davesaint86
725 posts
msg #158869
- Ignore davesaint86
modified |
3/23/2022 7:37:51 PM
Had another training session with Gregg Gossett last night where he introduced to me the V1 and V2 Value Zone strategy rules. He said Kelly Lovvorn and Alexander Elder taught him these strategies. Below is a V2 filter that I attempted create. I think it still needs some work. V1 and V2 are a mean reversion strategies, where price after reaching exhaustion come back down through the Upper Keltner Bands into what he calls the Value Zone. The Value Zone is area within the Keltner Band(20).
Price should come into the zone and consolidate for minimum of two days.
The next day (day 1) if still consolidating will start the V2 pattern.
The (day 2) candle should have a lower low and a close lower than the Day 1 candle. This candle should be at least 1/4 ATR below the day 1 candle. The lower end of the candle should wash out the some of the candles in consolidation pattern.
The (day 3 candle) should have a higher low than the day 2 candle. It also needs to close higher than they day 1 and day 2 candles. One would buy at the close on this candle.
Any improvements that help improve this filter will be appreciated. Thanks! I set the offset to 5 days. MFC is an example of a V2 (though not perfect). I look at V2 as just a fractal with a breakout above the fractal. GLD was a valid V2 but signal today, but this filter did filter it, so something is wrong with it.
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davesaint86
725 posts
msg #158870
- Ignore davesaint86 |
3/23/2022 7:49:38 PM
Here is an actual V2 trade I took at close today of GLD,
https://www.tradingview.com/x/KuzdFlrI/
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Cheese
1,374 posts
msg #158871
- Ignore Cheese |
3/23/2022 11:12:07 PM
https://www.stockfetcher.com/forums/Filter-Exchange/V2-V1-Value-Zone/158869
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@davesaint86
Your Value Zone Keltner Band(20,1) idea seems to work well
with Elder Impulse System code by John Mactheriverrat.
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davesaint86
725 posts
msg #158872
- Ignore davesaint86
modified |
3/23/2022 11:48:55 PM
Thanks Cheese! The signals seem to line up correctly when I analyzed SPY going back to the COVID crash.
https://school.stockcharts.com/doku.php?id=chart_analysis:elder_impulse_system
Davesaint
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Cheese
1,374 posts
msg #158873
- Ignore Cheese
modified |
3/24/2022 10:35:20 AM
https://www.stockfetcher.com/forums/Filter-Exchange/V2-V1-Value-Zone/158869
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@davesaint86
Mac's above filter for surrogate Elder impulse System
and a StockCharts image for real Elder impulse System
can be found here:
https://www.stockfetcher.com/forums/General-Discussion/Hi-Y-all/158432/30
https://postimg.cc/yJpczk9L
I think Mac might also have posted other StockCharts images for real Elder impulse System
in other threads. Mac might also have posted the real link to StockCharts.
Happy trading, and thank you both for sharing.
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nibor100
1,010 posts
msg #158877
- Ignore nibor100 |
3/24/2022 1:34:02 PM
@davesaint86,
1. After looking at your filter, and a chart of GLD on SF, and your GLD buy chart from TradingView I wrote the filter below to show what is going on in SF for their standard Keltner channels and their standard Average True Range.
I also subtracted the SF 2ATR value from the closing price of GLD yesterday and your buy price yesterday.
Note they are all different....
so I guess I need to research how TradingView calculater their Average True Range
2. I found the Trade Naviagator platform indicator manual (that's the trading platform Gossett uses in all of his videos) online and they calculate their Keltner Channels in essentially the same way that SF does, using the original Keltner method circa 1960 where the bands are averages of High-Low added to and subtracted from the center moving average.
Clearly neither piece of sw is using Average True Range for those channel/band calculations so the bands/channels are not 1 ATR in distance from one another on a chart.
In fact, SF actually has a way of basing the band/channel calculation on standard deviations if one wanted such.
Hope this helps some,
Ed S.
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davesaint86
725 posts
msg #158879
- Ignore davesaint86 |
3/24/2022 2:43:27 PM
Thanks Ed! Gossett had a programmer create a scanner that scans daily for all of his strategies. He showed me the scanner. He said I will have access to the scanner when I'm done with the training. I thought it would be nice though to build the filters in SF so other could use or improve on them.
Davesaint
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davesaint86
725 posts
msg #158880
- Ignore davesaint86 |
3/24/2022 2:45:35 PM
Here is the V1 filter.
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fotchstecker
304 posts
msg #158894
- Ignore fotchstecker |
3/26/2022 10:22:59 PM
Thanks for this, Dave.
Question: what are your thoughts on a selection filter? When the filter returns a lot, one would need a limited number of candidates to trade...
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nibor100
1,010 posts
msg #158897
- Ignore nibor100 |
3/27/2022 2:50:23 AM
Gossett has a youtube video that might help....
Ed S.
How to use V1 & V2 Entry Triggers to enter you Stock Trades
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