Reverse Darvas

[goldfly]

Ever since I came across Darvas Boxes I've always found it kind of compelling, but the idea that it is only constructed for up markets really bugged me.

Soooooo...... I introduce to you Darvas Down!

This is the Ninja Trader implementation of Darvas Boxes, except I swapped the logic so that it works for a bear market. I would dearly love for one of the gurus to comb through this to make sure I didn't mess something up.

In the examples I show it first with the just the down version. (With white being the color of support.)

Then with both (Kind of busy).

Thirdly with both but the non-tradable lines removed. (Although they COULD be tradable, that's not what they were meant for..... I guess.)

[NinjaTrader_Ray]

Thanks for your contribution!

[AgeKay]

Ever since I came across Darvas Boxes I've always found it kind of compelling, but the idea that it is only constructed for up markets really bugged me.

Hey Goldfly,

could you please clarify why the original Darvas Boxes are only constructed for up markets?

Thank you very much in advance!

[goldfly]

Hi AK

Actually, I don't know. You would have to study Darvas.

I know that he only bought never shorted. Great for a bull market.

[Elliott Wave]

Thanks again Goldfly.

To make sure I understand properly, go short when the close crosses the box, and then cover when it crosses it again?

Or if I were to change the lower plot back to red, go short when Upper CrossBelow Lower and cover when Upper CrossAbove Lower?

Great for a bull market.

So is buy and hold.

[AgeKay]

Hi AK

Actually, I don't know. You would have to study Darvas.

I know that he only bought never shorted. Great for a bull market.

I did read Darvas several times but that is some time ago. You're right that he never shorted, but I remember that he closed his position (sold his stocks) when the box bottom was broken, which is the equivalent of going short. I might have to read it again to understand whether or not these boxes are only meant for bull markets.

[goldfly]

Thanks again Goldfly.

To make sure I understand properly, go short when the close crosses the box, and then cover when it crosses it again?

Hi Ewave & AK,

I can't speak to particulars. Absolutely unqualified. All I know is what I see there really. Except I do remember reading somewhere that it was only intended for buying and that the lower line didn't behave the same way as the top.

AK, I'd have to disagree, executing an exit plan for a long position shouldn't be considered the same as taking a short. And if you look at the second screenshot, assuming I got the logic correct - which I think I did, they produce quite different results.

Maybe I could have put this out as beta. (Didn't think about it at the time.) But at least I made it known that the logic isn't certified. And in the end, the whole idea may be boffo. It's only an experiment. I just found it compelling the way those boxes behaved and wanted to apply simular logic for the downside.

[zukkaweb]

Darvas Rules,

well guys the mitos Darvas in hungarian country, is like Larry William in US,

Many instětutional have ts based on it....in HU

the way of working at our times, is different from the time that he wrote the books.

there are many reason that i could explain but this is not the focus.

to be kiss The right setup is the opposite how is written in nj.

I am not a programmer but a trader, so i try to load this in nj and see how does it works...

The new Darvas include the concept of volatility, regression and money managment and volume....not only the price like at the beginning.

The good trade are made in the range on the two line.

when you find the right setup for you, no bars go out, because they are autoadaptive, or you chould choise a % of variance from the price.

i explained in the best way that i could do.

Another Darvas is to setup that you trade all the break of the line, but is different.

the 3rd Darvas is to make a correlation strategy from the first and the second.


these are really the basic, but remember that he trades in a very simple ways, in the "Darvas Channal" you find, but this is my opinion, the real swing.

bye