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Simple MACD system based on 2 channels

  • #1
  • First Post: Edited Jun 28, 2006 11:26am Jun 26, 2006 3:49pm | Edited Jun 28, 2006 11:26am
Hi again folks.

After working hard on the pivotmagic EA (which is getting popular every day), I found that simpler mechanisms are probably better for profit in the long run. I therefore developed an extremely extremely simple system based on 2 MACDs:

MACD1 is to identify the entry point: When the MACD moves from - to + do a buy and if it goes from + to - go do a sell. The fast and slow MAs are 1 point apart and should be quite high (250+)

MACD2 is to get the exit point: It's fast MA is always 100 but the slow one is the one used for MACD1. Once the value reaches the peak during the first cycle if it is a buy or a pit during the first cycle if it is a sell, then close the deal with profit. If the state is not profitable, just leave it.

In case MACD2 didn't produce profit, wait for a specific period (wait_time_b4_SL) and then exit with the least loss possible.

Check the code and you'll understand how this one works. The paramenters are good in default for EURUSD M5 charts. But you can always check other values, particularly MACD values.

Attached is also a test result for EURUSD during (4/7-6/26 2005). Really impressive!


Good testing for you all... and please update me with progress!

Attached is the source code. Please post comments/results when possible!

i_me
Attached File(s)
File Type: mq4 simple-macd-EA.mq4   9 KB | 11,671 downloads
File Type: zip Simple-MACD-results-EURUSD.zip   9 KB | 10,259 downloads
  • #2
  • Edited 4:24pm Jun 26, 2006 4:10pm | Edited 4:24pm
Hey Investor_me I am testing this one. I notice that there is not much to configure. I am using 0.2 lots instead of 1.0. Is TP and SL and all that already built into the EA?
  • #3
  • Jun 26, 2006 4:19pm Jun 26, 2006 4:19pm
Quoting Yardie
Hey Investor_me I am testing this one. I notice that there is not much to configure. I am using 0.2 lots instead of 1.0. Is TP and SL and all that already built into the EA?
TP and SL are dynamic and are built in. But given that the code is readily available, one can change them to static. But I always felt that EAs are best when they can have dynamic TP and SL. That's only my opinion.

BTW, there's a parameter called wait_time_b4_SL and it is basically the number of bars that you can wait before triggering an emergency exit from a losing position.

Plz post test results whenever you can.
  • #4
  • Jun 26, 2006 4:26pm Jun 26, 2006 4:26pm
More questions. Is this EA time sensitive as well? In other words, if my power goes out do I have to close the order opened myself? Are the results shown in the graph above based on the default settings? Is there anything I should be configuring other than the lot sizes? Should I leave the wait_time_b4_SL the way it is? I am assuming the graph above is based on this not being changed.



Quoting investor_me
TP and SL are dynamic and are built in. But given that the code is readily available, one can change them to static. But I always felt that EAs are best when they can have dynamic TP and SL. That's only my opinion.

BTW, there's a parameter called wait_time_b4_SL and it is basically the number of bars that you can wait before triggering an emergency exit from a losing position.

Plz post test results whenever you can.
  • #5
  • Jun 26, 2006 4:33pm Jun 26, 2006 4:33pm
Quoting Yardie
More questions. Is this EA time sensitive as well? In other words, if my power goes out do I have to close the order opened myself? Are the results shown in the graph above based on the default settings? Is there anything I should be configuring other than the lot sizes? Should I leave the wait_time_b4_SL the way it is? I am assuming the graph above is based on this not being changed.
Yes, you need to close the order yourself. But you can add a global variable with the pending_time variable set and a small conditional statement that could identify if an order has been opened by the EA and not yet closed. It's a very easy process. If you want, I'll put it in a later version.

The results are based on the default settings and were in the M5 timeframe. As for wait_time_b4_SL, it is a tricky parameter. In the ideal market conditions where there are no severe hikes/nosedives, this value could remain high because we don't expect a drastic change. But if you expect such massive movements, it's wise to reduce it let's say to 2,000 or less depending on the level of risk you want. There's no clear cut answer to this question. That's why I'm proposing that we test it together and find the best settings for the different pairs/timeframes.
  • #6
  • Jun 26, 2006 5:41pm Jun 26, 2006 5:41pm
Hi investor_me, what was the timeframe of your strategy tester statement you listed in the zip file? Thanks Scott



Quoting investor_me
Yes, you need to close the order yourself. But you can add a global variable with the pending_time variable set and a small conditional statement that could identify if an order has been opened by the EA and not yet closed. It's a very easy process. If you want, I'll put it in a later version.

The results are based on the default settings and were in the M5 timeframe. As for wait_time_b4_SL, it is a tricky parameter. In the ideal market conditions where there are no severe hikes/nosedives, this value could remain high because we don't expect a drastic change. But if you expect such massive movements, it's wise to reduce it let's say to 2,000 or less depending on the level of risk you want. There's no clear cut answer to this question. That's why I'm proposing that we test it together and find the best settings for the different pairs/timeframes.
  • #7
  • Jun 26, 2006 8:13pm Jun 26, 2006 8:13pm
I think he said above that it was 5 minutes.



