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PM Forex Strategy

  • #301
  • Jul 1, 2010 2:45pm Jul 1, 2010 2:45pm
Quoting Indrek
Friends, you are very close to a very good system here!
I just wanted to suggest something. If you want to trade nonlagMA with higher timeframe confirmation then you might consider using just two MAs instead of the 4TF bars.
For example, if you want to trade M15 with H1 confirmation, you may use one nonlagMA period 20 and another period 80.
4TF bars include too much information, besides it is very often lagging.


P.S. My personal choice would be to use period 20 and period 80 for any timeframe. Or period 20 and period 160 if wanting...
Hi,
from looking at the chart with 4BARS-MTF it seeams to be very good for scalping, if you look at the arrows with 4 point conformation you are almost sure to get 5 pips easily.
If you risk 10% of capital with 10 pips a day you can turn 1.000$ to 1 million in less than a year...

gspe

P.S.
I'm still learning forex but i like it
  • #302
  • Jul 1, 2010 2:51pm Jul 1, 2010 2:51pm
Quoting Fokusnik

Yesterday I tried to compare NonLagMA(84) and the third bar (H-1's bar) on M-15. It seems that their signals are almost the same. But I haven't tested it long enough, so maybe I'm wrong. Obviously we need much more tests.

Maybe you're right about MTF bars giving too much information. When I work on M-15, I look mostly at the bottom bar and the third (H-1) bar. But on the other hand 3 bars' alingment shows better signal than 2 bars' alignment and 4 bars' alignment is a better signal than 3 bars' alignment.
I am afraid that you cannot do objective visual backtest with any MTF bar indicators.
Remember that when the color of MA changes on hourly timeframe then on M15 chart up to four H1 bars change color at the same time.
That is the main reason why nonlagMA period 80 is better - it is always up to date!

Sorry if my explanation was messy. I just did not find the best words as English is not my native language.
  • #303
  • Jul 1, 2010 2:53pm Jul 1, 2010 2:53pm
Quoting gspe
Hi,
from looking at the chart with 4BARS-MTF it seeams to be very good for scalping, if you look at the arrows with 4 point conformation you are almost sure to get 5 pips easily.
If you risk 10% of capital with 10 pips a day you can turn 1.000$ to 1 million in less than a year...

gspe

P.S.
I'm still learning forex but i like it
I just tried to explain why backtesting with such indicators does not give proper results. See my previous post.
I am an old multitimeframe trader, so I know the basic tricks with MTF indicators
Any MTF MA indicator does not make sense. You just have to multiply the period of the same MA indicator and that's it. If you want to have MA5 for different timeframes starting from M15 then use MA10 for M30, MA20 for H1, MA80 for H4 etc.
  • #304
  • Jul 1, 2010 3:03pm Jul 1, 2010 3:03pm
Quoting Fokusnik
But on the other hand 3 bars' alingment shows better signal than 2 bars' alignment and 4 bars' alignment is a better signal than 3 bars' alignment.
The best alignment when trading 15 min charts is M15-H1-H4. In this pattern M30 is totally useless because it does not work neither with M15 nor H1.
The best working correlation factors between timeframes are 4, 8, 16.
So, when trading H4 charts, the ideal confirmation would be, in fact, H16 and H64. Unfortunately, we do not have such timeframes. But when using MAs instead of bars you can easily choose 4 * period and 8 * period.
  • #305
  • Jul 1, 2010 3:10pm Jul 1, 2010 3:10pm
I think that there are other traders like me who hate having too many lines on the chart. For those, I suggest nonlagdot that is absolutely the same as nonlagMA.
Attached File(s)
File Type: mq4 nonlagdot.mq4   5 KB | 435 downloads
  • #306
  • Jul 1, 2010 3:12pm Jul 1, 2010 3:12pm
Quoting Indrek
I am afraid that you cannot do objective visual backtest with any MTF bar indicators.
Remember that when the color of MA changes on hourly timeframe then on M15 chart up to four H1 bars change color at the same time.
That is the main reason why nonlagMA period 80 is better - it is always up to date!

