Re: Longer Time Frame: How Fast Do You Want to React to Market Changes?

Great, sounds like you are finally catching on.....  better days ahead for you!

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

27 (edited by hannahis 2015-07-12 18:07:19)

Re: Longer Time Frame: How Fast Do You Want to React to Market Changes?

Blaiserboy wrote:

Great, sounds like you are finally catching on.....  better days ahead for you!

Hi Dave,

I really not sure whether you are catching on with this discussion thread.  It's about "How fast do you want to react to market changes?".

I'm trying to highlight this issue:
A H4 FSB time chart EA send out the signal to buy at every 4 hours interval (not at every tick, althought FSB is constantly calculating at every tick, calculation and execution are 2 different thing) if you choose either Bar opening in your opening conditions or Bar closing in your closing condition.  Whereas a 1min time chart fulfill the signal at the next Bar closing at 1min interval.

That's my whole purpose of this discussion thread, is to raise this awareness and let people decide how fast do they want their EA to react to market changes.  I definitely would never choose any time frame higher than 5min.  So I do hope you have finally catch on with this discussion and stay focus to the topic, it's not about my strategy, it's not about observing different time charts etc.  (Although some people asked along the way, what I do with 1min strategy, that's where I share my methodology but the discussion is still about market reaction)

I hope to end this discussion with a mutual respect for different trading styles or methodology.  If you are happy to trade with a 4 hours interval "delay", that's fine with me.  That's your area of expertise (and I fully respect that and you are good in many aspects of the FSB programme) and mine is in 1min time chart.  If you have no idea how to churn out profitable EA with 1 min time chart, please don't discourage anyone from trying and call them "blind followers".  Have some respect to these people and trust them, they have brains to decide whether a 4 hours "delay" trading style make sense to them and whether it suits their trading strategy.  I have no intention to set up a fan base here.  Don't think people will blindly follow others for using H4 time chart or 1min chart without thinking through.  That's why this forum is for, to provoke people to think.

Best of luck for your H4 trading smile

Re: Longer Time Frame: How Fast Do You Want to React to Market Changes?

A H4 FSB time chart EA send out the signal to buy at every 4 hours interval (not at every tick, althought FSB is constantly calculating at every tick,

FSB and the exported Expert Advisors send buy and sell signals when the market reaches the order price. It doesn't depend on the time frame. For example, if you enter at a MA, the program will send an entry signal when the market touches or breaks through the MA.

See this example:

http://s28.postimg.org/r7xf21yh5/screenshot_1073.jpg

Here we have a H4 chart and entry at a MA (14). I have added the MA on the tester just for visualization. It is not necessary for the real trade. You can see that the entry is executed at the MA price at 18:05. No matter it is a H4 chart, the exported Expert Advisor opened the position precisely on the exact price and in the middle of the bar. It would be virtually the same if it was a MA with period of 3360 trading on a M1 chart.

29 (edited by hannahis 2015-07-12 19:14:42)

Re: Longer Time Frame: How Fast Do You Want to React to Market Changes?

Just to clarify that I did mentioned previously under the condition of Bar opening or Bar closing: A H4 FSB time chart EA send out the signal to buy at every 4 hours interval if you choose either Bar opening in your opening conditions or Bar closing in your closing condition.  Whereas a 1min time chart fulfill the signal at the next Bar closing at 1min interval.

Hi Popov,

I know you mentioned that if we choose other options such as open market at MA, EA will open any time upon fulfillment as instructed at MA 14.  In your example, am I right (based on what Footon has mentioned), I have to disable the "use previous bar value" feature, in order to ensure that the EA will enter any time when MA14 is fulfilled instead of waiting for the bar to close?

But if we choose "Bar Opening" it would be at 4 hours interval right? 

How about closing?  Unless I choose the options from the Left menu (eg. MA 14 also), which is only limited to only 1 closing options I can input (cos I can't choose more than 1 from the left menu) and I can't add my other closing conditions, unless I choose "Bar closing".  And when I choose Bar closing, wouldn't that also ended up with having my trade "delayed" closing at the end of the 4th hour bar interval?  I ask that because I think most of the time I would definitely use more than 1 closing conditions, and hence inevitably still need to use Bar closing as a closing conditions.

I think this issue (of having to use Bar closing) would be avoid and be resolved in your future updates since you mentioned the likelihood of having the options to use both the left menu and other groups indicators for both opening and closing conditions (as explained in my earlier thread discussion under "dynamic closing").   I am looking forward to the new surprises you have installed for us smile 

Thanks for always making efforts and innovative ideas to make FSB such a powerful trading tools.

Re: Longer Time Frame: How Fast Do You Want to React to Market Changes?

I have to disable the "use previous bar value" feature, in order to ensure that the EA will enter any time when MA14 is fulfilled instead of waiting for the bar to close?

The number one purpose of FSB is to provide a reliable backtest. By disabling the "Use previous bar value" feature, you'll deteriorate the reliability of the backtest. It is equal to a financial suicide.

If you use Bar Opening and Bar Closing, the program will definitely trade at those points at whatever time period you select.

