[TraderGeek]

Hi all,

I've been working on a system based mostly on the "TradeTheSlope" system posted originally by EMATrader and also used by PTOURNIS with data in his journal and blog. I developed an EA based on the system (I know there is al ready one in the EMATrader thread but I like to write my own ... helps me understand the system better). Based on back and forward testing, the system did pretty well but the one thing I realized was that there is some discretion involved in terms of the "degree" of the slope. Or in other words, how strong is the trend. So I played with adding an ADX filter to the EA and have had some great results. The EA is up 433 pips on demo since 2/15.

I decided to put this in its own thread to keep things clear in terms of the differences between this system and the original EMATrader and/or PTOURNIS.

In order to enter a trade, the Slope Direction Line must match on the D1, H4, H1, and M30 time frames. This is the original system. My tweak was to add a condition that the ADX14 must be above 40. While this keeps us out of some good trades, it keeps us out of a LOT more bad trades.

The initial stop loss is set to 50. Once the trade gains 100 pips, the stop loss is moved to +10. Then we trail the stop 50 pips for each additional 50 pip gain. There is no TakeProfit, relying on the StopLoss to take us out. I played with taking us out when the signal changes and/or the ADX drops below 40 but found that whipped too many good trades. So this is basically PTOURNIS's stoploss system. The only ohter thing I do is that sometimes I will exit manually based on what I'm seeing on the chart (i.e. slope weakening, ADX dropping, S/R, etc.)

Here are my gains by pair running this since 2/15:

Closed Trades:
AUDCAD +199
AUDJPY +91
AUDUSD +71
NZDUSD +51
EURAUD +9
EURUSD +77
GBPUSD -65

I'm attaching the EA and SlopeDirectionLine indicator here if anybody wants to try it. Note that for some reason the backtester doesn't like the ADX and always has it at 0 so the backtester will not take any trades. Also, if anyone has any insight unto why iADX() is not working in the backtester I'd certainly be interested.

The other thing to note is that right now, the EA uses the defaults of 80,3,0 for all pairs. I know some work has been done on curve fitting this but I didn't include any of that. If anyboyd has a list of settings by pair they've found work well, post it here so we can try them. I'll need to modify the EA to parameterize the settings but that's not hard.

[imransait]

Hi

Nice to see your thread, if you can make the curve fitting to be open so we can make changes to the pair and timeframe it will be good, see if you can do it.

also is it possible that it takes only one timeframe to take the trades instead of seeing multiple timeframes as in the original method, if you can add a true and false filter, this way we can choose to use multiple timeframes or the single timeframe, just my thoughts

Will check this EA out and update you

imran

Originally Posted by TraderGeek

Hi all,

I've been working on a system based mostly on the "TradeTheSlope" system posted originally by EMATrader and also used by PTOURNIS with data in his journal and blog. I developed an EA based on the system (I know there is al ready one in the EMATrader thread but I like to write my own ... helps me understand the system better). Based on back and forward testing, the system did pretty well but the one thing I realized was that there is some discretion involved in terms of the "degree" of the slope. Or in other words, how strong is the trend. So I played with adding an ADX filter to the EA and have had some great results. The EA is up 433 pips on demo since 2/15.

I decided to put this in its own thread to keep things clear in terms of the differences between this system and the original EMATrader and/or PTOURNIS.

In order to enter a trade, the Slope Direction Line must match on the D1, H4, H1, and M30 time frames. This is the original system. My tweak was to add a condition that the ADX14 must be above 40. While this keeps us out of some good trades, it keeps us out of a LOT more bad trades.

The initial stop loss is set to 50. Once the trade gains 100 pips, the stop loss is moved to +10. Then we trail the stop 50 pips for each additional 50 pip gain. There is no TakeProfit, relying on the StopLoss to take us out. I played with taking us out when the signal changes and/or the ADX drops below 40 but found that whipped too many good trades. So this is basically PTOURNIS's stoploss system. The only ohter thing I do is that sometimes I will exit manually based on what I'm seeing on the chart (i.e. slope weakening, ADX dropping, S/R, etc.)

Here are my gains by pair running this since 2/15:

Closed Trades:
AUDCAD +199
AUDJPY +91
AUDUSD +71
NZDUSD +51
EURAUD +9
EURUSD +77
GBPUSD -65

I'm attaching the EA and SlopeDirectionLine indicator here if anybody wants to try it. Note that for some reason the backtester doesn't like the ADX and always has it at 0 so the backtester will not take any trades. Also, if anyone has any insight unto why iADX() is not working in the backtester I'd certainly be interested.

