Max's Simple Ride the Wave System

Quoting jcl365

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One question. I see that you're using pin bars and dojis for manual exit points - does this make sense? Pins, hammers, dojis etc were defined for assets that have fixed trade hours. But currencies are traded 24h, so if a candle is a doji or not just depends on the start hour of your price data. Where you have a doji, other people with price data from other brokers won't have one.

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Quoting marshalmax

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Must be on a winner then hopefully. I used to sit and read ALL the posts on threads such as that but most of them end up with the author declaring the system not working and everyone is back to square one. That's why I started this thread. Surely we can get more than 50% accuracy with a risk reward ratio of more than 1:1?

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Quoting marshalmax

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To me and from my limited understanding, a day resulting in a doji suggests the trend is faultering and that there is either not enough pressure moving the market in either direction or just as much pressure holding it in place from opposing pressure. Either way it means there is a high probability the trend will cease or stop for a while and it's a good time to exit and re-enter should an opportunity present itself.

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function run()
{
// Open a Daily chart 
BarPeriod = 1440; 

// Place 10EMA and 20EMA on Daily chart.
var EMA10 = EMA(series(priceClose()),10);
var EMA20 = EMA(series(priceClose()),20);

// When a candle finishes the day with its whole self ABOVE the 10EMA, 
 if(priceLow() > EMA10
 
// as long as that candle is not a pin bar or doji 
and !CDLDoji() and !CDLShootingStar() and !CDLInvertedHammer()

// or longer than the previous 2 candles.
and !(priceHigh(0)-priceLow(0) > priceHigh(1)-priceLow(1))
and !(priceHigh(0)-priceLow(0) > priceHigh(2)-priceLow(2)))
{
// please a BUY order (pending/entry) at the top of that candle 
Entry = priceHigh();

// with the stop being the low of a 2 candle count back line. 
// (2 lower lows - ie draw horizontal line from the low of the previous candle 
// until it touches another candle and then take that candle's low at the stop).
Stop = priceLow(1);
int i; for(i=2; i<5; i++) {
if(priceLow(i) < Stop) {
Stop = priceLow(i); break;
}
}

enterLong(TrailingStop);

// Exit on close of a doji.
if(CDLDoji())
exitLong("*");
} 
}

Quoting Hugh Briss

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If you want my help here it is... Basically the same as Steve said... If you are going to trade trends then you have to accept that you are going to lose lots of small trades at the start before you catch a good trend. The way to make money by trend following is to work out how you can add to a winning trade whilst still keeping your losses small. That is actually all there is to it but it's obviously a lot harder than it sounds. I wouldn't risk more than 1% per trade and be happy to lose 100 or 200 pips depending on the pair on the understanding...

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Quoting jcl365

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Let me give an example: Assume an asset with the price at midnight at $10. It rises to $11 at 12:00, then falls to $9 at 18:00 pm, rises again to $10 at 24:00 pm, and rises further to $12 at 12:00 the next day.
If your price data begins exactly at midnight, this day candle is a Doji. If it begins at 12:00 however, it's a hammer with open = high = $11, low = $9 and close = %12. If it begins at 8:00, it's a normal looking candle with a $1 body. A Doji or Hammer of a 24-hour traded asset does not suggest a faltering trend, as it's a random product...

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Quoting jcl365

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Max: Aside of all my scepticism about Doji, the new rules have improved the system. I get now a small win -18% per year - in a 4 years test with both EUR/USD and AUD/USD. Other currencies are still losing. But I've tested it quick and dirty without the ranging and position adding.

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Quoting stevegee58

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Not to bring up yet another thread, but the equity millipede has similar ideas at its core: high reward:risk, low hit rate, adding to winners and letting them run.

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Quoting marshalmax

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I have put this thread on hold for a little while as I am testing these new rules a bit more before I resume daily updates.
I went back through the charts last night and where yest candle was full above 10EMA I placed LONG orders on the candle high and where a full candle was below the 10EMA I placed SHORT orders on those lows.5 orders triggered during the night and all 5 are in the '-'s right now.

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Quoting pama.fx

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you tuned your trading method "so often" after the comments written by other traders but i think your few original trading comments are good should keep it up nevertheless i respect your decision.

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Quoting euro_dude

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I agree! I prefer the original system.
You've tweaked the system because of a few bad trades and have now opened Pandora's Box. Now everyone will be chiming in with suggestions and the thread will quickly disintegrate into "tweaking hell".

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