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A "new" simple system based on MA

  • #301
  • May 27, 2011 3:22am May 27, 2011 3:22am
Quoting Bom-Bom
I learn good things today.
in fact, in order to recognize that we're currently in trend or not is look at the EMA Pointing. If it is pointing between 2 o'clock and 4 o'clock, even the stochastic met, the DMI met, and there's pullback. better not trade.

But good setuip always come with EMA pointing between 4 and 6 o'clock for Sell and 12 to 2 o'clock for buy........
that's really important the ema's must be spread like a cone.
then you will be successful more then 80%

cheers
  • #302
  • May 30, 2011 7:20am May 30, 2011 7:20am
I am waiting for everybody to master this first system before I launch a second one. Also, I would like to get a partner on this first system because I am not always free to answer the questions and I will be very busy to manage 2 threads !!! I prefer to give everybody a good quality thread.

Quoting Bom-Bom
Look forward the Breakout Strategy Hmaoui
  • #303
  • May 30, 2011 8:42am May 30, 2011 8:42am
Nice post from Bom-Bom about how to recognize a trend. It is a part of the system I have not developped because I use to be trading this system for many months now (near 2 years). So I think Bom-Bom idea (the clock - developped in a Raghee Horner book) is a good idea. BUT I advise you to focus on the LT EMAs. WHY ? Because the ST are very sensitive of course and as you are waiting for a pullback, the ST will be flat in deep pullback. The trend is bullish if the LT EMAs are pointing up (near 2 o'clock) and bearish if pointing down (near 4 o'clock). And this is confirmed (or not) by the DMI. Also dont forget that LT EMAs will be well spread when it is in good trend!!!

Quoting Bom-Bom
I learn good things today.
in fact, in order to recognize that we're currently in trend or not is look at the EMA Pointing. If it is pointing between 2 o'clock and 4 o'clock, even the stochastic met, the DMI met, and there's pullback. better not trade.

But good setuip always come with EMA pointing between 4 and 6 o'clock for Sell and 12 to 2 o'clock for buy.

The attached picture speaks for the good and bad setup.
  • #304
  • May 31, 2011 2:22am May 31, 2011 2:22am
There was a nice upward move this night in eur/usd. This morning, I think we could reach 1.4450. I would try to wait for a perfect setup to do my job ! Be patient.
  • #305
  • May 31, 2011 8:48am May 31, 2011 8:48am
yes tokyo session seems to be better than london in the last weeks
did anyone of you guys trade the london session?
here is my trade but i think that was not a very good entry because the candle was too big
comments are welcome

EDFX
Attached Image (click to enlarge)
Click to Enlarge Name: hm trade 310511.png Size: 86 KB
  • #306
  • May 31, 2011 9:38am May 31, 2011 9:38am
Hi Hmaoui, I don't fully understand the exit if you want the profits run. What is your exit? When the price cross the 12EMA? When the price cross 30 EMA? When Sto cross 50 again? If you use tralingstop what is your traling in pips?

Thank You,
Dragon
  • #307
  • May 31, 2011 9:39am May 31, 2011 9:39am
Unfortunately, today was not a good day : no perfect setup for me ! I did not trade.

About your entry, I think you added something to the rules, so I cant really comment. I would have entered at the EMA12 level, even on a bearish candle. It seems that you enter when it breaks out the high of the last candle. Maybe it is a best entry ? Did you backtest it ? Tell us more...

Quoting Edfx
yes tokyo session seems to be better than london in the last weeks
did anyone of you guys trade the london session?
here is my trade but i think that was not a very good entry because the candle was too big
comments are welcome

EDFX
  • #308
  • May 31, 2011 10:47am May 31, 2011 10:47am
Hi Dragon,

About "let the profits run", I want to show you how to get most pips of the trend if it developps. What does it mean ? In a 5mn TF, if the trend is really strong, then you can easily go 100-150 pips away from your entry point, so it can be smart to get more than 15 or 20 pips when we can. But first you must be sure of the trend's strength. If the the trend is strong the chance it last are very high so you can wait for getting more pips. If you trade the trend, then you can exit according to the volatility, or a break of the LT EMAs. If prices break the LT EMAs it can be a reversal ecause 60 EMA is the last 5h on a 5 mn chart meaning around half of the trading session...

Also, you can prefer to exit with the volatility. I mean the daily ATR on €/$ is about 120 pips (sthg like that). So if you get 90 pips, you can choose to exit because you get 75% of the daily ATR, which is a very good performance.

IF you trail your stop, let the price takes his breath : use the daily ATR too to put your SL.

