Bagovino Method

RMI refers to Relative Momentum Index. I posted something on it a little while ago in this thread #1172, #1182 etc. Note that the comparisons in my most recent post are both 21 period.

"The RMI is a variation of the RSI indicator. The RMI counts up and down days from the close relative to the close x-days ago (where x is not limited to 1 as is required by the RSI) instead of counting up and down days from close to close as the RSI does.
Note that an RMI with parameters of C, 14, 1 is equivalent to a 14 period RSI of the Close price. This is because the momentum parameter is calculating only a 1-day price change (which the RSI does by default). As the momentum periods are increased the RMI fluctuations become smoother.
Since the RMI is an oscillator it exhibits the same strengths and weaknesses of other overbought / oversold indicators. During strong trending markets it is likely that the RMI will remain at overbought or oversold levels for an extended period of time. However, during non-trending markets the RMI tends to oscillate more predictably between an overbought level of 70 to 90 and an oversold level of 10 to 30."

This is the formula in VT trader, it would have to be coded for Metatrader & I'm not a programmer:

Mom:= price - ref(price,-momper);
Rms:= Wilders(If(Mom>0,Mom,0),rmiper) / Wilders(If(Mom<0,Abs(Mom),0),rmiper);
_RMI:= 100-(100/(1+RMS));

1

hey bogovino, i am setting up some new Trading Systems sub-forums soon. would you like me to make one for your method? that way you could have multiple threads under one roof, and i can make you a mod of the forum so you have better controls over your files etc. if interested just email me with site form.

I overlayed the RMI on the one hour Pound/dollar chart with the (Tlatomi) MA settings 5 exponential/9 Simple. Wow. Nice and decisive correlation.
Glenn

hi,
just new here and been reading the early posts...
it's 13:30 AEST and looks like the GBPUSD 1H 5/12 EMA's are about to cross with RSI above 50....

could be a good setup in the next 30mins - 1hr

any thoughts ?

Be careful, GB market moving announcements due out at 09.30GMT which is 04.30EST.

You might be better waiting 30to 60minutes after the release before making a decision.

This system is not the "Holy Grail" you will suffer losses learn to trade with the bias in your favour.

BabeFX

I have been using a 5 SMA and a 12 EMA with the RMI settings at period 5 and shift 5. Also using FX Snipers CCI with settings at 2, 10, 5, 3. I enter trades folling these rules.
1. CCI crosses up or down
2. RMI crosses up or down 50 line
3. 5 SMA crosses up or down 12 EMA
4. exit long trades when RMI crosses 85 line
5. exit short trades when RMI crosses 15 line
6. one hour chart
currencies traded so far are GBP/USD, AUD/USD, EUR/USD. Most go for around a net gain of 10-15 pips if you exit on the RMI crosses, obviously they can go for more. Usually in key market times you can get more and in off market times like right now I just picked off ten pips on the AUD/USD. I am using Interbank FX charts that are 0:00 GMT.

Maybe an EA to test this out?

I also will go down to a 15 minute chart and draw short term trendlines and look for breaks up or down of these trendlines. This can be a earlier sign than the one hour. However I do not enter on the 15 minute I only use it for an early sign, then I switch to the one hour and look for the other things to line up.

I like the decisive entry and exit points of the RMI. Occasionally, the RMI will not make it to the 85/15 level, so I presume that then the CCI trigger closes the trade. Maybe MikhaildGreat will have a look at this one for an E.A.
Glenn

Is there a free charting package available to check out some of these indicators?

Thanks

Try this:
http://www.metaquotes.net/metatrader/

I haven't looked into the CCI closing the trades. I usually only go for 10-20 chart pips, but I am trading multiple lots so I don't care if I get 100's of pips per trade, and I have found that the GBP/USD will get me that even when the RMI does not hit the 85 or 15 levels.

bogo, no on this?

there are many advantages, like you can create threads that just have the indicators attached, you can stick threads, delete posts, edit posts for as long as you want etc etc.

email me if interested buddy

Maybe is on vacation! I'm doing a custom indicator with him and he didnt response for couple of day... wait a little.... ;-)

Just finished reading 91 pages of posts so I have only three questions.

1.. Did anyone join me on the xmas day gbp/usd long, my first trade with this system.
I thought nothing will happen today, but what the hell. managed to bag 58 pips. See gif.

2.. Many people ask about when to exit. Why not just exit at the first stall in the trend and you have a nice amount of pips. If the trend continues buy in again it only cost 4 pips, rather than holding while there is a retracement of maybe 10 or 15 pips.
That retracement could turn into a reversal and all your pips are gone.
3.. What caould be wrong with doing this.

Thanks to all contributors and a big thank you to Bagovino.

I hope the gif is here now.

Nice shot...
Thats true, why not book some profit.
But i prefer to sell 1/2 lot(move 1/2 to entry price) and continue with the remaining.
Why?
The more it go up, more chance is the retracement.
This way your not risking any more and you have money to continue..
If you took profit ans buy more after, if it turn out to be a looser, your not risking 4pip your risking more(your sl on your new entry) and you will eat you profit you just made.

When you are far from the entry price, you have book profit and you have another signal then maybe, its good to try...

But its my way.... ;-)

The way i see it is this (You must have a broker that do hedging) :
- When you see signal to go long, you buy.
- Then you decide the exit(With reverrse signal, or enought money)
- Take 1/2 lot, move sl to entry (Now you loose nothing)
- Then you wait
- Then if you have a good sell entry, you take it (But you dont cancel the other)
- When your sell is a winner you do the same (Take profit and secure position)
- And you let the short ride
- You let you position close by them self, or close if you are far far far away.
- This way youre build a stair of profit that canot be looser

Its not hedging, since your manage 2 diffences trades separately
(I call hedging when you want to block your looser, and this is not the case here. Because we book some profit and forget about it.)
if you have made a wrong decision with you short position you have your long and the reverse is true...
If your not able to hedge then you do this with 2 account...

Its a strategy i like...
Keep it or leave it, i like it...
But one thing for sure...
Better have 10pip winner than 30pip looser...

In this case I'm glad I took my pips and waited.
see gif.

I will certainly give your idea a bit more thought but
a picture says a thousand words.

Best Regards

Like i said you made a good trade.
( Any positive trade is a good trade).
The problem is.. We never know what is going to happen(I would love to!)
Just supposition...

If i made a mistake correct me please...

You bought at the green dot(Up arrow)(~1.9600 , ~1.9620) ...
If so... i would have take profit before the trend line around ~1.9650.
For one reason: Trendline (Bounce and reverse,did this at least 2 time. ~1.9690,~1.9680, why not ~1.9650).

If after the the breach, at the candle close, nothing to say...

Well done.

kneepad,

what time frame are those charts for ? are they 15mins ?
just wondering if this method which was originally for a 1 hour timeframe works on shorter time frames ?

Merry christmas !