Hey guys,
I have been experimenting with the CoG, and have applied an oscillator indicator called the "Ultra Trend" that is part of a robotic forex trading system. Anyone is free to experiment themselves with this setup, I have found that the interior crosses (crosses around 15) represent a potential trend change. These crosses usually return in excess of 100 pips, if you enter directly after the cross.
My only problem using this system is being alerted as to when the actual crosses occur. The indicator is compiled, thus it cannot be modified to give an alert/popup when a cross occurs. This is somewhat unfortunate, and I would be grateful if anyone may have a modified version of this indicator that allows for audible alerts / email alerts.
The trading logic is as follow:
I normally look for trades in the direction of the main "CoG Moving Average" which is a 240 period (period of the CoG) exponential moving average. This allows for a high probability trading opportunity when the Ultra Trend crosses. So blue line crosses down, with price underneath the CoG "trend" for a sell; and blue line crosses up, with price above the CoG "trend" for a long position.
You can however take positions that are irrespective of the CoG trend, and trade in the direction of the cross. I have run into trouble with this, as it is likely that the Ultra trend will re-cross shortly thereafter in the opposite direction.
The CoG is useful for filtering out the bad crosses. There are in fact many opportunities where a cross that is not in tandem with the CoG MA is profitable. Looking where price is in the CoG channel displays when such an event occurs. Contrary to CoG MA buy when: price is at least below solid black equilibrium line, or lower into green and red bands/zones. Sell opportunities the opposite.
I've been using this system on the 15 min graphs, but it can be expanded out to longer time-frames with similar results.
I really want to try and at least develop a method of alert for the Ultra Trend crosses, and maybe fully automate the system with someone's assistance.
I've marked the entrance and exit points on the graph. What I normally do is enter at a cross, and wait to ensure it doesn't "double cross" in the opposite direction. Then if it meets this clause, I hold on until it reaches the "22" line (for longs) or the "8" line (for shorts)..if the line jumps down and bounces above this line, I liquidate the position, if not I hold on until it hits the "30" line (for longs) or the "2" line (for shorts), rebreaching this line also liquidates the position.
You can also play the crossing of certain levels, like when the line breaches the 8 line, heading up for a buy.
I have been experimenting with the CoG, and have applied an oscillator indicator called the "Ultra Trend" that is part of a robotic forex trading system. Anyone is free to experiment themselves with this setup, I have found that the interior crosses (crosses around 15) represent a potential trend change. These crosses usually return in excess of 100 pips, if you enter directly after the cross.
My only problem using this system is being alerted as to when the actual crosses occur. The indicator is compiled, thus it cannot be modified to give an alert/popup when a cross occurs. This is somewhat unfortunate, and I would be grateful if anyone may have a modified version of this indicator that allows for audible alerts / email alerts.
The trading logic is as follow:
I normally look for trades in the direction of the main "CoG Moving Average" which is a 240 period (period of the CoG) exponential moving average. This allows for a high probability trading opportunity when the Ultra Trend crosses. So blue line crosses down, with price underneath the CoG "trend" for a sell; and blue line crosses up, with price above the CoG "trend" for a long position.
You can however take positions that are irrespective of the CoG trend, and trade in the direction of the cross. I have run into trouble with this, as it is likely that the Ultra trend will re-cross shortly thereafter in the opposite direction.
The CoG is useful for filtering out the bad crosses. There are in fact many opportunities where a cross that is not in tandem with the CoG MA is profitable. Looking where price is in the CoG channel displays when such an event occurs. Contrary to CoG MA buy when: price is at least below solid black equilibrium line, or lower into green and red bands/zones. Sell opportunities the opposite.
I've been using this system on the 15 min graphs, but it can be expanded out to longer time-frames with similar results.
I really want to try and at least develop a method of alert for the Ultra Trend crosses, and maybe fully automate the system with someone's assistance.
I've marked the entrance and exit points on the graph. What I normally do is enter at a cross, and wait to ensure it doesn't "double cross" in the opposite direction. Then if it meets this clause, I hold on until it reaches the "22" line (for longs) or the "8" line (for shorts)..if the line jumps down and bounces above this line, I liquidate the position, if not I hold on until it hits the "30" line (for longs) or the "2" line (for shorts), rebreaching this line also liquidates the position.
You can also play the crossing of certain levels, like when the line breaches the 8 line, heading up for a buy.
Attached Image (click to enlarge)
