Linkon's guppyBB system...!

[linkon7]

VIDYA by Tushar Chande and Kroll is also known as Variable moving average .
Is this the one u are looking for ? Is it the same ?

VIDYA is an acronym of Variable Index DYnamic Average. The VIDYA is an exponential moving average that automatically adjusts the smoothing weight based on the volatility of the data series. The more volatile the data is, the more weight is given to the more recent values. The VIDYA solves a problem with most moving averages. In times of low volatility, such as when the price is trending, the moving average time period should be shorter to be sensitive to the inevitable break in the trend. Whereas, in more volatile non-trending times, the moving average time period should be longer to filter out the choppiness

//Vidya Afl

// Vidya

Length=21;
Smooth=5;

Change = C - Ref( C, -1 );
SU = Sum( C - Ref( C, -1 ) > 0, Length );
SD = Sum( C - Ref( C, -1 ) < 0, Length );
CMO = 100 * ( SU - SD ) / ( SU + SD );

AbsCMO=( abs(CMO) )/100;

SC=2/(Smooth+1);

VIDYA=AMA( C, SC*AbsCMO );

Plot( Close, "Price", 4, 64 );
Plot( VIDYA, "Vidya", 5 );


The length of the MA can be changed as per needs

This isn't a proper afl: may have to be corrected to get it to display properly. Did not see a point trying to fix the afl when it was easier to calculate in Excel.

I have only used it in the daily timeframe on nifty with very good results. I don't use it any longer.

myMA[0]=C[0];

for(i=1;i<BarCount;i++){
	wt=abs(C[i-1]-myMA[i-1])/C[i-1];
	myMA=myMA[i-1]+wt*(C-myMA[i-1]);
}

Plot(myMA,"",colorRed);

For intraday, you could multiply the wt. by a factor to get the MA to respond better. Hope this helps.

Thanks guys...!

@anubhai... maybe its time u gave VMA another look...

@NoviceT... thanks for the info on Vidya...

 

[DanPickUp]

Hi Linkon

I see, you use the pattern explorer software. I guess, you have the full package. Any comments to that software beside what you showed here ? As you use it professionally, you may see some points buyers of the software should know in advance.

DanPickUp

 

[linkon7]

Hi Linkon

I see, you use the pattern explorer software. I guess, you have the full package. Any comments to that software beside what you showed here ? As you use it professionally, you may see some points buyers of the software should know in advance.

DanPickUp

It has the rainbow afl and the support/resistance afl..which i find very interesting... most of the indicators are OK types... the fabo extension afl is good for targets...

 

[ashwani chadha]

Thanks guys...!

@anubhai... maybe its time u gave VMA another look...

@NoviceT... thanks for the info on Vidya...

there are much better systems ,do some more hard work to get some perfect system

 

[DanPickUp]

there are much better systems ,do some more hard work to get some perfect system

Hello Mister

If you want to make any comments, give some useful comments and other wise stay out.

 

[linkon7]

Hello Mister

If you want to make any comments, give some useful comments and other wise stay out.

@Dan
opinions are like as*-hole... everyone has one...!
how can u stop the sh*t from coming out... :rofl::lol:

don't react..simple...!

 

[gb333]

Linkon...
Can u plz paste the AFL link for this system for Amibroker.


regards

 

[Nihilistic]

@Dan
opinions are like as*-hole... everyone has one...!
how can u stop the sh*t from coming out... :rofl::lol:

don't react..simple...!

:rofl: :lol:

 

[linkon7]

One important feature of our system is use of 2 time frames to position ourselves. We will use a 15 min time frame to position ourselves and under certain conditions, we will shift to 3 min time frame to gauge the progress of our trades.

One interesting observation is that most day traders trade the 5 min, 3 min or lower time frame to pick their entry, exit, direction. These group of traders are the ones who will normally never carry their positions and have to cut off their positions by the end of the day. They are also the ones who follow similar methods to derive their directions and most of them get the signal roughly at the same point of time, plus - minus 1-2 bars. Once the signals are generated on most of the systems, then volume of orders that give the momentum dries up. Unless the higher time frame players decide to enter the market, the smaller tf players are in control of the direction. When ever the higher tf players manage to trap this group in a direction, they are forced to exit their positions simultaneously (normally one of the reason we see the wide bars on our charts). They normally have smaller stop loss and have a smaller targets.

The bigger volume players normally trade the market on higher time frames of 30 min, hourly and EOD . They are looking for value and have no compulsion to trade and have the intention of carrying their trade for few days to few weeks till the point where they have extracted maximum juice from the trend. They dont have to exit their positions at eod and normally have wider stop losses.

15 min time frame is the perfect go-between the two group of players that drive the market. The absence of higher tf players will make the 15 min tf go flat and we can switch to 3 min tf to gracefully take our exits with minimum damage.

 

[linkon7]

In the mean time... i was looking at the 15 min mini flow method. When i compare my current system to the flow method, i find the two system to be diametrically opposite in terms of approach.

Flow trades the now and is always in the trade. It doesn't assume a target and lets the market decide what it wants to give. Stop loss is always a reversal and it latches on to a trend and extracts all the juice of a trend by adding on to positions at every swing till the time market decides to reverse. It makes hay while the sun shines and makes a lot of hay... far far more hay than my system.

My system is based on faith, where we let go of our wisdom and just enter blindly at a predermined level, almost like catching a falling dagger. At the point of initiation, we enter with full or half capacity, depending on the kind of setup. We have a set target in mind and exit at that level, again on faith. Sometimes if the setup looks promising, we exit half at a predermined levels and trail the other half till it hits. We dont force a trade unless system tells us to. We always book our losses when system tells us to.

This week, i will try to post the trade signals as and when they generate.

I will also give the nuts and bolts of the system and then assemble them into a trading plan. Hopefully, anant will come up with the complete system afl with all the trading rules and money management.... and only then optimising the system becomes possible...

I dont want to give the present system in its current form as only the wearer knows where the shoe pinches. I know what the weakness are and am looking at its mirror opposite, the flow method, for guidance on enhancing our trading logic.