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System for Trending and Ranging Markets

  • #81
  • Sep 8, 2009 7:02am Sep 8, 2009 7:02am
The system will not work in a strong trend if you do not have a position yet. Now you have to wait for price to come back. But here is the danger as I said in a previous post and we need the assistance of the system creator. How to determine if it is a pullback (and in this case we will be stopped out) or a reversal.
Now in case you were in this trade then you will have to wait for the 3ema to cross through the top bands.
  • #82
  • Edited Sep 9, 2009 11:23am Sep 8, 2009 9:34am | Edited Sep 9, 2009 11:23am
when trend is develop i guess one approach would be wait for pullback and then wait for the previous swing high to be taken.. .. but yet again I'm not sure how the trending market can be played but this indicator by so far .. best for ranging market.. i'v been posting my trades all are positive so far very very less trade also.. please owner where are you !!!!!!!!
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  • #83
  • Sep 8, 2009 10:20am Sep 8, 2009 10:20am
Hi Hoichoi

Can you provide in detail, step by step how you trade the system?
'Bulls and bears each get a seat at the table, but pigs get slaughtered'
  • #84
  • Edited Sep 9, 2009 10:46am Sep 8, 2009 6:17pm | Edited Sep 9, 2009 10:46am
How do you explain how I should I traded this? I circles my entry points, after the first entry each circle doubles as both an exit and an entry, and aside from the first trade the following ones were losers with the last one being really bad.

And if there was a way to prevent that last one from being such a bad loser, how would I have made that a winner, it doesn't look like this system would of caught that trade.

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  • #85
  • Edited 10:47am Sep 9, 2009 2:11am | Edited 10:47am
First trade i took today.. didn't trade yestarday or the day before..
Went short with 1 full lot then scale out .. also i was trailing.. i notice most of the time price tend to bounce from middle line.. but just an idea. I'm still working on this..

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  • #86
  • Edited 10:47am Sep 9, 2009 5:36am | Edited 10:47am
Quoting decidence
How do you explain how I should I traded this? I circles my entry points, after the first entry each circle doubles as both an exit and an entry, and aside from the first trade the following ones were losers with the last one being really bad.

And if there was a way to prevent that last one from being such a bad loser, how would I have made that a winner, it doesn't look like this system would of caught that trade.

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hello,
why not put the SL line exterior blue !!!!
  • #87
  • Sep 9, 2009 7:43am Sep 9, 2009 7:43am
Yess BB can detect the ranging or trending.

Look at my chart (EU in trending), a little difference with the original indicator of author's this thread .
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  • #88
  • Sep 9, 2009 10:41am Sep 9, 2009 10:41am
I was also thinking that if EMA crosses the center line then retraces back over it maybe that would be a good place to manually close as it seems more often then not when this happens a trade will hit SL if not closed earlier, what do you think?
  • #89
  • Sep 10, 2009 1:54pm Sep 10, 2009 1:54pm
Hello ServerUang,

Can you please post your template? I like your chart very much.

Thank you

Best regards
  • #90
  • Sep 10, 2009 2:28pm Sep 10, 2009 2:28pm
Todays trades so far.. the long went to upper band straight.. but i took the TP early .. entered short i normaly don't trade during this period just for testing purpose... lets eee

http://clip2net.com/clip/m15756/1252...-clip-42kb.png
  • #91
  • Sep 10, 2009 3:17pm Sep 10, 2009 3:17pm
You're not following the rules of the system, so why are you posting your trades with no reasoning?
  • #92
  • Sep 12, 2009 5:55pm Sep 12, 2009 5:55pm
I think this system definitely needs more testing. I had some time to backtest the strategy just now and here are the results.

Pair: EUR/USD
Timeframe: 1 Hour
Randomly Picked Period: June 14, 2007 - December 2007

Entry
- On new price bar with EMA crossed both the outer bands and into the channel

Take Profit
- On new price bar when EMA crossed out of the channel on the opposite side of entry and then returns back. Order is closed and a new one is opened for the new entry.

Stop Loss
- On new price bar when EMA comes outside of the outer bands on same side as entry.


Here are all the trades I took using those rules. I noted reversal formations, and whether the EMA crossed the mid line and came back etc so see if I could find patterns in which I could save myself potential losing trades.

