. I can't honestly say I feel it gives an edge over a faster time-based chart, but it does smooth out price action.

There are many over the years who have spoken warmly about range charts and I've tested them a ton of times, but they don't really speak to me for some reason.

Thanks. Appreciate your response.

 

[ironchef]

Here is a suggestion. Try Looking at the tick rate (# ticks per unit time, or number of bars at a set number of ticks that print per unit time) or the first derivative. Then look at what happens to this rate when the market makes a turn. (You may have to program this yourself. Usefulness may depend on latency and reliability of your data feed.)

 

[ironchef]

Two tick range bars with volume good for me, I want to see volume coming in when I am getting signal, otherwise I wait. Don't want to be first to the party.

Do chart patterns on 5 minute, do volume in first 45-90 minutes trying to net 2 points, ie $100 , usually get, but might take all day.

I don't quite get what you are saying.

Please run that by me one more time. Thanks.

 

[oshjdf]

I used data-based (tick, volume, range) before and developed both trend following and mean reversion strategies. I left those strategies after I have developed current methodology in time-based because it got higher profit factor, higher winning rate and no repaint issue. The repaint issue of data-based may skew your statistics worst than time-based in live trading. The worst thing in time-based is only partial fill.

 

[ironchef]

I used data-based (tick, volume, range) before and developed both trend following and mean reversion strategies. I left those strategies after I have developed current methodology in time-based because it got higher profit factor, higher winning rate and no repaint issue. The repaint issue of data-based may skew your statistics worst than time-based in live trading. The worst thing in time-based is only partial fill.

Thank you for your response. Very interesting perspective.

May I ask what do you mean by repaint issue?

 

[oshjdf]

Thank you for your response. Very interesting perspective.

May I ask what do you mean by repaint issue?

When using data-based chart in live trading, I found if you refresh the data/chart, the chart is not similar before the refresh. I got stable connection (monitor continuous ping to multiple destinations). I used NT8, RT Pro, motivewave, QT, QST. There are other platforms that I can't remember. The issue happened regardless of platforms.

My only advice if you wanna take data-based chart approach, trade live smallest as you can and see if the issue happen on your side.

Another thing that I forgot to mention, if you develop your system on time-based chart and it works on intraday timeframe and multiple instruments/exchanges/countries, there is high possibility that it will work on >= daily timeframe.

 

[SimpleMeLike]

Thanks for asking @SimpleMeLike: Looking to make money day trading stocks.

Seriously, I found day trading with instincts/gut feel trumped trading with numbers, predictions, indicators.... Looking for price action, to buy when it goes up and sell when it stops going up or starts to go down, vice versa.

Good Morning ironchef,

What's up Buddy,

Please do not forget this one thing : once you get your PH.D degree, and master degree, and learn all the trading education, and become the trading knowledge base master, you still have to make ALOT of money!!!

Trading is very easy, we make it hard trying get a PH.D in trading theory be the trading master.

I enjoy being a dumb trader.

Every time I try to be smart professional PH.D degree ES trader, I lose a lot of money.

 

[birdman]

I found, displaying price in terms of # of ticks gave me smoother display and perhaps better rhythms? There may be an advantage if one's approach is rhythmic?

Your increased performance with TOS tick charts begs the question if perhaps your better performance might be due to a higher number of bars per time frame than you had, say with a 1 minute chart. You might average 3 or even 5 times more bars and thereby have more granularity and better performance. Just a possibility. Most people don't feel they are nimble enough to benefit from more bars, but i suspect some can. I've tested both tick charts and 5 and 10 second bars with some success. I'm still trading with 1 minute charts but when time allows will run the 5 second alongside the 1 minute.

 

[MACD]

Good Morning ironchef,

What's up Buddy,

Please do not forget this one thing : once you get your PH.D degree, and master degree, and learn all the trading education, and become the trading knowledge base master, you still have to make ALOT of money!!!

Trading is very easy, we make it hard trying get a PH.D in trading theory be the trading master.

I enjoy being a dumb trader.

Every time I try to be smart professional PH.D degree ES trader, I lose a lot of money.

Simple is and in trading it pays !!

 

[ironchef]

Good Morning ironchef,

What's up Buddy,

Please do not forget this one thing : once you get your PH.D degree, and master degree, and learn all the trading education, and become the trading knowledge base master, you still have to make ALOT of money!!!

Trading is very easy, we make it hard trying get a PH.D in trading theory be the trading master.

I enjoy being a dumb trader.

Every time I try to be smart professional PH.D degree ES trader, I lose a lot of money.

@SimpleMeLike, I used to think you were full of shit when you said, just click buy and sell...

I now find it better to just let my instinct drives the trade which is what you have been preaching all along. My edge is my sixth sense, not intellectually satisfying but it is what it is.

Take care.