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Trading stocks with Money Flow Index

  • #1
  • First Post: Edited Feb 3, 2022 3:01pm Dec 12, 2021 11:27am | Edited Feb 3, 2022 3:01pm
Why stocks? You can get real volumes for stocks when using real stocks trading accounts.

Read here about Money Flow Index

You can trade on CFD accounts and use leverage, but volumes here are not real. Therefore better combine 2 accounts.

MSFT trading setup

BUY only - trend is our friend here and MSFT so far only UP. Do not go against long-term trend here. Keep ods on your side.

Entry: daily MFI with period 5 below 15
Exit: daily MFI with period 15 above 60

or

Entry: daily MFI with period 5 below 15
Exit: daily MFI with period 5 above 70

SL: 4% of the account

With 100 usd account, leverage 1:20, open with minimal possible deal volume according to SYMBOL_VOLUME_MIN

On average with this MSFT setup will have about 10 entries per year.

Will post in this thread some live trades.

Will provide another stocks setups.

Here some my real trading results in myfxbook (another buy dips strategy).

Attached Image (click to enlarge)
Click to Enlarge Name: msft_results_now.png Size: 87 KB


Here this thread is quite similar for entries (buy the dips, but using MFI) but different exit strategy.

For me, interesting is trying to new strategy and discover how it goes

Edit February 3, 2022:

I know I know... not good to mix various strategies in 1 thread but this is for stocks only.. so here it is. EA for manual trading according to stocks real volumes info:

Attached File(s)
File Type: ex5 TicksEA_V01.ex5   8 KB | 365 downloads | Uploaded Feb 3, 2022 3:00pm

See here how to trade with this EA.
  • #2
  • Dec 16, 2021 3:15pm Dec 16, 2021 3:15pm
Hello friend I am interested in this topic, I am currently practicing with actions in the NY opening following the trend with renko candles, I will be publishing my practice results in this thread if you have no problem.
Greetings
  • #3
  • Dec 17, 2021 12:38am Dec 17, 2021 12:38am
Here is an example of practice on 12/16/2021 with AAPL, renko candles of 20 pips and TP of 100 points with SL of approximately 50 points

The chart does not look good as the renko candles do not maintain their original chart after closing the MT4 platform.
Attached Image (click to enlarge)
Click to Enlarge Name: AAPL Renko 20 pips.jpg Size: 467 KB
  • #4
  • Dec 17, 2021 10:13am Dec 17, 2021 10:13am
Quoting JaimeAlejan
Hello friend I am interested in this topic, I am currently practicing with actions in the NY opening following the trend with renko candles, I will be publishing my practice results in this thread if you have no problem. Greetings
Good. Yes let this thread be dedicated to stocks trading.
  • #5
  • Dec 17, 2021 10:08pm Dec 17, 2021 10:08pm
Hello in today's operation I had good entries in XOM but with AAPL, despite having benefits, the last operation I stole half of the profits for not sticking to my Trading plan.
It is part of the practice and that is what the DEMO account is for, I hope next year to have those details polished. Greetings
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2.jpg Size: 381 KB
Click to Enlarge Name: XOM 17.12.2021.jpg Size: 387 KB
  • #6
  • Edited 10:08am Jan 6, 2022 8:55am | Edited 10:08am
Signal for MSFT BUY because of MFI (D1 period 5) below 15.

Here real stocks volumes info:

Attached Image (click to enlarge)
Click to Enlarge Name: signal_msft.png Size: 81 KB

TP when MFI reaches 90.

The same setup is now for #CRM and #ABT stocks. Use them to diversify. It looks stocks market is down and it is not related to particular companies' fundamentals rather than to covid fears. Those strong companies will recover. 2 IT companies with excellent cash flow and 1 pharma equipment company.
  • #7
  • Jan 6, 2022 10:40am Jan 6, 2022 10:40am
Gepards says in Post #6 "TP when MFI reaches 90."

Is this exit in addition to the two exit rules in Post #1, whichever exit occurs first?

Also, according to the chart in Post #6, MFI reached 90 four times while MSFT was in strong uptrend before 25/08. If the strategy exited the longs the first time MFI reached 90 in Jun2021, MFI did not dip below 15 for re-entry. Please comment how to re-enter.

Thanks.

Bill
  • #8
  • Jan 6, 2022 1:28pm Jan 6, 2022 1:28pm
Quoting calaxcorp
Gepards says in Post #6 "TP when MFI reaches 90." Is this exit in addition to the two exit rules in Post #1, whichever exit occurs first? Also, according to the chart in Post #6, MFI reached 90 four times while MSFT was in strong uptrend before 25/08. If the strategy exited the longs the first time MFI reached 90 in Jun2021, MFI did not dip below 15 for re-entry. Please comment how to re-enter. Thanks. Bill
you have to wait till MFI is below 15. not many entries per year.. about 10 entries. you can exit when MFI is 70 or 90. as you wish. by 3 years statistics for MSFT better exit on 70. but i saw in d1 that 90 recently was good point to exit.
  • #9
  • Jan 17, 2022 4:10pm Jan 17, 2022 4:10pm
I was just wanted to chime in and see if you have any other confirmations apart from MFI and trend?

I build systems in my spare time and am slowing getting better at it and although doing some research i found that simple systems can work really well, I wanted to ask if you have more confirmations?

