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Murrey Math Daily System

  • #41
  • Oct 20, 2009 8:10pm Oct 20, 2009 8:10pm
Hi mer,

Loving the mechanical nature of this system.

Quick points of thought (not criticism):

1. Why bother using candles? Line graph is all we need if all we care about is the close, right?

2. You have a lot of highly correlated pairs in your post #1 list, wouldn't it be better to narrow them down so you are getting the most market exposure for the least risk? For example:

GBP/CHF and EUR/GBP are now extremely highly correlated.
GBP/AUD and GBP/CAD are now extremely highly correlated due to commodity exposure.

etc.

The pairs I think would provide the best market exposure/lowest risk to be:

EUR/GBP, EUR/CHF, AUD/NZD, GBP/AUD (or GPB/CAD), EUR/AUD (or EUR/CAD), etc.

You probably only need to pick 4 of these maximum I reckon. Just my opinion though.

3. We can write an EA to do this trading very simply, can't we?

Step 1: D1 close/open across nearest MML level. Open trade in cross direction. TP at next MML level, no SL.
Step 2: Exit position if D1 close/open across signal MML level.
  • #42
  • Oct 20, 2009 11:39pm Oct 20, 2009 11:39pm
Hey Sinner, I always appreciate any input. I use candles because, let face it, bar charts confuse me and I've used candles ever since I started trading. Feel free to use what's comfortable for you.

With regard to the correlated pairs, even if certain pairs are correlated does not mean the Murrey calculations for a correlated pair will be the same. And since this is based on Murrey Levels and not correlation, it shouldn't matter which pairs you use.

I thought about doing an EA, but since it only takes me 15-30 minutes a day to make my trades, I don't think it is necessary to have it to trade this strategy. I you want to take on the challenge of an EA, just do me a favor and open a new thread to keep this one dedicated to the strategy itself.
  • #43
  • Oct 21, 2009 4:53am Oct 21, 2009 4:53am
Congratulations on working and thanks for sharing good success ...
I follow the method
  • #44
  • Edited 1:46pm Oct 21, 2009 1:18pm | Edited 1:46pm
Welcome to the thread okeheidon and zeCarvalho.

With had two trades close out last night. Eur/Cad close out at BES with @ 18 pips using 3 lots for $514.35. Gbp/Cad closed out at Target @ 158pips using 6 lots for $9046.23. Gbp/Chf will probably close at a loss a I was expecting more of a retrace, but hey it happens. Our Gbp/Nzd looks like it will stay active as the 1/8 Murrey held overnight. I will update these pairs tonight once we check for setups for tomorrow.

If you didn't use the BE on the Eur/Cad trade, you would've hit your Target on this one which goes to show you by not using the Stealth EA or even using higher BE points may have changed the trade completely. Of course on the other hand, a higher BE point may not get triggered, so don't feel you have to use my numbers, experiment a little on these.
  • #45
  • Edited 6:25pm Oct 21, 2009 6:14pm | Edited 6:25pm
Here are the trades taken for today:

Gbp/Usd- TP-110, SL-140, BE-60, and BES-30

Eur/Jpy- TP-98, SL-220, BE-49, and BES-25

Gbp/Jpy- TP-208, SL-430, BE-104, and BES-52

Gbp/Chf- TP-142, SL-360, BE-71, and BES-36

Aud/Nzd- TP-32, SL-100, BE-16, and BES-8

We did have another reversal on Gbp/Chf which was closed and re-entered above, increasing the lots to compensate for the loss. I used extremely low lots on the Gbp/Usd trade due to the fact we have crossed two Murrey Levels and are now past the 8/8. This would be a good place to sit out and wait for the short trade but I'll take it with small lots to see how it pans out as a test. Gbp/Nzd is still active and will continue to hold (at least will get some positive swap).
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: gbpchf.gif Size: 65 KB
  • #46
  • Oct 21, 2009 6:15pm Oct 21, 2009 6:15pm
Eur/jpy and Gbp/Jpy
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurjpy.gif Size: 69 KB
Click to Enlarge Name: gbpjpy.gif Size: 70 KB
  • #47
  • Oct 21, 2009 6:26pm Oct 21, 2009 6:26pm
And finally, Aud/nzd
Attached Image (click to enlarge)
Click to Enlarge Name: audnzd.gif Size: 73 KB
  • #48
  • Oct 21, 2009 6:57pm Oct 21, 2009 6:57pm
Hi mer,

Nice Strategy you have here,

I took this 3 Trades too,
Quote
Eur/Jpy- TP-98, SL-220, BE-49, and BES-25

Gbp/Jpy- TP-208, SL-430, BE-104, and BES-52

Gbp/Chf- TP-142, SL-360, BE-71, and BES-36
Lets see where they will go, anyway the only thing that im not sure about is the lot increasing part in this strategy, to do this on a live account you really need to have trust and long experience in what your doing .. but i guess that needs time to come ... but so far you really have great success , are you planning to go live at some point with this strategy ?

