Darvas Question re Grey1's Strategy

[vegas]

Hi,

Wonder if anyone can help me - has just been through (again) the threads but unable to find concrete reference to the following questions

1. Re Darvas - Are people using the 'Darvas by Guppy' coding ?

2. Re the fact that only longs are in the coding - is it (simply !!!) the reverse of the long signals for shorts ?


Thanks.

Sorry, if I am so far behind the 'curve'.

 

[vegas]

Hi,

Wonder if anyone can help me - has just been through (again) the threads but unable to find concrete reference to the following questions

1. Re Darvas - Are people using the 'Darvas by Guppy' coding ?

2. Re the fact that only longs are in the coding - is it (simply !!!) the reverse of the long signals for shorts ?


Thanks.

Sorry, if I am so far behind the 'curve'.

Hi All,

Can anyone help with this please ?


Thanks

 

[Trader333]

Personally, I dont use this but I think that Grey1 has adapted it to give Short as well as Long signals.


Paul

 

[vegas]

Personally, I dont use this but I think that Grey1 has adapted it to give Short as well as Long signals.


Paul

Thanks Paul.

 

[moreagr]

Thanks Paul.

I have very little knowledge of this as well but its seems to have very sound principles behind it. If i am not wrong it has to do something with float of stock avaiable to the public and its turnover for the time period your trading exp. monthly breakouts. it makes sense but it seems hard to code or figure out especially since the float adjusts every so often based on large investors, insiders etc. it also depends on how thick the stock trades as well.

 

[Trader333]

I should have made myself a little more clear in that I do use a Darvas technique but not the Guppy one which is used by Grey1.


Paul

 

[garethb]

I don't know whether Grey1 uses the Guppy Darvas code but I'm sure he has modified it if he does. From what I have seen of Darvas (particularly the Guppy version) I don't think it could give the signals Grey1 gets.

The guppy version of Darvas that I picked up from the TS support forum makes no reference to Float. It builds Darvas levels or boxes based on highs and lows of bars. It has one option to take account of volume but that just compares the break out volume with a moving average of volume before entering with a limit order. I think this makes it too slow to enter on an intra day basis personally as the breakout bar must complete before you can workout whether to enter - but that is just a personal view. I switched that option off.

The Guppy program is a strategy so it would need some modifications to output signals in Radar Screen if that's what you want to do

I didn't have much trouble writing a version for the short side as pretty much a complete reverse of the long side but if you look at the code you can work out how hard you will find it I should think.

I have done some experimenting with this version of Darvas and written various similar range following programs for intra day use. I am not trading any of these currently but am still testing. One (very simple) breakout strategy shows some promise but I still find I have to decide myself which stock(s) to apply it to on a given day and in which dirrection.

Hope this is some help,

Gareth

 

[vegas]

I don't know whether Grey1 uses the Guppy Darvas code but I'm sure he has modified it if he does. From what I have seen of Darvas (particularly the Guppy version) I don't think it could give the signals Grey1 gets.

The guppy version of Darvas that I picked up from the TS support forum makes no reference to Float. It builds Darvas levels or boxes based on highs and lows of bars. It has one option to take account of volume but that just compares the break out volume with a moving average of volume before entering with a limit order. I think this makes it too slow to enter on an intra day basis personally as the breakout bar must complete before you can workout whether to enter - but that is just a personal view. I switched that option off.

The Guppy program is a strategy so it would need some modifications to output signals in Radar Screen if that's what you want to do

I didn't have much trouble writing a version for the short side as pretty much a complete reverse of the long side but if you look at the code you can work out how hard you will find it I should think.

I have done some experimenting with this version of Darvas and written various similar range following programs for intra day use. I am not trading any of these currently but am still testing. One (very simple) breakout strategy shows some promise but I still find I have to decide myself which stock(s) to apply it to on a given day and in which dirrection.

Hope this is some help,

Gareth

Very Helpful. Thank you.

I am currently still working on adapting for Radarscreen and reversing for shorts. Was before this just analysing the 'buy' signals on the charts.

Frank.

 

[Trader333]

Grey1 posted a screenshot of the Darvas he was using a long time ago and it was the Guppy version but as others have said it must have been modified to give Short signals.


