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Nanningbob 4h trading system ver. 5.0

  • #2,861
  • Oct 15, 2010 10:14pm Oct 15, 2010 10:14pm
I finished reading thread "cover-to-cover" (yes including post#1 / page 1!) twice, which took me a while..... I am a lurker by nature but would like to use this rare post to thank Bob (xie xie ning from abt 1900 km NE from you..) for sharing and your patience with all of us, Steve and all other coders as well as the active participants here.... All the best for NB 6.0! I am now off to read / digest all the side-threads / quest, mainly originating from the prolific Steve....
  • #2,862
  • Oct 15, 2010 11:23pm Oct 15, 2010 11:23pm
I'm doing backtest. I miss this signal because the price is already went up on the next bar.
Attached Image (click to enlarge)
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  • #2,863
  • Oct 16, 2010 1:40am Oct 16, 2010 1:40am
Quoting luiboy
I'm doing backtest. I miss this signal because the price is already went up on the next bar.
I assume you are talking about the adjacent red and green candles that pierce the bands in the middle of the chart. In real time, you would put the EA on when the price crosses the band. In that bar it would then go up some and come down some again.

In the next bar, it would pierce the band again, but that's irrelevant to the EAs as I understand them. They would wait for either the price to dip below the 3x2 MA, or for the 1 MA to dip below it, depending on which version of the EA you have on.

I can't say what's going on with your backtest, but if it's missing the trade, then it's not parroting the behavior of the live system.

Hope this helps.

Oh, and I deserve basically zero credit for any of this. All I did was grunt work. The ideas and the credit all goes to Bob.
  • #2,864
  • Edited 3:25am Oct 16, 2010 2:16am | Edited 3:25am
Quoting duffypratt
I assume you are talking about the adjacent red and green candles that pierce the bands in the middle of the chart....
I mean when the TMA popped up the alert, the price is already went up so high. That is too late to put on the buy EA. Is there anyway to make the alert instant?
  • #2,865
  • Oct 16, 2010 5:41am Oct 16, 2010 5:41am
Hi, I have traded TMA bands for a while and have a couple of suggestions having read the posts on the V6 strategy

The version of the TMA bands you are using is set to a very long cycle period, if you set this to between 10 and 15 and reduce the ATR period to 50 the bands fit the price movements better. (There is some great stuff on forex TSD on setting up bands using the right cycle length.)

The benefit is more trades per month from the better pairs and you can ignore the strangely behaving pairs.

My second thought is to set up two bands on the same chart so you can run two entry and exit strategies at the same time. What I observed is that prices that reach the inner band reach the middle while prices that reach the outer band will consistently go to the opposite inner band and generally quite quickly.

This suggests two trading strategies.

1. The first is the NB V6 on an inner band as planned. Run this with a band multiplier around 1.5 or 1.75 depending on the pair.

2. The second outer band you are looking to buy extremes. in this situation set the TMA alerts on current to True and set the multiplier to capture the extremes at around 2.5 to 2.75
When you get an alert buy immediately it looks like reversing as the price tends to reverse quickly even on 4 hrly.

I have used the price target for an outer band entry as the opposite inner band. with a 50% sell at the midpoint. This works quite well as the price tends to reverse quicky to the opposite inner band with consistency. It also gives good pip targets. I set break even quite quickly so that if price starts to trend you don't lose anything.

3. When the price reaches an outer band you can look to double up with an outer and inner band trade on the same pair if you want.

4. I have attached a recent creation from Mladen the creator of the TMA bands.

I think the oscillator if set up correctly will provide some good supporting signals and information for trading this strategy.

For those familiar with the QQE this seems to provide far superior signals and for this strategy we can overlay to get multiple extreme points to confirm entries. its also a good divergence indicator.

I have attached a screenshot of what I am saying based ont he NB V6 template

rgds

Peter
Attached Image (click to enlarge)
Click to Enlarge Name: tma bands dual example.gif Size: 38 KB
Attached File(s)
File Type: mq4 ab asymmetric ema bands oscillator.mq4   4 KB | 694 downloads
  • #2,866
  • Oct 16, 2010 7:35am Oct 16, 2010 7:35am
Quoting peterke
Hi, I have traded TMA bands for a while and have a couple of suggestions having read the posts on the V6 strategy

The version of the TMA bands you are using is set to a very long cycle period, if you set this to between 10 and 15 and reduce the ATR period to 50 the bands fit the price movements better. (There is some great stuff on forex TSD on setting up bands using the right cycle length.)