You can use Closing Logic Conditions only when the Closing  Point is "Bar Closing". There is no other safe solution so far.

31 (edited by hannahis 2015-07-12 19:26:03)

Re: Longer Time Frame: How Fast Do You Want to React to Market Changes?

Hi Popov,

Just to clarify...So the MA example you showed previously whereby the EA enters at 18:05, you don't have to disable the "use previous bar" feature so that the EA don't need to wait till Bar close?

As Footon mentioned...

So, if previous bar value is used, it has to wait until the close of the bar to verify if condition is truly fulfilled or not, you can call it lag and in some ways it makes sense, but in terms of reliable backtesting and ability to reproduce trading logic after the fact and vice versa previous bar value is used, which means signal is given at the next bar. In my example bar opens 1200, closes 1559, condition is fulfilled during the bar, signal is given at 1600. That way trading and backtest are alike, which is what everybody wants, isn't it?

32 (edited by hannahis 2015-07-12 20:32:59)

Re: Longer Time Frame: How Fast Do You Want to React to Market Changes?

hannahis wrote:

I think this issue (of having to use Bar closing) would be avoid and be resolved in your future updates since you mentioned the likelihood of having the options to use both the left menu and other groups indicators for both opening and closing conditions (as explained in my earlier thread discussion under "dynamic closing").

http://forexsb.com/forum/topic/5305/dyn … condition/

33 (edited by hannahis 2015-07-13 06:36:12)

Re: Longer Time Frame: How Fast Do You Want to React to Market Changes?

Here is the summary...(correct me if I'm wrong)

As long as we have Bar Opening or Bar Closing or any other ADD on conditions (in your opening conditions or closing conditions, in fact all add on conditions come with the pre defined "use previous bar" feature) , signal to buy/sell will be executed in the next Bar.  Unless you don't use any of your own trading strategy but just choose 1 option from the Left menu (eg MA) for your opening and 1 option in your closing from left menu (eg. MA), you can avoid this issue. 

So for a H4 time chart FSB Pro EA, if conditioned is fulfilled at current bar, it will not execute any buy/sell till the next bar because of "use previous bar" feature and/or Bar open or close feature.  Hence, if your opening logic conditions are fulfilled at 12:01, signal to buy will only happened at 16:00 (4 hours later, at the next Bar) and similarly, if this same position wants to close, it will close at the next 4th hour bar delay.

So for a H4 EA (that utilise any "use previous bar", Bar open or Bar close features), your trade will delay in opening (max 4 hours delay to open) and delay in closing (max 4hrs) and not execute exactly according to your "MT4 real time" opening or closing logical fulfillment (when an actual crossover happened etc). 

Now I understand why in the past when I use H4 EA and I observed that my indicators in my MT4 chart crossed over and all my conditions fulfilled but didn't understand why my position still remained opened and I thought my trading theory/strategy was ineffective and my EA had floating profit but by the time it closed, it lost a couple hundreds pips (and I thought it was because my closing logic were slow and not responsive to market changes) and I ended up trying to change my closing logical to improve it. 

After this discussion, I am even more certain, I'll never use H4 time chart to generate any strategies till we have a better solution for this delicate balance between testing reliability and market responsiveness.  I'll stick to my 1min or 5min charts, now I favor my 1min chart even more...really love it's responsiveness, it's such a delight to see my 1min chart EA kicks into action exactly when the market breakout, such a joy to watch)

Thanks Popov, with 1min FSB Pro EA, my EA beat other "competitors" in Zulu trading in terms of speed and trade duration.  I obtain more pips in a shorter trade duration and have lower DD due to the 1min chart EA acute responsiveness to enter the market at the right timing and improved accuracy because of the use of other Longer Time Frames.  Over time, I saw my EA improved it's result as I modify here and there.  My 1min EA used to have an average 150 pips and now it's performance has grown between 500-1000 pips (depending on market situation) as I learn how to incorporate appropriate indicators.  Market responsiveness cuts both ways.  So with the right indicators, it can be a great asset.  Seriously, Popov, the FSB Pro 1min chart with LTF features is an excellent EA creator tool.  Could you kindly look into any ways to pre install longer historical data instead of having to download it myself.

Hi Popov,

Out of curiosity and a desire to experiment, can I know how to "switch" off "Use previous Bar" feature?  I saw your article, it show go to Strategy tab and select "auto control of previous bar" option, but I can't find this option in the Strategy tab, only "recalculate strategy" option is available. 
I know you have kindly warned us that it is a financial suicide attempt.  Rest assured, I'm just want to experiment, wouldn't use it in real account.

Re: Longer Time Frame: How Fast Do You Want to React to Market Changes?

I have mentioned this earlier:
There are 3 time frames (H4, 15min and 1min) that forms the main "structure" of my trading theory.  For each time frame e.g. H4, I may use 1 or 2 indicators, especially those with "higher than" options.
Because if H4 is ready (i.e. Higher than), the 15min would have already be ready (also higher than).  And the default is to make sure you enter at the best optimal price).

