"Millionaire in 10 weeks" thread

[Merlin]

So what happens in Multicharts when you turn off the ghost bars?

This is what you get...

Phantom-Bars1.gif (44.71 KiB) Viewed 6419 times

You can see that you get holes in the price because now it fits the reality of price jumping. However there are not a lot of those. Maybe 20 or 50 out of 1000s each day.

Also, don't forget that I'm NOT the scalper trading type here with 200 trades per day, I'm only going for my 5 pts and THAT's IT.

What was most concerning, is that after reading the only reliable price on Renkos is the close, to then find that some of the close prices aren’t reliable either.

Yeah I know it sucks but what can you do.

I’m not sure, Kase bars might be workable, of the alternative bar types the only one I know for sure that doesn’t artificially fill are Range bars, they’re kind of a cross between alternative bars, and the tick and volume bar types.

Funny that you say that because at first, TS started Range bars with faked bars and that pissed off many traders who were backtesting and seeing the same bugs that Renko now have. Like I said, switch to MC and you won't see the difference. That's the #1 reason I switched, it's because MC and TS and so darn close, you can see that they are programmed by the same guys.

Btw, I hate to bring this back again but have you had some time looking for reducing the failed entry points because that's all that's remaining here between getting rich or not?

Any suggestions will be greatly appreciated... I will create a new post just on that...

[Merlin]

Alright guys, I know there are not a lot of experienced traders on this forum but for those who are still on TradeStation or have used a charting software and played with many different indicators before, now's your time to shine and send me the best suggestions you have regarding reducing the failed entries as much as possible because that's the last piece of the trading system that will make us all Millionaires.

As you know, to make money on the Stock Market, you need to trade in the same direction that the price is going which is called "Following The Trend" and my 2 clouds indicator is one of the best one to tell us what is the current trend.

During those trends, we have small reversals called retracements/pullbacks/dips etc... and we need to find those to get in and again my 2 clouds indicator is very good at showing us that when the price bars drop below/above the 2 clouds.

However, the last piece of the trading system puzzle is when the price goes under the clouds. We still need to find the best entry point and so far, I haven't found a lot of options to help us reduce the failed entries that would end up being stopped out because the price continued lower.

Let's look at an example taken Aug 21st at the Open.

I have placed white little dots below the pivots points done during this dip. The red circles are those that failed and the green one was the one we should have entered with.

I have tried with my single MA but as you can see below, still too many red circles.

I have tried with my double MA indicator but still too many red circles.

Next one is still my double MA indicator but with different settings. Much less red circles.

This indicator below is the Stochastic. Not bad either.

Next indicator is MACD, doing not so good...

Finally is my Merlin Channel Indicator doing not bad either.

So far, It's a toss between my 2 MA indicator (1 and 1.8 pt settings), the Stochastic and my Merlin Channel indicator.

My preference is the 2 MAs because I never liked indicators at the bottom of the screen but that's just me.

So again, if we can find the best entry below the clouds on the first attempt, we will win the jackpot.

if you are serious about this project, NOW's the time to jump in with suggestions and tests on your own to find the best entry.

Cheers,

Merlin

[Merlin]

I'm playing with another possibility here where I added 3 lines below the darkest cloud's lowest line at 1,507.4.

I got a green line at 1 pt , a yellow line at 2 pts and a red line at 3 pts below it. I cannot create another line 1 pt below it because the dark gray line will turn dark blue and that will make it a trend change as shown below.

The price goes lower than the red line (green circle) and the dark gray cloud turns to dark blue (red circle). Because we are now in a down trend, the lines now appear ABOVE the 2 clouds.

The idea is to take only 1 pivot entry per line. The danger here is to lose 3 pts on every trend change because the price always crosses the 3 lines when the trend changes direction.

Once again, suggestions would be appreciated.

[Merlin]

Here's a screenshot of today.

As you can see, the dip went back up to the red line and then reversed to the downside to make our 5 pts.

I have yet to find a way to improve this entry.

[Nevi]

I’m still working on it, will have something soon.

[Merlin]

I’m still working on it, will have something soon.

Cool, thanks.

Btw, if you want my code for those 3 lines that you can add to your 2 clouds indicator, let me know and I will post it here.

As for me, I'm playing with my 3 lines and other indicators like Stochastic just to find the best entries in those 3 sections.

[Merlin]

Here you can clearly see 7 possible entry points that all got stopped out because a higher pivot was made until we found the right one.

The lines can help at reducing the amount of pivots by grouping them by colored group based on which section they were when they appeared.

You can see 1 green pivot, 3 yellow and 3 red ones. We would enter on the first pivot made on each color (see 3 arrows).

It's getting close but still not good enough for my taste.

[Merlin]

Hmm I may have found something interesting here...

Anyone know about Heikin-Ashi bars? They are based on ticks so they must be reliable.

[Nevi]

I uploaded an eld of a strategy and indicator called Million Axis in the Downloads section
Unfortunately it’s Not Profitable
I began with the two clouds but in the end I resorted to one cloud as I wasn’t getting anything promising.
I tried Renkos from .1 to .4 with all sizes of the cloud
It improved a bit with stops and targets but even with a reasonable win percent it just isn’t profitable.
I’m not seeing any way of improving it.

[Merlin]

Alright, thanks, I will look at it when I find some time.

You might want to try to download the Heikin-Ashi indicator for TS. In Multicharts, they have HA bars built-in but with TS, they don't so you need to download the indicator.

If you don't know where to find it, let me know by PM and I will send it to you.