Brainwashing Trading System

Just found few different versions of iTrend indicator :

• i_Trend
• iTrend
• iTrend_v1.01

Hi newdigital,

Thanks for the iTrend indicators. I love using it to filter my trades but I do this more randomly without actually understanding what certain of the parameters do.

I don't know if you can better explain the following parameters and their effect on the indicator.

Bands_Period = 20;
Bands_Deviation = 2;
Power_Period = 13;

Specifically, what is the difference between the Bands_Period and the Power_Period and how they respectively affect the indicator.

I'd appreciate your kindest explanations.

Regards,

RAY

Originally Posted by newdigital

Just found few different versions of iTrend indicator :

• i_Trend
• iTrend
• iTrend_v1.01

Hi newdigital,

Following on my earlier post, apart from the iTrend indicator, is there any other equally good digital filter that you can recommended that can be easily added to an EA to prevent trading during choppy/ranging market conditions.

Thanks.

Hi mxniche,

This indicator is based on 3 indicators :

• Moving Averages (SMA with period 1) - I think it is used instead of the price
• Bollinger Bands
• Bears Power

So, Bands_Period 20 and Bands_Deviation 2 are related to the settings of Bollinger Bands (see standard Bollinger Bands indicator in MT4), and Power_Period is related to Bears Power (this is the period of Bears Power - see this starndard indicator in MT4).

---

As to digital filters so I am planning to open the thread about digital filters (indicators and EAs) but it will be complietely different thread.

Hi newdigital,

Thanks very much for your explanation. At least I know better about the indicator now and it components in all.

Thanks once again for all the effort and I pray that this forum with grow in leaps and bounds.

Hi newdigital,

I have a little request to make and hope you can help out here.

In the first version of the Brainwashing system which you proposed on "the other" forum, you gave a recommendation of the value for which the iTrendLevel should be set for.

However, now that the indicator automatically does this calculation, though based on the default 0.283 LevelFactor, can you recommended a set of LevelFactor variables that would be suitable for:

15M and H1 Active/Conservative Traders

Using the following Major pairs:

USDJPY
GBPUSD
EURUSD
USDCHF

This to me is important because using the same LevelFactor often gives iTrendLevels that often would give you very little trading opportunities with some pairs.

I believe that since you would have done a lot of backtesting and forwarding testing on the majors, you should have a fairly good value for use in the LevelFactor of the iTrend Indication.

Thanks and would really appreciate your kind effort in this regard.

I was using this LevelFactor (0.283) for all timeframes started with M15 to H4. I mean - the importance for us may be the highest level of iTrend indicator for some period of time - this level of iTrend indicator may be multiplied by 0.283

It was very hard for me to estimate this 0.283 ... but you can use the other levels based on the market condition for example.

If you want to ignore this 0.283 level so it is the recommendation for 4 majors about the level of iTrend indicator (without multiplying by 0.283) :

Recommended value for this ItrendLevel is the following:

USDJPY

• Between 0.10 and 0.16 for usdjpy M15 (I prefer 0.16);
• 0.19 for usdjpy H1;
• 0.19 for H4.

GBPUSD

• 0.0017 - 0.0026 for gbpusd M15 (I prefer 0.0026);
• 0.0044 - 0.0050 for gbpusd H1;
• 0.0044 for H4.

EURUSD

• 0.0013 - 0.0017 for eurusd M15 (I prefer 0.0016 or 0.0017);
• 0.002 for eurusd H1;
• 0.002 for H4.

USDCHF

• 0.0015 for usdchf M15;
• 0.003 for usdchf H1
• 0.003 for H4.

You may find you own settings:
Attach iTrend indicator to the chart. This indicator is counting everything up to 300 bars back on the history starting from the current bar.
And you may see the value of Itrend. Then shift your chart on 300 bars back and during the shifting you may estimate the maximum.
Then multiply this max by 0.283.

I want to note that if you are trading using m15 timeframe you need to estimate ItrendLevel at least once per two days, for h1 - one time per week. And because of that the backtesting results are not valid (we are backtesting using permanent ItrendLevel value but it is subject to change).

So,

• you can use this 0.283 with together with auto-level iTrend indicator, or
• estimate your own LevelFactor instead of 0.283, or
• use the recommendations above for trend indicator's level (without LevelFactor) ...

It will be hard for me to re-estimate/to change this 0.283 once again as it will be related to trading by this system manually for many weeks for 4 majors with many timeframes.

By the way - the market is volatile now, and this Brainwashing system is not trading often during volatile market and during high impacted news events.

Thanks newdigital.

I understand your point because I have tried using the 0.283 but it just doesn't work for some pairs.

So may be what I have to do is to estimate based on the recommendation you made before and see if an optimization might give me a better result.

Thanks once again.

Hi newdigital,

I don't know if you can assist me in the area of optimizing an EA.

Let's say for example my EA has the following sections which need to be optimized:

TP & SL
2 variables

Moving Average Setting
3-variables

iTrend Indicator
4 variables

RSI and its Moving Average Cross
2 variables

Trade Management Setting
3 variables

Now, turning all of them on at the same time for optimization not only takes too long but someone also said "Don't optimize too many parameters at the same time – the probability of fitting for history will be too high."

If that is the case, my question then is: since the criteria for taking a trade must be fulfilled at the same time by all indicators being used,

1. will optimizing for the different sections of the EA differently not bring up problems since a trade decision need to be taken when all they meet a criteria at the same time?

2. I'm really confused. For instance here, the RSI and its moving average cross are important for any trade to occur, to optimize now, do I just optimize for it first, and then for the next section to get the best variables for all of them and then combine the best from all their different optimizations.

I would really appreciate your help here because I believe that without proper optimization of an EA, one is might simply still be doing guess work.

It would be really appreciated if you can help provide a sort of guide on we can better go about optimizing expert advisors.

Thanks a lot.

The problem is the following: it is difficult to optimize all the parameters of the EA (if we are having a lot of the parameters).

So, optimize something which you can optimize ... step by step, parameter by parameter ...

But there are some cases when you are optimizing just one parameter and it take too long time anyway (in case of iTrend indicator for example). If it is the case so open EA in MetaEditor and delete the following word - extern - near the parameter you want to hide for strategy tester.

Example :

1. Strategy tester see this parameter even if you are not optimizing it :

Code:

extern double itLevelFactor =   0.283;

2. Strategy tester do not see this parameter even if you are optimizing it :

Code:

double itLevelFactor =   0.283;

By the way, if we are talking about Brainwashing EAs so my settings came from the trading - I used this EA for the long time with different settings just to select about the best settings (I did not optimize this EA).