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Guppy Multiple Moving AverAge，GMMA

  • #21
  • Sep 20, 2007 7:14pm Sep 20, 2007 7:14pm
Hi evrybody,

I make this post so that I receive notifications in my e-mail regarding developments of this thread. This is my 4th month in forex and I wanted to learn more about Guppy. Also the fact that I catch this thread early in its ascend.

To the starter, congratz and way to go!!
  • #22
  • Sep 21, 2007 1:35pm Sep 21, 2007 1:35pm
The guppy is a great entry system, but exits are problematic. I have been receiving PMs regarding exits, so here is a bit on what I look for.

There is no fail safe way to tell if the move is over or merely pulling back before the next surge. Flattening EMAs are a sign to take at least partial profits. Any kind of double top or bottom is a signal to exit in full. A bar that is completely outside the EMAs is another warning sign, especially if it has formed a wick. If the pair cannot exceed the high of that candle, exit.

A scalper shouldn't fret so much about the exit. Take your pips and run. Also, having a pip target is a perfectly rational criterion for exiting. Got your 10 or 15 or 20 pips for the day? What are you waiting for? Exit. Yay!
  • #23
  • Sep 21, 2007 9:22pm Sep 21, 2007 9:22pm
Here's the GMMA MACD:
Attached File(s)
File Type: mq4 G#MACD.mq4   4 KB | 2,087 downloads
  • #24
  • Dec 2, 2007 1:12pm Dec 2, 2007 1:12pm
What are your exit rules?

Thanks.


Quoting lever70
I have been using GMMA on a 1-min chart for some time now, though I have altered the system. My template has the following settings:

Short-term
3 (green)
5 (green)
8 (green)
10 (green)
12 (green)
15 (yellow)

Long-term
30 (aqua)
35 (red)
40 (red)
45 (red)
50 (red)
55 (aqua)

Trend
200 (brown, dashed)

When the two groups of MMAs part, you have an entry signal. You can tell when this has occurred by watching for a gap between the yellow and aqua EMAs.

The best entries are given when the long-term (red) group is already aligned in a perfect order behind the trend indicated by the short-term (green) group. Sloppy crosses result in sloppy trades.

There are a few of things you need to pay attention to with this implementation of guppy:

1. Avoid trading against the 200 EMA. (I don't like trading against the multi-day trend, either.)

2. Don't take shaky crosses. You want the candle to be moving above or below the greens with authority.

3. The best crosses occur at a sharp angle against the reds.

4. Do not take a cross if the reds are still pointing the other way. When the reds tighten and start to flip over, you're ok.

5. Sometimes it is better to wait for a pullback to confirm the validity of the move. When you get a candle closing at its high or low in the direction of the move, you can enter.

Here is a pictorial example. I have also attached my template.

http://img259.imageshack.us/img259/1001/1mintf0.gif
May the pips be with you.
  • #25
  • Dec 2, 2007 4:10pm Dec 2, 2007 4:10pm
Quoting lever70
The guppy is a great entry system, but exits are problematic. I have been receiving PMs regarding exits, so here is a bit on what I look for.

There is no fail safe way to tell if the move is over or merely pulling back before the next surge. Flattening EMAs are a sign to take at least partial profits. Any kind of double top or bottom is a signal to exit in full. A bar that is completely outside the EMAs is another warning sign, especially if it has formed a wick. If the pair cannot exceed the high of that candle, exit.

A scalper shouldn't fret so much about the exit. Take your pips and run. Also, having a pip target is a perfectly rational criterion for exiting. Got your 10 or 15 or 20 pips for the day? What are you waiting for? Exit. Yay!
There are a couple of options you may want to investigate for a systems along with the GMMA indicators, one is the DARVIS Box and Darryl Guppies modifications to this strategy for exits and two the 3 candle pullback that is a common and effective strategy and one that Darryl Guppy also uses.

The first one, DARVAS Box modification strategy can be used for original stoploss, adding to trades and continuing stoploss. The second is a very useful stoploss strategy but probably better used on a larger time-scale that 1min charts. I never go that low for trading so don't really know how effective these will be for you, but may be worth investigating.

Good luck
  • #26
  • Dec 2, 2007 6:32pm Dec 2, 2007 6:32pm
Quoting Markj
There are a couple of options you may want to investigate for a systems along with the GMMA indicators, one is the DARVIS Box and Darryl Guppies modifications to this strategy for exits and two the 3 candle pullback that is a common and effective strategy and one that Darryl Guppy also uses.

The first one, DARVAS Box modification strategy can be used for original stoploss, adding to trades and continuing stoploss. The second is a very useful stoploss strategy but probably better used on a larger time-scale that 1min charts. I never go that low for trading so don't really know how effective these will be for you, but may be worth investigating.

