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Pure & simple Abonacci system

  • #181
  • Mar 29, 2014 7:34am Mar 29, 2014 7:34am
is it possible to use this system in small time frame like 1 min 5 min 15 based on higher timeframe levels. IF yes, what are the values have to put in the input.

thanks
  • #182
  • Mar 29, 2014 7:52am Mar 29, 2014 7:52am
Quoting jomonarikkat
is it possible to use this system in small time frame like 1 min 5 min 15 based on higher timeframe levels. IF yes, what are the values have to put in the input. thanks
Probably, although I have tested it. I would look at finding the MM Levels on the 1h chart and then scale down the abonacci length to 30 (or 39 for JPY pairs).

Favorite said he might look at it - if he does and comes back with a suggestion and you want to scalp then I would listen to his suggestions - he is a master scalper.
  • #183
  • Mar 29, 2014 4:16pm Mar 29, 2014 4:16pm
Hi,

Just new to this thread - found it by accident - but not new to trading the ABO system.

However searching the web and some old BoBi posts - I found a post where he says that the current phase
of the month normally was 127 on the EU it s now 133 for more accurate results.

The attached chart is with a setting of 133 - and hits the sell target of 23,6 nicely.

What´s your guys take on this.

Comments are welcome.

Thanks.

Hans
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm15.png Size: 53 KB
"The future is already written in the past"
  • #184
  • Mar 29, 2014 7:53pm Mar 29, 2014 7:53pm
Quoting hansma
Hi, Just new to this thread - found it by accident - but not new to trading the ABO system. However searching the web and some old BoBi posts - I found a post where he says that the current phase of the month normally was 127 on the EU it s now 133 for more accurate results. The attached chart is with a setting of 133 - and hits the sell target of 23,6 nicely. What´s your guys take on this. Comments are welcome. Thanks. Hans {image}
Hi Hans

Interesting - I had also read that Bobi used 127 as part of his calculations for the original Abonacci EU system. It's interesting to me that 127 is very near 122, which is one of the multiples of the distance between MM levels on non JPY pairs (122, 244, 488 etc). Good to have a abo-fficiando (see what I did there) dropping in...
  • #185
  • Mar 30, 2014 8:56am Mar 30, 2014 8:56am
Quoting sniperdebt
{image} Price travel from 23.6% level and break 100% level below Waiting price travel/break to 76.4% level for SELL and TP around 23.6%/100%
Hi hollowhead,

comments are welcome.
  • #186
  • Edited 11:06am Mar 30, 2014 10:34am | Edited 11:06am
Quoting hollowhead
{quote} Hi Hans Interesting - I had also read that Bobi used 127 as part of his calculations for the original Abonacci EU system. It's interesting to me that 127 is very near 122, which is one of the multiples of the distance between MM levels on non JPY pairs (122, 244, 488 etc). Good to have a abo-fficiando (see what I did there) dropping in...
Hi Steve,

Thanks for the nice welcome

I will surely stick around here and contribute with what I can.

However I found some of the "old" Bobi rules on my pc and it states that the 38,2 level is the one to watch for further up/down moves.

Just curious why you have decided on the 23,6 level for entries.

"
- The key point of our trading when we are using power 3 template is 38.2 % if this level is broken from below then price should reach 76.4% and eventually the 100% level. Now for price to continue in its upward journey price should not come back down and break the 61.8% level of the phase below, if this is broken than the immediate direction would have changed. That was for the upside

Now if price is heading down then the 61.8% level becomes key as this is the equivalent of the 38.2% from the other side so if this level is broken then price should reach the 23.6% level then the 0% level, however as before, this is a rule based system once price has broken the 61.8% (when we say broken we are referring to 7-10 pips) then price should not go back into the above phase and break the 38.2% level if it does then like before the immediate trend would have changed direction."

Also for my trading I use this indi - where you can change the phase override to a specific pair.

I hope it will help someone as it takes it´s data from the last month´s numbers as I think it was originally intended from Bobi when he
was active and releasing new templates every month.

The attached chart is the AU with a setting of 133 pips override on the phase.

Anyway I´m hoping not to clutter up your thread with my mombo jombo if I am just tell me so - just wondering why you have chosen the 23,6 level for entries ?

Thanks for your reply.

Kind regards,
Hans

P.s also adding 2 charts where the 61,8 level was in play as per Bobi´s old rules - if price whants to continoue up
it should not go below the 61,8 of the phase below. Hence looking at these to charts, earlier entries at the 23,6 level for long
and a loss could have been avoided.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: eurcadm15.png Size: 56 KB
Click to Enlarge Name: eurjpym15.png Size: 56 KB
Attached File(s)
File Type: ex4 Abonacci Pivots7.0 (1).ex4   50 KB | 808 downloads
"The future is already written in the past"
  • #187
  • Mar 30, 2014 1:18pm Mar 30, 2014 1:18pm
Quoting hansma
{quote} just wondering why you have chosen the 23,6 level for entries ?
There a several reasons for choosing 23.6.

