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The art of Trading MAs

  • #641
  • Jul 30, 2008 2:29am Jul 30, 2008 2:29am
Quoting 13may08
Hi Cindy, thanks for the insight.

Many a times I had situations that the EMA crossover showed a specific trend but when I entered it is late (usual with moving averages). So when I enter the trade using the specific signal and it gets reversed what should I do??

Usually I set the SL a bit high so that spikes or retracement does not affect the trend....but if the trend is really reversed then the high Sl costs very dearly.....
I was also thinking about hedging against the trend in case of reversal but that leaves me confused about when to exit the trade....whats your view.

Thanks,
Abhishek.
Hi May I'm not really sure I understannd your question bout when it reversers on you - Do you mean the MA's cross back or the price reverses?

If you could post an chart with an example it might be easier to answer

AS for your stops you summed it up in one you never know if a reversal is a shortterm retracement or trend reversal until it'dstoo late thats why you should keep it simle and just have a small stop to begin with

If it takes you out and then goes in your direction - this is frustrating but just part of the game. THere will always be other trades. Thats my opinion

HEdging against the trend: Wouldn't recommend it - If you're wrong you're wrong theres no shame in that happens to the best of them - trying to chase the market is suicide in those situations.

Keep things simple is best.

Hope this helps
Time hides Nothing
  • #642
  • Jul 30, 2008 2:58am Jul 30, 2008 2:58am
Quoting atuque1
The most often I traded were EUR/USD, GBP/USD, GBP/JPY, AUD/USD, EUR/JPY... all on 1 Hr TF for the setup.
I set SL 70 pips because I entered a bit late (when I see on 15mins TF, the stoch already overbought, & I know it will retrace a little bit)... But don't follow my way here, because I should enter buy when the TF15mins stoch showing oversold....
As Atuque said he checks the oversold/bought condition before entering on a lower TF using stoch, what do you guys use as entry techniques and if using the stoch do you check it only after the EMA cross has happened??

I am in my office right now so cann't post charts...will post it later in the evening IST......but please help me with the doubts so I can try them when I see my terminal.

My doubt is e.g. EMA shows down crossover (bearish) but when I enter the price is lower than the crossover point. So the entry price is lower than the crossing point which makes it prone to change, if the next bar starts moving up (bullish) nearing my SL should I just let it happen or I should hedge it as it may take a bit more time to continue the trend than my Sl limit........I hope I am clear this time.

Thanks,
Abhishek.
  • #643
  • Jul 30, 2008 1:22pm Jul 30, 2008 1:22pm
Hello,

1st of all: thanks to endroute for sharing his system, and all the advises he gave (it clearly shows he's an experienced trader).

I discovered this thread more than a month ago, and it "captured my eye", since it was similar to one of the things I've been pursuing (filtering MA crosses), only I was using other indicators to do that.

This is the 3rd or 4th time I come back to this thread and I've read it all.

But I'm still strulling to having it work smoothly for me.

- Yes I did find COG acted strange when looking at the charts posted here and my own at the same times - it was the repainting...
- The idea of having it printing on the screen the past lines (and remaining there) did cross my mind - glad someone did it, because i wouldn't know how. Thanks for the guy that did that.

Initially I was just trying to test, going for the gold line setups only, on H1...those do not happen that often.

Reading more carefully, and seeing many of the charts posted here, I see that the main rule is (for H1):
- wait for price to close beyond the green line
- wait for the emas 5/13 cross after that.

But I got the idea (maybe wrong) that when we are about to enter, if price has already crossed the central cog line to the "other side", than we should refrain from entering.

Looking at my charts, that happens most of the time! At least on H1...

Should we enter in that situation (if it hasn't gone far beyond that line and/or the candle that closed is not very big)?

Endroute did mention that the cross should be near the green line...so I'm confused...I don't see that many setups in this case....

I mostly test systems on usd/chf...is it the pair?

(I'm seeing the same situation right now on gbp/usd (at 19h15 london time).

