mholstius Veteran   Posts: 175 Joined: 1/13/2017  User Profile | Good morning Keith… You’ve put a lot of thought and time into your document, and it’s a good review of what happens in the Macro And Micro method. As I understand it, you’re wondering how to combine the 3 Macro and 3 Micro states to get 9? That’s the beauty of ATM: it's already been done for you. The combination of each set of 3 into 9 separate states has been accomplished by combining the conditions that define each Macro state with each Micro state into one formula in each of the 9 Macro and Micro states. I’ll try to explain using some color coding... This is the condition that defines the Macro Bear state; SMA(BOP(200,20) <= 0) This is the condition that defines the Micro Bear State; (MACD_HIST(10,15,90)<0) AND ((VTY_PRICE(10,25)>VTY_PRICE(10,20)[1]) OR (VTY_PRICE(10,25)>VTY_PRICE(10,25)[1])) AND (BOL_UPPER(14,1.20)>=H) AND (BOL_Middle(14,1.20)>=L) In the Bear and Bear state, those two conditions are combined and result in this; ((SMA(BOP(200),20) <= 0) AND ((MACD_HIST(10,15,90)<0) AND ((VTY_PRICE(10,25)>VTY_PRICE(10,20)[1]) OR (VTY_PRICE(10,25)>VTY_PRICE(10,25)[1])) AND (BOL_UPPER(14,1.20)>=H) AND (BOL_Middle(14,1.20)>=L))) The key is the AND in the formula that combines the 2 conditions. To see the combination of Macro Bull and Micro Bear… This is the condition that defines the Macro Bull state; SMA(BOP(20),20) > 0 Again, this is the condition that defines the Micro Bear State; (MACD_HIST(10,15,90)<0) AND ((VTY_PRICE(10,25)>VTY_PRICE(10,20)[1]) OR (VTY_PRICE(10,25)>VTY_PRICE(10,25)[1])) AND (BOL_UPPER(14,1.20)>=H) AND (BOL_Middle(14,1.20)>=L) In the Bull and Bear state, those two conditions are combined and result in this; ((SMA(BOP(20),20) > 0) AND ((MACD_HIST(10,15,90)<0) AND ((VTY_PRICE(10,25)>VTY_PRICE(10,20)[1]) OR (VTY_PRICE(10,25)>VTY_PRICE(10,25)[1])) AND (BOL_UPPER(14,1.20)>=H) AND (BOL_Middle(14,1.20)>=L))) Again, the key is the AND in the formula that combines the 2 conditions. The "grunt work" of combining the conditions to make 9 market states is accomplished within each state and has already been done for you. Also, please note that it is not a misprint: there are 2 different BOPs used. The Macro Bear uses BOP(200,20) and the Macro Bull uses BOP(20,20) As you stated, ATM will currently evaluate each market state in order and stop when a particular formula is satisfied - which is why the final state (Default and Default) contains nothing. It will fire to allow trades if none of the 8 previous conditions have been met. I hope this helps clarify it for you. You don’t have to do any combining - it’s done for you within each of the states. I’m sure that you’re not the only one wondering about it, so I’m glad you brought it up. Mark | |
