154 pips using the Science of Chaos

This is a discussion on 154 pips using the Science of Chaos within the Trading Journals forums, part of the Reception category; Hi all Here below is a trade using the Science of Chaos (developped as a strategy by Bill Williams) The ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Nov 6, 2013, 2:38pm   #1
Joined Nov 2013
154 pips using the Science of Chaos

Hi all

Here below is a trade using the Science of Chaos (developped as a strategy by Bill Williams)

The indies:

* The Awesome Oscillator (on MT4) ! It shows the momentum (on my chart i have a elaborated version of the AO).
* The Fractals (on MT4) A fractal is a set of five bars where the third bar is preceded and followed by two lower bars (for high fractal). This frame shows clearly the levels of resistance and support, as well as entry and exit points (on my chart i dont have the fractal but a Fractal Box: This is the gray area between the upper fractal and the lower fractal)
* The Alligator. It consists of three moving averages shown in green, red and blue lines- lips, teeth and jaws. It is intended to help spot trending and rounge-bound markets.

Method in brief:
* Trend following strategy: You enter the market when the trend is confirmed in the higher time frame (for example M5 for trades on M1, H4 for trades on H1)
* Valid on all time frames

Principle:
We enter the market when the price breaks through the fractal Box and when:
* Entry is ok when the trend is confirmed on the higher TF
* The Stop Loss, on the other side of the fractal box, must be close to the entry level
* Entry must be while the Alligator is asleep to get the start of the move

The trade:
The trend is short on H1. We look for an entry on M15. The Alligator is asleep. Our entry is at the first break of the fractal Box (The Stop Loss is at the other side of the Box = 20 pips = 1%). The pice drops then take a pause before dropping again and breaks a new level of the fractale Box (Addon= Second entry with a Stop Loss above the green line at 20 pips = 1%).
Our exit signal, we close the trade at the break of the upper level of the fractal Box for 94 + 60 = 154 pips = 7.7%of profit!

Thanks for watching
Attached Thumbnails
gbpusd-m15-1.png  
__________________
Patience & Discipline!
FTT59 is offline   Reply With Quote
Old Nov 6, 2013, 3:14pm   #2
Joined Mar 2013
Pretty looking chart - colourful indicators too.

You wouldn't mind spending time looking at something like that even if you were losing money.
Purple Brain is offline   Reply With Quote
Old Nov 6, 2013, 3:15pm   #3
Joined Mar 2013
Quote:
Originally Posted by FTT59 View Post
* Entry must be while the Alligator is asleep to get the start of the move
What does this mean?
Purple Brain is offline   Reply With Quote
Old Nov 6, 2013, 3:20pm   #4
 
spinola's Avatar
Joined Jun 2009
I suppose if you enter when the alligator looks as if it has been smashed on the head with a pick axe handle, it's likely to chew your legs off !

Nice trading, lets roll !



__________________
Don't just stare at intraday volatility....... EAT IT!
spinola is offline   Reply With Quote
Old Nov 6, 2013, 3:20pm   #5
Joined Nov 2013
FTT59 started this thread Hello
Thanks
when the price does not move, there is no difference between the 3 moving average (lines of the alligator) therefore they are intertwined. The alligator is flat, there is no trend. What we like is when we have this while the higher time frame has a confirmed trend
__________________
Patience & Discipline!
FTT59 is offline   Reply With Quote
Old Nov 6, 2013, 3:25pm   #6
Joined Nov 2013
FTT59 started this thread
Quote:
Originally Posted by spinola View Post
I suppose if you enter when the alligator looks as if it has been smashed on the head with a pick axe handle, it's likely to chew your legs off !

Nice trading, lets roll !



Actually after eating many pips, the alligator goes for a nap, the longer it sleeps, the more he will be hungry for pips when he wakes up
__________________
Patience & Discipline!
FTT59 is offline   Reply With Quote
Old Nov 6, 2013, 5:43pm   #7
Joined Mar 2013
Why didn't you add to the position at the two box breaks I have circled and arrowed? They appear to be identical in structure to the one where you did.
Attached Thumbnails
clipboard01.jpg  
Purple Brain is offline   Reply With Quote
Old Nov 6, 2013, 5:56pm   #8
Joined Mar 2013
I also use a 5 bar grouping for highs and lows, but annotate with arrow at the high/low point - your approach looks a lot cleaner.