Paul

 

[moreagr]

I have very little knowledge of this as well but its seems to have very sound principles behind it. If i am not wrong it has to do something with float of stock avaiable to the public and its turnover for the time period your trading exp. monthly breakouts. it makes sense but it seems hard to code or figure out especially since the float adjusts every so often based on large investors, insiders etc. it also depends on how thick the stock trades as well.

disregard this post I clearly did not or do not understand this strategy. i did a quick seach through Technical trader and did not find any info regarding using this approach..

quote from grey1 from a past thread...
/////////////////////////////////////////////////////////////
Mark myman

MY strategy consists of three major parts. Exhaustion engine , Vwap Engine and Risk Engine.

Exhaustion keeps me out of bad timing for entry and gives me hell of lot of info on when to exit.
Risk Engine stop me from getting into to trade near the MPD bands
Vwap Engine gives me entry .

Vwap Engine uses Modified darvas algorithm that i have mentioned numerous times in my previous posts.

The SNDK trade was based on VWAP signal .

$up $1444.72 No problems. Trading is my life now

///////////////////////////////////////////////////////////////////////
now i am really confused I was always thinking that the vwap engine is scanning for MPD bands away from VWAP now i jsut noticed that it is only based on darvas?

I cant seem to find the right discussion on darvas on Tech trader board.

 

[LevII]

I cant seem to find the right discussion on darvas on Tech trader board.

There isn't one on the TT board but there is a thread at http://www.trade2win.com/boards/showthread.php?t=19453&highlight=darvas and, if you do a google you will find a wealth of material.

 

[Trader333]

now i am really confused I was always thinking that the vwap engine is scanning for MPD bands away from VWAP now i jsut noticed that it is only based on darvas?

The scanning for MPD bands is for when markets are oscillating and I use it primarily for pair trades. My understanding is that the VWAP engine doesnt actually use VWAP to determine entry triggers although I think that it may be used as a basis for determining if the Risk / Reward ratio is good enough to trade.

Based on this VWAP is used more as a filter for the modified Darvas code. So as an example, if you get a Long signal from the VWAP engine and price is say 30c below the upper MPD band and Volatility is at 10c then the Reward potential is 30c against a risk of 10c which gives a 3 to 1 RR ratio and would be a good trade to take. If however you get a Long signal and price is only 5c away from MPD then the reward is too low for the risk involved.

There are other considerations as well in this scenario such as ensuring that MACCI is not getting close to being OB when the signal is received and I also check INDU to see where it is in terms of OB / OS as well.

Paul

 

[Grey1]

The scanning for MPD bands is for when markets are oscillating and I use it primarily for pair trades. My understanding is that the VWAP engine doesnt actually use VWAP to determine entry triggers although I think that it may be used as a basis for determining if the Risk / Reward ratio is good enough to trade.

Based on this VWAP is used more as a filter for the modified Darvas code. So as an example, if you get a Long signal from the VWAP engine and price is say 30c below the upper MPD band and Volatility is at 10c then the Reward potential is 30c against a risk of 10c which gives a 3 to 1 RR ratio and would be a good trade to take. If however you get a Long signal and price is only 5c away from MPD then the reward is too low for the risk involved.

There are other considerations as well in this scenario such as ensuring that MACCI is not getting close to being OB when the signal is received and I also check INDU to see where it is in terms of OB / OS as well.

Paul

I have said over last past 6 month that MPD bands are RISK BANDS they are not trading bands. The only time you use trades based on MPD is when you pair trade....


grey1

 

[vegas]

Hi Grey1,

If you get the chance would you mind posting an entry taken by you that was given from your VWAP Engine (I know that you have posted many in the past).



Thanks in anticipation.

 

[moreagr]

Lev 2 thanks for the link

Paul thanks for the clarification on vwap engine.. it was a helpful response.

Grey1 I am sorry I am still sort of stumped due to prior discussions regarding Vwap as an exit or risk reward... I guess I just automatically assumed it was one of your main varibles in alerting for a good setup based on disatance for vwap price .. still learning but at a slow pace dur to work almost every noght and weekend. I just happened to see some remarkable setups of reversals near these areas