Quoting smjones
Hi investor_me, what was the timeframe of your strategy tester statement you listed in the zip file? Thanks Scott
  • #8
  • Jun 26, 2006 8:16pm Jun 26, 2006 8:16pm
The global variable would me a nice addition investor_me! I hope to see it in the next version.

One more question. How many trades per week on average can one expect from this EA? So far on the demo no trades have been triggered.


Quoting investor_me
Yes, you need to close the order yourself. But you can add a global variable with the pending_time variable set and a small conditional statement that could identify if an order has been opened by the EA and not yet closed. It's a very easy process. If you want, I'll put it in a later version.
.
  • #9
  • Jun 27, 2006 8:00am Jun 27, 2006 8:00am
hi, i wanted to test your strat, but as i am relatively new i have a problem with the two macs:
I dont know where to exit and when to enter:
Is it right, that i have to BUY, when the red vertically lines cross the yellow lines from below and when the red lines cross the yellow lines from above i have to sell?. The same at exit?
Below i posted a picture of my chart, just to give you an example.
Best greets
mike
http://img67.imageshack.us/img67/4327/chart3pd.th.gif

btw: if i load the indicator in metatrader4, the indicator is not displayed in the chart, why? This happend also to some other indicators. Maybe you can help me there, too.
I'm getting there ... slowly
  • #10
  • Jun 27, 2006 9:49am Jun 27, 2006 9:49am
its not an indicator, its an expert advisor
  • #11
  • Jun 27, 2006 9:51am Jun 27, 2006 9:51am
and what about my other question with the macds (see the graph).
I'm getting there ... slowly
  • #12
  • Jun 27, 2006 9:52am Jun 27, 2006 9:52am
Here my latest optimization on the MACD 5min Euro E/A 5630.00 68 1.56 82.79 3140.00 28.52% MACD_level=390 Lots=1 TrailingStop=55 MAGIC=123456 tp_limit=100 wait_time_b4_SL=10000

On the 4 months Feb to June 06 it's showing proft of $5630.
Attached File(s)
File Type: doc optimized euro.doc   71 KB | 4,385 downloads
  • #13
  • Jun 27, 2006 10:49am Jun 27, 2006 10:49am
More optimization for 5min Euro, Feb to June 06, 4 months profit $7229 with defaults, but the MACD level is 395 and Trailing Stop 15
  • #14
  • Jun 27, 2006 10:56am Jun 27, 2006 10:56am
Quoting bluemoon
More optimization for 5min Euro, Feb to June 06, 4 months profit $7229 with defaults, but the MACD level is 395 and Trailing Stop 15
That's pretty good results. I hope that with such optimum settings, one could try forward testing it on a live account and see the results.

If you can, please post the whole result report (html).

Thanks again
  • #15
  • Jun 27, 2006 11:19am Jun 27, 2006 11:19am
Quoting investor_me
That's pretty good results. I hope that with such optimum settings, one could try forward testing it on a live account and see the results.

If you can, please post the whole result report (html).

Thanks again
using default settings on eurusd h4 for 12 month of 1m data.

http://www.forexfix.com/reports/simp...h4-default.htm

good profit/loss ratio, bad risk/reward
  • #16
  • Jun 27, 2006 11:45am Jun 27, 2006 11:45am
why dont you anwser my question?
I'm getting there ... slowly
  • #17
  • Jun 27, 2006 11:52am Jun 27, 2006 11:52am
Quoting miketoll
why dont you anwser my question?
all your questions are answered with this line:

Quoting americanteek
its not an indicator, its an expert advisor
google some and find out the difference between an indicator and an expert advisor.

if you are new, then you should learn.. there are thousands of question that you can answer with some effort. you need to learn to learn.

an indicator is something that you attach to your chart and that shows you something (lines, dots, monkeys, whatever). an Expert Advisor in MetaTrader platform is an automated trading bot that opens and closes trades based on its progamming. therefore it acts on its own (you can manually override the trades, tho).
  • #18
  • Jun 27, 2006 12:29pm Jun 27, 2006 12:29pm
Quoting piccolo
using default settings on eurusd h4 for 12 month of 1m data.

http://www.forexfix.com/reports/simp...h4-default.htm

good profit/loss ratio, bad risk/reward
It's good to have a 90% modeling quality for a year. Would you be kind to send me this historical data or guide me to where I could get it?
  • #19
  • Jun 27, 2006 12:32pm Jun 27, 2006 12:32pm
Quoting investor_me
It's good to have a 90% modeling quality for a year. Would you be kind to send me this historical data or guide me to where I could get it?
sure, here you go:
http://www.alpari-idc.com/en/dc/databank.php
  • #20
  • Jun 27, 2006 12:42pm Jun 27, 2006 12:42pm
How would one trade this manually? What would I need on my charts?

Thank you
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