Linkon's guppyBB system...!

[cbosein]

@ Linkon Sir,

Is AFL of your system is already posted? I couldn't find?

Keerthi

 

[linkon7]

@ Linkon Sir,

Is AFL of your system is already posted? I couldn't find?

Keerthi

no bro....! afl is still under construction...!

I'll be discussing parts of the system and then we will assemble the parts together....

 

[columbus]

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.

If you consider 6.15 hours of trading ,with 15 min TF ,only 25 candles
are formed and with 5min TF 75 candles are formed.At the same time
1min TF will give 375 candles.I feel this is quite NOISY.That is why
day traders like either 3min or 5 min TF.Scalpers prefer 2 or 3 min TF.

At 5 min TF ,the BB(20) will start appearing from 9.15+20*5min=10.45AM.
But you can make appearing from 9.15AM by borrowing samples from
the previous day.

I am posting 2 charts with 5min and 15 min TF below.

 

[columbus]

TINYPIC is encountering problems.I will EDIT my previous post with CHARTS later.

 

[linkon7]

the First rule is the SGX rule...

The value of SGX at 9.14 (1 min before market opens) is our trend decider.
We wait for the first 3 min. At 9.18, we can initiate positions based on the picture generated by sgx and our 15 min chart...

 

[linkon7]

5513 is our accl band... and that is our break down level... e-89 is placed at 4999...
we have a lower low lower high by the system... trend as per our system..is very weak up trend..

so far... sgx is pointing towards a deep cut...

 

[linkon7]

our first trade...

Placed short trigger at 5459.50

 

[linkon7]

short triggered...

but trade got executed at 5455...
since its a BO trade... qty is 50%

 

[linkon7]

accl band bottom at 4994...
so exit / reversal is the high of the bar crossing the accl band + filter...

 

[linkon7]

stop loss for our short is placed at 5464.90...

FYI,
SGX rule interpretation : first 3 min bar had a high of 5490..low of 5483... our sgx was 5480...

so trade was long trigger at 5495 i.e. 5490+ 5 filter
short trigger at 5480-5 filter = 5475

but as a sub rule..we would like the first bar to be below the sgx level... since it wasnt..we wait for the 15 min to give us the trigger...