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Traffic Light System

  • #81
  • Jan 23, 2009 12:20pm Jan 23, 2009 12:20pm
Quoting Archie
Hi,

I am not quite sure what the different indicators show. It would be very helpful if someone could give a short explanation of them.

RSI shows if the currency pair is overbought/oversold, right? So red means overbought, and green means oversold?

The HMA shows the average trend, right?

I am not sure about the Goldminer indicator, what does it show?

According to the first post trades are not taken with CCI and Trend Master taken into account, why? And what do these two indicators show?

Thanks

Archie
Archie.

You are correct, The RSI will show Red when it's below 45, Yellow when it's between 45 & 55, and Green when it's about 55. The HMA shows average trend, Red is downward, Green is Upwards. The CCI is just something that I am experimenting with (didn't realize it was on my chart when I made the picture). The Trend Master is not really part of the system but is just something I like to be able to watch (again I should have deleted it before making the picture of the chart).

So essentially you wait for the colors to line up (remember RSI Yellow can go either way) and you buy or sell in the appropriate direction.

Hope that helps
Mitch
  • #82
  • Jan 23, 2009 12:26pm Jan 23, 2009 12:26pm
Today I flipped over to the H1 charts and using this system I made a little over $150. I'm surprised but happy

Sandy
  • #83
  • Jan 23, 2009 12:31pm Jan 23, 2009 12:31pm
Quoting nubchai
Today I flipped over to the H1 charts and using this system I made a little over $150. I'm surprised but happy

Sandy

Sandy,

Did you follow valasindo way of trading on the 1-hr (using CCI) or are you doing your own thing.

Mitch
  • #84
  • Jan 23, 2009 12:41pm Jan 23, 2009 12:41pm
Has anyone back tested this system? Results?
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  • #85
  • Jan 23, 2009 1:57pm Jan 23, 2009 1:57pm
Quoting todd960960
The trendmaster is the indicator that puts the arrows on the chart?

thx,
todd

Todd,

You are correct, but it is not really part of this system. I had it on my chart when I took the picture, forgot to take it off.

Mitch
  • #86
  • Jan 23, 2009 2:00pm Jan 23, 2009 2:00pm
Quoting jgnorton
Has anyone back tested this system? Results?

jgnorton,

Just look at it on any chart, it get you into the trend at a great point and takes you out before you give back too much. I have been trading it live since the beginning of December and it has been fantastic. I started with a $300 account and now it's up to $6500 (admit I over trade - 6-10 pairs a week singlot lot trades on a mini account)
  • #87
  • Jan 23, 2009 2:04pm Jan 23, 2009 2:04pm
Quoting mitchp
jgnorton,

Just look at it on any chart, it get you into the trend at a great point and takes you out before you give back too much. I have been trading it live since the beginning of December and it has been fantastic. I started with a $300 account and now it's up to $6500 (admit I over trade - 6-10 pairs a week singlot lot trades on a mini account)
If the indicators repaint (which I'm sure goldminer does) backtesting is worthless with this system. It will look great in backtest, whereas in live the indicator will repaint.
  • #88
  • Jan 23, 2009 2:23pm Jan 23, 2009 2:23pm
Trading almost over for the week. I took several pairs last night and closed last night for a couple hundred pips. If I still had them, would be up maybe a hundred pips as a guess. Will demo again Sunday evening sometime. May try two different approaches. One where I use a global stop and global take profit, and the other where I just let them go unless there's a different signal the next trading day.
  • #89
  • Jan 23, 2009 3:29pm Jan 23, 2009 3:29pm
Quoting mitchp
Sandy,

Did you follow valasindo way of trading on the 1-hr (using CCI) or are you doing your own thing.

Mitch
Mitch,

I posted my comment before I saw valasindo's post. For the 1 hour trade I used the ferrufx multi trend indicator and checked to see if goldminer and rsi were in agreement. Then I made sure cci was pointed in the right direction. I use a trend indicator that's similar to the trend arrows you have. I made sure the trade was in the direction of the arrow. Lastly I looked at the candle formation to make sure it was also bullish for a long or bearish for a short. This all takes 5 seconds to check.

