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Attachments: 'Snap Crackle Pip' System
Exit Attachments

'Snap Crackle Pip' System

  • #1
  • First Post: Edited Dec 27, 2007 6:49am Dec 18, 2007 9:30pm | Edited Dec 27, 2007 6:49am
So I started trading a system a while back that allowed me to combine a really simple hourly trend with 2 EMAs. I have to preface this right now, I learned alot of the logic for this system from the Corn Flower EA (Thanks Lever, from all of us). I changed the parameters a little and decided to go with an 18 and 45 EMA cross system. No emotion, no other indicators. I haven't programmed an EA for this, but it does run off of an idicator that alerts with sound and sends out an email. Emails and alerts are sent out after the close of the bar, which could be changed to suit ones taste. I literally go long when the email tells me, and go short when the time is right. Like I stated, no emotion. Here's where you guys come in. At this time the indicator is programmed and sends emails nicely, but it sends one for every bar. This means every hour. Not too annoying, but can be fixed and I'm scratching my head without a little help with the programming. I have attached an example setup, which is shown with pink and blue arrows developing on the chart at the time of the email. I haven't tested this on timescales lower than 1hr, because I quite frankly don't like that many setups. I think the 18 and 45 EMA compliment each other well and do not give too many whip-saw entries. That being said, this is a trending indicator that builds pips for days, no short trades unless you're exiting because the tide has turned and you need to close and enter in the opposite direction. I have used most of the majors and don't find that one stands out more than the others as being more consistent and successful. This will be about personal preference anyways. Without further delay, check the examples, see what you think, and I have also attached the Indicator (put in indicator folder of MT4 if you didn't know). Anyone care to take a stab at a live trading EA or a true back test?

If this system is already out there and I am out of line, please let me know!

P.S. Sorry for the name of the system, but it does catch the eye right?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURUSD snapcracklepip setup.jpg Size: 86 KB
Click to Enlarge Name: USDJPY snapcracklepip setup.jpg Size: 85 KB
"60% of the time it works...every time"
  • #2
  • Dec 18, 2007 9:38pm Dec 18, 2007 9:38pm
Try it out everyone. Remember, I stated that it is sending an email after every one hour bar for each currency pair. The email alert is set to on. If you don't know how to setup MT4 for emails, go to this thread:

http://www.forexfactory.com/showthre...62#post1754162

This thread should have plenty of information to get you going, including what I included about being able to use Gmail.

Let me know what everyone thinks. And once again, I have enjoyed this system, but it is open for discussion for areas like a defined exit strategy, etc...
Attached File(s)
File Type: mq4 Snap Crackle Pip.mq4   8 KB | 1,849 downloads
"60% of the time it works...every time"
  • #3
  • Dec 18, 2007 9:57pm Dec 18, 2007 9:57pm
Awesome!

I am so glad you started this forum. Now I can freely post and ask questions. I currently am running this live using .01minilots. I am running it on ten pairs, and just following the cues.

What pairs do you like to use? How long have you used it? What is the significance of the 72 EMA? If it is flat do you advise not trading?

I'll ask more as the time comes!

Thanks.
  • #4
  • Dec 18, 2007 10:28pm Dec 18, 2007 10:28pm
Is there to give me an idea about the market trend. I rarely, very rarely use this. BUT, it can be helpful if during a huge surge or drop, the 45 EMA is pulling away from the 72. This gets to be a situation like when an RSI gives someone an overbought or oversold sentiment. Make sense? Here is a good example of a nice gap, and one I feel is oversold and should be used with caution to take profit!

Oh, and check for what looks to be a nice long setup for the AUDUSD over the next couple of hours.

I currently use 8 pairs, and as of lately, the USDJPY is a jem for this system. Tens of hundreds of pips if rules were followed from Dec. 4th through tonight.