Thx 4 sharing

cu iT
consistency wins
  • #49
  • Oct 21, 2009 7:12pm Oct 21, 2009 7:12pm
I only tell people to increase or double the lots as long as they don't put the account in jeopardy by using too much risk to start. If your starting with 5-10% risk per trade to start, then you are going to be in trouble doubling up two or three times unless you have the account equity to back it up and be safe.

I'm already trading this live myself and for clients, but I'm nowhere near the risk where it'll damage my account or any of my client accounts, even if I double up 3-4 times. I've personally doubled up at the most 2-3 times using this strategy, so I feel it is pretty safe to do so with proper money management. You may have already heard of it, but one of the top Commercial EA's called Megadroid uses a "recovery" strategy where it doubles up after a loss to recoup those losses, so I adapted it to this strategy. If you don't feel comfortable doing so, then by all means don't.
  • #50
  • Oct 21, 2009 7:33pm Oct 21, 2009 7:33pm
Very interesting.
I am going to give this a go over next few weeks and closely follow this thread.

Cheers
Garfield
Trading is SIMPLE not EASY.
  • #51
  • Oct 21, 2009 7:56pm Oct 21, 2009 7:56pm
Welcome to the asylum garfield, if you have any questions, just ask
  • #52
  • Oct 21, 2009 10:06pm Oct 21, 2009 10:06pm
Quoting mer071898
Welcome to the thread okeheidon and zeCarvalho.

With had two trades close out last night. Eur/Cad close out at BES with @ 18 pips using 3 lots for $514.35....
Hey Mer

Could you just simply place the stop at the MM Level and not use stealth / BE etc. Then just implement simple MM. It just seems more often than not the TP is reached anyway.

Regards

Spy
  • #53
  • Oct 21, 2009 11:08pm Oct 21, 2009 11:08pm
Yes you can, as I already mentioned in post #46. The only problem with that is the stop is generally so huge you'd have to determine a better stop if your going to just let it run til it hits a TP target. I would rather be safe an take some profit than risk a huge stop being hit, just my preference.
  • #54
  • Oct 22, 2009 1:53am Oct 22, 2009 1:53am
hi mer071898 thanks for sharing your great strategy, I like what I read count me in as well. I have applyed the murrey math indi and I am looking at your charts and comparing with mine, what I notices is that the lines are soooo apart and I also have to zoom out to see few lines, take a look at it and let me know why? thanks
Attached Image (click to enlarge)
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  • #55
  • Oct 22, 2009 9:16am Oct 22, 2009 9:16am
Hi Mer,
I was looking at your charts and at first could not get GU to look the same. Only after I changed the P variable on the mm indicator to 32 was I able to get the same as you. Looking at the rest of the charts I'm following the variable is set at 64 to match your charts. Is there a reason for this change on GU?
  • #56
  • Oct 22, 2009 9:42am Oct 22, 2009 9:42am
Quoting sstate1
Hi Mer,
I was looking at your charts and at first could not get GU to look the same. Only after I changed the P variable on the mm indicator to 32 was I able to get the same as you. Looking at the rest of the charts I'm following the variable is set at 64 to match your charts. Is there a reason for this change on GU?
lol, i had the same problem , thanks for posting the solution

/edit, is it somehow possible to backtest this strategy for a longer period backwards ?
consistency wins
  • #57
  • Oct 22, 2009 12:18pm Oct 22, 2009 12:18pm
First of all fed, you are using a 15 minute chart. You should be on a Daily chart and if you are using an Mt4 platform should should make sure you are using the template provided in post #1 and you should be good to go. The only input that should be changed is the MMperiod needs to be 1440.

There is no EA for this itrader, you'll have to manually backtest this yourself by using a trading simulator or physically going back through the charts.
  • #58
  • Edited 3:12pm Oct 22, 2009 2:58pm | Edited 3:12pm
just a small update, Aud/Nzd closed out at BES with @ 8 pips using 5 lots for $302.02 profit and Eur/Jpy closed out at BES with @ 25 pips using 4 lots for $1093.63. All other trades are still active as of this post.

As an experiment I will be testing out the Stealth V.2 on a trade tonight. This is the version with the Trailing Stop feature (referred to as "TS" after this point) that will take over after the BES is set.
  • #59
  • Oct 22, 2009 5:51pm Oct 22, 2009 5:51pm
It's about 15 minutes til the new candle for the day and it looks like we have only one trade to open on Gbp/Cad tonight. All other trades will remain active as well. I will post the Stealth inputs shortly.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpcad.gif Size: 62 KB
  • #60
  • Oct 22, 2009 6:04pm Oct 22, 2009 6:04pm
Quoting mer071898
First of all fed, you are using a 15 minute chart. You should be on a Daily chart and if you are using an Mt4 platform should should make sure you are using the template provided in post #1 and you should be good to go. The only input that should be changed is the MMperiod needs to be 1440.

There is no EA for this itrader, you'll have to manually backtest this yourself by using a trading simulator or physically going back through the charts.
nop that was the daily, I will try the template see if there is any differance. Thanks for your reply
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