Do you have or can you point me to the source code for the box drawing indicator?
Purple Brain is offline   Reply With Quote
Old Nov 6, 2013, 6:18pm   #9
Joined Nov 2013
FTT59 started this thread
Quote:
Originally Posted by Purple Brain View Post
I also use a 5 bar grouping for highs and lows, but annotate with arrow at the high/low point - your approach looks a lot cleaner.

Do you have or can you point me to the source code for the box drawing indicator?
I could addon on the 3rd break (AO has retraced a bit), yes but for the forth, price has gone too far (AO is taller), we want to order while the AO has not peaked.
For the box, i bought the indy along with elaborated AO & alligator (with those dots alarm for entry and exit points)
__________________
Patience & Discipline!
FTT59 is offline   Reply With Quote
Old Nov 6, 2013, 6:30pm   #10
Joined Mar 2013
OK thanks for the explanation FTT59.


If there are any MQ4 coding gurus reading this that like to show off and can knock up that box indicator it would be muchly appreciated and in return, I'll let you into my Trading Secret #1.
Purple Brain is offline   Reply With Quote
Old Nov 6, 2013, 7:03pm   #11
Joined Mar 2013
FTT59 - it would be of real interest - if you wouldn't mind - to see how you traded that same pair on the same timeframe using those same indicators today. Could you post up another annotated chart? Cheers.
Purple Brain is offline   Reply With Quote
Old Nov 6, 2013, 11:30pm   #12
Joined Mar 2013
I only ask as finding a system that gets you into the good runs is only half the story. Keeping you out of the chop is the other.

How did your indicators and system work on cable today?
Purple Brain is offline   Reply With Quote
Old Nov 7, 2013, 3:36am   #13
Global Moderators are volunteer members with senior administrative powers to moderate all forums.
 
counter_violent's Avatar
Joined Aug 2004
Quote:
Originally Posted by Purple Brain View Post
I also use a 5 bar grouping for highs and lows, but annotate with arrow at the high/low point - your approach looks a lot cleaner.

Do you have or can you point me to the source code for the box drawing indicator?
Try these for starters.
Attached Files
File Type: mq4 darvas boxes.mq4 (3.4 KB, 121 views)
File Type: mq4 DarvasBoxes.mq4 (5.6 KB, 119 views)
__________________
Spreading the madness across this suite of forums.

Those are my principles and if you don't like them, well..... I have others.

Kin Dissers Everywhere

We are all leavers now
counter_violent is offline   Reply With Quote
Thanks! The following members like this post: trendie
Old Nov 7, 2013, 6:32am   #14
Joined Mar 2013
Thanks counter_violent. Have downloaded and will take a look.
Purple Brain is offline   Reply With Quote
Old Nov 7, 2013, 9:57am   #15
Joined Nov 2013
FTT59 started this thread Hi Purple Brain
i mainly trade H1 in the direction of H4.
Sometime, if i see a setup on H1 but with a sl a bit big, i go down to M15 or M5 if this is a setups as well

I will surely post the other trades using those 3 indicators with the same or with another pair (i trade 8 pairs on H1)

with this system, i trade any TF any chart

However, in average i have 5 signals per pair and per month so patience and discipline are keys!
__________________
Patience & Discipline!
FTT59 is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Trading: Art or Science? Mike Kshemaraja General Trading Chat 54 May 19, 2012 6:56pm
FTSE at 154 - eek!!! barjon Indices 5 Jul 30, 2011 4:04pm
Trading: Art or Science? Joe Ross General Trading Chat 11 Sep 14, 2010 9:50am
Is Forex Rocket Science? JasonC2 Forex 15 May 14, 2006 12:59pm
154% in 4 days ? juanbyte Psychology, Risk & Money Management 51 Feb 8, 2004 5:51pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)