1. If we set the baseline and levels to MM Levels and distance, then 0% would act as the S/R area, and therefore 23.6/76.4 would be a point beyond that represents enough pips of a break. A break of 23.6 with target 76.4 is trading a good chunk of the move between MM levels.

2. Bobi specifies 38.2/61.8 for his original template 3 - from what I understand that system was only ever for EU. He said his later templates and rules (which supercedes the original system) could be applied to any forex pair, stock (and even geographical water supply) - but we are dependent on Bobi to provide baselines each year. Those templates had differing lengths and rules - some of the templates use 23.6 and 50 as entry and TP levels, so 23.6 is a valid level to trade with certain abonacci phase lengths.

3. The most practical reason is that it provides a more tradeable system. Using 23.6 as entry and 76.4 as TP, with SL just behind 100% provides approxiamtely 1:2 RR. Many have struggled with SL placement with Bobi's templates and lengths. Bringing the entry forward with SL behind the 100% makes sense and in my visual scanning looks good for a 50/50 or more win rate.

One thing I want the system to be able to do is be applicable across the board. I've never understood retail traders obsession with EU - to me it is a vastly overated trading pair. I want to be able to trade abonacci principles beyond EU (and the GU and AU we have on the other thread). It may be that different pairs will need different rules and levels - I'm open to that and testing for it with the EA Paulus is having built. But to me having a system with a clear edge, clear rules and profitable money management means I can trade with confidence and peace...
  • #188
  • Mar 30, 2014 1:22pm Mar 30, 2014 1:22pm
Quoting sniperdebt
{quote} Hi hollowhead, comments are welcome.
Sorry sniper - missed that one - I can't open the chart image to see the pair you're trade is on. It sounds about right do you know whether you are trading with the longer term trend.
  • #189
  • Mar 30, 2014 1:43pm Mar 30, 2014 1:43pm
Quoting hollowhead
{quote} There a several reasons for choosing 23.6. 1. If we set the baseline and levels to MM Levels and distance, then 0% would act as the S/R area, and therefore 23.6/76.4 would be a point beyond that represents enough pips of a break. A break of 23.6 with target 76.4 is trading a good chunk of the move between MM levels. 2. Bobi specifies 38.2/61.8 for his original template 3 - from what I understand that system was only ever for EU. He said his later templates and rules (which supercedes the original system) could be applied to any forex pair,...
thanks Steve for your reply - I see your point in choosing the 23,6.

However looking at the EC and another of Bobi rules and I qoute.

"If price moves 302 pips away from the baseline than it is said that the trend will be in that direction. So if price than turns back around and back down it should not come all the way down and break the base line. This equates to the 38.2% level of the 3rd phase i.e. price has moved 302 pips from base line. Now if the price moves 429 pips away from the base line than in either direction than price cannot come back break the trend and change its direction.( to avoid confusion please pay attention to the words " should not come " and " can not come". When it is said should not come , it means to keep a good uptrend going , the price should not come below the base line otherwise it will signal of a big drop . But when 429 pips going away from Base Line the price can not come below the base line as it has no tendency to do that and in case it happens , then this rule will be valid no more and will be omitted from the list of rules forever ) "

It seem pretty accurate using a setting of 133 for that pair also.

However I am having some troubles identifieng what he means when the above is applied.

Would price rise or fall ? Sorry I have to Google translate.

Thanks once again

Hans
Attached Image (click to enlarge)
Click to Enlarge Name: eurcadm15.png Size: 63 KB
"The future is already written in the past"
  • #190
  • Mar 30, 2014 1:46pm Mar 30, 2014 1:46pm
Several people have asked for Oil - I would use Basline 100.00 and length either 1250 or 625.
  • #191
  • Mar 30, 2014 2:11pm Mar 30, 2014 2:11pm
Quoting hansma
{quote} thanks Steve for your reply - I see your point in choosing the 23,6. However looking at the EC and another of Bobi rules and I qoute. "If price moves 302 pips away from the baseline than it is said that the trend will be in that direction. So if price than turns back around and back down it should not come all the way down and break the base line. This equates to the 38.2% level of the 3rd phase i.e. price has moved 302 pips from base line. Now if the price moves 429 pips away from the base line than in either direction than price cannot...
I appreciate your input and digging out Bobi's Hans, I am sure there are principles in there we can apply. There are alot of rules to Bobi's original system that I could not pin down in one place. So TBH I chose not to engage that system. I do think Bobi considered the systems in the second thread he started here on FF as more accurate and improved, and so that is where i studied and traded Abonacci. For both systmes and through his testing Bobi was able to make some very bold claims about what price must do, and if it doesn't what would happen next - I cannot and will not make such bold statements. What we can do here though is test to find patterns and probabilities - we can then say "if price has come from 'x', and crossed the S/R level of 'y', then on the balance of probability it will reach 'y'". And if it doesn't, our money management is good and our accounts are safe. We take the loss (with a smile on our faces, which is the right way to take a loss), and look for the next 'probable' trade. Our edge, R:R and money management will ensure our profitable futures.

