Briefly about the trading system RVB.

First of all I want to apologize for my English. Everything that will be written below - translated by Google - translator. I will try to write with simple sentences and clearly formulate the idea, so that everything would be easy to understand. Regards, OlegMech@nicTrade.

Let's get started.

What is the basis of the idea?

The idea is based on volume analysis. On the charts in clusters, we often see large volumes in narrow ranges.

This pattern is often found on charts. And it gives us good trading opportunities. We thought that it would not be bad to automate the drawing of such ranges on the chart. This is how the idea of the RVB was born.

For each ticker, you must specify the parameters by which the search will occur. The search mechanism provides the ability to search for parameters both by default and for individual time periods. These periods are characterized by increased (lowered) volatility in the market.

Let's look at an example with default parameters.

Let's set such parameters:

RangeSize: 30 ticks (no less); RangePoc: 400 lots (no less); Range trigger size: 35 ticks (no less) - This is the parameter at which the box is formed.

The default parameters are useful when we want to see in general. But if we want a more detailed search (taking into account time periods on the market), then we need to apply the time zone settings. These time zones are easily identified by volatility and vertical volumes. Let's select three main time zones on the chart. I will show on the example of my time zone (GMT+2).

Now we will set the parameters of the RVB taking into account the time zones. From 00:00 to 09:00 we will set the following search parameters: RangeSize: 15; Range Poc: 105; RangeTriggerSize:20.

From 09:00 to 15:00 we will set the following search parameters: RangeSize: 20; Range Poc: 130; RangeTriggerSize:30. Notice that the ranges have become wider, and the volume of the POK is greater? OK...

And the last time zone ... From 15:00 to 23:55 we will set the following search parameters: RangeSize: 45; Range Poc: 900; RangeTriggerSize:55.

Thus, by watching the ticker, we can experiment with the search parameters.

How to filter inputs?

You have probably noticed that not all boxes work out retests? And that's fine. There is nothing perfect. Especially in trading. In trading, our task is to work with probabilities. To increase these probabilities, use the following guidelines:

1)

In Russian, we call it - "недотики" (nedotiki). This is slang. If describe it in English, the most correct definition is when the price did not reach a few ticks before your entrance, then turned around and left without a deal...Let's call it "nedotiki".

Unfortunately, the "nedotiki" will be found quite often on the charts. In these moments do not need to panic. Better let the price go without us than when it comes back and breaks our level and we get a stop loss. This rule applies to any time zone. I show with our examples E mini NASDAQ...

2)

Do not trade the level from which the price has gone far and moved to the next time zone. Example:

3)

Set adequate goals. Take profit and Stop Loss should correspond to volatility and time zone. The lower the volatility - the smaller the goal, the higher the volatility - the larger the goal. Here it is very individual and requires you to experience and screen time.

Try first to collect statistics by making entries on the playback.

For motivation, I’ll leave a few trading performances.