Thanks.

M
  • #644
  • Jul 30, 2008 2:21pm Jul 30, 2008 2:21pm
Quoting FxMachina

Initially I was just trying to test, going for the gold line setups only, on H1...those do not happen that often.

Reading more carefully, and seeing many of the charts posted here, I see that the main rule is (for H1):
- wait for price to close beyond the green line
- wait for the emas 5/13 cross after that.

But I got the idea (maybe wrong) that when we are about to enter, if price has already crossed the central cog line to the "other side", than we should refrain from entering.

Looking at my charts, that happens most of the time! At least on H1...

Should we enter in that situation (if it hasn't gone far beyond that line and/or the candle that closed is not very big)?

Endroute did mention that the cross should be near the green line...so I'm confused...I don't see that many setups in this case....

I mostly test systems on usd/chf...is it the pair?

(I'm seeing the same situation right now on gbp/usd (at 19h15 london time).

Thanks.

M
Fx,
I think you are doing most everything correctly. But that doesnt mean that you'll have instant setups, esp. only watching one pair. The gold line setups are just that - gold. I've traded a few of them w/o waiting for the MA's to cross, if they looked good on other timeframes. The green line setups, IMO, require a MA cross for confirmation. But if the cross happens at or near the center line, I forget about the trade and move on, not enough margin left for profit.

I'm watching about 10 pairs. I'm doing well on about 60% of them, and had trades go against me on the other 40%. I'll probably adjust my stops so that I get out of the bad trades sooner. The good ones more than make up for those. I am still studying which exit rules to use as well.

As far as any filters - don't try to enhance the system, it works fine the way it is. This is an EXCELLENT time for testing, as August is a slow month for trading, we are likely to see the worst whipsawing and lack of liquidity for the next several weeks. Any system that at least keeps us at break-even during August is a good one in my book.

I do use one filter though.... I trade in the direction of the COG! So if it's heading down, I don't look for buy trades until it reverses and swings upwards. As far as the repainting.....I think you can do just as well with either indicator, but I find the old one easier on the eyes.

Whew, that was a long rant! Back to work....
Disregard all prognostications.
  • #645
  • Jul 30, 2008 5:28pm Jul 30, 2008 5:28pm
hi everebody,
just finished read whole thread.
Very interesting system.. and i decide to demoing for a while....
My setup is: 4H TF for all pairs, open 3 position, SL 25 pips (GJ 50), TP1 25 (GY 5)0, TP2 50 (GY 100), TP3 EMA crossover...i will try post every trade + results..

first trade: GY - [email protected]
Veni, vidi, vici...
  • #646
  • Jul 30, 2008 5:43pm Jul 30, 2008 5:43pm
one more thing: after reach TP1 - move SL to BE+1
Veni, vidi, vici...
  • #647
  • Jul 30, 2008 9:17pm Jul 30, 2008 9:17pm
first trade, firs lose...3x50pips.. TOTAL -150 pips
Veni, vidi, vici...
  • #648
  • Jul 31, 2008 1:14am Jul 31, 2008 1:14am
Quoting sikacek
first trade, firs lose...3x50pips.. TOTAL -150 pips
That's a lot of pips you have lost.... Hope that's not on real money...
  • #649
  • Jul 31, 2008 1:43am Jul 31, 2008 1:43am
Quoting sikacek
first trade, firs lose...3x50pips.. TOTAL -150 pips
Hi,

Which pairs did you entered? Haven’t had any good cuts outside the green bands for the last few days on those pairs that I am tracking. Yawnnn.

