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4 Hour Strategy (MACD)

  • #21
  • Jan 29, 2007 1:48am Jan 29, 2007 1:48am
Thanks Phillip for the MACD system it looks good, will paper trade it for a while. I hope you don't mind me asking? Where are you from ? South Africa? Myself , I'm in Jo'burg.
  • #22
  • Jan 29, 2007 3:33am Jan 29, 2007 3:33am
Hi Phil,
anyone who can come up with something that made +409 in August 2006 has my respect

I love price action and always knew the price patterns would reflect in the MACD, too. Great job finding them out and then sharing this system for free! *hugs* Also like the fact that you use the sound logic of "if it goes past 50 pips stop it's not worth it anyway". I totally agree, either a trade goes - then you didn't need much stop - or it blows, then no size of stop can help you.

Great work!

My best regards,

SeekingLight
Trust price. Know yourself.
  • #23
  • Jan 29, 2007 4:00am Jan 29, 2007 4:00am
I use VT platform does anyone have the setup for the MACD, there is no fast or slow EMA settings and if you set the MACD at 1 there are no lines to read. Thanks
  • #24
  • Jan 29, 2007 7:08am Jan 29, 2007 7:08am
cool strategy. thanks for the time and dedication
  • #25
  • Jan 29, 2007 7:45am Jan 29, 2007 7:45am
Quoting kaar411
I use VT platform does anyone have the setup for the MACD, there is no fast or slow EMA settings and if you set the MACD at 1 there are no lines to read. Thanks
Kaar, he said he uses Mig, I assume the MIGFX demo feed as his basis, best to just get that and base your research on that accordingly.

And going from what he said he only trades the candles at 18:00 20:00 and 0:00 on Mig time?
Please confirm this Phil, as I would really be interested in hearing that this is indeed the time, as that coincides really well with my evening
Trust price. Know yourself.
  • #26
  • Jan 29, 2007 9:00am Jan 29, 2007 9:00am
Quoting SeekingLight
Kaar, he said he uses Mig, I assume the MIGFX demo feed as his basis, best to just get that and base your research on that accordingly.

And going from what he said he only trades the candles at 18:00 20:00 and 0:00 on Mig time?
Please confirm this Phil, as I would really be interested in hearing that this is indeed the time, as that coincides really well with my evening

Yes 16:00 20:00 and 0:00 on my platform.
  • #27
  • Jan 29, 2007 9:01am Jan 29, 2007 9:01am
Quoting FXSnipe
Thanks Phillip for the MACD system it looks good, will paper trade it for a while. I hope you don't mind me asking? Where are you from ? South Africa? Myself , I'm in Jo'burg.
Ellisras in Limpopo
  • #28
  • Jan 29, 2007 9:15am Jan 29, 2007 9:15am
Quoting kaar411
I use VT platform does anyone have the setup for the MACD, there is no fast or slow EMA settings and if you set the MACD at 1 there are no lines to read. Thanks
I'm assuming you put the numbers in order.
Fast is short, slow is long, and the 1 is MACD.

To get the lines, I had to use the third version of the MACD. Moving average convergence/divergence. Now it looks just like the pdf. Will have to see if it really is correct though,but looks good so far.

I was accidently looking at the 15min instead of the 4 hour, looks right there.
  • #29
  • Jan 29, 2007 9:19am Jan 29, 2007 9:19am
Quoting turk87
Very cool, thank you very much for posting this. I have a question.

1. How long do you usually hold a position??

As long as I am still within my plan for the trade. From 1 Hour to a week.
  • #30
  • Jan 29, 2007 9:21am Jan 29, 2007 9:21am
Quoting Phillip Nel
Ellisras in Limpopo

Oh, my parents are in Tzaneen. Thanks once again for sharing your system, I have always used an MACD but yours adds some more ideas on how to apply it.
  • #31
  • Edited 11:35am Jan 29, 2007 9:30am | Edited 11:35am
Hope you took this one

A. 1 Profit already in at 20 pips for 4 minilots
B. Have Set stoploss to 10 below entry for 6 minilots lots with 2 Prof(4 minilots) set at 1.2945


Just want to add that the rule says that when the price goes through the 89SMA it tends to pull back to the 21EMA before proceeding the trend. We have a situation now where the price went down through the 89SMA and has pulled back to the 21 EMA. Be aware of that. I have set my stoploss at 1.2905(10 below entry) to combat the move should the price comes down. The MACD will show me when the trend is continued below the 89SMA and then I will enter short.

I just have a feeling that we are going to see a test of the 89SMA.


Update:
Just closed other 4minilots at 1.2945 and set stop on other 2minilots at 1.2940
Update:
Closed other 2minilots at 1.2960
Update:
Total for the day was .4lots @ 20 pips, .4lots @ 30 pips and .2lots @ 45 pips for a total of 29 pips on a full lot
Attached Image
  • #32
  • Jan 29, 2007 10:44am Jan 29, 2007 10:44am
Quoting Phillip Nel
Yes 16:00 20:00 and 0:00 on my platform.
Phillip,

For those of us who live in other parts of the world, I'm curious if you chose your 3 times to place trades because other time frames did not perform as well in back testing or if it was more a case of coinciding better with your work schedule.