I do like valasindo's comment about the cci. It looks like the cci breaking through the -100 is a good signal for a trend upturn and vice versa. I'm not quite clear on whether he's exiting as the cci crosses the 0 line or waits longer for a trend change though. I'm going to watch this more next week.


Sandy
  • #90
  • Jan 23, 2009 5:36pm Jan 23, 2009 5:36pm
Quoting mitchp
Todd,

You are correct, but it is not really part of this system. I had it on my chart when I took the picture, forgot to take it off.

Mitch
I don't well understand which indicators, you posted here, you really follow, and also what exactly are the entry and exit point.

Can you better specify?

Thanks.

Lubo.
If I know how, I tell You!! Few but Good!!
  • #91
  • Jan 23, 2009 8:30pm Jan 23, 2009 8:30pm
Nubchai,

I will close my position when I see that the CCI line is going against the trade while still above or below the 0 line. I just want a safe trade. I will enter again when the CCI is crossing the 0 line.

Quoting nubchai
Mitch,

I do like valasindo's comment about the cci. It looks like the cci breaking through the -100 is a good signal for a trend upturn and vice versa. I'm not quite clear on whether he's exiting as the cci crosses the 0 line or waits longer for a trend change though. I'm going to watch this more next week.


Sandy
  • #92
  • Jan 23, 2009 8:38pm Jan 23, 2009 8:38pm
Just to get a clear on this:
To get in on a trade, like it says in the First Post with the Picture, you get in by when its the beginning of another Trend or Reversal and the Signals show, which can take days to come on a Daily Chart, or also you get in on the open of the Single Bar at night, when the Signals are all Lined up again. Is this True, because in the Thread here, it seems that a lot of trades go in at for example, Sunday night For Daily Chart. Can you Explain?
My Email For Help: [email protected]
  • #93
  • Jan 23, 2009 8:40pm Jan 23, 2009 8:40pm
Quoting LuboLabo
I don't well understand which indicators, you posted here, you really follow, and also what exactly are the entry and exit point.

Can you better specify?

Thanks.

Lubo.
Lubo,

No disrespect, but did you read the first post. If this isn't the easiest system to follow, I don't know what is. There are three indicators: HMA, RSI, Goldminer2. The HMA will either be Green or Red, Goldminer2 the same. RSI will either be Red, Green or Yellow. Yellow goes either way, So If HMA is Red, Goldminer2 is Red, and RSI is Red or Yellow - you sell! If HMA is Green, Goldminer2 is Green, and RSI is Green or Yellow - you buy! That's it and if you really want to be conservative on buy or sell when all three indicators are the same color - red or green. That's it, there is no more. Forget about Trend Master, forget about CCI, these are just additional indicators I was playing with and forgot to take off my chart when I posted this system. And if you're wondering if this system works just take a look at the Excel Spreadsheet I posted. It represents all my live trading of this system since Dec.

Let me know if you are still confused.
Mitch
  • #94
  • Jan 23, 2009 8:54pm Jan 23, 2009 8:54pm
I don't like the trendmaster. As far as CCI, it's OK, but isn't the be all and end all of indicators. It's just one of many. What you will find in the coming weeks and months, Mitch, is people adding their own indicators and refinements. That's just the way it goes on FF. People want to tweak things. Add an indy here. Another indy there. Add em all together, and you get a rainbow chart, with one indi contradicting another, and leaving you wondering if the trade is really viable or not. As the thread goes on, all kinds of people will chime in with their "refinements". You watch. One guy will say "Hey, Mitch, I found a triplee zzxx stoch that keeps you out of bad entries". Another guy will say, "Hey, Mitch, I have this quadruple blue diamond indi that does XYZ". This is not to say your system can't be refined and improved. It IS to say there will be many that will be trying to just that. So, get used to it. On occasion, you will get indi's and improvements that are worthwhile. Mostly, though, they just muck up what already works.
  • #95
  • Jan 23, 2009 8:59pm Jan 23, 2009 8:59pm
Quoting tcmm
Just to get a clear on this:
To get in on a trade, like it says in the First Post with the Picture, you get in by when its the beginning of another Trend or Reversal and the Signals show, which can take days to come on a Daily Chart, or also you get in on the open of the Single Bar at night, when the Signals are all Lined up again. Is this True, because in the Thread here, it seems that a lot of trades go in at for example, Sunday night For Daily Chart. Can you Explain?
Let's see if I can explain this. There is no specific day to start your trading, you take a trade when HMA, RSI, and Goldminer2 indicates a trade can be taken (as described in the first post). I personally start my trading Sunday night, adjusting my trades and taking some profit through Wednesday Night. Depending upon how well things are going, I will determine if I'mgoing to continue trading Thursday and Friday. I do this because in the past these days traditionally tend to be ones that take more than they give. But that's not written in stone, this week I thought I was done Thursday night but trading was going well and I bought in again for a $950 profit overnight.
Remember that no system is foolproof, the day you decide to enter a trade might be the end of the trend and you will lose some. But this system will get you out fast and into the next trend pretty early.

