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Beginner DOK chapter 1
http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=61&t=3234
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Author:  MaxB [ Wed Aug 10, 2016 10:19 am ]
Post subject:  Beginner DOK chapter 1

Hi

I'm a new member,i'm trying to understand WRB analysis and how to apply to improve my trading.

1) ES 1Min : Vertical Green Line are KME ,key market event that can lead to change in supply/demand ,as shown in the upper box .
2) Bars colored in Indingo and Blue are WRB ,here i use candlesticks so it refers to bars that have the body(open-close) that is larger than at least the bodies of the three prior intervals.

Attachments:
KME and WBR.jpg
KME and WBR.jpg [ 154.21 KiB | Viewed 31 times ]

Author:  MaxB [ Wed Aug 10, 2016 10:33 am ]
Post subject:  Re: Beginner DOK chapter 1

WRB Hidden gap
first it has to be a WRB bar , after to qualify ad WRB Hidden gap you have to compare the price action between the first bar before the WRB bar and the first bar after the WRB bar.
if there is no overlapping in price between the first bar before the WRB bar and the first bar after the WRB bar,it means there is like a hole ,then the WRB bar can qualify as WRB HIDDEN GAP.

magenta and cyan box shown wrb hidden gap ,i drawn blue lines to better represent the hidden gap

Attachments:
WBR Hidden GAP.jpg
WBR Hidden GAP.jpg [ 133.67 KiB | Viewed 28 times ]

Author:  wrbtrader [ Wed Aug 10, 2016 1:54 pm ]
Post subject:  Re: Beginner DOK chapter 1

Hi,

Thanks for the DOKs so far of tutorial chapter 1. I notice you said "how to improve your trading".

First of all, make sure you're trading the right trading instrument. Thus, you should backtest your trade method on all the available futures trading instruments data that you have access to. Next, review your backtest results to determine which trading instrument your trade method perform the best.

You can backtest via a code of whatever method you're using but if you're not a programmer/coder...you can manually backtest but it requires more work but worth it. I make this recommendation because the Emini ES futures is one of the toughest trading instruments in town...not something to trade without any backtesting and simulator results.

Now lets assume you've done the backtesting and determined Emini ES futures is the best trading instrument for your trade method...do not discard your backtesting results or your simulator results because you'll need that information for comparison to your results when you merge WRB Analysis with your trade method.

For example, pretend your backtest results reveals you're having a problem with your profit targets. You can use the basic "trade management" info in the WRB Analysis free study guide or in the FVB trade signal strategy. Another example, pretend you're having a problem with your entry signal. You can compare the results of your entries without WRB Analysis versus the results of your entries when your entry signal shared a tick with a WRB Zone.

If you have your own trade signal strategy...post lots of charts showing entries, exits, initial stop placements and then ask questions about how WRB Analysis could have helped.

Lets now pretend you do not have a trade signal strategy. You're just starting to learn about trading. You can use my free FVB trade signal strategy to see how I merged WRB Analysis with a simple trade signal. You then use the price action concepts discussed in the FVB strategy to develop your own trade signal strategies that uses concepts from WRB Analysis.

Last of all, if you're already trading (simulator or real money)...make sure you document your trades (dates, time of entry/exit, stop management, profit targets and results. Include some chart examples of the trades. You'll need that info for comparison at a later date.

I know it sounds like a lot of work but backtesting and documenting a trade method is something every trader should do but most do not do. Without that information, traders will have a difficult time trying to fix what's wrong with their trading because they not have any information to look at beyond knowing that a trade was a loss or profit.

Regards,
M.A. Perry

Author:  MaxB [ Thu Aug 11, 2016 11:39 am ]
Post subject:  Re: Beginner DOK chapter 1

Hi

thanks for the suggestion , actually I don't trade ES and i don't have a trading strategy to work with it,i think i'll start with FVB strategy .
looking at the chat log i saw you're trading mainly ES and i'd like to learn it,
I trade TF or sometime CL , at the moment i'm using only NinjaTrade i' not able to do automatic backtesting with it , i'ts almost 1 year and half that i'm writing and review my trade taking note on chart.,but i've not achieve great result so far.
I'm looking for swing point definition#1,i think i have understood the concept , but it's hard to find on historical charts due lacking of historical news plot automatically on charts a KME event and a WRB hidden gap together.
thanks again

Author:  wrbtrader [ Thu Aug 11, 2016 9:27 pm ]
Post subject:  Re: Beginner DOK chapter 1

MaxB wrote:
Hi

thanks for the suggestion , actually I don't trade ES and i don't have a trading strategy to work with it,i think i'll start with FVB strategy .
looking at the chat log i saw you're trading mainly ES and i'd like to learn it,
I trade TF or sometime CL , at the moment i'm using only NinjaTrade i' not able to do automatic backtesting with it , i'ts almost 1 year and half that i'm writing and review my trade taking note on chart.,but i've not achieve great result so far.
I'm looking for swing point definition#1,i think i have understood the concept , but it's hard to find on historical charts due lacking of historical news plot automatically on charts a KME event and a WRB hidden gap together.
thanks again


Hi,

You do not need automation for backtesting. You can still do it manually via viewing historical charts.

Also, if you don't have access to historical charts. You can do forward testing via from this day going forward, save charts every of ES, TF and CL and you should copy the KMEs every day from any free forex calendar...save it all every day in like a spreadsheet. You can then go forward and slowly accumulate your charts and KMEs each trading day for review any time.

Out of curiosity, you said you're trading Emini TF futures and sometimes Crude Oil CL futures. Yet, you also stated you don't have a trade signal strategy. Therefore, how are you trading TF and CL futures without a trade strategy...just intuition or did you meant you have a strategy for TF and CL but not for ES futures ?

Regards,
M.A. Perry

Author:  MaxB [ Fri Aug 12, 2016 2:35 am ]
Post subject:  Re: Beginner DOK chapter 1

Hi

sorry if i have been not clear, yes i meant to have a strategy for TF and CL ,but not for ES.

Author:  wrbtrader [ Mon Aug 15, 2016 12:48 am ]
Post subject:  Re: Beginner DOK chapter 1

MaxB wrote:
Hi

sorry if i have been not clear, yes i meant to have a strategy for TF and CL ,but not for ES.


Hi,

I will then assume you've backtested you trade strategy for TF and CL on the Emini ES futures and the results were not good which is why you want to design a new trade strategy for trading the Emini ES futures via the price action concepts of WRB Analysis.

Regards,
M.A. Perry

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