Thanks for sharing your method.
Greetings from Guanajuato, Mexico
  • #33
  • Jan 29, 2007 11:04am Jan 29, 2007 11:04am
Hi Everyone! I like the looks of this system. One question, I use FX Trek Intellicharts. Can anyone tell me how to get the vertical lines in the MACD? Your help is greatly appreciated.
  • #34
  • Jan 29, 2007 11:22am Jan 29, 2007 11:22am
Interesting system. You should start to post your specific trades or a journal of your activity so others can follow along and better understand your set-up's as they are happening.
  • #35
  • Jan 29, 2007 11:23am Jan 29, 2007 11:23am
Quoting yen44x
Phillip,

For those of us who live in other parts of the world, I'm curious if you chose your 3 times to place trades because other time frames did not perform as well in back testing or if it was more a case of coinciding better with your work schedule.

Thanks for sharing your method.
It is just because of working schedule and limited internet access during working hours.

These were the amount of deals for 2006 per time (GMT+2)
01:00---25
05:00---34
09:00---17
13:00---46
17:00---52
21:00---29
  • #36
  • Jan 29, 2007 11:24am Jan 29, 2007 11:24am
Hi Phillip,

I like your system. I will be forward testing it until I get a real feeling for the MACD. I have one question regarding your stops, though:

If the distance is less than 50 pips, and no S/R nearby, do you tend to put them at the low/high of the previous candle?

Thanks for your answer.

Alcastro
  • #37
  • Jan 29, 2007 11:35am Jan 29, 2007 11:35am
Hi Phil,
thanks for the idea, it really rocks.

Moreover, I would like to ask, if you check Cable during January 15, it seems, the MACD shows pretty overbought state (the value reads 0.007), however as you can see, entering this trade (in my system it looks like I would enter SHORT on 20:00 candle (MACD started to sink)), would not work out very good.
Now I am just thinking how would one filter this trade.
It seems SMA200 is pretty close, could that be the sign, that actual price difference between SMA200 and price is not that big, so the trend is not mature yet ?
Or do I see some kind of SHS in this MACD (in the time of potential trade, it would be only SH, right shoulder was about to be finished) ?
Or how would you proceed with this trade ?

Thanks a lot,
Endy
  • #38
  • Jan 29, 2007 11:43am Jan 29, 2007 11:43am
Quoting alcastro
Hi Phillip,

I like your system. I will be forward testing it until I get a real feeling for the MACD. I have one question regarding your stops, though:

If the distance is less than 50 pips, and no S/R nearby, do you tend to put them at the low/high of the previous candle?

Thanks for your answer.

Alcastro
That also depends on the profit targets. If I can only plan to manage 30 pips out of the deal I want my stoploss not to be greater than that. I sometimes even uses two candles back if the first one is a small candle.
Todays trade (post31) had entry at 1.2915 with stoploss at 1.2890 initially and the previous candles fell nice within that range.
I also takes profit in stages so that when a trade has run to the first S/R I like to get something in my pocket. I like to get to breakeven as soon as possible and the let the rest have its run.
  • #39
  • Jan 29, 2007 12:02pm Jan 29, 2007 12:02pm
Quoting Phillip Nel
That also depends on the profit targets. If I can only plan to manage 30 pips out of the deal I want my stoploss not to be greater than that. I sometimes even uses two candles back if the first one is a small candle.
Todays trade (post31) had entry at 1.2915 with stoploss at 1.2890 initially and the previous candles fell nice within that range.
I also takes profit in stages so that when a trade has run to the first S/R I like to get something in my pocket. I like to get to breakeven as soon as possible and the let the rest have its run.
Phillip,

thanks for your answer. It makes sense.

I am going through your PDF and I have found a pattern that I don't quite get, but where you seem to get a lot of pips from. For example, in the JAN 2006 chart, your 4th trade (that made +20 pips), did you consider that one a "through zero and pull back" even though it went pretty low? If that is the case which is the criteria to consider a "through zero" (if it doesn't goe past the +/- 0.0015 MACD level?
  • #40
  • Jan 29, 2007 12:02pm Jan 29, 2007 12:02pm
Quoting endy
Hi Phil,
thanks for the idea, it really rocks.

Moreover, I would like to ask, if you check Cable during January 15, it seems, the MACD shows pretty overbought state (the value reads 0.007), however as you can see, entering this trade (in my system it looks like I would enter SHORT on 20:00 candle (MACD started to sink)), would not work out very good.
Now I am just thinking how would one filter this trade.
It seems SMA200 is pretty close, could that be the sign, that actual price difference between SMA200 and price is not that big, so the trend is not mature yet ?
Or do I see some kind of SHS in this MACD (in the time of potential trade, it would be only SH, right shoulder was about to be finished) ?
Or how would you proceed with this trade ?

Thanks a lot,
Endy

Your analyses of the situation sums it about up. MA's to close. Not a reasonable maybe head and shoulders forming. I would have taken one wrong trade the first one with a slight double top. After three even four candles it still did not produce anything. Cut your losses at that stage. A break of the 89SMA says a pull back to the 21EMA and then on with the trend. Exactly what happened. See the picture
Attached Image
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