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Attachments: only using SMA 21
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only using SMA 21

  • #21
  • Jan 28, 2007 11:34am Jan 28, 2007 11:34am
Another idea for a filter could be to say that the close of the current bar must be higher or lower than the high or the low of the previous bar that is 2 bars back. This way you avoid the tight ranging areas for the most part.

Of course, the close would also have to be above the 21 sma for a buy and below for a sell..
  • #22
  • Jan 28, 2007 11:35am Jan 28, 2007 11:35am
Quoting smjones
Here is my interpitation of the filter.
thanks smjones for ur desc
  • #23
  • Jan 28, 2007 11:36am Jan 28, 2007 11:36am
Quoting smjones
Another idea for a filter could be to say that the close of the current bar must be higher or lower than the high or the low of the previous bar that is 2 bars back. This way you avoid the tight ranging areas for the most part.
how about adding ADX and RSI for filtering?
  • #24
  • Jan 28, 2007 11:40am Jan 28, 2007 11:40am
Quoting mrforex2006
how about adding ADX and RSI for filtering?
I imagine that could work. I personally do not like indicators so much. as they slow the whole thing down with their lag.
The reason I like the price crossing thru the sma of some sort, is because it is immediate. No lag. I also like the idea of the previous two filters for the same reason.
  • #25
  • Jan 28, 2007 12:05pm Jan 28, 2007 12:05pm
Quoting smjones
I imagine that could work. I personally do not like indicators so much. as they slow the whole thing down with their lag.
The reason I like the price crossing thru the sma of some sort, is because it is immediate. No lag. I also like the idea of the previous two filters for the same reason.
yea..the best method would be looking at price action, moving average is definitely my choice, correct me if im wrong
  • #26
  • Jan 28, 2007 12:15pm Jan 28, 2007 12:15pm
Quoting mrforex2006
yea..the best method would be looking at price action, moving average is definitely my choice, correct me if im wrong
Well, to me, anything that has price as one of the criteria is preferred.

So if one is looking at price patterns such as James16's price action, or candle patterns such as described in Nison's books, and others. or price crossing thru something as in the idea of this thread, all of these are closer to the actual action of price. No one really knows where the market is going to end up, so trying to predict the future based on the lagging past is at best chance.

If one can jump on to a trend and hold on as long as is possible, that is where the money is to be made. Of course lots of others disagree with me on this, and I wish them the best. But I like the easy road. If it quacks like a duck and it looks like a duck and it smells like a duck, it is most likely a duck.
Same thing is true for a trend. Who knows if one will happen, until you are already in it.
  • #27
  • Jan 28, 2007 12:40pm Jan 28, 2007 12:40pm
I like the simplicity of this strategy, and I think it has the potential to become quite profitable with some additional fine tuning like finding the best time frame. and there should be 2 or 3 that are very good.
also defineing the entry rules, how many pip should the open be above the MA, the direction of the MA to help determine the trend to optimize entry position, setting the SLs, and how to maximize the profits, use a manual trailing stop or some other exit trigger.
just some idle ramblings that may help define the perimiters of this strategy, I would like to see this progress further because I see some potential here.
Same Whore .... Different Dress
  • #28
  • Jan 28, 2007 12:41pm Jan 28, 2007 12:41pm
Use 24SMA, instead of 21SMA, corresponds to the Average of the last Day then, been using this for trades for ages, really strong S/R point.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #29
  • Jan 28, 2007 12:46pm Jan 28, 2007 12:46pm
I like this system, but I have been backtesting this with a Profit Limit, also.
I have been using 50 Stop, 50 Profit Limit for GBP/USD, also using EUR/USD I
have been using 30 Stop and Profit Limit. I also use this for USD/CHF with 30
Stop and Profit.

Altogether, it has about a 70 success rate, as I backtested for last 2 months.
I like the Profit Limit because I work a job and if the trend reverses I usually have hit the limit before the reverse happens.

Thanks for the system, and I also use the early Filter of 1 Bar over 21 SMA and 2 Pips above or below that.

Howard
  • #30
  • Jan 28, 2007 12:48pm Jan 28, 2007 12:48pm
Quoting Turveyd
Use 24SMA, instead of 21SMA, corresponds to the Average of the last Day then, been using this for trades for ages, really strong S/R point.
That brings to mind what are the calculations for converting an MA from a longer time frame to a shorter one? .... ie say you use the 24 on a daily ..... what does that convert to for an hourly chart?
would it be 24 times the daily or would it be more?
sorry this question is a little unclear but I just can't seem to get ahold of it this morning.
Same Whore .... Different Dress
  • #31
  • Jan 28, 2007 2:03pm Jan 28, 2007 2:03pm
I believe the Bollinger Band is set up with the midline being a 20 SMA. This would be very similar to your 21 SMA method with the help of the outer bands to identify reversal areas.

