Swing2 Update

A new version of the Swing2 indicator is ready for release. The convergence code of the genetic algorithm has been vastly improved by implementing a full search on condition only. This implies that normal swing search will always favour pivots detected on previous bars.

The next release will therefore calculate pivots on ALL bars. This is a major improvement this will allow a lot more support/resistance information to be derived from the indicator.

This work has been motivated by a request to finally turn our trading method into a mechanical system, and Swing2 was a major hurdle. A TSTT toolset update should be available within a few days.

Good trading to all,
bv

Swing Indicator (Genetic Algs)

I remind users of the toolset that the Swing2 indicator now takes a Search Depth value of 2 (previously 0 or 1 in most cases). It can help in very volatile environments.

Secondly, the genetic algorithms have internal settings which are adequate for recent PCs (Core Duo 2 ~2Ghz). I can on request recompile custom versions with deeper search abilities for users of faster PCs.

TS-TT Google Group

A new dedicated Google Group is now open to channel questions on our topic and make discussions available to all.

It is a public group for now.


Good trading to all,
bv

A few words on MM Stall level

Just took a quick snapshot on EURUSD to illustrate the MM stall level.

On two recent occasions, EURUSD reached MM stall level, bounced and came back to hit the major MM support/resistance level. This is a particular setup quite common in fast markets, especially when the pivot level seems unusually soft. Note however that prices sometimes do not come back to the major levels and bounce directly from stall level (H&S, C&H etc.).

How to approach a volatile market?

I have repeated again and again that our toolset is self-adaptable and universal. However all physicists will tell you any filter has a suitable frequency spectrum and you have all seen your usual oscillator going haywire on a spike (high freq.) or on a standstill (zero freq.).

What happened last week is unique, and warrants looking at a few settings, which will revert back to normal in a few days or weeks.

MM ShowMe: We generally use a Frame64 value of 2 i.e. a 128bars lookback period. I recommend temporarily a value of 1 (64 bars).

Swing2: We generally use a value of 0 (for regular swing traders) and 1 for scalpers or fast swing traders. We now increase it to 1 for regular or 2 for scalpers. Note 2 is the max. value for this indicator.

MTFS (aka AdLag64StoK_MTF) increase acceleration and realtimeness factor. Your discretion is needed here. A value of 0.25 for acceleration should do fine in many cases. Realtimeness can be upped to 2 or 3, but one should not overdo it as this can induce a Dorie effect (cf. Nemo) i.e. neglect the historical part of the pattern a bit.

The rest remains unchanged.
Note however that these proposed changes are 100% optional. I personally haven't changed anything to my own charts. Let's not forget that one can also move to a faster time frame set, or stay on the sideline for a while. Nothing with taking a break...

Good trading to all,
bv

August Update.

Another minor update to the DLL and API.
LEntropy is now ... LLEntropy with the application of the same zero-lag smoothing algorithm. MTFS (a.k.a. AdLag64Stok_MTF) has also got an extra optional parameter to tune the "realtimeness" of the indicator (see screenshot).
Market reading is simpler particularly around extreme peak/troughs of the Entropy indicator ( EntBin around 4 or 5 resp. -4/-5).

Another current development is the implementation of the SQL DB support. First release will be for a MS Access database, but it should apply all the same to SQL Server. We shall first record "pattern depth" i.e. the last 64 or 128 bars for each realtime dynamic pattern, i.e. Swing, Smooth, MTFS, Fib, Recurrence Plots, and now Entropy as well.

I'll publish more details by the time first release is available later this year.

So more to come soon and in the meantime, enjoy your holiday!
bv

Blog Update

The Market Snapshot blog now publishes weekly posts on ER2 and ES.

A new private admarkan.blogspot.com takes over with daily snapshots. Contact me for access details.