Mix these 3 types of exit if you want and you will profit from the trend enough to get more pips.

Quoting dragonspeak
Hi Hmaoui, I don't fully understand the exit if you want the profits run. What is your exit? When the price cross the 12EMA? When the price cross 30 EMA? When Sto cross 50 again? If you use tralingstop what is your traling in pips?

Thank You,
Dragon
  • #309
  • May 31, 2011 11:14am May 31, 2011 11:14am
Hi hmaoui
I do not think it is a better entry but i thought the price must bounce of the MA and if it is a bearish candle it doesnt bounce of right?
I am a newbie so pls be patient with me

today we should have traded the gbp/usd nice down trend, I always miss the good ones

Quoting hmaoui
Unfortunately, today was not a good day : no perfect setup for me ! I did not trade.

About your entry, I think you added something to the rules, so I cant really comment. I would have entered at the EMA12 level, even on a bearish candle. It seems that you enter when it breaks out the high of the last candle. Maybe it is a best entry ? Did you backtest it ? Tell us more...
  • #310
  • Jun 1, 2011 12:18am Jun 1, 2011 12:18am
Quoting hmaoui
And this is confirmed (or not) by the DMI. Also dont forget that LT EMAs will be well spread when it is in good trend!!!
Hi Hmaoui, so do you think the DMI is not important to confirm the trend? Let's say when we have buy trend, the price pullback, although the DMI show Sell trend then it's ok to enter Buy?
  • #311
  • Jun 3, 2011 6:42am Jun 3, 2011 6:42am
I have updated the EA and it appears to be making money in ST and in forward testing this week using M1 charts for EU, GU, AU and USDCAD.

I am not 100% i have the rules exactly correct for entry and exit so open to suggestions but getting this to work in MT4 has been a pain!

so the for entry rules:

Long trade:
1. Check Price Postion - Current Close price > all MAs and EMA15>EMA30>EMA60
2. Check for diverging MAs - absolute diff (EMA15-EMA30) > absolute diff (EMA15-EMA30)previous and absolute diff (EMA30-EMA60) > absolute diff (EMA30-EMA60)previous
3. Check for retracement - Absolute diff (Ask - EMA15) < specified MinMAOffset
4. Check DMICross=1, DMI+>DMI- and DMITrade=True
5. Stoch(5,3,3) < 50
6. If UseDMISpread filter and (DMI+ - DMI-)>MinDMISpread
7. if UseRSI filter and RsiVal<45 and RsiVal>55
8. Place Long trade

Short trade:
1. Check Price Postion - Current Close price < all MAs and EMA15<EMA30<EMA60
2. Check for diverging MAs - absolute diff (EMA15-EMA30) > absolute diff (EMA15-EMA30)previous and absolute diff (EMA30-EMA60) > absolute diff (EMA30-EMA60)previous
3. Check for retracement - Abs diff (Bid - EMA15) < specified MinMAOffset
4. Check DMICross=-1, DMI+<DMI- and DMITrade=True
5. Stoch(5,3,3) > 50
6. If UseDMISpread filter and (DMI+ - DMI-)>MinDMISpread
7. if UseRSI filter and RsiVal<45 and RsiVal>55
8. Place Short trade

Rules for exit:

for long trades:
DMI+ < DMI-
Ask < EMA15
EMA15 > EMA15 Previous
EMA30 > EMA15
PriceAboveMAs

for short trades:
DMI+ > DMI-
Bid > EMA15
EMA15 < EMA15 Previous
EMA30 < EMA15
PriceBelowMAs

Must admit i've not been keeping up with the thread as of late so interested to know if the rules are correct or need adapting. Like i said this is has been running all week, but wasn't til the 1st that i got it to trade. In 2.5 days continuous trading $1000 demo account is up 28% with floating DD of 14%. That is using the EA default settings.

I have also switched from using the ADX indicator to the DMI Indicator published in this thread. Extract the zip file to your broker directory, i've included a info template as well useful for analysing EAs.

Let me know your thoughts.

Mike
Attached File(s)
File Type: zip hmaoui.zip   40 KB | 740 downloads
  • #312
  • Jun 3, 2011 3:17pm Jun 3, 2011 3:17pm
What I mean is that if DMI confirm the trend, then it is a perfectu setup. But sometimes, you can get a deep pullback and DMI will cross a LITTLE BIT each other or be the same. Anyway, if you see that the spread between LT and ST EMAs is wide then you can enter even if the DMI is not confirming. What you have to rember is that DMI is only here to get a confirmation and to get the perfect setup. Sometimes you wont get the perfect setup but a good one. You will recognize it with experience. But I advise everybody to only focus on perfect setup first !

