ADX Daily System | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

RSI, ADX System 35 replies

Extremely Simple MA-ADX System With a Twist (MM) 12 replies

Code for "if ADX (-1) < ADX (-2)" 18 replies

Looking for Super ADX/Power ADX 1 reply

Looking for EA for ADX system 7 replies

Attachments: ADX Daily System
Exit Attachments

ADX Daily System

  • #1
  • First Post: Edited 1:11pm Jun 27, 2008 12:53pm | Edited 1:11pm
This is a very simple system to use and is 100% mechanical. I came across this ADX indicator in another thread on FF. The signals look good and I would like to share with those who are interested in forward testing. Here are the rules:

-Long - open 2 positions at the end of a daily candle when you see an up arrow under the candle

-Short - open 2 postions at the end of a daily candle when you see a down arrow above the candle

-Close 1st position at the close of a daily candle when position is in profit

-Close 2nd postion when new signal is given for the opposite direction

This system doesn't use a stop loss or take profit. Attached is the indicator. I have it set to 4. I plan on trading every pair that is offered by IFBX. You can use your own money managment rules for determing position size. I will personal use the opposite signal for my stop and reverse.

EUR/USD
USD/JPY
GBP/USD
USD/CHF
USD/CAD
AUD/USD
NZD/USD
EUR/GBP
EUR/JPY
EUR/CHF
GBP/CHF
GBP/JPY
AUD/JPY
CHF/JPY
EUR/CAD
EUR/AUD
AUD/CAD
AUD/NZD
NZD/JPY
Attached File(s)
File Type: mq4 ADXcrosses.mq4   3 KB | 2,329 downloads
  • #2
  • Jun 27, 2008 11:26pm Jun 27, 2008 11:26pm
Here are screen-shots taken tonight for all the pairs I plan on trading. Any comments on the indicator? Looks fairly accurate and I hope it makes us lots of pips.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: audcad.gif Size: 61 KB
Click to Enlarge Name: audjpy.gif Size: 59 KB
Click to Enlarge Name: audnzd.gif Size: 57 KB
Click to Enlarge Name: audusd.gif Size: 62 KB
Click to Enlarge Name: chfjpy.gif Size: 60 KB
Click to Enlarge Name: euraud.gif Size: 59 KB
Click to Enlarge Name: eurchf.gif Size: 60 KB
  • #3
  • Jun 27, 2008 11:27pm Jun 27, 2008 11:27pm
More charts...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurgbp.gif Size: 61 KB
Click to Enlarge Name: eurjpy.gif Size: 59 KB
Click to Enlarge Name: eurusd.gif Size: 62 KB
Click to Enlarge Name: gbpchf.gif Size: 61 KB
Click to Enlarge Name: gbpjpy.gif Size: 60 KB
Click to Enlarge Name: nzdjpy.gif Size: 60 KB
Click to Enlarge Name: nzdusd.gif Size: 61 KB
  • #4
  • Jun 27, 2008 11:29pm Jun 27, 2008 11:29pm
last ones...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usdcad.gif Size: 62 KB
Click to Enlarge Name: usdchf.gif Size: 62 KB
Click to Enlarge Name: usdjpy.gif Size: 60 KB
  • #5
  • Jun 27, 2008 11:39pm Jun 27, 2008 11:39pm
Here's the ADR indicator for those who opt for using a stop. I also added my template.
Attached File(s)
File Type: mq4 Daily Range Calculator.mq4   15 KB | 1,274 downloads
File Type: tpl ADX.tpl   12 KB | 1,210 downloads
  • #6
  • Jun 27, 2008 11:40pm Jun 27, 2008 11:40pm
I hope you realize that this indicator plots 1 bar late. Plot ADX (4) on your chart and compare it to the signals of this indicator.

If it looks too good to be true, it probably is.
  • #7
  • Jun 27, 2008 11:44pm Jun 27, 2008 11:44pm
Quote
I hope you realize that this indicator plots 1 bar late. Plot ADX (4) on your chart and compare it to the signals of this indicator.

So are you saying that the indicator will not plot when the candle is closed that it takes 2 days to plot on a candle close?
  • #8
  • Jun 27, 2008 11:48pm Jun 27, 2008 11:48pm
Quoting lcfxtrader
So are you saying that the indicator will not plot when the candle is closed that it takes 2 days to plot on a candle close?
The arrow won't show up until the close of the following bar. Just look at the ADX indicator to see where they cross. That will tell you where the arrows should be.