The other thing to note is that right now, the EA uses the defaults of 80,3,0 for all pairs. I know some work has been done on curve fitting this but I didn't include any of that. If anyboyd has a list of settings by pair they've found work well, post it here so we can try them. I'll need to modify the EA to parameterize the settings but that's not hard.

[TraderGeek]

Originally Posted by imransait

Nice to see your thread, if you can make the curve fitting to be open so we can make changes to the pair and timeframe it will be good, see if you can do it.

I think what I'm going to do is make it so you can have a text file with the settings by pair. Rather than having to change the parameters for each chart you put it on. The less room for human error, the better.

Do you have some sample settings you use for diff pairs so I can play with it?

Originally Posted by imransait

also is it possible that it takes only one timeframe to take the trades instead of seeing multiple timeframes as in the original method, if you can add a true and false filter, this way we can choose to use multiple timeframes or the single timeframe, just my thoughts

I can add this pretty easily.

Will try to get both of these done and post a new version.

[Pluto2]

TraderGeek,

thanks so much for sharing. The ADX addition is a great idea!

Regards

[viatoris]

Hi TraderGeek,

It looks very interesting Slope system version, thanks for your idea.

I have some questions, can you help me ?

Which time frame do you attach EA to ? (M30 or H1 or H4 or D1)
Can you attach ADX indicator and some display screens too ?
Do you use your Slope-ADX system with 7 pairs or more ? (AUDCAD AUDJPY AUDUSD NZDUSD EURAUD EURUSD GBPUSD) Which pairs do you recommend ?

Maybe do you test your system from 01/01/2008 to 31/01/2008, because this month was very killer for some FX trading system what perform very good in 2007 ?

Regards

Viatoris

[TraderGeek]

Originally Posted by viatoris

Hi TraderGeek,
Which time frame do you attach EA to ? (M30 or H1 or H4 or D1)

I put it on H1 since that's what I like to look at. But it really doesn't matter since the TF caluclations are hardcoded in the EA. So whatever you want to look at from a discretionary standpoint is fine.

Originally Posted by viatoris

Can you attach ADX indicator and some display screens too ?

The ADX indicator is a default indicator in MT4. Nothing special about it. It is called "Average Directional Movement Index" and should be in your Indicators folder.

Originally Posted by viatoris

Do you use your Slope-ADX system with 7 pairs or more ? (AUDCAD AUDJPY AUDUSD NZDUSD EURAUD EURUSD GBPUSD) Which pairs do you recommend ?

I've been testing with every pair my platform has. Pairs where trades were taken are listed in the first post. As far as recommendations, I'd appreciate input on that from other SlopeSystem traders as I'm pretty new to the SlopeSystem overall. Mine is just that system with the ADX tweak.

Originally Posted by viatoris

Maybe do you test your system from 01/01/2008 to 31/01/2008, because this month was very killer for some FX trading system what perform very good in 2007 ?

As I said in the first post, unfortunately this EA doesn't work in the backtester. So forward testing is all we can do.

[viatoris]

Originally Posted by TraderGeek

I put it on H1 since that's what I like to look at. But it really doesn't matter since the TF caluclations are hardcoded in the EA. So whatever you want to look at from a discretionary standpoint is fine.

The ADX indicator is a default indicator in MT4. Nothing special about it. It is called "Average Directional Movement Index" and should be in your Indicators folder.I've been testing with every pair my platform has. Pairs where trades were taken are listed in the first post. As far as recommendations, I'd appreciate input on that from other SlopeSystem traders as I'm pretty new to the SlopeSystem overall. Mine is just that system with the ADX tweak.As I said in the first post, unfortunately this EA doesn't work in the backtester. So forward testing is all we can do.

Thanks a lot for fast answers. :o)

There is my another question : In first post, you wrote "ADX14 must be above 40" ? ADX14 on D1 or all TF(M30, H1, H4, D1) ?

Regards

[goodbadmas]

Originally Posted by TraderGeek

Hi all,

I've been working on a system based mostly on the "TradeTheSlope" system posted originally by EMATrader and also used by PTOURNIS with data in his journal and blog. I developed an EA based on the system (I know there is al ready one in the EMATrader thread but I like to write my own ... helps me understand the system better). Based on back and forward testing, the system did pretty well but the one thing I realized was that there is some discretion involved in terms of the "degree" of the slope. Or in other words, how strong is the trend. So I played with adding an ADX filter to the EA and have had some great results. The EA is up 433 pips on demo since 2/15.

