• Home
  • Forums
  • Trades
  • News
  • Calendar
  • Market
  • Brokers
  • Login
  • Join
  • User/Email: Password:
  • 8:15am
Menu
  • Forums
  • Trades
  • News
  • Calendar
  • Market
  • Brokers
  • Login
  • Join
  • 8:15am
Sister Sites
  • Metals Mine
  • Energy EXCH
  • Crypto Craft

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Printable Version

Similar Threads

Simple Moving Average Vs. Moving Average? 7 replies

Does Moving average actually act as moving S/R ?? 20 replies

Need code CCI channel, CCI with SAR if you can free coding 0 replies

Need combination CCI and moving average alert 0 replies

Journal on Moving Average System 5 replies

  • Trading Systems
  • /
  • Reply to Thread
  • Subscribe
  • 2
Attachments: Moving Average/CCI System
Exit Attachments

Moving Average/CCI System

  • Post #1
  • Quote
  • First Post: Jan 14, 2009 3:38pm Jan 14, 2009 3:38pm
  •  Fenway
  • | Joined Jan 2009 | Status: Member | 8 Posts
A hello to all.

I guess I wanted to post a system I have been tinkering with for a few months now and see if anyone can point anything that may be wrong with it fundamentally that I may just be too close to see. All feedback is appreciated.

Chart Setup:
·Daily EUR/USD Chart.
·8 Period Weighted Moving Average on Closing Price
·40 Period Exponential Moving Average on Closing Price
·40 Period Weighted Moving Average on Closing Price
·90 Period Commodity Channel Index with Upper Band at 100 and Lower Band at -100.


Trade Execution:
·The system is a trend following system combining double moving average crosses and commodity channel trend breakouts.
·Because I am using two different 40 period moving averages there should be a separation between the moving averages, this provides a mechanized system to layer into positions. The entries are as follows:

oWhen the 8 WMA closes with a cross of one of the 40 MAs, you enter long or short 1 Unit in the direction of the 8 WMA.

oWhen the 8 WMA closes with a cross of second, lagged 40 MA, you enter another unit in the direction of the 8 WMA.

o
With this system you are intended to always be at least one unit in the market. Thus when the 8 WMA crosses back over the 40 MAs you close your current position and enter the reverse position.

o
Stop for Moving Average System: The system tells you when to get out, however I feel it is important to attempt to lock in the spread between the lagging 40 MAs when it is possible to do so. A rule to help this is when the second trade entered is +100 pips in profit, move the original trade stop to the entry of the second trade.

o
To use the 90 period CCI breakout you simply enter long or short one unit when the indicator closes across 100 or -100 accordingly. The exit is given when the indicator closes back over or below 50 or -50.

o
All trades are entered at the beginning of each trading day: 4 PM.


Hope this is clear. If you have any questions don't hesitate to post em up.
  • Post #2
  • Quote
  • Jan 14, 2009 3:40pm Jan 14, 2009 3:40pm
  •  Ronald Raygun
  • Joined Jul 2007 | Status: 28 y/o Investor/Trader/Programmer | 5,016 Posts
What do you do if you're in a sideways market?
  • Post #3
  • Quote
  • Jan 14, 2009 3:47pm Jan 14, 2009 3:47pm
  •  Fenway
  • | Joined Jan 2009 | Status: Member | 8 Posts
Sideways markets present challenges for sure. For now I am looking at just following the system. It seems that in sideways markets you get some dips below that hopefully the layering of the indicators will help you break even. There are a lot of false signals in trend following, so I understand, and you just deal with them. I've read that somewhere around a 40% win rate is in line with expectations, just make sure you catch every trend.

