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The art of Trading MAs

  • #821
  • Jan 24, 2009 9:32am Jan 24, 2009 9:32am
Hi
I have read the thread , but unfortunatelly I do no understand the setup .
BUY - "Bar closes bellow the bottom green line on the COG followed by the 5/13 EMA cross".
I have attached a 1H chart , I see many crosses but none happened outside the green lines . I see in the chart only one candle than have closed bellow the green line (red arrow) ... so when this situation happens we are in a "stan-by" mode and wait for the cross to happen ?
In this example there is only 1 entry according to the rules ?
Do we need to wait for the candle to close .
In the case than I am write ... how the COG acts like a filter ?
If someone can post some examples it will be great
Tks
David
Attached Image (click to enlarge)
Click to Enlarge Name: ma.gif Size: 72 KB
  • #822
  • Jan 24, 2009 4:58pm Jan 24, 2009 4:58pm
Hi guys. Here's interesting free service to create trade alerts on MA crossovers and some other technical signals. Ability to create alerts for Stocks, FOREX pairs, metals:

Site:
http://www.marketinout.com

Trade Alerts page:
http://www.marketinout.com/signals/trade_alerts.php
  • #823
  • Jan 25, 2009 10:43am Jan 25, 2009 10:43am
Try this settings:


BARS BACK - 240
M - 4
I - 0
KSTD - 1.0


Quoting david4u
Hi
I have read the thread , but unfortunatelly I do no understand the setup .
BUY - "Bar closes bellow the bottom green line on the COG followed by the 5/13 EMA cross".
I have attached a 1H chart , I see many crosses but none happened outside the green lines . I see in the chart only one candle than have closed bellow the green line (red arrow) ... so when this situation happens we are in a "stan-by" mode and wait for the cross to happen ?
In this example there is only 1 entry according to the rules ?
[b]Do...
  • #824
  • Jan 26, 2009 12:18pm Jan 26, 2009 12:18pm
is there an audible alert that goes off when both conditions ( ie. for the COG and EMA crossing) are met?. if so could some one direct me to where l can find it.
  • #825
  • Mar 7, 2009 3:28am Mar 7, 2009 3:28am
Quoting david4u
Hi
I have read the thread , but unfortunatelly I do no understand the setup .
BUY - "Bar closes bellow the bottom green line on the COG followed by the 5/13 EMA cross".
I have attached a 1H chart , I see many crosses but none happened outside the green lines . I see in the chart only one candle than have closed bellow the green line (red arrow) ... so when this situation happens we are in a "stan-by" mode and wait for the cross to happen ?
In this example there is only 1 entry according to the rules ?
[b]Do...

That's because COG is as useful as a fur coat in the middle of the sahara!!

At first glance I thought this indicator was like the holy grail, but being the sceptical type, I watched it for a period of a week. COG repaints so badly that when you look at past data it looks perfect, but you try making any kind of trading decision and you'll be throwing your money away!! Don't believe me, just watch it for half an hour on the one minute chart and you'll see!

I followed the rules in the original post, waited for a close above the very outer line (one the 1hr chart), waited for the 5/13 ema cross, took my short, it went down - for about 50pips and then reversed and started going up again, and up, and up, and up!! Luckily it was only a demo account (it stands to reason, but to those that are shorting intelligence (boom, boom), never test a new indicator on a live account!) For those that are happy to take 50pips after waiting 3 days, you go right ahead and use COG for all your entries/exits!!

No wonder endroute "migrated to other approaches over time", I would assume he learnt from his mistakes!

Don't waste you time or money with Centre of Gravity indicator!

NOTE: I'm not knocking the 5/13 ema cross, just use some other indicator to confirm the cross, NOT the COG
  • #826
  • Edited 8:16am Apr 1, 2010 6:14am | Edited 8:16am
It is a good system, even though it is forgotten, but I believe there are many traders that trades it just without much noise. Would be interesting to hear Endroute`s foughts...
  • #827
  • Apr 1, 2010 7:40am Apr 1, 2010 7:40am
Just reading through this thread today. Where have been all these months not to have seen this? Simple set up, beautiful COG. Looks highly profitable. Thank you endroute for sharing this with us.
  • #828
  • Apr 1, 2010 9:12am Apr 1, 2010 9:12am
It is posible to trade profitably without waiting til the cross of ema`s but simply when prise closes below/abow the 5 ema. It will give earlear enty, and it will not wipsow the trades very mush. Sure I am just adapting it to my taste a little bit..
  • #829
  • Apr 7, 2010 7:48am Apr 7, 2010 7:48am
Quoting jaaccl
Just reading through this thread today. Where have been all these months not to have seen this? Simple set up, beautiful COG. Looks highly profitable. Thank you endroute for sharing this with us.
How are you people making profit with this systme? I have tried it but could not make good profit with it. The fact that COG repaint does not encourage reliance on it. Perhaps some peoplemay wish to reveal how many pips made using this systme. Thank you all.
  • #830
  • Apr 7, 2010 9:04am Apr 7, 2010 9:04am
Quoting jaaccl
How are you people making profit with this systme? I have tried it but could not make good profit with it. The fact that COG repaint does not encourage reliance on it. Perhaps some peoplemay wish to reveal how many pips made using this systme. Thank you all.
Actually I have this system on 4H eur.usd chart, and had one sucsesful trade. Few things what I add/changed to this is that I enter after price leave the gold or at least green line and then begin go back and when closing price cross 5 ema I enter. And only trade with the longer trend. So now I wouldn`t take any longs even there were a setup. But it doesen`t mean that it can`t be traded as well. Just trend is my frend and I don`t fight it anymore.
  • #831
  • Apr 8, 2010 3:01am Apr 8, 2010 3:01am
Back testing and live I've found this is very very accurate. I thank you for sharing this as it is my most important tool so far to make sense of the market large scale and is indispensable for planning exits. Especially when coupled with trading on pin bars. (Although the MA system is more accurate than the pins more often or not! LoL.) This also really helps you filter out bad pins.