The benefit is more trades per month from the better pairs and you can ignore the strangely behaving pairs.

My second thought is to set up two bands on...
First, thank you for your contribution to the thread, your post is very informative. As we know indicators can give very nice pictures but coding an entrance that kind of fits everything is very difficult thing to do. For example, I must give remembrance to moves like this one, USD/JPY May 2010, which led to the invention of the 6ths indicator. Avoiding trades like these and still catch a high/low is an extremely difficult thing to do. To leave a top or bottom open ended so you dont get into trades like this is a key feature of the 6.0 system. Now to produce an entrance on the retrace there are not too many numbers you can use. I am at a 3 MA high now. If we want to get higher up we have a 2MA and 1 MA left. The options are not many. We could also get tighter with a 1 shift instead of a two. All the TMA is, is a signal to trade. Then we have to decide when and where to enter. What I like about the TMA is it adjusts itself to each currency. For example the GBP/NZD is around 450 from top to bottom while the USD/JPY is around 140. There are only two things you can do with those lines. Widen them for fewer trades or make them more narrow for more trades. To code an entrance you have two choices:
1. A top/bottom line, like the BB bands, we enter hoping price doesnt go much further OR
2. Wait for the reversal cross of some kind. Each has its strengths and weaknesses and I have tried both in my various versions.

For this present market I am opting for a cross system. The reason is my personal view that the markets are going to get more volatile in the future not less. The TMA will help by expanding in volatile markets and the cross EA will help weed out the super news spikes. So the decision becomes do we enter outside the band or wait until it crosses the band. I have opted for a cross outside the band whenever possible because that seems to be the best trade. Making the bands wider or more narrow only increases or decreases the signal to trade. Once you make that choice your second choice is how do I enter and what gives the highest possible trade probability. I would love to see how you would make an entrance superior by just moving the lines of the TMA. You still have to have some kind of entrance decision. The TMA is the signal, now where do I enter? If you can answer that 2nd question with your suggestion and show how you can still avoid moves like this one then we are all ears. See USD/JPY below which moved over 450 pips after crossing the line. I have to make allowance for this in my system since now I cant multi level like I would have in the past. I hope you dont mind using your example I am just trying to get people to understand the reasoning behind the method. Why we choose one thing over another.
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  • #2,867
  • Oct 16, 2010 7:56am Oct 16, 2010 7:56am
when i load the template i dont get the bands as per your images i get something thast loks like as fork with the centre line ancored ata point about 100 bars back see attched
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  • #2,868
  • Edited 8:40am Oct 16, 2010 8:22am | Edited 8:40am
Quoting McKeen
In addition to my post above here is the backtester ea for anyone who would like to try for themselves. TMA CENTERED must be in indicators folder to work.

Be prepared for a slow run though, since the indicator recalcultes all data on every call (and every tick if displayed simultaneusly) it results in the slowest backtest I have ever encountered.
McKeen,

Thanks for sharing your backtester.

I created a similar visual backtester for the new 6.0 system on this thread (well, from the information I could gather so far). It includes the TMA and MAs per recent posts by nanningbob. I do not use iCustom calls (created internal function for TMA) so it does not overburden system resources.

I find it very interesting (and comforting) to see that my calculations are very close to yours (compare attached screenshot of GU H4 with your similar screenshot from last week) even though it appears our brokers are not using the same server time.

I'm posting this backtest indicator for you (and anyone else) so you can see past history of the TMA/MAs as described in this system. It can handle Multiple timeframes. For example, you can put the indicator on a M15 chart and display H4 TMA and MAs. I'd also like another set of eyes to review the historical calculations as it can be a little tricky dealing with multiple timeframes.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd-tma-vbt.gif Size: 26 KB
Attached File(s)
File Type: ex4 Tma-VBT.ex4   6 KB | 570 downloads
  • #2,869
  • Oct 16, 2010 8:43am Oct 16, 2010 8:43am
Quoting censura
when i load the template i dont get the bands as per your images i get something thast loks like as fork with the centre line ancored ata point about 100 bars back see attched
It looks like the historical information has not fully loaded. I know on IBFX I can only go so far back and then the Lines wont show on the screen anymore. I have to wait for it to load and then go back further in time.
  • #2,870
  • Oct 16, 2010 1:15pm Oct 16, 2010 1:15pm
Quoting zznbrm
McKeen,

Thanks for sharing your backtester.