  • #650
  • Jul 31, 2008 1:47am Jul 31, 2008 1:47am
Quoting atuque1
That's a lot of pips you have lost.... Hope that's not on real money...
Yeah he is on a demo...
  • #651
  • Jul 31, 2008 6:13am Jul 31, 2008 6:13am
Is this a valid signal?
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy.gif Size: 30 KB
  • #652
  • Jul 31, 2008 6:16am Jul 31, 2008 6:16am
Quoting 13may08
Yeah he is on a demo...
yes, just a demo...
Veni, vidi, vici...
  • #653
  • Jul 31, 2008 6:19am Jul 31, 2008 6:19am
Quoting Harry123
Hi,

Which pairs did you entered? Haven’t had any good cuts outside the green bands for the last few days on those pairs that I am tracking. Yawnnn.
GY
Attached Image (click to enlarge)
Click to Enlarge Name: gy.gif Size: 20 KB
Veni, vidi, vici...
  • #654
  • Jul 31, 2008 6:22am Jul 31, 2008 6:22am
Quoting Harry123
Is this a valid signal?
bar didn't close below bottom green line .. so probably not.. IMO
Attached Image (click to enlarge)
Click to Enlarge Name: uj.gif Size: 18 KB
Veni, vidi, vici...
  • #655
  • Jul 31, 2008 7:04am Jul 31, 2008 7:04am
EUR-JPY [email protected]
Attached Image (click to enlarge)
Click to Enlarge Name: ej.gif Size: 19 KB
Veni, vidi, vici...
  • #656
  • Jul 31, 2008 7:52am Jul 31, 2008 7:52am
Quoting sikacek
EUR-JPY [email protected]
3x SL - 75 pips , wil reenter @169.06

Rule No.1 : Don't trade during a news...

TOTAL:
GY -150
EY -75
Veni, vidi, vici...
  • #657
  • Jul 31, 2008 9:08am Jul 31, 2008 9:08am
Quoting sikacek
3x SL - 75 pips , wil reenter @169.06

Rule No.1 : Don't trade during a news...

TOTAL:
GY -150
EY -75
Be patient sikacek.... Don't just enter trade for the sake of "at least I must have a trade" way of thinking... I have gone thru that before... Lost a lot...

BTW, today I am so frustrated because my trade on EUR/AUD last day (which was stopped with loss of 60pips) are bullish today... going with my way... Damn!! If I would let it flow last time, I might profit at least 50 pips already.... But what to do, past is past..... Anyway, who would expect that, right? Maybe It will Go Down further... Who knows...
  • #658
  • Jul 31, 2008 9:46am Jul 31, 2008 9:46am
Hi guys

Good thread you have going here even though the original author abandoned it. My first question is: for those of you who trade the 1H TF, assuming you cant stay up for days, what do you do about open trades when you have to sleep at night and do you just shrug off signals that came while you slept? I'm kinda neurotic about being able to see every bar, so I can't trade above 15m or below the 4H. Keep up the good work!

/P.
  • #659
  • Jul 31, 2008 9:49am Jul 31, 2008 9:49am
Quoting atuque1
Be patient sikacek.... Don't just enter trade for the sake of "at least I must have a trade" way of thinking... I have gone thru that before... Lost a lot...

BTW, today I am so frustrated because my trade on EUR/AUD last day (which was stopped with loss of 60pips) are bullish today... going with my way... Damn!! If I would let it flow last time, I might profit at least 50 pips already.... But what to do, past is past..... Anyway, who would expect that, right? Maybe It will Go Down further... Who knows...
I am patience .. but if you take look on 4H EY, that entry will be still valid.. price was below bottom green line on COG and EMA's are setup for long.. the problem is tight SL during a news.. IMO ..so I go try reenter, will see what hapend...
Veni, vidi, vici...
  • #660
  • Jul 31, 2008 10:46am Jul 31, 2008 10:46am
Quoting sikacek
I am patience .. but if you take look on 4H EY, that entry will be still valid.. price was below bottom green line on COG and EMA's are setup for long.. the problem is tight SL during a news.. IMO ..so I go try reenter, will see what hapend...
Yes, the price will be still valid, but as for me, need to see the lower TF to make the entry.... because in 4Hr TF, 1 candle is a big range... that's just from me, not sure about others...
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