I have one question, I am curious why the 5 and 13 EMAs, why did you ultimately choose those two and why do they seem to have such uncanny accuracy?
Thank you Lux!
  • #832
  • Apr 8, 2010 6:07am Apr 8, 2010 6:07am
Quoting ScalpOrDie
Back testing and live I've found this is very very accurate. I thank you for sharing this as it is my most important tool so far to make sense of the market large scale and is indispensable for planning exits. Especially when coupled with trading on pin bars. (Although the MA system is more accurate than the pins more often or not! LoL.) This also really helps you filter out bad pins.

I have one question, I am curious why the 5 and 13 EMAs, why did you ultimately choose those two and why do they seem to have such uncanny accuracy?
I do not think that Endroute trades this right like it is writen in the first post. For sucsesful trading there is no big need for any special things to guide you, more simple more profitable
  • #833
  • Edited 10:43am Apr 8, 2010 10:42am | Edited 10:43am
ım trying to get it but i have ques marks in my mind.on the other hand it seems well.i had better experiment cog indi a bit more
  • #834
  • Jun 30, 2010 10:08am Jun 30, 2010 10:08am
hi
it is well known that in each time,
there a different period of moving average that
show the market behavior the best way,
and this ma will look like a trend-line in a trendy market.

the problem is that the period of the moving average has to be cange from time to time.

does anybody know an indicator that chages the period according to the market behavior?
for example,
when the ATR is high, the ma period will be smaller
when the ATR is low , the ma period will be bigger
  • #835
  • Aug 3, 2010 4:42am Aug 3, 2010 4:42am
I can see that this thread has been dead for a little while now, I'm curious if there is anyone else out there who is using or testing this method?

I have started to paper trade it (picking the signals out live though, as back testing isn't accurate due to COG repainting) and it has proven extremely profitable so far, although its still early days.

I have had 10 signals so far, and of those 10, 8 have been profitable. The 2 losses have been below 30 pips and the wins have been between +50 and +120.

If anybody is working on this method and would like to compare data let me know.
  • #836
  • Aug 21, 2010 3:29am Aug 21, 2010 3:29am
Hi,
Its a nice job you are doing.

So did you paper trade further? If so, what were the results?
By the way, which time frame and pair are you paper trading on?

Thanks!

Quoting caj1986
I can see that this thread has been dead for a little while now, I'm curious if there is anyone else out there who is using or testing this method?

I have started to paper trade it (picking the signals out live though, as back testing isn't accurate due to COG repainting) and it has proven extremely profitable so far, although its still early days.

I have had 10 signals so far, and of those 10, 8 have been profitable. The 2 losses have been below 30 pips and the wins have been between +50 and +120.

If anybody is working on this method and would...
  • #837
  • Aug 21, 2010 7:15pm Aug 21, 2010 7:15pm
Hi caj1986,

I'm glad you have kicked this thread back off, I was reading the whole thread last night. I think it sounds very promosing. I have setup my charts in mt4 according to endroute original instructions. I work full-time in australia, i will only be able to trade from 1 hr after london open till usa open. I will post my charts. I hope we can learn from each other.

Thanks
Pheonix
  • #838
  • Aug 30, 2010 8:24am Aug 30, 2010 8:24am
I didn't do too much testing through August as market conditions are generally poor and I was away on holiday for a lot of it. I will keep you both updated when I resume testing throughout September.

Regarding the first question, I'm using the hourly time frame on all of the major currency pairings.
  • #839
  • Edited 1:57pm Oct 18, 2010 1:55pm | Edited 1:57pm
Some people said that indicators used by the system repaints, but I think there is an update from it to avoid this problem. But anyway it is interesting method.
  • #840
  • Oct 18, 2010 7:44pm Oct 18, 2010 7:44pm
It does repaint, yes. For those who recently said it looks very profitable don't be fooled by what you see on back testing. As someone else said, just watch a chart on the 1m time frame for a while and you can see how much it repaints and that on it's own the indicator is no use. Remember to try this on demo only, and for a good period of time to see how it really works.
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