Aleš’s Lessons #13 – Static and Lucid Targets

Static targets are a snapshot of a calculation that do not change by whatever price does, whilst the lucid ones are the moving averages or their displacements.

Plot RSI2 Zero, Overdrive and RSI2 Direccione LX on a hourly chart.

T3s are static measurements from a condition I dubbed Wave 3, for Wave 3’s tend to have this kind of an overheated ending. T3 is probably the best location for an exit and a fade, for you have the exact level on your hand way ahead of time.

The displacement changes a bit according to the price’s residence on the long term comfort levels.

Just keep in mind that there could be a second call, and for that reason apply a better than break even stop loss once in gains by say 20 pips.

T2 is the second best price location for an exit as well as a fade, but this one is lucid – see the automatization part at the end. Play the fade the same way as the T3, with a protective stop loss in gains, don’t go in again once stopped out and be conscious of the fact that you may have to open a trade at market, some distance away from the actual bands if you don’t happen to be there at the right moment.

A T2 fade could be paired up with with a T2->0L target which is also lucid, but for an idea I plotted an approximate location as a snapshot of the other side of Mr. Maroon.

The lucid T1 target is coming from the Zero condition – more on this in the Make Your Own Indicator article. The yellow numbers carry a little more weight for they are further away from the safety nets, and the “shadow” accent is a print with the right EMA configuration – for extra promotion.

The Bull Config / Bear Config switch is as simple as the relationship of the first two safety nets E-16 & E-32, for I did not feel like complicating things with 6 different configurations by throwing the 3rd safety net, Mr. Maroon to the mix.

As you can see, the Zero condition is yet another exit / fade, but you would actually need 2 more candles – so a hint more than an extra hour for the call to be certain.

The ticker now cites the T2 lucid values as well as the (c)onditional values that hinge on the 60-sample stochastic D reading (aka Crack Ho), and they are the 65%+ and the 35%- values of the E-32 channel as for overbought and oversold (the inner dotted plots on the Stochastic Bars for 15M).

Automatization

After putting the Trail Stop Only LT Modified EA on an Eur/USD chart (I prefer a 30-minute one) and turning up the Auto Trading, you can start aiming for lucid targets:

  1. for a 3-pip overshot of the E-16 current value in (blue) use 0.5 stop loss for longs and 5.0 stop loss for shorts
  2. for a 3-pip overshot of the E-32 current value in (blue) use 0.6 stop loss for longs and 6.0 stop loss for shorts
  3. for a discharge on the E-32 channel’s overdrive lines use 0.8 stop loss for longs and 8.0 stop loss for shorts
i.e.
/////Long Target - Code 5 E16

if( OrderType()==OP_BUY && OrderStopLoss()==.5 && OrderTakeProfit()!=NormalizeDouble(iMA(symbol,30,32,0,MODE_EMA, PRICE_CLOSE,0),4) && OrderOpenPrice()<NormalizeDouble(iMA(symbol,30,32,0,MODE_EMA, PRICE_CLOSE,0),4)-20*Point
 ) 
       { OrderModify(OrderTicket(), OrderOpenPrice(), OrderStopLoss(), NormalizeDouble(iMA(symbol,30,32,0,MODE_EMA, PRICE_CLOSE,0)+20*Point,4), OrderExpiration());
          Print("LONG Target Set to E-16 @ "+DoubleToStr(NormalizeDouble(iMA(symbol,30,32,0,MODE_EMA, PRICE_CLOSE,0)+20*Point,4),4));}

Appendix

The expert adjusts stop losses and targets depending on the stop loss you enter.

if the stop loss isn’t zero (left empty) or if you enter 2.0 for shorts and 0.2 for longs and not some other Code

the auto trail stop would lock in
1.5 pip after 4 in gains, 3 pips after 8 in gains
& trail the stop 16 pips behind after 20+ pips in gains

using 3 & 0.3 (Code 3)
would lock in 64 pips upon exceeding 64 pips gains


Code 4 adjusts the target 16 pips above the 8-sample 15 minute low / 16 pips below the 8-sample 15min high(not sure about this one any more)
Code 5: E16 target+ 2pips extra
Code 6: E32 target + 3 pips extra
Code 7: 5 pips closer than Mr. Maroon (playing it safe)
Code 8: Overdrive as tartget
Code 9: 89 EMA

there is also a 2.5 / 0.25 combo that would behave as 2 / 0.2 and on top of that first it would find the last 15 minute fractal and set that as a target

plus the Sharpie function is still active which brings the trail stop to the last 30-minute candle’s close upon an RSI2 sharpie sequence

gray out logic

I know the article did not come across like the conclusion I’m about to give, but that’s because of all the filtering I have done.

Think of

T1 (Zero lucid) as reality

T2 (Overdrive lucid) as probability

T3 (Overheat static) as possibility

& choose your size accordingly