Do you have some ideas to cut some side ways action out?
Thanks
  • Post #4
  • Quote
  • Jan 14, 2009 4:03pm Jan 14, 2009 4:03pm
  •  hipofiz
  • | Joined May 2008 | Status: Member | 113 Posts
graph template ???
  • Post #5
  • Quote
  • Jan 14, 2009 4:26pm Jan 14, 2009 4:26pm
  •  Fenway
  • | Joined Jan 2009 | Status: Member | 8 Posts
Don't really have one, you mean like a screen shot.
  • Post #6
  • Quote
  • Jan 14, 2009 5:10pm Jan 14, 2009 5:10pm
  •  Ronald Raygun
  • Joined Jul 2007 | Status: 28 y/o Investor/Trader/Programmer | 5,016 Posts
Quoting Fenway
Disliked

Do you have some ideas to cut some side ways action out?
Thanks
Ignored
1) Manual intervention (I use this method a lot)
2) More indicators
3) Other (I'm developing another solution. I hope to have a prototype which doesn't crash mt4 up by February)
  • Post #7
  • Quote
  • Jan 14, 2009 6:24pm Jan 14, 2009 6:24pm
  •  Fenway
  • | Joined Jan 2009 | Status: Member | 8 Posts
Manual intervention? What do you mean by that. Sure markets could be sideways for a bit but I think you still want to catch every trade in case of a breakout.

What other indicators would you suggest? I'm a commodity analyst by trade and I find less is often more but I am familiar with most indicators out there.

Cheers.
  • Post #8
  • Quote
  • Jan 14, 2009 6:33pm Jan 14, 2009 6:33pm
  •  Ronald Raygun
  • Joined Jul 2007 | Status: 28 y/o Investor/Trader/Programmer | 5,016 Posts
I trade using 34 different EAs sorted into six categories.

 

  1. Trending
  2. Counter-Trending
  3. Ranging
  4. Breakout
  5. Scalping
  6. News

I turn categories of EAs on and off based on how I see the market. Plain and simple. That's manual intervention. Each EA is a specialist in a specific market. So I make sure the EA only runs where it's a specialist.


As for indicators, I'm sure we both know the vast majority of lagging indicators in the trading world. There are also a number of trend-prediction indicators. I have yet to find an indicator which doesn't lag, and tells me regions of support/sideways movement. That is what I mean by "extra indicators"

A realistic start for indicators that we can use now is pivot points, murrey math lines, and others which try to predict regions of support/resistance.

  • Post #9
  • Quote
  • Jan 15, 2009 11:07am Jan 15, 2009 11:07am
  •  ztdep
  • | Joined Oct 2007 | Status: Doctor candidate | 242 Posts
Could you please upload some chart, please
I need time ,I need money, I need more patience
  • Post #10
  • Quote
  • Jan 15, 2009 11:33am Jan 15, 2009 11:33am
  •  Fenway
  • | Joined Jan 2009 | Status: Member | 8 Posts
Here is a copy of a chart covering 2008. Yellow line is 8 WMA. Teal is 40 EMA. Blue is 40 WMA.

Cheers,
the fens
Attached Image (click to enlarge)
Click to Enlarge

Name: Chart24.JPG
Size: 188 KB
  • Post #11
  • Quote
  • Nov 25, 2018 4:47pm Nov 25, 2018 4:47pm
  •  jdrower
  • | Joined Nov 2011 | Status: Member | 8 Posts
Fenway's methodology is certainly clean and elegant. If I were to use something similar, I'd be inclined to draw Trend Lines on the 8-WMA.
Attached Image (click to enlarge)
Click to Enlarge

Name: 2018-11-25_1347.png
Size: 52 KB
  • Post #12
  • Quote
  • Last Post: Jun 3, 2019 11:19pm Jun 3, 2019 11:19pm
  •  dashlat
  • | Joined Jul 2007 | Status: Be Flexible | 335 Posts
Quoting jdrower
Disliked
Fenway's methodology is certainly clean and elegant. If I were to use something similar, I'd be inclined to draw Trend Lines on the 8-WMA. {image}
Ignored
  • Trading Systems
  • /
  • Moving Average/CCI System
  • Reply to Thread
0 traders viewing now
Top of Page
  • Facebook
  • Twitter
About FF
  • Mission
  • Products
  • User Guide
  • Media Kit
  • Blog
  • Contact
FF Products
  • Forums
  • Trades
  • Calendar
  • News
  • Market
  • Brokers
  • Trade Explorer
FF Website
  • Homepage
  • Search
  • Members
  • Report a Bug
Follow FF
  • Facebook
  • Twitter

FF Sister Sites:

  • Metals Mine
  • Energy EXCH
  • Crypto Craft

Forex Factory® is a brand of Fair Economy, Inc.

Terms of Service / ©2021