An Easy System (With the help of ES Trader - Another Simple System)

I must say that the concept of this system is taken from ES Trader's "Another Simple System" Thread.
http://www.forexfactory.com/showthread.php?t=239951

The Indicators:
Bull and Bear Indicator
Damiani Indicator

The Look-Outs:
1. Trade only when the Damiani Indicator shows a "Trade"
2. Using the Bull and Bear values, if the Bull ABSOLUTE value is larger than the Bear ABSOLUTE value = Long Position. The opposition for a Short Position. (refer to NOTE for a better understanding)
3. After the first "cross-over", you can continue to look for subsequent trades in the same direction as long as the Damiani Indicator still shows a "Trade". But this part gets a little tricky. For example, (long position) calculate Difference between the Bull value and the Bear Value, make sure the difference is greater than the previous candlestick then make the entry. The opposite for a short position.

Money Management:
I have been using a 20pip TP and the SL is the highest point of the last 2 candlesticks.

NOTE: sometimes, the values in the Bull and Bear will have a negative sign in front of them, simply IGNORE the negative sign and use the absolute value in the calculation. For example, Bull is 0.00164 and Bear is -0.00701, it will be a SHORT position and the Difference is calculated as 0.00701 - 0.00164 = 0.00537.

I'm currently testing on GBP/USD H1. If there is anyone out there who is able to come up with an EA, it would be very much appreciated and a more detailed backtesting can be done.

can't code ea's unfortunately, but will take a look at your system, thanks for posting it.

What time frames are you looking at?

i'm currently looking at 1 hour charts, as i found out that by using a 4 hours chart for example, different broker has different start and end time for a candlestick and may result in a different indications.

jjteo,

Just need to check something with you if thats ok?

When you say.....

3. After the first "cross-over", you can continue to look for subsequent trades in the same direction as long as the Damiani Indicator still shows a "Trade". But this part gets a little tricky. For example, (long position) calculate Difference between the Bull value and the Bear Value, make sure the difference is greater than the previous candlestick then make the entry. The opposite for a short position.

Are you refering to the cross on the Damiani indicator?

The first "cross-over" means either the Damiani crosses from DO NOT TRADE to TRADE or the Bull takes over the "lead" from the Bear.

It simply means if any 1 of the 2 indicators show an opposite signal for the first time.

Hi Jjteo,

Thanks for sharing your system. If I´m right, you wait for the open of a new 1 hour candle, then if Bulls-Bears is positive and Damiani says trade, you enter a trade. Then if next candle shows a difference Bulls-Bears higher than the first one, you re-enter, but the first one is the open or the close of the first 1H candle?

Thanks

Yes, you are correct. Always wait for the close of the candlestick and make entry at the opening of the new candlestick.

Do NOT do anything to existing position (ie leave them open) UNLESS its an opposite signal from Long to Short or Short to Long.

great system, good implementation!

I seriously need help with these two indicators that I got elsewhere as my programming skills cannot acheive this, I want both to signal alert only when the candle has closed, and the alert must only be once on close of this candle(the alert signal on 'Bband stop alert' is when the arrows are formed on the chart, while the alert signal on 'SEFC084' is when a bar cross above or below the zero line). I will be grateful if someone could help with these modification

Your indicator in trading system is quite looking good jjteo! I were enjoyed to learn your indicator information. And i got some info regarding forex indicators.

Hi there,

Just read your stuff. Well done for coming up with this.
To attract more people to have a look and give it a try, it is always better to post a chart and in the chart explain how to use your indicator. It becomes easy for people to see and follow your explanations.

Look at the big threads that have done so well here, they always had good big charts with details on them.

Just a thought.

here just make your bars ticker for ex. 2

2 MAY 11:00-23:00(GMT) - TRADE AREA:

(actual candle) (bear) (bull) (diff) (my trade)
1. bull 358 81 277 L correct
2. bear 316 3 313 L wrong
3. bear 356 99 257 S correct
4. bear 375 220 155 S correct
5. bear 395 201 194 L wrong
6. bull 371 138 233 L correct
7. bull 346 105 241 L correct
8. bear 101 76 25 S correct
9. bull 78 72 6 S wrong
10. bull 52 7 45 L correct
11. bull 49 4 45 L correct
12. bull 38 33 5 S wrong
13. bear 5 56 51 L wrong

I drew up this in a hurry... hope it make sense... 5 out of 13 trades I guessed wrong.
I think the system has got great possibility .... it will be appreciated to assist me...... why u think I went wrong 5 out of 13 trades?
I just went with the difference reading all the time... if it goes up, I went long...etc.
Thank u kindly.

PS: I don't think an EA will be too difficult for some of the programmers...I've seen them come up with very special indicators and modifications, etc, on some of the other threads.

Yes, I used GBPUSD H1 chart.

A negative will be to babysit this system, so an ea will be essential.

Also one will find some of the bars to be very short, less than 20 pip(what u suggest an TP should be), and when there is a reversal in trend after a short bar, you will run back to your SL (correct?).

On the other hand, consecutive short bars in the same direction should keep your initial entry(or entries) from the 1st short bar(s) still trading....if I understand you correctly.

Thank you kindly jjteo, and for letting me add my pennies worth....
Would appreciate any effort to get this to EA status.
All of the best.