Cheers, really glad you're aboard.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Picture1.jpg Size: 98 KB
Click to Enlarge Name: Picture2.jpg Size: 96 KB
"60% of the time it works...every time"
  • #5
  • Dec 18, 2007 10:39pm Dec 18, 2007 10:39pm
Greetings. Let me get this straight: this is an always in, EMA cross system, correct? In other words, when 18 crosses 45 down we short, then we stay in until 18 crosses 45 up, then we exit short and enter long, correct?
  • #6
  • Dec 18, 2007 10:42pm Dec 18, 2007 10:42pm
Quoting slade15342

Oh, and check for what looks to be a nice long setup for the AUDUSD over the next couple of hours.

I currently use 8 pairs, and as of lately, the USDJPY is a jem for this system. Tens of hundreds of pips if rules were followed from Dec. 4th through tonight.

Cheers, really glad you're aboard.
Thanks for the speedy reply. Really glad you posted the system. It makes the most logical sense to me and follows the KISS rule, which is the best part.

Currently I am running the following pairs: EURJPY, EURAUD, EURGBP, USDJPY, EURUSE, GBPUSD, USDCHF, EURCHF, AUDJPY, NZDUSD, GBPJPY...

As I said, I am only risking .01mini... totaling a wopping .11 minilots...

I'll post the results, but as you said it is to be run over days... so it may be a while, eh? I hope the swap doesn't hurt too bad, but on .01minis I doubt it
  • #7
  • Dec 18, 2007 10:47pm Dec 18, 2007 10:47pm
Dreamliner,

That is correct sir. Very simple. Always in. Just let the winners ride, and there is no real need for a stop loss, because you're going to reverse when the cross again. That's the great thing about the larger EMAs at 18 and 45 with 1 hour candles. You're not chaning positions much at all. And one more thing; I NEVER shy away from a sideways market, because the losses for getting in and chaning directions are so small, that one good setup will wipe them all out in the end.

Your input and questions are welcome any time Dreamy.
"60% of the time it works...every time"
  • #8
  • Dec 18, 2007 10:47pm Dec 18, 2007 10:47pm
Is this what you mean by being possibly oversold? Stay in until the cross?
Attached Image (click to enlarge)
Click to Enlarge Name: oversold.gif Size: 17 KB
  • #9
  • Dec 18, 2007 10:53pm Dec 18, 2007 10:53pm
Sir, this is a very easy system to backtest manually. If you take one currency, any currency, and backtest from just the start of December I believe you will see that this (and all moving average) system is a loser.

I do not want to burst any bubbles, and if anyone can show me that for even one month this system produced a profit I will stand (or sit, rather ) corrected.

Quoting slade15342
Dreamliner,

That is correct sir. Very simple. Always in. Just let the winners ride, and there is no real need for a stop loss, because you're going to reverse when the cross again. That's the great thing about the larger EMAs at 18 and 45 with 1 hour candles. You're not chaning positions much at all. And one more thing; I NEVER shy away from a sideways market, because the losses for getting in and chaning directions are so small, that one good setup will wipe them all out in the end.

Your input and questions are welcome any time Dreamy.
  • #10
  • Dec 18, 2007 11:27pm Dec 18, 2007 11:27pm
I agree with Dreamliner. EMA's are just too slow to respond especially after a fast change in price. The system would work better if you developed an exit strategy. In other words, something like exiting if stochastics move to one extreme or another. Just visually checking I can see several decent winners lose most of their profits just waiting for the signal to reverse. One in particular on NZDUSD where a 90 pip winner became a 40 pip loser.

Another exit strategy that would work would be to take 50% of your positions off at a specific pip profit then let the rest ride with a trailing stop. Anything would be better than waiting for the ema's to reverse.

Good start to a system. Just work on refining it a little.
  • #11
  • Dec 18, 2007 11:28pm Dec 18, 2007 11:28pm
Anybody considered the MA cross/Jacko AH hybrid I posted a while back? There's a thread out there, but no research went into it yet. Cheers.
  • #12
  • Dec 19, 2007 6:12am Dec 19, 2007 6:12am
Quoting Dreamliner
I do not want to burst any bubbles, and if anyone can show me that for even one month this system produced a profit I will stand (or sit, rather ) corrected.
7 out of 10 pairs have covered the spread and are in profit. It would have been 9 out of 10, however, I slept through the alarm. Another pair, I simply entered way too late to begin with - well after the run had happened. I will post the exact pip returns when I have more time.

