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The art of Trading MAs

  • #101
  • Edited 2:36pm Jun 11, 2008 11:08am | Edited 2:36pm
Hi waltini1,
I looked into your code and it looks promising.
After reading a post endroute post earlier today, I understand that you set the buy rule to cross below the lower green band and opposite for the sell. You don't check if it crossed back. I think it is right, but it will be great if endroute will give his opinion about it.
endroute wrote "In terms of when the EMA cross happens you have must have the cross above the upper or lower band, depending on long vs short. If for example I am using the green upper band I want price to cross above the green upper band before i start looking for ema crosses, I want the ema cross to be right around or above the green line, if it is just below the green line it is ok too to place a short trade."
BTW, can you consider creating an indicator that just alerts when there is a good setup ?
BR
Dani M.
Quoting waltini1
Hi 4xWeezal,
I took a stab at the ea and it seems to work ok. I haven't put anything fancy in it yet and I am just using a Take Profit and StopLoss.
Maybe we can put something together if it helps.
Of course I can't do anything about the repainting but the entries are correct at the time.
  • #102
  • Jun 11, 2008 12:10pm Jun 11, 2008 12:10pm
Quoting mogul4x
MA doesnt work. Copied to IBFX\EXPERTS\INDICATORS\ and produces nothing. Please advise..thx
it is an ea, you need to open the file with the Metaquotes Language Editor, under the tools tab, compile it, and it should show up under the expert advisors tab, double click to apply it to open chart of your choice.
  • #103
  • Edited 1:21pm Jun 11, 2008 1:20pm | Edited 1:21pm
Ok, here is a EURJPY short trade I took today on a demo account. It is hard to tell from the screenshot, but the candles had moved above the top green line prior to the EMA cross. I entered on the finished candle after the cross (166.27). The price action immediately went in my favor, and I was in profit by as much as 62 pips before it turned and went back the other way. I closed on the finished candle of the reverse EMA cross for a loss of about 26 pips.

Endroute, should we perhaps consider either of the following?

1) A trailing stop loss. In the above trade, a 30-point trailing stop would have finished the trade at around +30 pips.

2) A rule that once the trade moves significantly in your favor (say 20 points), you create a SL at break even.

Thanks,
Scott
Attached Image (click to enlarge)
Click to Enlarge Name: 513ma.gif Size: 24 KB
Prices are never too high to begin buying or too low to begin selling.
  • #104
  • Jun 11, 2008 3:22pm Jun 11, 2008 3:22pm
Hey Scott,

I noticed your screen shot on the EJ pair. Nice idea about TP levels. Attached you will see my screen shot, it shows "no trade". I am using the COG settings that were posted...are you using these the same settings? We both seem to be using the 1 hr TF with IBFX.

Thanks.

Leo
Attached Image (click to enlarge)
Click to Enlarge Name: ma ej trade 06.11.08.gif Size: 25 KB
  • #105
  • Jun 11, 2008 3:49pm Jun 11, 2008 3:49pm
Hi, Skygod. Yes, my COG settings are correct. I doublechecked them, in fact, after that trade. You have to remember that the COG indicator repaints as time goes by. If you had looked at your chart back when the 5 EMA actually crossed down over the 13 EMA, you would have seen that the price action had previously been above the top green line, signaling that conditions were right for an entry. I should have taken a screenshot of the chart at the time of entry. Next time I will.

Scott
Prices are never too high to begin buying or too low to begin selling.
  • #106
  • Jun 11, 2008 6:39pm Jun 11, 2008 6:39pm
So here is a trade I took today on EURUSD.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.jpg Size: 212 KB
  • #107
  • Jun 11, 2008 6:43pm Jun 11, 2008 6:43pm
Quoting thehenryfam
Ok, here is a EURJPY short trade I took today on a demo account. It is hard to tell from the screenshot, but the candles had moved above the top green line prior to the EMA cross. I entered on the finished candle after the cross (166.27). The price action immediately went in my favor, and I was in profit by as much as 62 pips before it turned and went back the other way. I closed on the finished candle of the reverse EMA cross for a loss of about 26 pips.

Endroute, should we perhaps consider either of the following?

1) A trailing stop loss. In the above trade, a 30-point trailing stop would have finished the trade at around +30 pips.

2) A rule that once the trade moves significantly in your favor (say 20 points), you create a SL at break even.

