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MADdash (Moving Average Distance)

  • #3,321
  • Mar 7, 2022 1:48pm Mar 7, 2022 1:48pm
Quoting Hammertop
{quote} George, just to clarify: still referring to the M1 strategy that you have brought forward lately, do you only look at the movements of Maddash on M1,M1,M5,M15 set up your way? I also have a side chart with M1,M5,M15,M30,H1 set up with 35 MA for longer confirmation but very often I miss some good entries because too late. But it might also avoid some bad entries. What's your behaviour? (Again, related only to the M1 strategy). Thanks
Yes it is looking late because you are probably using the the MADdash the wrong way. Read my post 4 again if you have not read it and note this quote: "Finally, the dashboard is not a standalone system; it is an entry and trade management tool."

The dashboard gives you an idea of the strong and weak currencies.
You look at your chart and identify the best you want to trade
You wait for pullback if you have already missed the initial entry
You then use the dashboard to time your entry as the trend resumes and MADdash agrees with the movement

Attached Image (click to enlarge)
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Price pulls back and bounces off the MA Channel line
MADdash will confirm entry

Attached Image (click to enlarge)
Click to Enlarge Name: EURAUD1.gif Size: 41 KB
Major drop on this downtrend
Price reverses and M30 candle closes above the MA Channel
You want to be doubly sure trend has reversed
MADdash will confirm entry
If trade is prematurely closed out on pullback, re-enter trade on trend resumption if MADdash confirms the trade

I have warned several times that when people wait for MADdash to give them buy/sell signals, it will always look late because the MADdash is not a standalone tool.

Try reading post 4 again and again.

Thanks
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  • #3,322
  • Edited 4:04pm Mar 7, 2022 2:58pm | Edited 4:04pm
Thanks for your quick reply, George. I am aware of post #4 but I was actually referring to post #3,275 as your most recent mention to M1 trading, where your entries appear to happen at the breakout of the previous M30 candles and not when the price was retracing.
I also need to point out one more thing: the lateness I mentioned was referring to the "alleged" confirmation I was looking at from the side chart with higher Maddash settings, which my original question was hinting at. I was just wondering if you only took notice of the one M1-M1-M5-M15 Maddash for your entries, as it looks to me like a quick way to open trades, and slower confirmations may be detrimental to early profitable entries.
  • #3,323
  • Mar 7, 2022 4:29pm Mar 7, 2022 4:29pm
Quoting Hammertop
your entries appear to happen at the breakout of the previous M30 candles and not when the price was retracing.
Sorry about that but look at the trades again you will notice that all the trades were after a pullback and I entered after break of the previous M30 candle.

Quoting Hammertop
I was just wondering if you only took notice of the one M1-M1-M5-M15 Maddash for your entries, as it looks to me like a quick way to open trades, and slower confirmations may be detrimental to early profitable entries.
Yes you are correct, I only look at the M1-M1-M5-M15 for what I call quick in quick out.
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  • #3,324
  • Mar 7, 2022 5:30pm Mar 7, 2022 5:30pm
Quoting 919gilead
{quote} Sorry about that but look at the trades again you will notice that all the trades were after a pullback and I entered after break of the previous M30 candle.
That's exactly what I meant. So basically you might enter both on a pullback (before M30 breakout) or after price breaks out M30, as long as the Maddash first M1 column realignes with the others (i.e. the divergence disappears). I hope I read it right.
Quote
{quote} Yes you are correct, I only look at the M1-M1-M5-M15 for what I call quick in quick out.
Thanks very much, indeed. Every post reveals more nuances. Sorry for keeping nagging, but I really like this quick in quick out strategy, and am trying to perfect it by following your footprints as best as I can.
  • #3,325
  • Mar 9, 2022 7:02am Mar 9, 2022 7:02am
Hey George, am I getting it right? I'm showing what Maddash was looking like when the 3rd trade was taken. Unfortunately I closed it by mistake and while I'm typing it has already travelled double. Anyway not complaining... I didn't believe it would be possible to take and win trades up and down in such a short span of time. Better said, I didn't believe I could do it, but thanks to your generosity and patience, I'm getting there hopefully.
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  • #3,326
  • Mar 9, 2022 8:25am Mar 9, 2022 8:25am
Showing this other one. I clicked a bit too early when GBP was not fully green but I was stalking the move. I closed at the round number; although the stop had been moved to b/e, the price was nervously moving like some kind of news was happening and the high spread was not nurturing my confidence. Overall probably a lucky trade.
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  • #3,327
  • Mar 10, 2022 7:26am Mar 10, 2022 7:26am
Quoting Hammertop
Showing this other one. I clicked a bit too early when GBP was not fully green but I was stalking the move. I closed at the round number; although the stop had been moved to b/e, the price was nervously moving like some kind of news was happening and the high spread was not nurturing my confidence. Overall probably a lucky trade. {image}
Doing great Brother and mistake is part of how we learn
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  • #3,328
  • Edited 10:56pm Mar 10, 2022 9:59am | Edited 10:56pm
I am programming a trading EA following the idea of this tool.
I would like to share it so that you guys can try it.

