OK. I changed the SMA into EMA. The lines touches each other but no cross. Did you consider that they WILL cross each other and WILL generate a BUY signal or they actualy crossed on your charts?
Stopped out @ 52. The first post states smas, emas are just my preferences change back. Trade with the trend on the 4h chart, better than the 2.
Reason for entry was stochs turning up also RSI on 4H plus other things e.g., res turning to support around the 249 level. Obviously wasn't to be.
Hope this helps
Dave
There was an excelent signal at around 19:00 GMT but I used 100EMA and 9EMA, 1 week chart, 30 minutes time frame.
The candle at the crossing was between [249.66, 249.49] and the price went down to 248.92.
So the results could be between [57 and 74] pips in the next hour and a half. Minus spread, of course.
I've been trading for quite a while mainly news. But i have been working on an extremely simple but powerful trading system, based on Crossovers here it goes...
Pairs
Any.. but i use the GBP/JPY
Time frame
30min-1hr
Indicators
9 SMA on close
100 SMA on close
Ignored
Is SMA the Simple Moving Average or is it the Smoothed Moving Average?
Doing a visual backtest, this seems like potentially a very good system.
Is SMA the Simple Moving Average or is it the Smoothed Moving Average?
Doing a visual backtest, this seems like potentially a very good system.
Ignored
It is a simple moving average; but surely this 9/100 SMA cross system must have other parameters to it; moving average crosses are no good if used as an "always in" method, going long when cross up happens and short when cross down.
Does anyone know the rest of the system with this 9/100 SMA cross system?
It is a simple moving average; but surely this 9/100 SMA cross system must have other parameters to it; moving average crosses are no good if used as an "always in" method, going long when cross up happens and short when cross down.
Does anyone know the rest of the system with this 9/100 SMA cross system?
Ignored
Its pretty much just a MA crossover system. The timeframes for the averages used are designed to avoid <most> but not all whips. It provides easy entries, but exits are harder with this system, that's mostly what has been discussed.
I have seen esp. on higher TFs (daily and weekly) that this system is very effective. Personally, I have this combined with a 28 period Donchian channel which shows me when we are making higher highs and lower lows, and this helps me to exit long moves without waiting for the averages to recross. Of course, it also means I will sometimes get out too early.
Its pretty much just a MA crossover system. The timeframes for the averages used are designed to avoid <most> but not all whips. It provides easy entries, but exits are harder with this system, that's mostly what has been discussed.
I have seen esp. on higher TFs (daily and weekly) that this system is very effective. Personally, I have this combined with a 28 period Donchian channel which shows me when we are making higher highs and lower lows, and this helps me to exit long moves without waiting for the averages to recross. Of course, it also means I will sometimes get out too early.
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Joined Jul 2007
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Status: Seasoned Lurker
|242 Posts
Bundubill,
I wait for the open of the next daily candle. This means I enter most trades in the off hours, between the US session close and the next European session open. This makes it easy to go home and look at forex in the evenings (EST).
Dreamliner,
I'm leaving from work in a few minutes, but tomorrow I'll post a chart that shows how I exit using the Donchian channel. I actually got the indicator from this website, so I want to look up the link to it. It has nice entry indicators for trend following, but that's not how I use it.
Example without the charts...
I see a 9 / 100 MA cross. I look to see that its going in the general direction of the trend ( using weekly or monthly timeframe ). Then enter on next candle. For exits, I look at the donchian channel indicator to see that we are done making higher highs, and then look for a decent retrace away from the channel ( several day's worth not just one day ) and this provides a good exit signal. This will be before we get another cross of the MAs.
Keep in mind I'm only demoing this strategy for now but I plan to stick with it. I got the idea of using the donchian channel from reading "Trend Following" by Michael Covel. Excellent read btw.
I wait for the open of the next daily candle. This means I enter most trades in the off hours, between the US session close and the next European session open. This makes it easy to go home and look at forex in the evenings (EST).
I wait for the open of the next daily candle. This means I enter most trades in the off hours, between the US session close and the next European session open. This makes it easy to go home and look at forex in the evenings (EST).
Dreamliner,
I'm leaving from work in a few minutes, but tomorrow I'll post a chart that shows how I exit using the Donchian channel. I actually got the indicator from this website, so I want to look up the link to it. It has nice entry indicators for trend following, but that's not how I use it.
Example without the charts...
I see a 9 / 100 MA cross. I look to see that its going in the general direction of the trend ( using weekly or monthly timeframe ). Then enter on next candle. For exits, I look at the donchian channel indicator to see that we are done making higher highs, and then look for a decent retrace away from the channel ( several day's worth not just one day ) and this provides a good exit signal. This will be before we get another cross of the MAs.
Keep in mind I'm only demoing this strategy for now but I plan to stick with it. I got the idea of using the donchian channel from reading "Trend Following" by Michael Covel. Excellent read btw.
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Joined Jul 2007
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Status: Seasoned Lurker
|242 Posts
Here's my chart with explanations of what I'm looking for. I'll try to find the donchian channel metatrader link later...you could probably do a forum search and find it though.
When I look through history I cant really see any pattern with the RSV.
If you put an 100 RSI on and then buy or sell only when the 9 MA and 100 Cross and the RSI cross's the 50 level. If the RSI drops below the 50 mark Sell and rises above buy. I would say its good within about 5 or 6 bars prior or after you recieve the MA cross signal.
Ignore all other signals if the RSI hasnt recently crossed the 50 mark and it tends to avoid the false signals.
I havent practiced this yet will start on monday.
I cant see any good exit method yet maybe a 25 trailing stop.
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Joined Mar 2007
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Status: It's hard out there for a pip....
|28 Posts
wow! Why did THIS thread die? Stumbled upon it, and have found this to be a great system! I'm using it a lot, and can't see why the posting just stopped. Anyone left?
Within apparent chaos there is order for those who know how to look
