only using SMA 21

Thanks doblece,
that looks about like what I had in mind.......

Another idea to set up all the SMA levels in one indicator, instead of using the High and Low apart, is to add two levels to the original SMA21-Close, one at 10 the other one at -10. which more or less correspond to the previous High and Low 21SMAs.

This may give much better results than SMA 21... but Rainbow rules... LoL

Click and read:
Using the Moving Average Channel to Trade

keep everything as it is at the open 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

http://www.forexfactory.com/images/misc/progress.gif

I dont see much different changing 21SMA to 24SMA, any input out there?

It offsets a little (0 to 15 pips, averaging 5-6 pips offset).
I guess the 21SMA is in reality intended to show the monthly average on a daily chart... as a month has around 21 trading days (except on charts like Oanda's that show saturday and sunday candles).
So, under that conception, a 24SMA to show previous daily average on a hourly chart would be appropriate.

.

I`ve made simple EA, but it loosing

Don't go by January performance, it is in the long run a losing system if followed exactly.

Greetings all. I Luv this place. Where else can so many minds get toghether and share their tid bits of "AHA Moments" and insights for the benefit of the many. Fun discussion you have here. So many good pointers. I'm gonna try to add my 2 pips worth after some summarizing of the highlights i found so far:

On the 21ma VS the 24ma...there may not be any wrong or right to which as they are so close. Some will prefer the psych comfort of the fibo numbered 21, others will like the comfort of the 24 on an hourly as there are 24 hours in a day.

On adding "indicators" like the RSI, MACD etc...i lean toward Scott and many other's good advice (and of course BillGates!) hope of keeping things simple.

FunTrader, yea on the -/+ pip filter (more on that in my ramble below). (Scott nice explanaition and image).

Scott: "current bar must be higher or lower than...." Hummm, you been reading a bit of Tom DeMark? That is a classic DM filter : ) good stuff.

Leugimp: Yes on adding the H/L filtering. (see below)

LinuxTroll : VERY COOL LINK! That was one of the better lessons/articles on the "Wave" or "Snake Eye" method of tunnel trading. Thank you. Haha "Rainbow Rules" you just had to do it ey?

OK, my ramble. This is an hourly model and what i share below should not diminish or take away from the spirit of the original...

First here are a couple of easy on the eye mods of CoderGuru's great xpMA. What i did was change the colors in such a way as to show the trend of the "Wave" that i use. I've changed the settings here to match the threads leaning toward the 21sma.

The upper "Band" or "Wave" is the one called the maHPF, which stands for moving average High Pass Filter. Named it in memory of my electronic musician and synthesizer days back in the 70's Rock and Roll never dies. ; ) The lower ma is called the maLPF for Low Pass Filter. The idea in electronics is to have a circuit that can filter out certain frequencies. In this case allowing Highs to Pass and Lows to Pass from the original (central frequency).

I was first introduced to the "Wave" or channel trade setup by Raghee in a webinar (she uses the 34ema on 30,60,180,240m charts), then our own Jimmy Young (FF Editor/Contributor) had a great lesson on channel trading over at his website utilizing a 60sma with levels set at -/+ 10 pips on a 5m chart for intraday trading. One of my modifications to CodersGuru's XpMA was to add a "Vertical Shift" user definable setting. Default is at zero, but set it to your -/+ 2 pips and you are in business!

In my experience trading the "wave" (mathmaticaly equivilant to the same moving averages on the 60m) on the 15m chart i will wait for confirmation similar to what LinuxTroll's link-with-lesson suggests; waiting for a retracement back to the central moving average. If my memory is serving me well i believe this is something that James16 also teaches in one of his price action models.

Here is a screen shot utilizing the indicators you can download here:

ATM_XpMA, ATM_maHPF, ATM_maLPF.

21sma "Wave" shown on 60m chart with BBs for profit targets/exit heads up:

http://www.accrete.com/fx-mirror/mis...eExample21.gif

You can see that the visual of the moving average channel or wave is quite pleasing and telling of the current trend.

This is a post script showing the addition of a 15m chart showing an example-entry (i did not trade this) just so you know what i'm talking about on the "Mathmaticaly equivilant" channel... in our case it is an 84sma and BBs set to 84 also deviation still 2 though John Bollinger does state that when you are going much above the default 20ma the deviation should increase...so i suppose deviation of 3 would work fine.


http://www.accrete.com/fx-mirror/mis...eExample84.gif


Thanks for all the good tips and insights.
Cheers,
Thom

Beautiful indeed.
And the HPF and LPF MAs match almost perfectly my setting of levels to +13 and -13 which I had added to the original SMA21 for filtering!

Thank you so much!

Cool, glad you like. One thing that i noticed over the summer when doodling with charts side by side (MA with "Levels" verses H/L wave) is something that i later saw mentioned here at the factory in a thread by Akuma99 called "Snake Eyes" and that is the tendency of the High / Low moving averages compared to each other will make a sort of mouth shape when it begins to consolidate. Neither of the images i posted have that very defined but you can see how the H/L bands widen at the top and bottom of the trend when it begins to consolidate.

Maybe just another feather in our cap of filters. I usually will try to wait for the reversal (though at times my excitement gets the best of me) and the bands get parallel and close again.