File name: MADash EA v1.0.ex4
Expiration Date: December 31, 2022

Strategy description: open a trade when the currency has the greatest strength based on the price gap with the moving averages of the M1 and M5 timeframes.
For example, a buy signal for EURUSD occurs when EUR's M1 and M5 columns are green, and USD's M1 and M5 columns are red. Then the EA will open a BUY order.

Version 1.0:
+ Use on MT4 Terminal.
+ The EA analyzes the currency's strength based on the MAs of the M1 and M5 timeframes.
+ Can be used with currency pairs: AUDCAD, AUDJPY, AUDUSD, EURAUD, EURJPY, EURUSD, GBPJPY, GBPUSD, USDJPY.
+ You can use the EA with any timeframe.
+ This version has no stop loss, positions will be floated, however EA will try to close floating positions when the loss equals the profit of other trades.

This EA analyzes multiple timeframes and multi-currency pairs, so backtest results are incorrect or no backtest results (because MT4 backtest doesn't simulate multi-currency charts at the same time). So you should start with a demo account or with a lot size 0.01 lot.

If you have trading results with this EA, please share with me.
Attached File(s)
File Type: ex4 MADash EA v1.0.ex4   55 KB | 424 downloads
  • #3,329
  • Mar 10, 2022 8:37pm Mar 10, 2022 8:37pm
Quoting forexmanvn
I am programming a trading EA following the idea of this tool. I would like to share it so that you guys can try it. File name: MADash EA v1.0.ex4 Expiration Date: December 31, 2022 Strategy description: open a trade when the currency has the greatest strength based on the price gap with the moving averages of the M1 and M5 timeframes. For example, a buy signal for EURUSD occurs when EUR's M1 and M5 columns are green, and USD's M1 and M5 columns are red. Then the EA will open a BUY order. Version 1.0: + Use on MT4 Terminal. + The EA analyzes the...
Good one Forexmanvn,

Wish I had space to try this out but have so many on my plate right now. I hope traders have success with it and post their results.

Cheers
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  • #3,330
  • Mar 10, 2022 8:44pm Mar 10, 2022 8:44pm
Quoting Hammertop
Showing this other one. {image}
Attached Image (click to enlarge)
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Attached Image (click to enlarge)
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  • #3,331
  • Mar 11, 2022 2:01am Mar 11, 2022 2:01am
Quoting 919gilead
{quote} {image} {image}
Way to go! I like it when you show your trades. I've learnt a lot from them; as they say: "a picture is worth a thousand words!". If you don't mind, keep them coming from time to time, please, including the losing ones as they are as much valuable as the winning ones.
As silly as my question might appear, how do you pick a pair to trade? Just looking at the fast Maddash and selecting what looks strong against weak and then watching it until conditions are met? That might sound very simplistic maybe, also because behaviour might change in a matter of seconds...
Could you also shed a word on your money management? Some trades show multiple EPs, like your last 2 examples, especially the 2nd one.
  • #3,332
  • Mar 11, 2022 3:23am Mar 11, 2022 3:23am
Itchy finger! I closed at the BRN because Maddash was showing a retrace which was in contrast with the PA pushing up (bars had consequent higher lows). I could have squeezed in a few more pips but looking at the retrace now, I'm not complaining. I'd rather have a question about the entry. Was I too quick? Maddash was showing full colours after retracement, but I suffered some DD. Would you have waited for the M30 breakout, George?
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  • #3,333
  • Mar 11, 2022 4:29am Mar 11, 2022 4:29am
George, please forgive me as I surely am overloading this thread and nagging you with questions... I would like to try and get as close as possible to your mental process. I closed this trade at b/e after 34 bars that it was going nowhere, although Maddash never turned completely around. Would you have closed it earlier? I know your thoughts on holding when you were using higher TFs like 5m but in this case what's your take? Do you think it's even more compulsory to close an M1 trade as early as possible if not moving? Even at a loss?
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  • #3,334
  • Mar 11, 2022 5:30am Mar 11, 2022 5:30am
...and again, similar situation. Reentered at BO of M30 but it was going nowhere and closed 18 min later. Then, I thought 3rd time was a charm, but no luck. Some kind of news must have happened suddenly and I got burnt. Never mind; that's what stops are for: to limit damage.
Comments are welcome of course.
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  • #3,335
  • Mar 11, 2022 6:35am Mar 11, 2022 6:35am
Quoting Hammertop
...and again, similar situation. Reentered at BO of M30 but it was going nowhere and closed 18 min later. Then, I thought 3rd time was a charm, but no luck. Some kind of news must have happened suddenly and I got burnt. Never mind; that's what stops are for: to limit damage. Comments are welcome of course. {image}
Oh sorry about that. One of my re-entry rules is not to take a trade that has moved xx pip from a 5/15 EMA cross on M5 or M15
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  • #3,336
  • Mar 11, 2022 6:44am Mar 11, 2022 6:44am
Quoting Hammertop
George, please forgive me as I surely am overloading this thread and nagging you with questions... I would like to try and get as close as possible to your mental process. I closed this trade at b/e after 34 bars that it was going nowhere, although Maddash never turned completely around. Would you have closed it earlier? I know your thoughts on holding when you were using higher TFs like 5m but in this case what's your take? Do you think it's even more compulsory to close an M1 trade as early as possible if not moving? Even at a loss? {image}
My rule of thumb is to close trades not moving within 15 minutes as there is no momentum, and I no longer have an edge. Mine is quick in quick out. I was distracted reading your mail, so I missed my entry point on this trade and closed as price approached the DPV line.