+34 : long bars on entry
-28
-53 : mid crossed
-50
-25
-35
+73
-56
-35
+90
-35 : mid crossed
+85 : long bars on entry
-35
-50
+85 : long bars on entry
-75 : mid crossed
-80 : doji at mid
-65 : long bars on entry / mid crossed x3
-40
+55 : long bars on entry / mid crossed x2
+75 : long bars on entry / mid crossed
-65
-85 : long bar on entry (mid line)
-95 : long bar on entry (mid line)
-60 : mid crossed
-110: long bars on entry / doji at mid
+108: mid crossed
-115: long bar on entry (mid) / doji at mid / mid crossed
-105: mid crossed x4


The only suggestive strategy to improve is to not take the entry immediately after a profitable trade as they are almost always losers it seems, but other then that nothing is very conclusive other then that the strategy's rules may be too simple or the strategy just doesn't work.

Perhaps this strategy is not meant for the H1 timeframe?
  • #93
  • Sep 14, 2009 1:50am Sep 14, 2009 1:50am
Hi,
the thread owner uses ths method on the 5min TF. Try entering with 2 units, close half when 3ema reenters on the opposite side and let the otherunit run until 3ema crosses the 216base line (just in case markets start trending). I've been paper backtesting it this way with great results.
Cheers
  • #94
  • Sep 15, 2009 3:22am Sep 15, 2009 3:22am
Quoting wvehoven
Hi,
the thread owner uses ths method on the 5min TF. Try entering with 2 units, close half when 3ema reenters on the opposite side and let the otherunit run until 3ema crosses the 216base line (just in case markets start trending). I've been paper backtesting it this way with great results.
Cheers
hi can u make a screenshot of the entry/exit rule you are backtesting?
thanks a lot
  • #95
  • Sep 15, 2009 7:08am Sep 15, 2009 7:08am
when currency starts trending exit 2 will catch more pips. While ranging a bit less but still in profit. I would still grealy appreciate somebody writing me an alert to the ATREMA indicator, PLEASE?
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  • #96
  • Sep 16, 2009 7:06am Sep 16, 2009 7:06am
The possible way to trade this system is to open a trade on the centeline and your profft target is for long trade uper band and for short trade lower band. and SL would be the inner bands. try this it gives good results.

Kristjan
  • #97
  • Sep 16, 2009 5:55pm Sep 16, 2009 5:55pm
Although I have my own method of trading this madness, I have taken several live trades using this method & find Kristjantelve is spot on with his idea on how to trade this method as this is what I have been doing as well. As with any method it is never 100% correct, but is a very good way to capture 20-40 PIPS using the 5M tf. Just my view from some live trades. Tks Kristjantelve for sharing your idea.
  • #98
  • Sep 18, 2009 1:50pm Sep 18, 2009 1:50pm
I'd like to see some more backtesting results.
  • #99
  • Edited 2:33am Sep 26, 2009 1:54am | Edited 2:33am
Quoting capsmart
Hoichoi
What I do not know exactly is how to handle a trending market. Suppose that you see the candles (and ema) being above upper bands in a strong trend. Apparently you would have to wait for a pull back to enter and in this case I think that we have to use the middle ema.
One more thing. Suppose that we had some candles above the bands and then price (and ema) moves lower bellow the band. In this case we should start a short position. But if we are in a strong trend and this was only a pull back we will end with price moving again above the...
This is what I've been working on, how to handle strong trending markets. I'm developing some "technologies" that will make the band's distance from the center line dynamic, so the 3EMA just missing the bands in a ranging market will be a thing of the past. And the distance between the upper bands will be dynamic, and the distance between the lower bands will be dynamic. All of this together will improve the performance in ranging markets, capitalize on small countertrends during major trends rather than losing money on them, and minimize losses to around 10 pips on the 15 minute timeframe.
  • #100
  • Edited 2:11am Sep 26, 2009 1:58am | Edited 2:11am
Quoting krly
Hoichoi, you're making money , so that's good.....but....It seems you're defeating the intent of this method by exiting at the opposite bands. If it's a trending market you got in "early" and want to stay in for the ride. Yes ?
If it's a ranging market you'll be taken out when it falls back down thru the bands.
It sounds like the author has additions coming (I hope, I hope, I hope) that will tell us when to start playing off the mid-line as opposed to the A,B bands.
I look forward to hearing more from him..............
krly
This is the correct understanding of this simple system, but as long as w/e method you're using is making money, then go for it. In strong trending markets it does lose money on countertrends, I am working to fix this. So in the meantime it makes sense to be a bit more conservative in the exits.
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