As a FOREX noob, it just happened to be that a Bollinger Band book was the first one I bought to begin my trading education. Between the book and some things I picked up here at FF, BB use is becoming a little clearer all the time.

Just something I though might help.

Randy
  • #32
  • Jan 28, 2007 2:09pm Jan 28, 2007 2:09pm
While overlaying a BB template with the 5-13-62 ema's one day I noticed an interesting correlation with the 13 ema cross of the middle BB (20 SMA). Still tweaking, but take a look at it.

Add the 13 ema to your chart with the 21 sma and let me know what you think.

Randy
  • #33
  • Jan 28, 2007 2:20pm Jan 28, 2007 2:20pm
Quoting RandyG67
While overlaying a BB template with the 5-13-62 ema's one day I noticed an interesting correlation with the 13 ema cross of the middle BB (20 SMA). Still tweaking, but take a look at it.

Add the 13 ema to your chart with the 21 sma and let me know what you think.

Randy
Randy, try to put BB period 20 and 13 together (maybe in different color so easier to see), deviation of 2 for both; you might find something interesting. Just a thought.
Tra-X
  • #34
  • Jan 28, 2007 2:26pm Jan 28, 2007 2:26pm
As far as setting the 13 ema "deviation to 2" do you mean the shift (that's the only box that will accept a value in MT4)?

If you do mean "shift=2", I tried that and it didn't make a huge difference in the relationship between the 13 ema and 20 sma.

Randy
  • #35
  • Jan 28, 2007 2:29pm Jan 28, 2007 2:29pm
Nope, I meant Bollinger Bands period 20 and 13 (not EMA 13). Deviation is 2, shift is 0 for both. So there are 2 bollinger bands in your chart.
Tra-X
  • #36
  • Jan 28, 2007 2:40pm Jan 28, 2007 2:40pm
AHA!!

Did it, and took a very quick look at the historical chart. What I see is the 13 BB identifying the reversals (band tags) that happpened "in space" (therefore catching you off guard) when only the original BB was in place.

Mega "Thanks You's",
Randy
  • #37
  • Jan 28, 2007 3:09pm Jan 28, 2007 3:09pm
keep everything as it is at the close over or under the SMA
2 pips over the candle wick great

but change the 21sma to a 25sma
I can not back test just did by eye for 2 weeks
& the differance in the sma looks quite good

could someone back test it

thanks
  • #38
  • Jan 28, 2007 3:33pm Jan 28, 2007 3:33pm
Quoting smjones
Another idea for a filter could be to say that the close of the current bar must be higher or lower than the high or the low of the previous bar that is 2 bars back. This way you avoid the tight ranging areas for the most part.

Of course, the close would also have to be above the 21 sma for a buy and below for a sell..
The following can be better visualized by setting the three SMA21 (applied to high, close and low) which makes sort of a "tunnel" on the chart and also corresponds roughly to the +2 -2 pips rule mentioned by Fun Trader.

I added shift -2 to High SMA21 and +2 to Low SMA21.

Quoting Leugimp
1 enter buy on close above average of high as opposed to avg of close.
2 enter sell on close below average of low as opposed to avg of close.
Attached Image
  • #39
  • Jan 28, 2007 3:37pm Jan 28, 2007 3:37pm
Quoting johnedoe
That brings to mind what are the calculations for converting an MA from a longer time frame to a shorter one? .... ie say you use the 24 on a daily ..... what does that convert to for an hourly chart?
would it be 24 times the daily or would it be more?
sorry this question is a little unclear but I just can't seem to get ahold of it this morning.
I don't know if it is correct but it seems to be in my charts:
just multiply the value by the amount of smaller timeframes inside the original timeframe: 24 on daily is 144 on H4, and 576 on hourly.

.
  • #40
  • Jan 28, 2007 4:01pm Jan 28, 2007 4:01pm
Quoting smjones
.... This has potential and with some good Money management and optimization, could be good.. It is still the consolidation areas that do it damage ....
The consolidation period has been difficult in a couple of things I tried. I used RSI(14) vs. EMA(9 of RSI) and it looks promising - except for the consolidation part. Then I added in a tweak from the Daily Fozzy Method (thanks guys), still the consolidation is a problem.

I came round to thinking that what is really needed is a consolidation filter, but I still have a day job .....

Also I think that the time-derivative of RSI might be interesting to study.
All this is useful stuff, thanks guys.

Stephen
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