Quoting Bom-Bom
Hi Hmaoui, so do you think the DMI is not important to confirm the trend? Let's say when we have buy trend, the price pullback, although the DMI show Sell trend then it's ok to enter Buy?
  • #313
  • Jun 3, 2011 3:26pm Jun 3, 2011 3:26pm
I will never thank you enough for your job ! Really great ! The rules have stayed the same so dont be afraid of that. I think the rules are correct in your EA even if I am not confortable with MT4 language. If Bom-bom or someone else can check it I would appreciate. I think that you just forget in the exit the Stop Loss or maybe it is not in your rules (?)

We have to forward test (in real) during about 1 month to get reliable results. In the DD of 14% has the SL been put at 7/8 pips from your entry ? Tell me more about that. 28% in 2,5 days can be encouraging...


Quoting magft
I have updated the EA and it appears to be making money in ST and in forward testing this week using M1 charts for EU, GU, AU and USDCAD.

I am not 100% i have the rules exactly correct for entry and exit so open to suggestions but getting this to work in MT4 has been a pain!

so the for entry rules:

Long trade:
1. Check Price Postion - Current Close price > all MAs and EMA15>EMA30>EMA60
2. Check for diverging MAs - absolute diff (EMA15-EMA30) > absolute diff (EMA15-EMA30)previous and absolute diff (EMA30-EMA60) > absolute diff (EMA30-EMA60)previous
3....
  • #314
  • Jun 4, 2011 12:48pm Jun 4, 2011 12:48pm
Quoting hmaoui
I will never thank you enough for your job ! Really great ! The rules have stayed the same so dont be afraid of that. I think the rules are correct in your EA even if I am not confortable with MT4 language. If Bom-bom or someone else can check it I would appreciate. I think that you just forget in the exit the Stop Loss or maybe it is not in your rules (?)

We have to forward test (in real) during about 1 month to get reliable results. In the DD of 14% has the SL been put at 7/8 pips from your entry ? Tell me more about that. 28% in 2,5 days can...
For some reason the SL is set to 1 pip, i thought i had set to 5 pips. Breakeven set to 2 pips and jumping stop set to 5 pips. Though currently i have a USDCAD trade at -31 so something is not quite right and needs resolving. EU, AU and GU have made the most money but i did BT to tune the MinMAOffset value for these 3 and the current value of 0.002 seems to be best comprimise between under trading and over trading. if i hadnt used USDCAD and messed around a bit it was at 100% successful trades.

There is definitely potential with his but need to iron out a few bits first. To do this i need help from the experts in the methodology and also people to test and comment on issues/results etc.

Hope this helps

Mike
  • #315
  • Jun 5, 2011 4:23pm Jun 5, 2011 4:23pm
Quoting magft
For some reason the SL is set to 1 pip, i thought i had set to 5 pips. Breakeven set to 2 pips and jumping stop set to 5 pips. Though currently i have a USDCAD trade at -31 so something is not quite right and needs resolving. EU, AU and GU have made the most money but i did BT to tune the MinMAOffset value for these 3 and the current value of 0.002 seems to be best comprimise between under trading and over trading. if i hadnt used USDCAD and messed around a bit it was at 100% successful trades.

There is definitely potential with his but need...
Hello,

Thank you for posting this strategy, i think it’s really a good one.

I have tested the EA modified by Mike with a TF of 5min on EURUSD (from January 1 2006 on) using metatrader.
I have attached the results in pdf.

The strategy performs very well (wins all the time), but at the first loss it looses all the capital because of no Stop Loss. Stop loss and Profit take should absolutely be inserted in the strategy.

Additionally:
The strategy tester of metatrader gave me this (I show you only a part):

2006.01.12 16:08 Hmaoui auto trading robot MAs by magft: stopped because of Stop Out
2006.01.12 10:18 Hmaoui auto trading robot MAs by magft EURUSD,M5: Setting of breakeven SL EURUSD ticket no 30 failed with error (130): invalid stops
2006.01.12 10:18 Hmaoui auto trading robot MAs by magft EURUSD,M5: Breakeven set on EURUSD ticket no 30
2006.01.12 10:18 Hmaoui auto trading robot MAs by magft EURUSD,M5: OrderModify error 130
2006.01.12 10:17 Hmaoui auto trading robot MAs by magft EURUSD,M5: Setting of breakeven SL EURUSD ticket no 30 failed with error (130): invalid stops
2006.01.12 10:17 Hmaoui auto trading robot MAs by magft EURUSD,M5: Breakeven set on EURUSD ticket no 30
2006.01.12 10:17 Hmaoui auto trading robot MAs by magft EURUSD,M5: OrderModify error 130
2006.01.12 10:16 Hmaoui auto trading robot MAs by magft EURUSD,M5: Setting of breakeven SL EURUSD ticket no 30 failed with error (130): invalid stops