I wonder if trailing stops for this system would be appropriate to really lock in some profits on for those pairs with sudden trend shifts. (ie. GBPJPY)... Incidentally GBPJPY is my biggest winner at +168 pips minus the spread.
  • #13
  • Dec 19, 2007 7:45am Dec 19, 2007 7:45am
Dream and Magnum,

I realize that there should probably be a modified exit strategy like Tourder said, possibly a trailing stop. This would be espcially helpful where you have already achieved a respectable win, and don't want to have to wait for the cross. I mostly like this system for the entries, and I do have to make a call every now and then on when to take profit and go and throw the frisbee in joy. I used to run this a while back with an EA. I also found that if I was totally hands off I was losing major profit by waiting for the reversal to close my positions. That is why I am currently still developing sound logic for taking profit (look at 18,45,72 EMA separation theory a few posts back) to get out of trades. Once again, very much in need of a defined method so we can all agree on something for later that can be traded while we are sipping Mimosas in our favorite sandy locations.

I got a sell for the USDJPY after a long upside run over the last two weeks. Might whip-saw; but then again, doesn't every pair have that chance? I now have to get ready for my real profession, but I'll keep my phone and alerts close at hand.

Tdion: Would you like to post a blurb or a link about the MA cross/Jacko AH hybrid you mentioned? I'm quite curious.

Tourder: Thanks for the insight into your pairs. And you are right, sometimes getting in too late kills the setup. That's why email alerts are so great! Congrats on the pips.
"60% of the time it works...every time"
  • #14
  • Dec 19, 2007 8:44am Dec 19, 2007 8:44am
Quoting slade15342
Dream and Magnum,

I realize that there should probably be a modified exit strategy like Tourder said, possibly a trailing stop. This would be espcially helpful where you have already achieved a respectable win, and don't want to have to wait for the cross. I mostly like this system for the entries, and I do have to make a call every now and then on when to take profit and go and throw the frisbee in joy. I used to run this a while back with an EA. I also found that if I was totally hands off I was losing major profit by waiting for the reversal to close my positions. That is why I am currently still developing sound logic for taking profit (look at 18,45,72 EMA separation theory a few posts back) to get out of trades. Once again, very much in need of a defined method so we can all agree on something for later that can be traded while we are sipping Mimosas in our favorite sandy locations.

I got a sell for the USDJPY after a long upside run over the last two weeks. Might whip-saw; but then again, doesn't every pair have that chance? I now have to get ready for my real profession, but I'll keep my phone and alerts close at hand.

Tdion: Would you like to post a blurb or a link about the MA cross/Jacko AH hybrid you mentioned? I'm quite curious.

Tourder: Thanks for the insight into your pairs. And you are right, sometimes getting in too late kills the setup. That's why email alerts are so great! Congrats on the pips.
I agree totally. I have a smartphone which allows me to trade while mobile, so I pretty much exited all my trades in profit on the way to work. I also agree that this system is phenomenal for finding entry positions; on a long run, however, waiting for the recross to exit (and re-enter) simply eats into the profits. Trailing Stops, I think solves this problem. When the trailing stop hits, simply wait for the re-entry signal and do it all over again. Of course, everything whipsaws, but as you said, with proper money management, keeping an eye on the market, and being ready to exit if the pair gets squirrley, this system can result in big profits. The long runs will far out weigh the losses.

It is not a set-it-and-forget-it system, but as close to it as I am comfortable with.

An EA that automatically enters on a cross (and recross in the opposite direction), sets trailing stops, and sends email alerts would be wonderful.

Another thought: perhaps the bo7a method with the 90EMA was good because it ruled out entering against the trend.

