Di Napoli, RSI, EMA 5 min system

Hi
I favour trading lower highs and higher lows from 5 min charts. This is I understand a nightmare to code. A good looking alternative using some ideas from a certain thread (the writer does not favour EA's so I'll keep his name out) seems to be worthwhile. The ideas are much appreciated though.

Of course its here as a 5 min system but it would work on any time frame with obvious changes to stops etc.

Would there be anyone interested in coding the following:

BUYS
8,3,3 Stochastic DiNapoli crossed up
13 RSI above 45
34 EMA candle must have closed above, or be above, the EMA

SELLS
8,3,3 Stochastic DiNapoli crossed down
13 RSI below 55
34 EMA candle must have closed below, or be below, the EMA

Whistles and bells:

1. If the following can be variable inputs to allow for fine tuning in future, the RSI period and levels (presently 13 and 45/55). The EMA is 34 of close.
2. A variable stop
3. I'd like a stop that moves up say every 10 pips eg a stop of say 15 that moves to 5 once 10 pips in profit, to +5 once 20 up etc etc. So the level of the move in the stop needs to be variable also.
4. A variable take profit level
5. Entry once price has moved 2 pips above/below the close (not the wick) of the candle triggering the entry
6. A manual trade confirmation or the option to have as a signal only
7. An audible alert once the 3 items (stoch cross, rsi and ema) have been met (but before price has moved the 2 pips above/below for entry)

If there are any other ideas/suggestions I'd love to hear them. I hope this isn't too much to ask for.

Thanks in advance to any coders out there.

vantage
r u trading this system
regards

Hi Imad
I'm not specifically trading this method no. I'm trading higher lows, lower highs as per my thread. I've averaged 35% per month return for the last 4 months trading that way i.e. my account has more than doubled in that time.

This is the nearest I've seen that can give an option to that system. It could be used on higher time frames but on 5 min's it would be good to have an audible alert for when you're on the phone etc etc etc.

Some charts. EJ 5 min 6 trades 4 winners, 2 losers. I'm not discussing stop levels here as yet but this would have moved to 5 to 1 if a 25 pip stop was used.

EJ again also 5 winners to 1 loser, nb could have been 4 to 2 depending on exactly where stoch crossed 2nd trade from left, 1 candle later and trade would have been the 2nd loser.

EJ 3 for 3.

EJ again left is a loser, right a big winner.

One thing that may be an issue on coding is the need to have the indicators line up over different bars, an example the trade on far left.

Stoch and rsi signal a trade 4 bars prior to the candle indicated. Its above the 34 ema so no trade. RSI goes up and crosses down on the bar indicated, stoch has stayed crossed down but still no trade. Its only on the next bar that candle closes below the ema.

It seems that some kind of count back would be needed to see if all indicators line up.

I'm getting up in 6 hours to trade so if there are any questions I'll answer tomorrow.

Cheers.

Interesting idea, V. I'm a mere "cut & paste" programmer - and in EasyLanguage only (TradeStation), but I've spent a LOT of time working on automated systems. All the tweaks you suggest are easy for a good programmer, but I would suggest keeping the input variables to an absolute minimum to reduce curve fitting. You also have to "stress" the results to get anywhere close to real time possibilites : one way is to take the worst possibe fill on every entry and exit bar for every trade.

The problem with eyeballing a backtest is that one tends to assume "reasonable" fills, whereas with automation they will often occur one bar later at a worse price.

The last issue with automation is if you are trading successfully on a discretionary basis, as you are : however good a backtest equity curve may look (and assuming it's a realistic one), it is imho almost impossible to find one without drawdown periods significantly longer than you are used to. I know a VERY successsful automated systems trader (7 figure account), who trades a basket of 7 intraday systems. His equity curve will often be flat for months before having a meteoric rise in his account for 2 or 3 months. I have found it impossible to trade a system on a daily basis which will sometimes go essentially sideways for 2 or 3 month periods. Attempting to filter trades by time of day and volatility can assist, but it is very hard to beat or equal the eyes of a good discretionary trader, despite the attractions of finding a way to do so.

Now it's my turn to get off my soapbox .

Good luck with this project !



J.

Moderator,

I think this thread should be in Systems, not programming discussion...

Vantage, i will try to code.

I will post ea in .ex4 but not in .mq4
Hope that's ok.

Hi Akukaya
Thanks for trying, ex4 mq4?? You've lost me already!!
Cheers

Hi jtrade
Personally I'll use as an alert and trade manually.
Cheers

oops sorry forgot to remind you of the comment in post 8, as it may take a couple of bars for everything to fall in line some kind of bars back count would be needed.
cheers