After this thread has been running 5 years or we have thoroughly backtest 5 years of data, we may be able to be a little more confident to say that price always does XYZ - but I think by then, things may have changed again...
  • #192
  • Mar 30, 2014 10:07pm Mar 30, 2014 10:07pm
subscribed and thankyou hallowhead , I did follow bobis original system which got a bit too much for me to understand some of the rules , and couldn't make it work for me , will be following this with much interest.
regards . orid peter
  • #193
  • Mar 31, 2014 7:44am Mar 31, 2014 7:44am
couple more question to be answered please Hollowhead

I would like to make sure about one thing. Entry is made only when price goes from one section to another, right? There are no entries within the same section. Is that correct?

For example:

...
-------100
-------76.4
-------61.8 ( B )
-------50
-------38.2
-------23.6 ( A )
-------100
-------76.4
...

We can’t have entry when price goes from ( A ) to ( B ) in the same section. It has to move more than 100, right?

P
  • #194
  • Mar 31, 2014 8:28am Mar 31, 2014 8:28am
Quoting Paulus
couple more question to be answered please Hollowhead I would like to make sure about one thing. Entry is made only when price goes from one section to another, right? There are no entries within the same section. Is that correct? For example: ... -------100 -------76.4 -------61.8 ( B ) -------50 -------38.2 -------23.6 ( A ) -------100 -------76.4 ... We can’t have entry when price goes from ( A ) to ( B ) in the same section. It has to move more than 100, right? P
Hi Paulus - thanks for sticking with it.

If I have understood the question correctly the answer is Yes. I'll use a long example

------- 100
------- 76.4
------- 61.8 (B)
------- 50
------- 38.2
------- 23.6 (A)
------- 100
------- (SL)
-------76.4 (X)

Price must have come from the 'X', risen passed 100 into the above section. Entry and exit at A and B as you decribe.

If price reverses and SL is above the original 'X' level so the trade closes, then price must go below 'X' and rise again to trigger another trade.

We don't want (A) being triggered multiple times in that phase. Only if it crosses X and goes into the above phase again can a new trade be triggered.

Paulus - can 'X' be user defined? ie 76.4 +/- pips. Not a problem if not - we can use 76.4 for buy and 23.6 for sell.
  • #195
  • Mar 31, 2014 9:02am Mar 31, 2014 9:02am
first trade on demo, didn't quite come from 76.4 lvl. hope I setup correctly, please say.
Regards peter
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  • #196
  • Mar 31, 2014 9:18am Mar 31, 2014 9:18am
Quoting orid
first trade on demo, didn't quite come from 76.4 lvl. hope I setup correctly, please say. Regards peter {image}
I'd be happy with that - you've got some profits protected - are you targeting a level for TP or are you going to let it run?
  • #197
  • Mar 31, 2014 9:26am Mar 31, 2014 9:26am
Quoting hollowhead
{quote} I'd be happy with that - you've got some profits protected - are you targeting a level for TP or are you going to let it run?
im not very experienced , hollowhead but I believe always let it run ,
regards peter
  • #198
  • Mar 31, 2014 10:09am Mar 31, 2014 10:09am
Quoting hollowhead
{quote}- can 'X' be user defined? ie 76.4 +/- pips. Not a problem if not - we can use 76.4 for buy and 23.6 for sell.
Will pass on answers with request above ..if it can he will

P
  • #199
  • Mar 31, 2014 10:58am Mar 31, 2014 10:58am
Quoting hollowhead
{quote} can 'X' be user defined? ie 76.4 +/- pips. Not a problem if not - we can use 76.4 for buy and 23.6 for sell.
I have just been told it can

P
  • #200
  • Mar 31, 2014 12:27pm Mar 31, 2014 12:27pm
Quoting orid
{quote} im not very experienced , hallowhead but I believe always let it run , regards peter
That's a good approach as long as you are clear on when to close it out. I find that sometimes phsycologically letting it run can be harder than just closing. In principle its great and gives you the opportunity to catch the mega waves. But, in my experience it is also easy to watch it run see your P/L grow and then it reverses, it's all too easy at that point to keep hold of it and watch those profits dwindle. Then you have the mental battle of shoulda, coulda, woulda. When you have a definate TP. You can sit back and watch price run afterwards and be proud that you kept to your plan. Sticking with a plan gives confidence and peace of mind.

I don't want to discourage you from letting it run, but I would say have a clear point, whether its a level, reversal point etc when you know it is time to stop it running.
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