Thanks,
Scott
Scott,

Your trade went south because you should not have taken it, price never closed above the upper green line. Always wait for price to close above the upper green lines for a short
  • #108
  • Jun 11, 2008 10:24pm Jun 11, 2008 10:24pm
Sorry, endroute, but you're wrong on that. The price DID close above the upper green line. I would never have entered it otherwise. Those COG lines shifted over the next two hours on the chart. Surely you realize that they do that (repaint).

Scott


Quoting endroute
Scott,

Your trade went south because you should not have taken it, price never closed above the upper green line. Always wait for price to close above the upper green lines for a short
Prices are never too high to begin buying or too low to begin selling.
  • #109
  • Jun 12, 2008 3:14am Jun 12, 2008 3:14am
Quoting thehenryfam
Sorry, endroute, but you're wrong on that. The price DID close above the upper green line. I would never have entered it otherwise. Those COG lines shifted over the next two hours on the chart. Surely you realize that they do that (repaint).

Scott

Hi Scott,
I have never seen an indicator which repainted so thoroughly. Try putting my ea on a chart on the backtester, set up the indicators and then watch the COG. You could use the same method to capture a screen shot of your abovementioned trade by stopping the backtester where required.

Anyway it is working well for endroute so good luck to him.
  • #110
  • Jun 12, 2008 4:06am Jun 12, 2008 4:06am
Hi endroute,
You wrote that the system works both in trending & non trending markets.
From the last days charts, I see that in non-trending markets, the prices are around the COG blue line, or crosses the greens up and down. I assume non of these is a valid signal.
So what is the way you trade this markets ? do you change the TF up/down to find a valid trade ?
BR
Dani M.
  • #111
  • Jun 12, 2008 5:09am Jun 12, 2008 5:09am
Quoting thehenryfam
Sorry, endroute, but you're wrong on that. The price DID close above the upper green line. I would never have entered it otherwise. Those COG lines shifted over the next two hours on the chart. Surely you realize that they do that (repaint).

Scott
I could be, I just did not remember seeing a setup on that pair at 8am yesterday.
  • #112
  • Jun 12, 2008 7:19am Jun 12, 2008 7:19am
I don't trust the backtesting. Better just to keep an eye on it going forward. Looking at the same chart this morning (in real time), I see the top green line has moved up quite a bit more so that the bars in question now are sitting under the middle blue line. So there is no question that they are moving quite a bit. I've attached the chart.

And I never suggested that the trade "didn't work". As I said, that trade was in profit by 62 pips. I was just exploring ideas for capturing some of those pips or at least getting out at break even when it reversed.

Scott


Quoting waltini1
Hi Scott,
I have never seen an indicator which repainted so thoroughly. Try putting my ea on a chart on the backtester, set up the indicators and then watch the COG. You could use the same method to capture a screen shot of your abovementioned trade by stopping the backtester where required.

Anyway it is working well for endroute so good luck to him.
Attached Image (click to enlarge)
Click to Enlarge Name: coglines.gif Size: 29 KB
Prices are never too high to begin buying or too low to begin selling.
  • #113
  • Jun 12, 2008 7:29am Jun 12, 2008 7:29am
No worries, man.

Quoting endroute
I could be, I just did not remember seeing a setup on that pair at 8am yesterday.
Prices are never too high to begin buying or too low to begin selling.
  • #114
  • Jun 12, 2008 7:48am Jun 12, 2008 7:48am
Hi Scott,
I think that once the price went 20-30 pips in your favor, the minimal action you should have taken was to move the SL to BE.
If you can't attend your computer, place a TS but never let the price go against you 80 pips. As I see it, if your initial SL was 20+spread, Never let the price fall more then 30 pips before you close your position.
Off course, It is just my opinion.
BR
Dani M.
Quoting thehenryfam
I don't trust the backtesting. Better just to keep an eye on it going forward. Looking at the same chart this morning (in real time), I see the top green line has moved up quite a bit more so that the bars in question now are sitting under the middle blue line. So there is no question that they are moving quite a bit. I've attached the chart.
And I never suggested that the trade "didn't work". As I said, that trade was in profit by 62 pips. I was just exploring ideas for capturing some of those pips or at least getting out at break even when it reversed.
Scott
  • #115
  • Jun 12, 2008 8:03am Jun 12, 2008 8:03am
And a good opinion, I think. I share your views. I'm just trying to feel this system out and was just wondering out loud if those "rules" should be added to the system. Endroute has been trading this a lot longer than any of the rest of us presumably, so was kind of hoping he would weigh in on whether that was recommended or not.