Good luck
I see someone has read "Trend Trading" by Daryl Guppy ... good advice, I did a fair bit of testing on those when reading that book .. I found the 3 candle method a better one (and easier to figure out in realtime).
You can quit and they won't care, but you will always know.
  • #27
  • Dec 2, 2007 8:03pm Dec 2, 2007 8:03pm
Quoting Akuma99
I see someone has read "Trend Trading" by Daryl Guppy ... good advice, I did a fair bit of testing on those when reading that book .. I found the 3 candle method a better one (and easier to figure out in realtime).
Yeah I agree with you on that. I had already been using the 3 candle method so didn't find anything new there. I thought that the modified Darvis box with the ghost boxes was a good strategy for trend trading with or without the GMMAs and adding to the orginal position. I found it added some solid rules around price action for trading the peaks and troughs in the trend.
  • #28
  • Dec 3, 2007 10:40am Dec 3, 2007 10:40am
Can someone post the link to the 3 candle method?
  • #29
  • Dec 3, 2007 3:45pm Dec 3, 2007 3:45pm
Quoting et_phonehome_2
Can someone post the link to the 3 candle method?
It's called CBL [Count Back Line].

http://www.guppytraders.com/gup332.shtml
http://trader.online.pl/MSZ/e-w-Countback_line.html
http://www.startraderreport.com/MSFo...kTrailing.html

Thx
DL
  • #30
  • Dec 3, 2007 3:49pm Dec 3, 2007 3:49pm
Quoting deepleo
It's called CBL [Count Back Line].

http://www.guppytraders.com/gup332.shtml
http://trader.online.pl/MSZ/e-w-Countback_line.html
http://www.startraderreport.com/MSFo...kTrailing.html

Thx
DL

Here's a PDF
Attached File(s)
File Type: pdf Guppy-CBL.pdf   343 KB | 16,075 downloads
  • #31
  • Nov 4, 2008 2:19am Nov 4, 2008 2:19am
Too bad that this thread is no longer active. The method posted by Lever 70 is simple yet effective.
  • #32
  • Dec 4, 2008 6:40pm Dec 4, 2008 6:40pm
HOPE THIS DOESN'T DISTRACT FROM THE SYSTEM TRADED HERE.

From another poster's inquiry on how to learn more on MMAs..... I offered the following on another thread...

If you are interested in the Multiple Moving Averages go to:

http://www.forexfactory.com/showthre...ght=Guppy+GMMA

Only a few pages to review from an old forum.

There you will find downloadable word.docs and one .pdf file that you can
print and create a training manual at no cost with chart patterns showing
all you would need.

Look for post #14, #16 and #20 on this thread and also post #35 which
gives the motherload of Guppy GMMA. (hull.pdf) Don't be distracted by
derivations such as Linustroll's Cyrox Rainbow (Ultimate GMMA)...
it's visually a work of art but too much sensory input. I think the forum
died because of two many variations and poor direction.... and maybe it
doesn't work. LOL

Hope this helps,

[i]Dr. D.
  • #33
  • Dec 5, 2008 4:33am Dec 5, 2008 4:33am
Thank you Dr. D.

Your reply is much appreciated. Better late than never.
  • #34
  • Dec 14, 2008 2:00am Dec 14, 2008 2:00am
I still use my guppy. Nothing has changed. Wait, wait, enter, exit. Guppy is a scalper's paradise, particarly when aligned with the longer-term trend.

Exits are the hard part. I am content to TP when the candles are printing slower. If it keeps going after I'm gone, I don't care. And you shouldn't either. Profit is profit, and it's discipline that keeps you in this game.
  • #35
  • Dec 22, 2008 2:14am Dec 22, 2008 2:14am
I received this PM:

Quote
My question today though is, does the MA setting matter a whole lot? Does E work better than W or S, etc.? Or does it still work so long as they all share the same one?

I've always used exponential averages, not simple; I have no experience with weighted. The reason for this is exponential moving averages are faster to react to change than simple ones, and we want to act on that change, especially in smaller timeframes.

According to Guppy's original theory, the actual numbers of the EMAs are grouped such that the fast, trader money is distinguishable from the slow, institutional money. But this applies only in equity markets and on daily timeframes. All we're doing with guppy in forex is articulating where the current trend is in relation to where price has been. The values I set out allow one to do this. The only thing I don't pay attention to as much anymore is the 200 EMA, but I still have it on my chart as a kind of caution.

My caveat with Guppy is this: be careful using it in off hours, especially prior to the start of the Frankfurt session when the direction for trading is still being articluated. Wait for that articulation (e.g., a break of a small trading range), and if guppy confirms, go. I like to wait for pullbacks if at all possible, but sometimes you have to just hop on the train.
  • #36
  • Dec 22, 2008 7:18am Dec 22, 2008 7:18am
Thank you. That was exactly what I needed.
" Average traders look to the left, great traders look to the right."
  • #37
  • Dec 22, 2008 11:13pm Dec 22, 2008 11:13pm
Quoting fourxtrader
Don't be distracted by[/i][/color][/i]
derivations such as Linustroll's Cyrox Rainbow (Ultimate GMMA)...
it's visually a work of art but too much sensory input. I think the forum
died because of two many variations and poor direction.... and maybe it
doesn't work. LOL
[i]Dr. D.
LoL
  • #38
  • Dec 23, 2008 9:45am Dec 23, 2008 9:45am
Quoting linuxtroll
LoL
  • #39
  • Dec 24, 2008 8:38am Dec 24, 2008 8:38am
It goes without saying that I will demo or use a .1 micro lot to test this strategy. Does anyone trading this have any comments regarding using the 15M or 30M TF? My past trading history tells me not to jump on the 5M or 1M TF although that could be a goal. Comments please, p.
  • #40
  • Dec 24, 2008 9:00am Dec 24, 2008 9:00am
Lever70. Your explanation of the system one of the best. You put everything easy to use for everyone You are great contributor.
Long time ago, when I liked scalping, I was looking for simple explanation like you gave in this tread.
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
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