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J B Volatility Profit taker
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jazza View Drop Down
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Joined: 10 Aug 2007
Posts: 33 		Post Options Post Options   Quote jazza Quote  Post ReplyReply Direct Link To This Post Topic: J B Volatility Profit taker
    Posted: 10 Aug 2007 at 11:34pm
Hi all,

I am fairly new to Bullcharts and technical analysis.

I am interested in the Jim Berg entry and exit indicator that comes as a standard template toolbar with Bullcharts. I am especially interested in the breakdown of the formula. I have cut and pasted the entry bullscript formula as:  cross(C,(llv(L,20)+2*atr(10)));

My problem is deciphering the bullscript.

I am assuming that it is something to do with the relation of recent Volume, Price lows and average true range.

If anyone can decipher the bullscript for me it would be much appreciated.

Cheers,

 

Jazza
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blackdog View Drop Down
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Posts: 43 		Post Options Post Options   Quote blackdog Quote  Post ReplyReply Direct Link To This Post Posted: 14 Aug 2007 at 1:47pm
Jazza,
 
You can find more information on bullscript in the help files, but briefly,
 
llv(L,20) is lowest LOW price Value in last 20 bars.
ATR(10) is average true range for the last 10 bars
cross(C,X) is true when Close price is higher than X for the current bar but not on the previous bar.
 
 
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jazza View Drop Down
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Posts: 33 		Post Options Post Options   Quote jazza Quote  Post ReplyReply Direct Link To This Post Posted: 14 Aug 2007 at 10:33pm
Thanks blackdog,

Still a bit confused as to why the JB entry appears when it does, ie sometimes on a price dip, sometimes on a rise. Sometimes working sometimes stopping out all the time. A bit like a stopped watch that is right twice a day!

A bit harsh because it seems like quite a good entry indicator.

If you have any other info on the JB reasoning it would be much appreciated.

Thanks,

Jazza
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TheFerret View Drop Down
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Posts: 9 		Post Options Post Options   Quote TheFerret Quote  Post ReplyReply Direct Link To This Post Posted: 18 Aug 2007 at 5:59pm
The  thing with JB Volaitity is before you can use the Entry signal 3 other criteria must be satisfied.
1. The Sector must be in a rising trend
2. The share must be in a rising trend
3. The share must be recently oversold below the 30 line on the RSI chart for JBV indicator.

Then  and only then when the Entry Flag comes up (i.e. the share price close above the formulae you mentioned or better still the bar changes from red to blue {as sometimes the entry flag won't come up if it has come up recently and thinks the trade is still open}) then and only then can you enter the trade at a price of
1. no more than the closing price of that day (it may take a few days for your order to be filled, be patient), and
2. no more than 10% from the lowest price of the recent oversold condition.

For example if the recent low of the oversold was at $1.00 then you can only enter on an entry signal that closes at or less than $1.10.
This close should preferably be on a rising day also.
Note: That when I say the share and Sector should be in a rising trend this can be identified using the bullcharts JB scan called JB rising trend, which basically checks that todays exponential 34 day MA is greater than the exponential 34 period MA of 5 days ago. You can plot these lines on your JB chart to make this obvious with out doing the scan.

The last thing is if the S&P 500 and XJO are behaving with extreme volatilty it may be wise to wait until things have settled down.

Hope this helps. Good Trading.
The Ferret.
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TheFerret View Drop Down
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Posts: 9 		Post Options Post Options   Quote TheFerret Quote  Post ReplyReply Direct Link To This Post Posted: 21 Aug 2007 at 6:21pm
Correction:  The share and sector must be in a rising trend on the weekly chart
i.e this weeks 34 week EMA is greater than the 34 week EMA of 5 weeks ago.
Then you enter using the daily charts Entry signal.
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jazza View Drop Down
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Posts: 33 		Post Options Post Options   Quote jazza Quote  Post ReplyReply Direct Link To This Post Posted: 31 Aug 2007 at 1:18pm

Hi Ferret,

 

Thanks very much for taking the time to explain the criteria of The JB indicator. Very much appreciated even if it has taken a couple of weeks to reply!

 

Wanted to check out the added conditions of entry in relation to chart history of various stocks.

 

Interestingly it seems that a lot of good trades are missed by not allowing to buy the stock if it is above the previous days close. Seems that you miss out on a lot of profitable trades even if they are not long term.

 

Also having to have the RSI below 30 also seems to restrict more good trades and even harder to get the RSI below 30 when you also need the 34 weekly EMA to be higher than 5 weeks ago.

 

I assume that this is a safety measure by having these 3 extra factors in your favour for a higher probability chance of reasonable profit.

 

Do you know if the JB can be used intraday?

 

And thanks also for the tip about staying out while extreme volatility reigns with the markets!