I would like to add in some comments to the statement above.  Readers please be aware, at all times, I've by now stick to the use of 1 min time chart ONLY (that's just my trading preference, I'm not discouraging others from using other time chart, please do so with your own discretion), so if you hear me mentioned different time frame, I'm referring to the use of LTF in 1 min chart, to prevent any misunderstanding.   

Now I mostly use "cross over" instead of "higher than" options in my main/determining time frame indicators e.g H4 indicators (LTF funtction in 1 min time chart) to reduce "false signal" or reduce the frequency of entries/error of entries and I use "higher than" in lower/shorter time frame, because by the time H4 cross over, all the lower time frame should already have "higher than" indicators. 

When I use "higher than" option, my EA entered too frequently and I have problem eliminating side way trending and subsequently I've have changed my approach to "cross over" and sometimes with multiple "cross over" in different time frames.  So I realised the need to update here in order to highlight the issues, since some of you are reading my trading tips and following it.  I'm honor and hence, want to make more conscious efforts to correct any mistakes I think I've made to prevent others from making my same mistakes.

Depending on what type of EA you want to develop, your highest time frame would be different.  If you want day trading EA, I would recommend H1 as your main decision making indicator time frame (in 1 min FSB chart).  If you are going for position trading or swing trade, H4 or D1 (provided you change your parameters to be more sensitive, ie. smaller).  If you are developing scalper or EA with profit ranging 100 to 350, then I would use M30 (again, all these recommendation is very much depend on how good you use the parameters that suits each time frame).

When I observed Leon's 7.0 (in 1 min time chart, which I mistakenly put it in 1 min when it suppose to be in 1 hour), I noticed that as usual (because of the lack of "cross over" conditions), the 7.0 made multiple entries and hence, pull down it's performance.  But I also realised that if you want to make a scalper EA, using "higher than" options with good control of other factors, actually maybe be an excellent way to develop scalper EA because it is so "sensitive" that when the market going to make any changes, it would enter or exit fast enough (provided that you know how to control unnecessary entries too).  The challenge is to learn how to use "higher than" options to your advantage, then we would have an excellent tool for scalper EA.

Here is an example of possible ways to develop scalper EA.

Use a higher time frame as your main trend determination. 

For example if I use H1, than I'll put when H1 indicator is 1) higher than, 2) rising and 3) in convergence.  These are important so that you make sure the trend is already happening now (higher than) and still happening (rising) and convergence is to make sure it is more stable, then when the lower time frames (eg M30 or M15 indicators goes up and down, you capture every up and exit on every down.  In this way, you have a better profitable scalper EA with higher entry accuracy and prevent yourself from being caught in the wrong direction of the trend.  Set SL not more than 500.  Because usually it means the trend has changed for a scalper perspective.

The above tips are just my personal perspectives...please weight it carefully with a pinch of salt...I'm not the expert here, just simply sharing my views/trading tips and not telling people what to do or follow me (if it's helpful, good.  If it's not, then just discard what I've just said)...I'm not interested to create a fan base here.  The only fan base permitted here is FSB smile yeah!!!

Here is a screen shot for the benefit of those new FSB users/visitors.  So that you can judge for yourself whether I'm just sharing an idea and whether these ideas have any proved results.  For those who have seen my results several times (please bear with me...I know you call me show off, whatever you like.  If I can keep posting such results, weeks after weeks and months after months, it shows that I can achieve consistency in performance and credential to those who are new to this forum, so that people know that I am not here to testify how good and powerful FSB is and yet with no results to proof.  At the end of the day, I'm here to help traders know that FSB is an excellent tool to trading success, this is not a sales pitch, it's from one trader to another.  And at the end, who makes money? FSB and FSB users/traders...not me for sticking my neck out for others to chop:)

I test run several EA in at least 6 MT4 Terminals...so below is the screen shot of all my 6 terminals EA performance (all using 1 min Time Frame with LTF features)
http://s15.postimg.org/s1qsnbu9z/Feb_24_p2.jpg

Re: Longer Time Frame: How Fast Do You Want to React to Market Changes?

hannahis wrote:

How Do you make your trading decisions?

Do you prefer your EA to:

1A. Able to scan all the various time charts to calculate the best possible entry position, or
1B. Observe only 1 time chart such as H4 and enter into a trade position based on 1 time chart calculation, i.e H4?

When a market started to move significantly, do your prefer your EA to:
2A.  Able to scan every minute and enter a trade any minute when it is right, or
2B.  Only make the decision every 4hr only when Bar opens/close, if during the current 4th hour, the market is not ready, wait till the next 4hr later to make another decision.  And in between if the market move significantly, don't do anything but wait for the next 4th hour to decide.

Personally I'm holding the different strategy regarding the timeframes. I'm just exploiting some public behavior based on timing - i.e. market opening/closing etc. So in general as I'm intraday trader I'm looking only at couple of timeframes - usually it's 15 min and 1 hour.  For my strategies the bigger ones aren't really important. But I'm using the fundamental economic data (weekly, monthly) in order to check what could be the market reaction this day, what are the expectations, the news etc. So its kinda a context in which I'm trying to trade.

http://www.darkmindfx.com - download free COT report and US economic indicators for your platform