GMMA expert

I'm planning to write a Guppy expert and wonder if there are any experienced GMMA traders here who might suggest testable qualities that could be used as signals. I have a few ideas but not much Guppy experience and so would appreciate any suggestions.

I'm going to write something initially to run on a laptop and wake me up during the European session if something interesting starts to happen. Living as I do in the Chicago area, I usually sleep through Eastern Europe and about half the London action.

Thanks in advance for any and all ideas...

Lou G

I have written a Guppy trading system for VT that is doing well, and my experience may help you make an EA. I used 2 GMMAs and subtracted them, using the 0 cross remainder for entry and exit - positive is buy and negative is sell. I am using 10 and 33 periods with an offset of 1 instead of 0 cross. Or you could also use a simple cross of these lines too as trading points. Going back to 7/17 it is showing 650 pips profit on a GBP US 30 min chart. The nice thing about VT is that the profit display is accurate - unlike MT4's backtester. A drawback is that trading is at close of the bar currently. There is work on intrabar trading that should be released in a few months along with better connections. MT4 has had problems with disconnections recently too.

It would be nice to have a similar system on MT4 and wish you luck. VTrader is the best and easiest trading tester available and its free.

Hi Rich, I enjoy the GMMA idea and have read Guppy's book and seen the DVD. I do most of my trading on the shorter term charts and like how the price plays about several favorite ema's on the 30m chart. . . On many of my posts i mention my tendency, over the last year, to port over Moving Averages that i find relevant on longer term charts, over to shorter term and zoom way out on the chart. . . I.E. my charts have Moving Averages that have been multiplied by factoring their effectiveness on a longer term chart. (i.e. if you see relevance of the 10 and 33 on your 30m, how might placing a 60ema (10 x 6 = 6 x 5m periods in 30m) and then a 198ema (33 x 6) and then multiply the other GMMA's out the same way?? This might yeild more data for VT EA (or MT4 if ever there is one) and the exit might be better/more profitable??

: ) Thom

That's an interesting approach, Rich. Most of my thinking so far has been in the area of quantifying the compression (which will require creating a couple of simple indicators). Is that what you have done with the blue wave indicator? Along with determining the compression, I think I will also need to look at the angle of the MAs - I know I've seen/downloaded some code that looks at angles - just need to find it again.

Thanks for your thoughts...

Lou

The blue wave indicator is the difference between the 2 GMMAs with positive buy and negative sell. You can add an offset so it trades over or under 0 instead of at the cross.