Thank you for your work! Hope for a reply
Tiziano
Attached File(s)
File Type: pdf Strategy Tester Report.pdf   274 KB | 704 downloads
  • #316
  • Jun 6, 2011 6:44am Jun 6, 2011 6:44am
You can't risk all your money ! Please always put your SL and follow the rule of MM. Never risk more than 2% of your capital on a trade and try to stay with a TP/SL ratio > 1. You will be successful on the long term ! What we could do is using the EA to get the signals ad put our SL/TP ourselves waiting for the development of the EA.

Quoting Tiziano
Hello,

Thank you for posting this strategy, i think it’s really a good one.

I have tested the EA modified by Mike with a TF of 5min on EURUSD (from January 1 2006 on) using metatrader.
I have attached the results in pdf.

The strategy performs very well (wins all the time), but at the first loss it looses all the capital because of no Stop Loss. Stop loss and Profit take should absolutely be inserted in the strategy.

Additionally:
The strategy tester of metatrader gave me this (I show you only a part):

2006.01.12 16:08 Hmaoui auto trading robot...
  • #317
  • Jun 8, 2011 6:07am Jun 8, 2011 6:07am
Quoting Tiziano
Hello,

Thank you for posting this strategy, i think it’s really a good one.

I have tested the EA modified by Mike with a TF of 5min on EURUSD (from January 1 2006 on) using metatrader.
I have attached the results in pdf.

The strategy performs very well (wins all the time), but at the first loss it looses all the capital because of no Stop Loss. Stop loss and Profit take should absolutely be inserted in the strategy.

Additionally:
The strategy tester of metatrader gave me this (I show you only a part):

2006.01.12 16:08 Hmaoui auto...
I was getting the same Ordersend errors so i have now added a new library that LibOrderReliable by Matthew Kennel and others that helps trades execute with no issues.

This means you need to put EA in expert directory, LibOrderReliable.mqh in the expert/include directory and LibOrderReliable.mq4 in expert/libraries directory.

The current default setting work well for EU M1 over last month in backtesting, if you add stoploss it makes a loss overall.

Try it and let me know if the entries/exits are correct.

Mike
Attached File(s)
File Type: mq4 Hmaoui auto trading robot MAs by magft.mq4   62 KB | 604 downloads
File Type: mqh LibOrderReliable.mqh   72 KB | 486 downloads
File Type: mq4 LibOrderReliable.mq4   60 KB | 495 downloads
  • #318
  • Jun 8, 2011 5:31pm Jun 8, 2011 5:31pm
mike

so proud with ur ea

latest ea make profit usd20 in 2 hours.

i'm just curious any function handle when big news occurs.
  • #319
  • Jun 8, 2011 11:23pm Jun 8, 2011 11:23pm
Quoting laharjaya
mike

so proud with ur ea

latest ea make profit usd20 in 2 hours.

i'm just curious any function handle when big news occurs.
Thanks for the update. At the minute it is up to you to turn off and on during news events. I have been looking into news trading but in the short term i think it is safer to manually avoid high impact news. Saying that i am testing several EAs and i just leave them running 24/5 and most of the time they ride through it, the floating dd increases but overall nothing major.

Mike
  • #320
  • Jun 9, 2011 4:02am Jun 9, 2011 4:02am
Quoting hmaoui
Hello! I am a FF member for many years noow but I never posted a thread or only one started but avorted because it was a little bit similar to ichimoku360, and I didnt want to confuse anybody.

So, firstable, I am a trader whose the first question is how I can limit the risk? So my system is developped with this bias.I prefer to be flat than in a bad trade. I prefer to trade the trend than countertrend trading. So maybe the system will not suit your personnality, so feel free to get away or to criticize in order to improve it not to destroy it....

Hi hmaoui,

I am very new to forex trading. So I am not very familiar with the abbreviations you have used. What are Guppy MAs? Simple moving average or exponential moving average? What is ST and LT?
Would appreciate your reply. Your post looks interesting. I am trying to work out a trading system that suits my personality. I realize I cannot trade long term. Does not suit my personality.
Thanks and wish you success.
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