I have to get back to my real profession too...
  • #15
  • Dec 19, 2007 11:22am Dec 19, 2007 11:22am
Hmmmmm...... nice name anyways!
  • #16
  • Dec 19, 2007 11:37am Dec 19, 2007 11:37am
Quoting tdion
Anybody considered the MA cross/Jacko AH hybrid I posted a while back? There's a thread out there, but no research went into it yet. Cheers.
can you post a link to this? thanks.......
Same Whore .... Different Dress
  • #17
  • Dec 19, 2007 11:41am Dec 19, 2007 11:41am
To wean from the phone how about a 4 hr version?


Quoting SnapCracklePip
Hmmmmm...... nice name anyways!
"Loss and failure are inevitable but misery is optional"
  • #18
  • Dec 19, 2007 12:33pm Dec 19, 2007 12:33pm
Hi,

Is there anyway one can add filters so that one can be able to know when to exit a trade?

Quoting slade15342
So I starting trading a system a while back that allowed me to combine a really simple hourly trend with 2 EMAs. I have to preface this right now, I learned alot of the logic for this system from the Corn Flower EA (Thanks Lever, from all of us). I changed the parameters a little and decided to go with an 18 and 45 EMA cross system. No emotion, no other indicators. I haven't programmed an EA for this, but it does run off of an idicator that alerts with sound and sends out an email. Emails and alerts are sent out after the close of the bar, which could be changed to suit ones taste. I literally go long when the email tells me, and go short when the time is right. Like I stated, no emotion. Here's where you guys come in. At this time the indicator is programmed and sends emails nicely, but it sends one for every bar. This means every hour. Not too annoying, but can be fixed and I'm scratching my head without a little help with the programming. I have attached an example setup, which is shown with pink and blue arrows developing on the chart at the time of the email. I haven't tested this on timescales lower than 1hr, because I quite frankly don't like that many setups. I think the 18 and 45 EMA compliment each other well and do not give too many whip-saw entries. That being said, this is a trending indicator that builds pips for days, no short trades unless you're exiting because the tide has turned and you need to close and enter in the opposite direction. I have used most of the majors and don't find that one stands out more than the others as being more consistent and successful. This will be about personal preference anyways. Without further delay, check the examples, see what you think, and I have also attached the Indicator (put in indicator folder of MT4 if you didn't know). Anyone care to take a stab at a live trading EA or a true back test?

If this system is already out there and I am out of line, please let me know!

P.S. Sorry for the name of the system, but it does catch the eye right?
  • #19
  • Dec 19, 2007 12:52pm Dec 19, 2007 12:52pm
I can't believe there is someone with the screen name SnapCracklePip! I'm terribly sorry, I hope there isn't copyright infringement in any way. I am all for coming up with exit filters. I'm also hopeful that anyone could adapt this system to a 4hr timescale. That is the great thing about the posted indicator, it works on whatever time scale you set on MT4. And this by all means would kick the need for a phone. And the 4 hr timescales are very well defined for EMAs of longer periods, so you might find this fits you fine.

Ollynick: Want to take a stab at suggesting some exit filters so we can start a discussion about that? We could try a shorter EMA period to cross the EMA18, therefore signalling an exit a little quicker. In my experience, this generally leads to getting out of positions too early before you let it run. And that is the point of this system; letting it run. And stop losses have too many disadvantages with quick spikes if the stop is too close.

As it turns out, the AUDUSD setup last night didn't come through with a buy signal. But that is why I let the indicator do the talking. Much like a marriage. Let the woman (aka Indicator) make the decisions. This also allows me to play more golf and watch more football...
"60% of the time it works...every time"
  • #20
  • Dec 19, 2007 1:19pm Dec 19, 2007 1:19pm
Thanks for posting your system it looks very interesting. How long have you beeen trading it and how successful have you found it too be. I agree by planning your exits more carefully using trailing stops, resistance or fibs you could protect your gains better.

thanks again
Rob
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