Scott

Quoting dan_mir
Hi Scott,
I think that once the price went 20-30 pips in your favor, the minimal action you should have taken was to move the SL to BE.
If you can't attend your computer, place a TS but never let the price go against you 80 pips. As I see it, if your initial SL was 20+spread, Never let the price fall more then 30 pips before you close your position.
Off course, It is just my opinion.
BR
Dani M.
Prices are never too high to begin buying or too low to begin selling.
  • #116
  • Jun 12, 2008 9:38am Jun 12, 2008 9:38am
Hi Dani,

Try this, it is pretty self explanatory. This is still an ea but can be used as an alarm only if required. Very quickly put together so let me know what doesn't work
Attached File(s)
File Type: mq4 Art of Ma's 2.mq4   4 KB | 846 downloads
  • #117
  • Jun 12, 2008 11:27am Jun 12, 2008 11:27am
I have read some of the comments lately about taking profits when you have profits. I have been trading this system for about two weeks now (which is not a long time but) what i have noticed so far is:
If you overide your emotional decision making and just trade your plan, you will have a few some small losses but then you will have 1 or 2 large to very large winners that will make-up for the loosers. I trade the 15 min with candles closing above or below the green lines and ema crosses above and below the greens but only if the 1hr candle closes below or above the greens. Although I dont need to have an ema cross on the 1hr just a close above or below the greens. So if you are trading the 1hr maybe look at 4hr for confirmation, I dont know just a suggestion. This will cut down on the number of trades you take but it may make you more profitable. So far this system looks good to me. Thanks endroute.
P.S. I enter and take profit only on ema crosses.
  • #118
  • Jun 12, 2008 12:15pm Jun 12, 2008 12:15pm
Hi waltini1,
Thanks for the modified EA. I put it on the charts, and wait to see the results.
It may take some time as I trade 1H & 4H as addroute does.
BR
Dani M.
Quoting waltini1
Hi Dani,
Try this, it is pretty self explanatory. This is still an ea but can be used as an alarm only if required. Very quickly put together so let me know what doesn't work
  • #119
  • Jun 12, 2008 5:59pm Jun 12, 2008 5:59pm
I hate trailing s/l's this is a personal preference of mine, I have found over the years that they really limit your upside, now are you going to loose a few pips now and again yes but that happens everywhere. As I said in an earlier post I tend to watch my trades, gotta love web enabled phones, but if you are going to be away s/ls and trailing s/ls are useful and I will use them in those situations.

Now with this all said I have an EA for this, that I would like your help in testing, and if anyone can get the sendmail function to actually work and not send an email at every tick that would be great too but just when a trade entry opens that would be cool, I have taken out the email alert function because of this.
Attached File(s)
File Type: mq4 Endroute.mq4   5 KB | 1,180 downloads
  • #120
  • Jun 12, 2008 6:14pm Jun 12, 2008 6:14pm
Quoting lrj72
I have read some of the comments lately about taking profits when you have profits. I have been trading this system for about two weeks now (which is not a long time but) what i have noticed so far is:
If you overide your emotional decision making and just trade your plan, you will have a few some small losses but then you will have 1 or 2 large to very large winners that will make-up for the loosers. I trade the 15 min with candles closing above or below the green lines and ema crosses above and below the greens but only if the 1hr candle closes below or above the greens. Although I dont need to have an ema cross on the 1hr just a close above or below the greens. So if you are trading the 1hr maybe look at 4hr for confirmation, I dont know just a suggestion. This will cut down on the number of trades you take but it may make you more profitable. So far this system looks good to me. Thanks endroute.
P.S. I enter and take profit only on ema crosses.
If you like this on the 15 trade this on the 5 but only take trades when the price is above the gold line for sells, and below the gold for buys but wait for the crosses, as occassionaly the trade will go the other way. This is a pretty surefire way to make 100 pips a day on eur/jpy or usd/jpy without much risk on the shorter TFs.

You hit the nail on the head about emotion, if you are going to trade you are going to have some loosers. What everyone should be doing is trading with a plan and a system that you are very comfortable with and then stick to that plan and system no matter what. If that means starting with a micro account and working your way up as your confidence grows then so be it.

You have to have patience to trade the longer tfs with this or any system. I still recomend to everyone that they stay in untill the next ema cross when trading the higher tfs, on the lower tf you can use the next ema cross but you are going to sacrifice a few pips so using an oscillator or something may work. My advice is to just trade the timeframe you are in, you can try and correlate to another tf but sometimes its hard to figure out.
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