Trend Follower 5 Minute System

Quoting joschia

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Hi folks,

I need some advise. I took a trade at the vertical line and was hit with a SL. May I know whether is this a valid trade? Thanks

http://i8.photobucket.com/albums/a36/joschia/GU.jpg

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Quoting stevecartwright

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First I would like to thank The Wicker for this approach to trading. It is helping me enourmously. I have written many EA's, which is not difficult, I am an ex-programmer. The difficulty is getting the precise rules which work.
As Paul, I believe, found out it is not normally the entry that is difficult, in fact thats the easy part its the exit that is the challenge. The conditions of exit are far more varied than the entry. Ensuring that the profits are let to run while lossses cut short is a very difficult exercise. Also there is the question of the rainbows. What is immediately visual is not so easy to code, thats why I have made some mods to my system. I now have a warnings system under construction that shows the position of every pair .

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Quoting stevecartwright

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I have added a 2nd Laguerre line @0.8 which is a longer TF. This is being used on another scalping system and indeed would have stopped this trade as it was falling. Also I have added a DMI @ period 8 and usingthe extreme point as a breakout whci helps with the momentum of the trade. I really like the rainbows as you immediatley see where you should be trading but its still a bit subjective. I found some Aussies using a similar approach on with TF on seconds so I tried 1min which is the lowest MT4 will go and with the 2 additions (don't use LAG's much) it seems to be paying off. 7 profitable trades today. Hope all that helps someone as we all need help.

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Quoting stevecartwright

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Hi tadinda,
I am working through this trading system but adding my own spin on it to satisfy own demon's. The rainbows are brilliant and keep me on the rightside of the trend. Next week I plan on trading a few live lots/pairs to see what my ideas bring. I did have a look at an early version of Pauls EA which had a lot of code for the rainbows in it so I may consider having a furher look later. I have a busy week next week so its not going to be soon.
Have fun :-)

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Quoting Dutchy

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Hello folks

Hoping to admire the Wicker soon too

But, Ive been trying to get it right, however Backtesting showed no succes yet using ProRealTime (PRT)

I have build the indicators in PRT as explained in http://www.bustathief.com/2007/07/ea...-follower.html
and this thread.

Buy Signals,
Cond 1,2,3,4,5 must meet at the same bar or previous bar, SDL is optional

1) EMA 4 > EMA 8
2) Guppy Green over Red (Yelow over GREEN is optional as long as all Guppies head north
3) Momentum > 0 for all Guppies (north)
4) RSILaguerre(0.66) = 0.15
5) MACDhistogram(5,35,5) > 0
6) SDL Slope Direction line* positively oriented preferred

SDL* = (2*WeightedAverage[MA/2](close)) - WeightedAverage[MA](close) I deduced this form the mq4 file, and when drawn it looks the same, so guess this is right.

Exit by means of Trailing Stop (temporarily). Hope to get the entry right first, then focus on the exit
I use EOD data on European stocks


? What is the exact definition of the Guppy crossovers, so far I only chave confirnmation on Yellow over Green AND Green over Red.
? So: just to make sure: where do the other Guppy colours go, and what is the layout

Can anyone explain why these signals do not work ? Did I miss sth? I miss so many trades like this: http://www.forexfactory.com/showpost...0&postcount=68
Also I experience that the Guppy signals are often lagging so much that entering the trade would not be profitable anymore.

Dutchy

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Quoting tadinda

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Hello Duthchy,

I am trying hard to get some order to this seemingly fantastic Forex trading system. If you see my recent posts you will notice that this is what I am trying. Furthermore, I am also trying to refine the EA which has been started, but not completed by Paul Murfin.

I am not a programmer and certainly am no expert on this system. However, I have been trying hard to understand and to follow.

I myself am having some problems with the TrendFollwer = Snapshot EA which was posted much earlier and whcih I am using.

So to cut a long story short I am willing to help as much as I can to achieve some kind of consistency on this.

In answer to your questions I think you have got everything correct. MY only worry is that you are using EOD data while teh system is designed to work on 5 Mion Data although some people use it on 30 MIn Data.

For confirmation of your queries I suggest you run a search on this thread using "pmurfin" as your search criteria for User Name. I know from reading teh whole thread taht there was a short and concise discussion on the subject and even the Wicker himself has passed some comments.

Again, as I have been saying if you need the limited help which I can provide all you have to do is ask and I will try to assist you in fine tuning this wonderful system.

Tadinda

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Quoting Dutchy

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Thanks for yr offer to help Tadinda !

Good to know the settings seem correct.

As you mentioned, the TF system is designed for 5-30 min data. That brings up the matter of parameters. MACD, RSI and EMA4/8 setting might need some adjustments dor EOD data.

For starters Ill do some searching as you suggested. Meanwhile I revert to default parameter (like MACD 12,26,9) values and see if that sheds some light on this matter.

Q: does EA stand for Exponential Average? Guess I ll run into it when browsing the forum..

