Hi all... long time lurker first time poster; I thought it would be good to give a little something back to the community which has helped me so far along on my forex adventure!
So as if there aren't already enough indicators and trading systems out there, here's another. AFAIK I am not ripping anyone off here LOL. The trading system is still fairly loose as I am testing different approaches, however I think the indicator is pretty cool and I wanted to share it.
Stochastic lovers will probably like this one. I was hooked on stochs for a while, but then started on a quest for something with a little less noise. I wanted smooth clean lines with sharp peaks and valleys, and little to no lag. Yes, I know, I want it all. The result is basically a hybrid of Schaff's Trend Cycle and Ehlers' Fisher Transform. In other words, MACD -> Stochastic -> Fisher Transformation.
While there are a number of ways you could use this indicator, I am currently using (i.e. back/forward testing) it in multiple timeframes, along the same lines as Spudfyre's MTF Stochastic system as described in his trade journal. I won't go into all the intricacies here. Basically you start on a lower timeframe---usually I enter a trade when the 15M and 30M charts agree---and move up to higher timeframes when they agree with the lower timeframes; if the lower timeframes give an exit signal before the higher timeframes start moving in the same direction, then get out of the trade. Entering a trade with support from the higher timeframes is preferable but not absolutely mandatory. Can take profit/pyramid trades on lower timeframe crosses. That's the trading system in a nutshell, still getting refined and solidified.
Another approach, a little more conservative, is to only take signals on the lower timeframes when they have support from the higher timeframes. Then it is a more strict trend-following system, more like TEB63's MTF Stochastic method.
The default Yoni Yum settings are 9, 12 (fast and slow EMAs), 6 (stochastic period), 2 (smoothing EMA). With these settings it gives more or less identical signals as a stoch(12,3,3), but with significantly less noise. This actually makes a good side-by-side comparison (attaching a screenshot of this). With larger values you can capture some longer range price movements, but introduce a little lag. All in all I think Yoni Yum can be used any time you would normally use a stochastic oscillator, and I find that overall it gives cleaner, more accurate signals. If nothing else it's nicer to look at :
If you decide to give this indicator a try, I'd love to hear what you find to be the best settings as I'm still experimenting quite a bit with it. I also welcome any comments or suggestions for improvement (I am an MQ4 noob). Enjoy!
Sylvan
P.S. Those are heiken ashi bars laid over OHLC bars in the screenshot, just so you don't get confused
PPS. I have updated the MQ4 file. The smoothing EMA is now hardcoded to use 2 periods, since I never seem to change this value; longer smoothing periods start introducing unnecessary lag. Also this is more in keeping with the Ehlers Fisher Transform which just uses a 2-period smoothing. Also added Creative Commons license agreement (Attribution-ShareAlike), cleaned up the code a bit and added a few more comments. Hope you can put it to good use.
So as if there aren't already enough indicators and trading systems out there, here's another. AFAIK I am not ripping anyone off here LOL. The trading system is still fairly loose as I am testing different approaches, however I think the indicator is pretty cool and I wanted to share it.
Stochastic lovers will probably like this one. I was hooked on stochs for a while, but then started on a quest for something with a little less noise. I wanted smooth clean lines with sharp peaks and valleys, and little to no lag. Yes, I know, I want it all. The result is basically a hybrid of Schaff's Trend Cycle and Ehlers' Fisher Transform. In other words, MACD -> Stochastic -> Fisher Transformation.
While there are a number of ways you could use this indicator, I am currently using (i.e. back/forward testing) it in multiple timeframes, along the same lines as Spudfyre's MTF Stochastic system as described in his trade journal. I won't go into all the intricacies here. Basically you start on a lower timeframe---usually I enter a trade when the 15M and 30M charts agree---and move up to higher timeframes when they agree with the lower timeframes; if the lower timeframes give an exit signal before the higher timeframes start moving in the same direction, then get out of the trade. Entering a trade with support from the higher timeframes is preferable but not absolutely mandatory. Can take profit/pyramid trades on lower timeframe crosses. That's the trading system in a nutshell, still getting refined and solidified.
Another approach, a little more conservative, is to only take signals on the lower timeframes when they have support from the higher timeframes. Then it is a more strict trend-following system, more like TEB63's MTF Stochastic method.
The default Yoni Yum settings are 9, 12 (fast and slow EMAs), 6 (stochastic period), 2 (smoothing EMA). With these settings it gives more or less identical signals as a stoch(12,3,3), but with significantly less noise. This actually makes a good side-by-side comparison (attaching a screenshot of this). With larger values you can capture some longer range price movements, but introduce a little lag. All in all I think Yoni Yum can be used any time you would normally use a stochastic oscillator, and I find that overall it gives cleaner, more accurate signals. If nothing else it's nicer to look at :
If you decide to give this indicator a try, I'd love to hear what you find to be the best settings as I'm still experimenting quite a bit with it. I also welcome any comments or suggestions for improvement (I am an MQ4 noob). Enjoy!
Sylvan
P.S. Those are heiken ashi bars laid over OHLC bars in the screenshot, just so you don't get confused
PPS. I have updated the MQ4 file. The smoothing EMA is now hardcoded to use 2 periods, since I never seem to change this value; longer smoothing periods start introducing unnecessary lag. Also this is more in keeping with the Ehlers Fisher Transform which just uses a 2-period smoothing. Also added Creative Commons license agreement (Attribution-ShareAlike), cleaned up the code a bit and added a few more comments. Hope you can put it to good use.
Attached File(s)
Yoni Yum.mq4
4 KB
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758 downloads