Sorry if my explanation was messy. I just did not find the best words as English is not my native language.
Indrek, I didn't mean backtesting, I was trading demo and I had MTF and 84 on the same chart, so I was comparing them during live demo-trading. But it was just one evening, that's why I said that we needed more testing.

But now I got your point about changing colors up to four bars comparing changing color on a very small part of NonLagMA. You're right, I never thought about that! And I didn't understand you at first not because of your English (which is very good) but because I'm sleepy after London-NY and it's time for me to go to bed at 4:00 PM EST!
  • #307
  • Jul 1, 2010 3:14pm Jul 1, 2010 3:14pm
Quoting Fokusnik
Indrek, I didn't mean backtesting, I was trading demo and I had MTF and 84 on the same chart, so I was comparing them during live demo-trading. But it was just one evening, that's why I said that we needed more testing.

But now I got your point about changing colors up to four bars comparing changing color on a very small part of NonLagMA. You're right, I never thought about that! And I didn't understand you at first not because of your English (which is very good) but because I'm sleepy after London-NY and it's time for me to go to bed at 4:00...

hey Fok...get some sleep before your sleepiness causes you to enter into a hasty trade
  • #308
  • Jul 1, 2010 3:15pm Jul 1, 2010 3:15pm
Quoting Fokusnik
But now I got your point about changing colors up to four bars comparing changing color on a very small part of NonLagMA. You're right, I never thought about that!
Here is an illustration of this. At the bottom of the chart I have MTF bars period 20 and on the chart you see nonlagMA period 80.
It is easy to see the difference in color change that is exactly 4 bars!
Attached Image (click to enlarge)
Click to Enlarge Name: sample.gif Size: 46 KB
  • #309
  • Jul 1, 2010 3:20pm Jul 1, 2010 3:20pm
Quoting Indrek
The best alignment when trading 15 min charts is M15-H1-H4. In this pattern M30 is totally useless because it does not work neither with M15 nor H1.
Indrek, now I can see that I was wrong and you're absolutely right!
  • #310
  • Jul 1, 2010 3:21pm Jul 1, 2010 3:21pm
Quoting losingtrades
hey Fok...get some sleep before your sleepiness causes you to enter into a hasty trade
Yes! Good night, guys!
  • #311
  • Jul 1, 2010 3:35pm Jul 1, 2010 3:35pm
Quoting Fokusnik
sanyhuis, before this system I traded mostly GBPUSD, GBPJPY and EURJPY, never traded EURUSD. But of course EURUSD is very good for this system. I looked at the history, went through my notes, looked at the last week's trades and decided: next week with this system I'm gonna trade EURUSD, GBPUSD, AUDUSD and NZDUSD.

I think we can trade GBPJPY and EURJPY with this system too, and it can be very profitable, BUT we have to be very careful, someting like this: if EURUSD and USDJPY go in the same direction, we can trade EURJPY, if GBPUSD and USDJPY...
I like this post so much but I'll have to address it tomorrow. It's my bedtime.
Good night all. Til tomorrow.
s
  • #312
  • Jul 1, 2010 9:08pm Jul 1, 2010 9:08pm
Something about that color that keeps me coming back in...

Well..there's a time when I really feel it's just too much for me to read those candles and stay alert all the time for trading...

Maybe this one can be my backup system that I can fire and forget while watching movie or doing another hobby...

I also found out that in M1 this system can be a real sport... Those color matching thing is good for refreshing and train my brain reaction. It's somehow fun. If I lose, I just simply put in another coin... with microlots of course. If I win I have a big smile like this... .

This system has some potential...
Will dig this deeper after doing regular trading.

Thanks Noel!!!
  • #313
  • Jul 2, 2010 4:29am Jul 2, 2010 4:29am
Quoting NiceGuy
Something about that color that keeps me coming back in...

This system has some potential...
Will dig this deeper after doing regular trading.

Thanks Noel!!!

Bravo! Bravo! Not for me, but for all the guys who contributed and made this thread more educational.

I am very glad to see a lot of you are having fun with this. I shall give more time this weekend and see what improvements from all the contributions. The aim of course is still to make this work, as simple and as clean (charts) as possible. Again, suggestion mostly welcome. Hopefully, we can attach charts so it will help "visual" persons like me understand.