Q: What software are you using in case of sharing code? I use ProRealtime EOD.

Cheers, Dutchy

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Quoting tadinda

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Hello Dutchy,

First off please ensure that the parameters you are suggesting are correct. To me they are but I am not expert.

Second, the Wicker has always said taht this system is intended for 5 Min time frames. Some of the users have tested it over 30 mins Time Frames and say that it works. I have not seen anybody on this forum say or suggest that it can be used for Day Time Frames which I understand is what you are suggesting when you are using EOD Data.

EA means Expert Advisor which is a piece of code used with MetaTrader to make things easier for users of this platform. For exponential MOving Averages people on this forum ususally use EMA. The software for trading or charting which people use on here is teh Metatrader for which all downloads, including the files and templates by teh Wicker are all intended.

I do not know ProRealtime myself.

Hope that helps.

Tadinda

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Quoting Dutchy

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Hello Tadinda

Thanks, could you send this EA code your looking at ? Maybe I can decipher it, and re-build it into PRT. It may help me understand what EA means to you, and why you are so interested. I guess EA in MetaTrader is what a Screener or Backtest is in PRT.

Made some improvements with help of the forum, but results are skindeep.
The Guppy traders have shown some nice examples of what the colour setups mean, maybe sth like that is available for the Rainbow like Guppy used by the Wicker ?

Cheers, Dutchy

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Quoting tadinda

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Hello Dutch,

I am sending you two EAs which have been developed by others. The first Signal Trend Follwer with E mail Alert is what has been developed by Paul Murfin. The other called Signal Trend Follower + Snapshot is supposed to be the same thing but it takes a snap shot of the chart as and when the alert is made.

Currently I am using teh one without the snapshot as as you can see from an earlier post I do not think it is working properly.

Effectively this EA performs the following function:

As soon as all of teh rules of the Wicker are confirmed it sends and alert on screen. You can also confirgure it (and metatrader) to send you an e mail as well.

Dutchy these EAs are not used for backtesting they are used to send you alerts to advise you of a possible trade.

Should you require more information please advise.

Tadinda

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Quoting Dutchy

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Tadinda, Thanks

Ill look into it (that is, I can only read the mq4 file in an editor). Coding is new to me but should not be a big problem :_)

It helps me to refine PRT code. Looks like what PRT can do with Indicators and Alerts.

What makes you think it does not work right?

Dutchy

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Quoting tadinda

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Hello Dutchy,

The "......+ Snap" EA does not file the snaps for all the alerts.

Also, and this is only my opionion, the alert comes too late to be able to take a trade.

Look forward to hearing from you.

Tadinda

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Quoting ACartwright

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Hi everyone!

I have been following this thread for the last month or so and I think that it is losing steam! (the last being on the 12th March)

WHY?????????????

At the end of the day I believe that the trend follower system is one of the best on Forex Factory.

My Dad has posted on this thread a couple of times and I think that the followers of this system can make huge amounts of pips/money.

That is if they follow this rule:

1. Never go against the system

Whilst I think that that The Wickers system is one of the best (as it will keep you on the right side of the trend) I feel that there are two criteria that when satisfied can create an ever better entry point to any trade, pair and time frame.

You will also see that your original stop loss is rarely comprimised.

1. Add a second lag at 0.8 and wait for both lags to go in the same direction before a trade is taken. The second lag acts as confirmation. In addition do not worry to much what level of the lags are at. As long as they are movng in the same direction it is all good. My Dad posted this in an earlier blog.

2. And this is where I may have trouble convincing The Wicker (as I propose adding an additional indicator). If you add a DMI 8 period on a 5 minute chart
it will give you greater confidence going in on trades. You have to make sure that both the + and - are in the right place (i.e. - over + for short and vice versa for long) and most importantly the adx is rising.

Any trading system has to confirm two things:

1. What is the direction of the trend - Rainbow and DMI
2. What is the strength of the move - 2 Lags and ADX

The take profits will always be down to the individual trader but if you stick to the rules above you will be rarely stopped out at more than 30 pip loss.

Not convinced?

Try this for a short trade (reverse for long)

1. Take the prices completely off your trading screen (just scroll down until they disappear)
2. Then move the screen to a place where the MACD is below 0 and is also lower than the signal line.
3. Move forward to a point where the DMI - is greater than the DMI + (make sure that the adx is also rising.
4. Once you have that candle point bring the prices down/up
5. Double check the rainbow to confirm direction.

Does this point start the directon of a great move?

99% of the time it does.

I am not commenting on the exit point but a general observation and what works for me personally after you have made 20 pips you move to break even and then take profit when your goals are met or when support/resistance points are met.

I am convinced with pivot points so always be aware of your position. I never trade when I am less that 20 pips away from the points.

Trades come along all the time - You can wait to take your pick.

I will hopefully be more active on this thread and welcome anyones comments.

Lets keep this going becuase it is too good to let go.

Alastair

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