Hope that helps, just let me know if you still need direction
Mitch
  • #96
  • Jan 23, 2009 9:10pm Jan 23, 2009 9:10pm
Quoting paradoxical
I don't like the trendmaster. As far as CCI, it's OK, but isn't the be all and end all of indicators. It's just one of many. What you will find in the coming weeks and months, Mitch, is people adding their own indicators and refinements. That's just the way it goes on FF. People want to tweak things. Add an indy here. Another indy there. Add em all together, and you get a rainbow chart, with one indi contradicting another, and leaving you wondering if the trade is really viable or not. As the thread goes on, all kinds of people will chime in with...
Thanks for your thoughts and I couldn't agree more with you. I like my method just the way it is - it works for me and that is what is most important for me. If someone can add something that makes it better, that would be great. Oh, the one thing that you forgot is the slew of programmers that will decide that an EA is just right and over take this thread.

I have been an on looker here at FF for a long time. Everything I have learned is because of this forum and the great people that so freely give their knowledge and ideas. Like a lot of people that post systems, I just wanted to give something back and help people be successful like I have most recently been.

Again, I appreciate you involvement and I hope this all can lead to lots of pips for all.

Mitch
  • #97
  • Jan 23, 2009 9:32pm Jan 23, 2009 9:32pm
Since you mentioned about pips... I just realize that I haven't close yesterday trade! Dang... It's good though, 125 pips profit (GBP/USD), and the indicators are all looking good. Too bad I can't close this trade because my broker is close on Saturday and Sunday.

Btw, another way of closing the trade is to use a trailing stop. The question is, how big is the value? I'm thinking of using ATR(14) to determine the value for the trailing stop.

Any comments? Ideas?
  • #98
  • Jan 23, 2009 9:41pm Jan 23, 2009 9:41pm
Quoting mitchp
Let's see if I can explain this. There is no specific day to start your trading, you take a trade when HMA, RSI, and Goldminer2 indicates a trade can be taken (as described in the first post). I personally start my trading Sunday night, adjusting my trades and taking some profit through Wednesday Night. Depending upon how well things are going, I will determine if I'mgoing to continue trading Thursday and Friday. I do this because in the past these days traditionally tend to be ones that take more than they give. But that's not written in stone,...
What I mean is in the first Post you show the daily chart of when to get in the trade buy or sell and signals all lined up. What I see from this Chart is that you get in on the trade right at the trend reveral which is the right way on a daily chart. but what I want to know is that on a single Bar only, if that new bar starts at night, do you trade on that bar only if the indicators show that. Thats I would like to know. Thanks a lot Mitchp
My Email For Help: [email protected]
  • #99
  • Jan 23, 2009 10:16pm Jan 23, 2009 10:16pm
Quoting tcmm
What I mean is in the first Post you show the daily chart of when to get in the trade buy or sell and signals all lined up. What I see from this Chart is that you get in on the trade right at the trend reveral which is the right way on a daily chart. but what I want to know is that on a single Bar only, if that new bar starts at night, do you trade on that bar only if the indicators show that. Thats I would like to know. Thanks a lot Mitchp

I'm sorry, I don't understand what you mean by "single bar only"
  • #100
  • Jan 23, 2009 10:40pm Jan 23, 2009 10:40pm
Quoting mitchp
I'm sorry, I don't understand what you mean by "single bar only"
Mitchp Do you trade on the turn of the trend which is the reversal,, in the middle of the trend, or both?
My Email For Help: [email protected]
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