Let us determine the best entry (with less false signals). I think the TP is better left to the trader, as I think I will stick to the exit as posted in Post #1.

I myself is having some difficulty in getting the best entry yet. Or should I say having a hard time convincing myself to push that button when I should, and refrain from doing so when I shouldn't. hehehe.

Again, as it warms my heart to see a lot of FF members appreciate this, let me say I am most happy to see a lot of better ideas being thrown in here, working around the PM Forex Strategy!
  • #314
  • Jul 2, 2010 4:54am Jul 2, 2010 4:54am
Quoting Indrek
Here is an illustration of this. At the bottom of the chart I have MTF bars period 20 and on the chart you see nonlagMA period 80.
It is easy to see the difference in color change that is exactly 4 bars!
Hi,
if someone is interested in this version of 4BARS you can choose your favourite period of NonLagMA to display

gspe
Attached File(s)
File Type: mq4 4BARS-MP-NLMA 1.00.mq4   13 KB | 489 downloads
  • #315
  • Jul 2, 2010 5:01am Jul 2, 2010 5:01am
Quoting iamnoel

I myself is having some difficulty in getting the best entry yet. Or should I say having a hard time convincing myself to push that button when I should, and refrain from doing so when I shouldn't. hehehe.
Roger on this... This one is really rock yesterday because market trend was defined clearly right after London and keep skyrocketing until Tokyo start...

But when the market range and flat, that would be the real challenge..

How bout you guys..?
  • #316
  • Jul 2, 2010 5:07am Jul 2, 2010 5:07am
Quoting NiceGuy

But when the market range and flat, that would be the real challenge..


I am sure your insights on how to overcome this challenge will be very valuable.

In the meantime, I always wait for your charts, coz you always seems to have a clear way of setting it up, and explaining it - entry, exit and most importantly WHY?

  • #317
  • Jul 2, 2010 5:42am Jul 2, 2010 5:42am
Quoting gspe
Hi,
if someone is interested in this version of 4BARS you can choose your favourite period of NonLagMA to display

gspe

Great indy..... Anybody ??? What's the best setting ???
  • #318
  • Edited 6:51am Jul 2, 2010 6:21am | Edited 6:51am
Quoting Syahmi
Great indy..... Anybody ??? What's the best setting ???
EDIT:
I suggest 20, 80, 320, 1280.
The logics is 1*20, 4*20, 4*80, 4*320.
  • #319
  • Jul 2, 2010 6:30am Jul 2, 2010 6:30am
Quoting iamnoel
I am sure your insights on how to overcome this challenge will be very valuable.

In the meantime, I always wait for your charts, coz you always seems to have a clear way of setting it up, and explaining it - entry, exit and most importantly WHY?

I am not good at this... That MTF color lied to me and take my pips away to some party without me.

I still do not have any clue without forcing people to look at candles. And if we begin to read candles, I guess that would simply against the purpose of this thread, which is to find the most reliable, easy and cleanest way to trade with the given indicator.

I already tried to add this and that into this system. But still no clue to overcome the ranging and false breakout problem. I guess I am just not good with indicator and setting them. Honestly, I envy other people who does.

Using less or more indicator doesn't make us a good or bad trader. Add whatever or lose whatever indi to your system. In fact, use robots, software, use other people to trade for us, rent signal or buy information or whatever else. Just do it.

Doesnt matter how many you have won or lose in your trading history. Trading is only about winning the next trade. Do whatever it takes.

NG
  • #320
  • Jul 2, 2010 7:05am Jul 2, 2010 7:05am
Quoting NiceGuy
Roger on this... This one is really rock yesterday because market trend was defined clearly right after London and keep skyrocketing until Tokyo start...

But when the market range and flat, that would be the real challenge..

How bout you guys..?
Any trending system has the same problem with the ranging and flat market.

Even during the ranging/flat market if we follow the rules and exit at the right time (using semafor and Heiken Ashi) we still can make 20-30 pips here and there.

And if we make 200 pips when the market trends and the next day, when the market is flat, we make only 20-30 pips - I think it's OK, I can live with it!
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