I created a similar visual backtester for the new 6.0 system on this thread (well, from the information I could gather so far). It includes the TMA and MAs per recent posts by nanningbob. I do not use iCustom calls (created internal function for TMA) so it does not overburden system resources.

I find it very interesting (and comforting) to see that my calculations are very close to yours (compare attached screenshot of GU H4 with your similar screenshot from last week) even though it appears...
Good job zznbrm!

I am happy to see someone else take notice of this optical illusion from a correct perspective. You have made a better job to demonstrate it´s real face than me and I can only hope your hard work is not only for deaf ears.

To all of those that continue to post about "visually backtesting the TMA":

Make sure you attach zznbrm´s indicator to your chart and make your backtesting from there. What it shows is the TMA-indicator as it is displayed when it counts (on trade opening/current bar), IE it´s value on each individual bar when taking a trade, before the "chart cosmetics" (some call it repainting, some would not) which will instantly occur once a few more bars have past.

It would be unfair to yourself not doing this to fully understand the indicator if it is involved in your trading decisions.

/ McKeen
  • #2,871
  • Oct 16, 2010 2:34pm Oct 16, 2010 2:34pm
Hi All,
I'm trying to find the new thread that was greated for those new to NBV5 as i have a small question.

How do u take partial profits and still keep your trade open? You know like your trade is in profit and you would like to take a portion of it but still keep it open.
LEARNING HOW TO FISH SO I CAN FISH FOREVER
  • #2,872
  • Oct 16, 2010 5:30pm Oct 16, 2010 5:30pm
Quoting Mixer
Hi All,
I'm trying to find the new thread that was greated for those new to NBV5 as i have a small question.

How do u take partial profits and still keep your trade open? You know like your trade is in profit and you would like to take a portion of it but still keep it open.
Right click your trade and click close order. Change the volume size to how much lot you like to close. Let's say you have 0.2 lot, to close half of it, type 0.1, the click the close (yellow bar).
  • #2,873
  • Oct 16, 2010 6:37pm Oct 16, 2010 6:37pm
Quoting Mixer
Hi All,
I'm trying to find the new thread that was greated for those new to NBV5 as i have a small question.

How do u take partial profits and still keep your trade open? You know like your trade is in profit and you would like to take a portion of it but still keep it open.
That depends on your broker, if they will allow that or not but you can do it manually. If you have two lots do a close order and change the lot to 1 and it will close only one lot. OR you can use the MPTM. The MPTM has partial close settings in it. You can open up the code and make the adjustments. When you open the code hit control F and type in 'part close'. Change the false to true and then enter your settings. Change the name of your MPTM to what ever you want by Save As then hit compile and it is ready to go.
  • #2,874
  • Oct 16, 2010 6:51pm Oct 16, 2010 6:51pm
NB, I was not suggesting to change your proposed strategy. I think it is good for safely entering into wave reversals near the extremes. I was using the first close inside the band and your MA cross entry is more consistent.

My take on the TMA bands is that they are std deviation bars. My observation is that your strategy works well for std deviations 1 and 2 and there is a 3rd manual approach for the less frequent 3rd std deviation touch.

I'm suggesting two things could be considered.

The first is some fine tuning of the band length as the current lengths been used by the TMA band will potentially improve entries. The strategy doesn't change just refining one of the entry indicators to better reflect cycle lengths.

The second is an additional "secondary" strategy for "3rd" std deviation events which is manual and discretionary. My experience was that quite often the touches are brief with the price moving away from the extreme quickly. It is a judgement call but the appeal of the 3 std deviation touches is that for many pairs the price moves quite consistently to the opposite inner band giving significant profit targets.

For major movements such as the USDJPY May 5th example I'm guessing that significant news was involved to create the movement and that a trader could happily avoid this. With such radical movement most would stand aside. The Alert on Current function in the TMA bars allows for this manual element to be added. If an outer band trade is not taken then the pair is traded with an inner band strategy

I used a stop losss of 1.5x ATR for all band trades and seldom got hit unless the pair started trending.

