A "new" simple system based on MA

thanks a lot for your doubleCCI-Indicator - the visual backtest looks promissing
your setup/template looks very interesting! could you please explain what I exactly need to recreate your template?!
3x CCI
3x EMA
...?!

I suppose tha you're not using MT4?!

Thanks jmflukeiii, have a great 2012!

kind regards,
Mathias

Well...it will be a little difficult because that setup uses range bars, 5 pip range bars to be exact. It works on time based charts also but not nearly as well in my opinion. I use NinjaTrader which gives me the option to use range bars, tick, volume, minutes, seconds, whatever I want really. Check to see if your broker can provide data to NinjaTrader (go to ninjatrader's website and click on the partners tab).

If not, there are some solutions, but you're going to have to find the range bars yourself if you want them. MT4 is pretty crummy in my opinion and if you can get a broker that supports Ninjatrader, you'll be much happier. Also, I believe that most of the brokers that support ninjatrader are ECN brokers, or DMA brokers which are the brokers you should be trading with anyway, especially on a 1 minute (or lower time frame), in my opinion. I use interactive brokers if you're curious. Forex.com has a fairly low minimum and while I would never trade through them, $500 would get you an account with them and a data stream for ninja.

Anyway, that's a long way to get where you want to go. Basically, the histograms I programmed show me when the CCI is above or below 0 for three period settings, 50,100, and 200. Then they turn yellow when the CCI is beyond 200 or beyond -200 (indicating OB/OS). The top indicator is a fast stochastic set at 14,1,1 with OB/OS levels at 80 and 20. The EMAs are 50,100,200 EMAs colored to represent their slope, up down or flat.

I've attached to the indicators. CCITrend and Reversal that I just made for MT4. Reversal is the stochastic. You can adjust the settings and play with it or I just set the defaults to the settings I mentioned above. Basically look for a pullback and an indication from the stochastic indicator (ob/os) to trade with the direction of all 3 CCIs and the 3 EMAs. Filters a lot of bad trades. Also, as you saw in my example above, the top CCI indicator, the shortest one, turned red, then turned back green. That means that it breifly crossed the 0 line down but then came back up quickly. this is a zero bounce and also a good signal as long as everything else is all still aligned correctly. Dont' exit as soon as you see yellow, because the yellow can just mean that price is in an extreme condition which means it could keep going. But once the yellow ends, that means that the CCI has come back in from the 200/-200 level and as such that extreme condition is ending most likely signaling a reversal.

The only thing I ask, is that if you find some better settings on a time based chart, please let me know.

EDIT: just doing a quick visual check, it looks like the 50 CCI keeps you out of too many trades on the 1 minute time frame. It might be best to only use the 100 and 200 as the trend guidelines, or just 50 and 100 and shorten up the stochastic period.

EDIT2: Sorry Hmaoui to do this all on your thread. I'm done posting about other methods. The original works fine

Hello all. Today I didn't find any good set up to trade. I hope tomorrow make the first winning trade of the year

Regards,
Dragon.

Man...I don't have nearly your level of patience. Have you considered using another system to identify a longer trend with deeper pullbacks such as Paulus' tricolour thread? Still a 1 minute chart, but taking pullbacks on a 5 minute chart through the 1 minute chart. Might be a good addition for days that you can't get a good fast trend going.

Hello all

Sorry I didn't post last week. I've been study the system jmflukeiii told us.
I took two things of that system. The way of enter the trade using StochColor(14, 3, 3, LWMA, Close/Close, 80, 20) and use fibo to exit.

This is my today's trade. It gaves me ROC of 6%



Best Regards,
Dragon.

Nice shot !!! 6% a day is a very good deal !!!
I am going to study the system jmflukei introduced us to see if it's worth it to implement some ideas, especially about exits.

Hello

I enter two times today. -3% + 9% = +0.5%





Regards,
Dragon

Hello

Today's trade gaves me +3%



Regards,
Dragon

Dragon, how are you deciding on the trigger to enter into a trade? Nice trading by the way

Hello jmflukeiii

I enter a soon as Stoch(14,3,3) is in OB/OS area and we also have signal of DMI filter. Also if I'm buying I enter on the close of a bear bar. And if I'm selling I enter on the close of a bull bar.

Best regards,
Dragon

Hello

Today's trade gaves me +9% ROC



Have a nice weekend,
Dragon

Hello

Today's trade gaves me -3%



Regards,
Dragon

Hello

Today's trade gaves me -3% ROC



Regards,
Dragon

Hello

Today's trade gaves me 0% ROC



Regards,
Dragon

I've read over some 25 pages and find this a good method. Today, a bit in a rush, I've made my first 2 trades.

Could someone comment if they are correct...?
(I use renko, 4 pip boxes).

1st trade: I closed half of my profits with 10 pip plus, left the other run with 10 pip trailing SL
http://shrani.si/t/u/13V/2QpO9ipe/1.jpg

2nd trade: here I had to leave the computer after geting in and setting SL. But I didnt mind, its demo and Im just looking for correct entries.
When I came back it was 70 pips plus and I've let it run on with 10 pip TSL.
http://shrani.si/t/i/Ja/4j60CFxU/1/2.jpg

So what I'd like to know is if the entries were corect and what you guys think about my take profit strategy -> take half at 10 pip plus and let the rest run with 10 pip trailing SL.

Also I wanna know if my EMA's are sufficent. I have a short GMMA and 60 EMA. Should I add a 35 EMA or something?

Hello Quezoy

I think both trades are great.

I just suggest use DMI(14) instead of ADX(38)

Best regards,
Dragon

Hello

Today's trade gaves me -3% ROC



Regards,
Dragon

Hi dragon. Looking at your trades you use sto at 14/3/3 and I think it is not fast enough. I use 5/3/3 or a RSI(6) to be more efficient. I think it is not necessary to use long parameters on your oscillator. What do you think ?

Is there anybody who really thinks that trend will be established "BEACAUSE" of a confirming Indicator?
This guy confuse the cause with the effect. Is not the Indicator which "creates" the trend, but is the trend that drives the Indicator.
Whoever will try to test a strategy using the MT4 Strategy Tester in Visual mode, can have an easy prove of what I say. Put two or more MAs (or whatever complex Indicator you like) and look in slow motion at the development of the chart; in 50% of the cases the Indicator will cross (in case of MAs) but "suddenly" it retraces if not even reverses the direction; simply because the market goes where/when it wanna go, driven by big interests (Central Banks, Commercial trades of big Corporations, ecc.). Another phenomenon you can often observe in Visual mode is the indicator crossing sometime in the middle of the candle (good !!), but when the candle closes the indicator is not there anymore... so what would have it caused to you if you took the fake trigger as a good one?
Everytime you see a nice chart where a strong trend is "confirmed" by an Indicator (you can find zilions on this and other threads), you should realize that the Indicator is just FOLLOWING the trend, it's not predicting it.
The morale is that whatever indicator you pick, it will always be late and exposed to fake trigger.

Hello hmaoui, I think you're right. It's not fast enough. I'll try something new. thank you