: ) Thom

I have modified the settings of your EA of iHigh (sell) and iLow (buy) to iOpen for both, as the rule stated to open the position at the candle open price.

I also changed the TP to 300 (was 160) and the stoploss to 50 (was at 500).

I have both your original EA (SL and TP changed though) and the modified EA running on GBPUSD (two charts) so to compare them. I'll keep you posted

P.S.: Already spotted a problem: when the position gets to the level where Trailing Stops are activated (here 50 pips TS) it moves the stoploss to the actual price at 50 pips from open, instead of moving it to break-even. Thus, closing the position.

I am testing it on 14 pairs on another demo, and also spotted that it opens some longs below the sma and shorts above, besides opening other ones under the "good" conditions but on the way back towards the SMA21.

It seems I can't test both EAs on the same pair even if on different charts, so I'll keep the modified one (iOpen) to continue and add modifications.

smjones thanks for your backtest but looking at it you backtested with control points instead every tick options and modelling quality is only 50% instead to be 90% so maybe the result are not so much accurate
Anyway interesting idea , I will try to code an EA for this simple system

Well this system could do really well with a martigale money management style. Open 0.1 lots, if it gets below the 21 SMA, reverse with a 0.2 lot, if it gets stopped out again, reverse with a 0.4 lot and so on. And maybe, you could use the ADX as the filter, like to determine if the market is trending or its ranging. With a strong ADX, a trade would work better especially if you're going with the SMA.

OK, it`s very interesting to check both of them. Can you post your version of EA?

I listed my EA with a option to choose tick or or control points. Run it yourself.. It is actually worse with tick data. What I am saying is it was not profitable over a year without large draw down... Perhaps the modifications others have made since will help, but I am not interested in testing it anymore... Thanks for your reply.

Scott

I think one of the strength of this system is its simplicity. So, I am sure you can code a nice EA with setting possibility both on entry and close making some tweakening possible.

I would like to forward test it.

It is still under examination... I made a version which would only open the positions and not managing close nor trailings (would have to be set manually) the problem is that then it keeps on opening trades one after another every hour if the condition is present... - the original one sets a single trade at a time - and did a backtest of it on the strategy tester however (only for january though, I don't know why but I tried to set a whole year and it gives me back only the month of july 2006...)

The entries on other pairs are not so accurate though. And there is still this problem that it seems in some of them to be entering "in reverse". On the other hand, what I thought was a problem with trailing stops, seems to be that it closes and reverses the position whenever the EA generates a new opposite signal (at least it has just done that on GBP), this could be very nice.

It's a bit difficult to test all those pairs together though, I'll be studying all entries more in depth this week-end.

I am trying to see if it would be easier to spot the cross between the SMA21High or Low and the SMA4 (which follows the price tightly) instead of working with the candles themselves. Seems to give the same open price (will have to check charts backwards at least for 2006).
Because the way it is now, it takes trades on the way out (inversed) sometimes.

Here are the results of the "only open" on GBP, having tweaked the stoploss to 100. With 50 it gives a loss. But a single month is not significative anyway, in the long run (by now) it seems to be tending to lose. And has way too much drawdown IMO. So I'm back to experimenting with the original one, changing also the parameters of the sma21 variable so the price considered is PRICE_HIGH for longs, and PRICE_LOW for shorts, instead or PRICE_CLOSE (the "tunnel" above mentioned).

SMA-21_2cc_only_open

SymbolGBPUSD (Great Britan vs US Dollar)
Period1 Hour (H1) 2007.01.02 08:00 - 2007.01.30 00:00 (2007.01.01 - 2007.01.30)
ModelEvery tick (based on all available least timeframes with fractal interpolation of every tick)
ParametersMagicNumber=0; SignalMail=false; EachTickMode=false; Lots=0.1; Slippage=4; StopLossMode=true; StopLoss=100; TakeProfitMode=true; TakeProfit=200; TrailingStopMode=true; TrailingStop=50;

Bars in test 4304
Ticks modelled 101478 Modelling quality90.00%
Initial deposit 10000.00
Total net profit 5788.39
Gross profit 26679.22 Gross loss -20890.83 Profit factor 1.28Expected payoff 14.96

Absolute drawdown 6000.90 Maximal drawdown 8198.97 (67.22%)
Relative drawdown67.22% (8198.97)
Total trades 387 Short positions (won %)189 (35.98%) Long positions (won %)198 (47.47%)
Profit trades (% of total)162 (41.86%)Loss trades (% of total)225 (58.14%)
Largest profit trade 200.20 loss trade -102.97
Average profit trade 164.69 loss trade -92.85
Maximumconsecutive wins (profit in money)37 (2195.04)consecutive losses (loss in money)60 (-6000.07) Maximalconsecutive profit (count of wins)7173.27 (36)consecutive loss (count of losses)-6000.07 (60) Averageconsecutive wins9consecutive losses13

The EA could be interesting though as a "signal provider" running it on the demo and checking its validity prior to opening a position...

Anyway here are both in raw mode: (DO NOT USE IN A REAL ACCOUNT !)

I think I found the possible reason for all the weird openings as I usually change timeframes a lot. I added another version with the timeframe forced to H1 (PERIOD_H1)

Last version. Sorry but sometimes I can't edit my posts and I don't know why so I am placing it here.

Regards
Caroline