Attached Image (click to enlarge)
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  • #3,337
  • Mar 11, 2022 6:50am Mar 11, 2022 6:50am
Quoting Hammertop
Itchy finger! I closed at the BRN because Maddash was showing a retrace which was in contrast with the PA pushing up (bars had consequent higher lows). I could have squeezed in a few more pips but looking at the retrace now, I'm not complaining. I'd rather have a question about the entry. Was I too quick? Maddash was showing full colours after retracement, but I suffered some DD. Would you have waited for the M30 breakout, George? {image}
Good entry and DD was small and contained within the MA Channel. No I would not wait another pullback and would have entered exactly at the same spot
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  • #3,338
  • Mar 11, 2022 7:09am Mar 11, 2022 7:09am
Quoting Hammertop
{quote} If you don't mind, keep them coming from time to time, please, including the losing ones as they are as much valuable as the winning ones.
The losing trades are also included and I think you missed them because of the subsequent profitable trades on the same chart.

Quoting Hammertop
{quote} how do you pick a pair to trade?
I also use the csDash, CSS (Currency Slope Strength) and few other CSM indicators, and then focus on the most common and dominant currencies on all the tools

Quoting Hammertop
{quote} Could you also shed a word on your money management?
I never allow any profitable trade to turn into a loss as I move SL to reduce risk as trade moves in my favour and the moment I have 5+ pips I begin to lock in profit.

Quoting Hammertop
{quote} Some trades show multiple EPs, like your last 2 examples, especially the 2nd one.
Because they are different trades and the indicator shows the average of all the entries and SL in addition to the individual trades
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  • #3,339
  • Mar 11, 2022 7:10am Mar 11, 2022 7:10am
George, I'm ever so grateful for your quick replies, but please there's no need to get distracted and miss good trades on my account. I feel guilty now. I remember a famous scalper saying that he locks himself in his office and shuts down any telephone or TV or browser or whatever distraction, having in front of him only the trading screen... (never been able to do that myself unfortunately)

Meanwhile I just managed to catch this one and close at a bit more than 1:2.
Hopefully you will reply when trading is off, but can you please further expand on xx pips from the 5/15 cross? Is it a variable number? These golden nuggets you are dropping here and there are extremely valuable to me.
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  • #3,340
  • Mar 11, 2022 7:33am Mar 11, 2022 7:33am
Quoting Hammertop
but please there's no need to get distracted and miss good trades on my account. I feel guilty now.
Thank you for your questions as answering them reinforces my belief and help me learn too. You don't have to feel guilty as the choice to read was mine, and I also took a quick short in the same EJ. I trade with 2 large screens and even when reading I still keep an eye on the other screen which contains my dashboards and other tools.

Quoting Hammertop
can you please further expand on xx pips from the 5/15 cross? Is it a variable number?
Yes it is a variable number from 125 to 300 points depending on the currency pair and market volatility. The GBP related pairs will need bigger points due to the high daily range. I sold the AUDUSD early in the London session and the 5/15 EMA cross on M5 occurred few minutes before London open. At about 200 points, I will not take another trade after 0.7325, which would have been about 180 points from your last entry before the sudden reversal.

Calling it a day, and have a great week-end.
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