Hi guys,

I am new to this XO method. I've downloaded and installed the files from the first post, and I'm using the latest template from here:

http://www.forex-tsd.com/115580-post125.html

I've read the rules from the first page, and think I pretty much understand most of what's being said. I like the decent number of conditions for entry. I have to thank Valeo for producing this system, and all the programmers who created/modified the indicators.

I have a couple of questions. I guess my ignorance is gonna show here, but here goes...

The rules for the Stochastics part of the system say:

"The Stochastic set @ 13/4/8 is not "overheated" (>85 and <15)".

I get that part, but what I'm confused about it the fast moving Stoch in the background. What is the purpose of that? Also, there are up and down arrows appearing on the Stochs - the entry rules mention nothing about these arrows. What is their significance? Plus, I do not see any 85 or 15 lines on the Stochs. I just see, 5,15 & 75,95. What is their relevance? Do I need to manually add the 85 and 15 lines?

Many thanks!

Best is to rather test the change in settings before one posts them and that has happened to me last month. I am sorry to say, but the faster settings on the H1 and H4 is erronous! It created more "false signals" and I have had to revert back to the settings we had before - I guess this is an example of GREED!
So, I changed my settings back to KirPERs of 6,5 on all the TFs. I run 5 different settings 24/7 and I am now convinced that the original settings are better.

I would like to add though that the TEST panel runs with WHC; Integra and MIG and there are differences. So I suggest you take that into consideration, but in general the 6.5 settings come out best on these servers.

Apologise for any inconvenience caused.

Best wishes.

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

FXG, I apologise for not responding any sooner. The arrows on the Stochastics, is just my indicator built to show when the crossing took place - I like the visuals. Nothing more to it and when you scan your chart, it "jumps out" at you.

The fast moving 5/3/3 tells you what is happening inside the present trade direction, so when it moves against the longer one, just be aware that a retrace is in place and you have to sit it out.

As far as the levels are concerned, I have learned something this past month from experienced guys in the Stochastic field. This one trader called Spudfyre over at FF, uses the Fib-levels 76,4 and 23,6 for his levels - You can find his Thread here:http://www.forexfactory.com:80/showthread.php?t=22105

I am a strong believer in Fib-levels and follow Alan Oliver's work from "Tradingwithgods" in Australia. He is excellent and he recommends 78,6 as a level in stead of 76,4 but it may just be symantics for the less informed. So for what it's worth, my levels have now changed to 78,6 (and if your chart does not accept the decimal point, just use 78) and 23,6 (23). Very interesting theory from this Trader and how he has studued the Stochastics and still spends 2 hours a day just watching the Stochastic's behaviour!! That's dedication for you!

I will Post his observations in a post below so that it does not "get lost" among all of this as it is rather good reading material.

Trust this answered your questions, FXG.

Best wishes.

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

WOW

This stuff with the mtf stochastics is very very interesting !

Thanks a lot Valeo to point us.

The idea of the fib levels in the stoch is AWESOME !

Here is the link again to a summary only of Spudfyre's work on Stochastics:

Stochastic Equilibrium occurs about 85-90% of the time on any time frame or price chart. This means that if we see a movement of the stochastic line from 76.4% to below 50% and that stochastic line reverses and climbs back across 50% than there is an 85% probability that the stochastic line will climb to 76.4%. Likewise, if we have a stochastic line that moved from 23.6% to higher than 76.4% than we have an 85% probability that the stochastic line will fall back to 23.6% after crossing the 76.4% line.

To see the images: MTF Stochastics - Page 63 Post #933

As long as you don't get sidetracked.

Best wishes.

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

Yes Valeo, that clears it up. Thanks for the explanation. I will forward test this method.

hello ValeoFX

I'm new to this thread and would just like to know if I should follow the settings in the template tsd-forum.tpl (110.2 KB) from post#2 or should I follow the settings on your post#2?

In your post you use 15-EMA, but on the template you have 13-EMA just an example of something different from the post and the template.

I would also like to know what the dots on the top/bottom of the candlebars are for. I don't see it in the entry or exit rules.

Thanks!
Franco

Good morning Franco, welcome on board. Good to have you.

It is my mistake for not updating the Zipped File and I will do so today still, but yes, I want you to change to 15-EMA I find it better. The DOTS on top of the candles are the AcTrend1sig_noSound indicator and can be set according to your Money Management method. As it is it works best for me, but feel free to experiment with it or even do away with it. It is mentioned in the rather lengthy description, which I will also highlite today.

Best wishes.

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

Hey,

First off the XO5 seems like a useful indicator.

Does anyone know if it repaints any of the bars?

I want to know whether it does repaint as I have been looking at two months of charts, and I would like to know before checking the ongoing charts from Monday 20/8.

Thanks guys.

Paddyfxy.

of course. every MTF indicator repaint the past.