 

Cheers,

 

Jazza
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TheFerret View Drop Down
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Posts: 9 		Post Options Post Options   Quote TheFerret Quote  Post ReplyReply Direct Link To This Post Posted: 04 Sep 2007 at 5:43pm
Dear  Jazza, In regards to not  entering above the closing price of the  Entry Signal, the  JB profit Taker as it stands was developed for end of day trading and  you do find that if you keep your order inmarket for a few days it  will usually but not always be filled. However if you have the time to watch the  last hour of the days trading  you can enter on the day of the entry signal  if you know when an entry signal will be generated.

I do this by plotting the line
EntryLine := llv(L,20)+2*atr(10);    on the chart.
Everytime the close of the day moves from below this line to above, an entry flag is generated on the chart. So you can make an educated guess as to whether todays close will generate an entry signal based on the end of day price activity.

There is one more thing about the Bullcharts Entry/Profit Take/Stopped out flags, that you should be aware of. And that is that they represent a completed trade from start to finish. And once a Start Flag has been Generated No other Start Flags will be generated until either a Profit Take or Stopped Out Flag has been Generated. BUT there usually are other positions in which a Start Flag is Valid for entering the trade and often these are in a better position with regard to the RSI oversold.
Basically if you look at the default BERG chart everytime the berg candle changes from RED to BLUE indicates a possible start.

Personally what I did  is create an indicator using the following code
and called it JBEntry Only

[target=Price; author=Berg, Jim; category=Stop Loss|Volatility]

al := input("ATR Length", 10, 1);
am := input("ATR Multiplier", 2, 0);
use15 := input("Combine with P15 1=yes, 0=no", 1, 0, 1);

[name=JBPT; color=Orange]
pt := ma(H,13,E) + am*ATR(al);
pt;

[name=Stop; color=Black]
ts := hhv(C-am*ATR(al),if(use15,15,1));
ts;

[name=EntryLine] [color=Dark Orchid]
EntryLine := llv(L,20)+2*atr(10);
EntryLine;

entry := cross(C,(llv(L,20)+2*atr(10)));
takeprofit := true;
stopped := true;

inMarket :=
if (entry, true,
if (takeprofit or stopped, false, prev));

[name=Start; linestyle=marker; marker=type1; tooltip="Volatility Start"]
inMarket and not hist(inMarket,1);

Then I go back to my charts and bring up the default BERG chart.
Click on the chart on the profit taker line then Delete Key.
Then I click on add an indicator at the bottom of the screen and select my new indicator JBEntry Only.

Then as I prefer candles I change the bars to candlesticks.
Doubleclick on a candle and change the color to "Price change since open".
 I then "Save as Template"  from the file menu to a new name such as "Volatility Entry.bct".
Then click on customise templates at the bottom of the screen and ADD, choose "Volatility Entry.bct" and give it a 3 letter abbreviation suchas VEP and there you have a new template that you can use to predict  POSSIBLE entries.  I say POSSIBLE because remember all the other entry criteria must also be true, RSI OVERSOLD , RISING  STOCK RISING SECTOR.

As profit taking flags only occur when closing price is greater than the profit taker plot, I don't include these flags.
As Stop Loss flags only occur when closing price is below the stop loss line for 2 consecutive days I also do not clutter up my chart with this info.

You should also be aware that you can do 2 styles of trading the JB.
Short Term which we have discussed and Long Term where the entry is the same but you never take profit and you switch to a weekly chart once you switch from your initial stop to a trailing stop and only close out you position if the stock closes below the stop on the weekly chart for 2 consecutive weeks or the Major indices are behaving with extreme volatility. eg now.

Finally  you can get lots of useful info from  www.sharescene.com in the ask Jim Berg section and even ask Jim questions, a truly valuable resource and free.
As for using JB intra day I don't know.
I am however trying to create a JB for shorting.
Regards theferret
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jazza View Drop Down
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Posts: 33 		Post Options Post Options   Quote jazza Quote  Post ReplyReply Direct Link To This Post Posted: 06 Sep 2007 at 11:46pm

Hi ferret,

You are extremely generous with you time and info. Just finished reading your post and that’s a lot of interesting material to digest. Will work on it over the next several days and let you know how I get on. 

Thanks, Jazza

 

 

 
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jazza View Drop Down
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Posts: 33 		Post Options Post Options   Quote jazza Quote  Post ReplyReply Direct Link To This Post Posted: 02 Oct 2007 at 11:33am

Hi, Ferret,

A word of thanks. Have been using your JB entry only indicator for several weeks now. It’s an excellent tool as it allows you to visually track your watch list and know how close or far your various shares are from the entry line.

I have the indicator as a stand alone Indicator and also added it to the JB Volatility Template. The indicator has been immortalized as the Ferret indicator!

Cheers,

Jazza
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TheFerret View Drop Down
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Posts: 9 		Post Options Post Options   Quote TheFerret Quote  Post ReplyReply Direct Link To This Post Posted: 02 Oct 2007 at 4:28pm
Thanks!
Glad to be of help,
regards
The Ferret
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