I decided to put this in its own thread to keep things clear in terms of the differences between this system and the original EMATrader and/or PTOURNIS.

In order to enter a trade, the Slope Direction Line must match on the D1, H4, H1, and M30 time frames. This is the original system. My tweak was to add a condition that the ADX14 must be above 40. While this keeps us out of some good trades, it keeps us out of a LOT more bad trades.

The initial stop loss is set to 50. Once the trade gains 100 pips, the stop loss is moved to +10. Then we trail the stop 50 pips for each additional 50 pip gain. There is no TakeProfit, relying on the StopLoss to take us out. I played with taking us out when the signal changes and/or the ADX drops below 40 but found that whipped too many good trades. So this is basically PTOURNIS's stoploss system. The only ohter thing I do is that sometimes I will exit manually based on what I'm seeing on the chart (i.e. slope weakening, ADX dropping, S/R, etc.)

Here are my gains by pair running this since 2/15:

Closed Trades:
AUDCAD +199
AUDJPY +91
AUDUSD +71
NZDUSD +51
EURAUD +9
EURUSD +77
GBPUSD -65

I'm attaching the EA and SlopeDirectionLine indicator here if anybody wants to try it. Note that for some reason the backtester doesn't like the ADX and always has it at 0 so the backtester will not take any trades. Also, if anyone has any insight unto why iADX() is not working in the backtester I'd certainly be interested.

The other thing to note is that right now, the EA uses the defaults of 80,3,0 for all pairs. I know some work has been done on curve fitting this but I didn't include any of that. If anyboyd has a list of settings by pair they've found work well, post it here so we can try them. I'll need to modify the EA to parameterize the settings but that's not hard.

hi,
do you have a template to use with this ??
thanks,
goodbadmas

[TraderGeek]

Originally Posted by viatoris

Thanks a lot for fast answers. :o)

There is my another question : In first post, you wrote "ADX14 must be above 40" ? ADX14 on D1 or all TF(M30, H1, H4, D1) ?

Regards

The ADX check is H1 only. BTW I found the backtester bug so next version we can back test.

[TraderGeek]

Originally Posted by goodbadmas

hi,
do you have a template to use with this ??
thanks,
goodbadmas

Here you go.

[goodbadmas]

Originally Posted by TraderGeek

Here you go.

thanks, i will test it and let you know ..

Goodbadmas

[viatoris]

Originally Posted by TraderGeek

The ADX check is H1 only. BTW I found the backtester bug so next version we can back test.

That's super. Thanks, but I also found value of ADXH1 on chart window, when I attached your EA. :o)

[TraderGeek]

BTW, only signal I have right now out of the 19 pairs I'm testing with is EURUSD Long. Market has been choppy latter part of this week so we can see this keeps us out pretty well. My open EURUSD is +90 or so right now. Price has stalled at the Daily R2 but it also seems to be acting as resistance. So we will see if it will continue up or come back down.

But this illustrates the discretionary part. I use daily pivots to see key levels as well as keep an eye on the ADX. If it continues to consolidate here ... the ADX will come down. I may choose to exit at the +100 instead of possibly giving back 50 pips.

[goodbadmas]

Originally Posted by TraderGeek

BTW, only signal I have right now out of the 19 pairs I'm testing with is EURUSD Long. Market has been choppy latter part of this week so we can see this keeps us out pretty well. My open EURUSD is +90 or so right now. Price has stalled at the Daily R2 but it also seems to be acting as resistance. So we will see if it will continue up or come back down.

But this illustrates the discretionary part. I use daily pivots to see key levels as well as keep an eye on the ADX. If it continues to consolidate here ... the ADX will come down. I may choose to exit at the +100 instead of possibly giving back 50 pips.

as per your saying .. i opened up my eurusd chart to see ... and it opened up a order for me at 1.4814 ... i think if the price comes down from here .. it will be a loss for me on the demo account ...

ummm ....

goodbadmas

[goodbadmas]

also i have a questions ... it says all the trends .. up or down .. how do you calculate the trends if they are up or down ?? am just curious

Thanks,
Goodbadmas