I never found ADX to be of much value anyway. Far too lagging.
  • #9
  • Jun 28, 2008 1:50am Jun 28, 2008 1:50am
Here's a classic example of why you can't rely on backtesting...

Opps!
  • #10
  • Jun 28, 2008 8:56am Jun 28, 2008 8:56am
Quoting howdytest
Here's a classic example of why you can't rely on backtesting...

Opps!
Not really.

Backtesting is an important step in system development. If it doesn't work at all in the past, why would you expect it to work in the future? Past performance may not be indicative of future results, but it still must be used as a guideline.

This is more of an example of why you must check your indicators to make sure they are accurate.
  • #11
  • Jun 28, 2008 10:12am Jun 28, 2008 10:12am
Quote
The arrow won't show up until the close of the following bar. Just look at the ADX indicator to see where they cross. That will tell you where the arrows should be.

I never found ADX to be of much value anyway. Far too lagging.

This is very disappointing as it looked to be very good entry signals with the premise that the arrows developed immediately above or below the candle close. Thanks for pointing this out. I will need to ask the other member if he is aware of this.
  • #12
  • Jun 28, 2008 2:05pm Jun 28, 2008 2:05pm
Quoting lcfxtrader
This is very disappointing as it looked to be very good entry signals with the premise that the arrows developed immediately above or below the candle close. Thanks for pointing this out. I will need to ask the other member if he is aware of this.
Those indicators (redrawing and 1 candle late) look incredible in charts, because you see a whole month drawn and you say "That's a billion pips right there".
However, when you trade, you buy just to see that the green arrow that made you buy, goes away just to be replaced by a red arrow, -100 pips later.

It's like an indicator that shows you the PAST candle's close making you say "Wow, this indicator predicts each and every candle's close".
  • #13
  • Jun 29, 2008 10:30am Jun 29, 2008 10:30am
Quoting Radagast
Those indicators (redrawing and 1 candle late) look incredible in charts, because you see a whole month drawn and you say "That's a billion pips right there".
However, when you trade, you buy just to see that the green arrow that made you buy, goes away just to be replaced by a red arrow, -100 pips later.

It's like an indicator that shows you the PAST candle's close making you say "Wow, this indicator predicts each and every candle's close".
I don't believe this indicator repaints though. It simply plots the indicator 1 bar later than what is shown on the charts. Once it's plotted, it doesn't move.
  • #14
  • Jun 29, 2008 11:25am Jun 29, 2008 11:25am
I went back through all the charts just to verify what you had said and I didn't find any arrows under or above any candles on end of day for Friday. I guess it looked to good to be true. LOL
  • #15
  • Jun 29, 2008 8:45pm Jun 29, 2008 8:45pm
Just took this pic tonight. Take a look at the arrow for the 6/29 candle. I will keep an eye on this to see if it repaints. I am going to take a short position and see how it plays out.
Attached Image (click to enlarge)
Click to Enlarge Name: nzdjpy.gif Size: 62 KB
  • #16
  • Jun 29, 2008 8:49pm Jun 29, 2008 8:49pm
Note: I got a total of 6 signals with the close of 6/29 candle.
  • #17
  • Jun 30, 2008 9:06am Jun 30, 2008 9:06am
Moderator,

Please lock this thread as the indicator will repaint after the close of a candle.

Thanks,
Lcfx
  • #18
  • Jul 9, 2008 1:43pm Jul 9, 2008 1:43pm
is this system of the daily charts ? & un wich pear
  • #19
  • Jul 14, 2008 1:13am Jul 14, 2008 1:13am
Seems like the indicator doesn't work if it repaint after candle close.
  • #20
  • Jul 14, 2008 1:29am Jul 14, 2008 1:29am
Quoting aegis
The arrow won't show up until the close of the following bar. Just look at the ADX indicator to see where they cross. That will tell you where the arrows should be.

I never found ADX to be of much value anyway. Far too lagging.
ADX is a trendfollowing indicator, as all trend following indicators it of course will be far too lagging. the proper way that i think to use a trend following indicator is to trade oscilators in the direction of the trend at busy trading hours.

jmho
"Keep your eyes on the helpers" - Mr. Rogers
0 traders viewing now