Tks for considering this and for the help the V5 has given me in refining my trading approach

rgds

Peter






Quoting nanningbob
First, thank you for your contribution to the thread, your post is very informative. As we know indicators can give very nice pictures but coding an entrance that kind of fits everything is very difficult thing to do. For example, I must give remembrance to moves like this one, USD/JPY May 2010, which led to the invention of the 6ths indicator. Avoiding trades like these and still catch a high/low is an extremely difficult thing to do. To leave a top or bottom open ended so you dont get into trades like this is a key feature of the 6.0 system. Now...
  • #2,875
  • Oct 16, 2010 6:55pm Oct 16, 2010 6:55pm
I notice there still is some discussion about the TMA. You need to understand the system and what it is actually is doing. We are not actually trading the TMA. We are using it as a signal to trade. The actual trade is off of a 3MA high/low based on the signal given by the TMA. It is actually a break the trend line system. The 3MA draws a trendline high or low on the screen and when price crosses that line we enter. The TMA only show areas of overbought/oversold, it is based on my trading philosophy that price always goes back to its median whether it is in an uptrend, downtrend, or ranging. We are trying catch these moves back to the Median because they are very high probabilty trades after they break the trend line. Here is a pic showing actual trade entrances. Where the TMA lines go after the MA cross is irrelevant, it has no meaning. It does not matter where they are 6 bars from now or a week from now or a month from now. It is irrelevant, we took the signal we entered our trade. The trade is based on the trendline break of the 3MA high/low. It is a very simple, doable system. The issue left is not the TMA, the issue is what kind of trendline break do we take the trade at? That is the real issue of the system. See the pic below all the MA crosses were successful. Blues are buys, reds are sells.
Attached Image (click to enlarge)
Click to Enlarge Name: aud cad.gif Size: 40 KB
  • #2,876
  • Oct 16, 2010 7:03pm Oct 16, 2010 7:03pm
Quoting peterke
NB, I was not suggesting to change your proposed strategy. I think it is good for safely entering into wave reversals near the extremes. I was using the first close inside the band and your MA cross entry is more consistent.

My take on the TMA bands is that they are std deviation bars. My observation is that your strategy works well for std deviations 1 and 2 and there is a 3rd manual approach for the less frequent 3rd std deviation touch.

I'm suggesting two things could be considered.

The first is some fine tuning of the band length as the...
Actually I liked your comments they help in me teaching the basics of the system. I am sometimes abrupt and come across wrong but my main goal is to teach. The point is no matter what indicator we use or what settings we use we still have to enter the trade at some point. That is the real critical issue. The farther away we enter from the median the better the trade. The problem is getting that furthest point. I am taking a trendline approach with version 6.0 versus the high low bands of version 5.0. Without the 2.4.2 recovery system and higher leverage it is hard to trade a band entrance system.
  • #2,877
  • Oct 16, 2010 8:13pm Oct 16, 2010 8:13pm
Does someone have a good RSI divergance indicator? I saw something while playing around to use for trend following.
  • #2,878
  • Oct 16, 2010 9:06pm Oct 16, 2010 9:06pm
Quoting Mixer
Hi All,
I'm trying to find the new thread that was greated for those new to NBV5 as i have a small question.

How do u take partial profits and still keep your trade open? You know like your trade is in profit and you would like to take a portion of it but still keep it open.

Try this one:

http://www.forexfactory.com/showthread.php?t=253811
  • #2,879
  • Oct 16, 2010 9:18pm Oct 16, 2010 9:18pm
Quoting nanningbob
You need to understand the system and what it is actually is doing. We are not actually trading the TMA. We are using it as a signal to trade.

See the pic below all the MA crosses were successful. Blues are buys, reds are sells.
Well I guess I do not understand the system then, because at the time of your entries the TMA values (your signal to trade) were nowhere near the values you are displaying.

As an "outsider" to this system, I must be incorrect in my interpretation and implementation of the rules. Sorry for the diversion. I'll delete my posts so as to not clutter your thread.

Best of luck with your new system!
Attached Image (click to enlarge)
Click to Enlarge Name: audcad-tma-vbt.gif Size: 33 KB
  • #2,880
  • Oct 16, 2010 9:28pm Oct 16, 2010 9:28pm
Try this one....

Quoting nanningbob
Does someone have a good RSI divergance indicator? I saw something while playing around to use for trend following.
Attached File(s)
File Type: mq4 ind_DivPeakTroughRSI_SW_v1.mq4   11 KB | 524 downloads
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