Keep up the great work!
  • #10
  • Jan 18, 2022 3:32pm Jan 18, 2022 3:32pm
Quoting LachlanJames
I was just wanted to chime in and see if you have any other confirmations apart from MFI and trend? I build systems in my spare time and am slowing getting better at it and although doing some research i found that simple systems can work really well, I wanted to ask if you have more confirmations? Keep up the great work!
just MFI. but we use this only for strong companies stocks. this wont work on any stock. and we use only BUY entries here with MFI.
  • #11
  • Jan 30, 2022 11:02am Jan 30, 2022 11:02am
Interesting. Following...
  • #12
  • Feb 1, 2022 9:51am Feb 1, 2022 9:51am
Close #MSFT as MFI reached 90. With loss. Opened BUY deal at price 315.00 closed at price 306.26

#CRM and #ABT still opened.
  • #13
  • Edited 3:44pm Feb 3, 2022 2:58pm | Edited 3:44pm
Meanwhile...some ideas from google search asking simple stupid questions:

Quote
If the price of a share is increasing with higher than normal volume, it indicates investors support the rally and that the stock would continue to move upwards. However, a falling price trend with big volume signals a likely downward trend. A high trading volume can also indicate a reversal of trend

Quote
Stock prices change everyday by market forces. By this we mean that share prices change because of supply and demand. ... Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.

Quote
Stock prices go up and down based on supply and demand. When people want to buy a stock versus sell it, the price goes up. If people want to sell a stock versus buying it, the price goes down. Forecasting whether there will be more buyers or sellers of a certain stock requires additional research, however.

Quote
When people say that there were more sellers than buyers, what they really mean is that, at the opening price (i.e., the price of the stock at the beginning of the day) the number of shares that people wanted to sell exceeded the number of shares that people wanted to buy

Quote
The stock market works on the economic concepts of supply and demand. If there is more demand, buyers will bid more than the current price and, as a result, the price of the stock will rise. If there is more supply, sellers are forced to ask less than the current price, causing the price of the stock to fall

And made EA which calculates on MT5 real volume of stock (using real stocks trading account - not CFD) - how much real volume is for SELL and how much volume is for BUY ticks.

Here how it looks:

Attached Image (click to enlarge)
Click to Enlarge Name: stocks_volumes.png Size: 432 KB

When you see that SELL volumes dominates BUY lets say 5x more then go SELL on CFD account with leverage 1:10 (or 1:20 on some brokers).

When BUY volumes dominates SELL 5x then go BUY.

Exit when you start to notice that SELL and BUY starting to "battle" - like +/- equal volumes. This is sign of reversal - therefore Exit and observe what happens - what "wins" (BUY or SELL) and then continue trading opening position accordingly.

This EA is for manual trading - something like indicator. It only prints in Expert Log section real volumes of an stock. Will try this approach - you can try as well.

Here important info for EA logic - what means SELL and BUY volumes.

Added EA to post #1.

Remember you need 2 accounts - 1st with real stocks trading (only BUY positions possible - but have real volumes info) and 2nd stocks CFD account (when you can open SELL position too, but dont have real volumes info).

you run this EA on 1st account but trade in 2nd account.
  • #14
  • Feb 4, 2022 3:36am Feb 4, 2022 3:36am
is there have brokers which support demo trading with this strategy, thank you
Failure is not failure if you learn from it...
  • #15
  • Feb 4, 2022 3:59am Feb 4, 2022 3:59am
Quoting suneth2
is there have brokers which support demo trading with this strategy, thank you
most popular stocks like MSFT, IBM, FB etc you can trade CFD on any broker I gues with demo accounts. for example roboforex, admiral markets etc

EA itself never open any deal. It is more like "indicator" .. Im too lazy to programm indicators - never did any indicator. I make EAs only. But still for me this EA is enough to use. So you run this EA on real account (0 balance) which is for real stocks trading. Because only there we can get real volumes - but deals open on another demo account if you wish.
  • #16
  • Feb 4, 2022 6:09am Feb 4, 2022 6:09am
Before we get carried a way

Is this good time period to draw conclusions ?
2021 from February to November stock market went diagonally up too.
I might be wrong , I have been wrong before
  • #17
  • Feb 4, 2022 10:42am Feb 4, 2022 10:42am
Opened SELL for MSFT at 305.57

Attached Image (click to enlarge)
Click to Enlarge Name: msft_sell_signal.png Size: 445 KB

SELL volumes dominate BUY.

Attached Image (click to enlarge)
Click to Enlarge Name: msft_sell_signal2.png Size: 27 KB


Strange... but price went up 2% after NY opening.. will see.. volumes tell that bearish deals dominate.
  • #18
  • Feb 4, 2022 10:55am Feb 4, 2022 10:55am
Quoting Mandariin
Before we get carried a way Is this good time period to draw conclusions ? 2021 from February to November stock market went diagonally up too.
covid ending. interest rates will be raised but economy will recover too. think for strong companies price wont drop down much anymore. harder to get credits - those who have bad cashflow will have issues.
  • #19
  • Feb 4, 2022 11:21am Feb 4, 2022 11:21am
Quoting gepards
{quote} covid ending. interest rates will be raised but economy will recover too. think for strong companies price wont drop down much anymore. harder to get credits - those who have bad cashflow will have issues.
Yes last 10 years up. Buy and buy more. You can't lose.
But what is your system doing in down market ?
Attached Image (click to enlarge)
Click to Enlarge Name: NAS100[M] Monthly #1 2022-02-04 19_19_23.600.png Size: 12 KB
I might be wrong , I have been wrong before
  • #20
  • Feb 4, 2022 11:52am Feb 4, 2022 11:52am
Quoting Mandariin
{quote} Yes last 10 years up. Buy and buy more. You can't lose. But what is your system doing in down market ? {image}
will have drawdown then. if dd more than 20-30% - stop using this system and accept loss. then search for another system. this particular is only one of n.

regarding volumes - learning. I do not understand how price moved up if SELL volumes dominated. maybe i interpret wrong MQL5 TICK_FLAG_SELL ?

googled again...

Quote
Stock prices change everyday by market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.

so what means supply/demand? volumes i gues?
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