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Attachments: Simple MACD system based on 2 channels
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Simple MACD system based on 2 channels

  • #21
  • Jun 27, 2006 12:45pm Jun 27, 2006 12:45pm
Well no trades triggered in my test yet after 24 hours.
  • #22
  • Jun 27, 2006 1:07pm Jun 27, 2006 1:07pm
Quoting Yardie
Well no trades triggered in my test yet after 24 hours.
I put it on Eur/USD and turned the chart to one minute.

It sold one lot minutes before at 1.2585.
  • #23
  • Jun 27, 2006 1:19pm Jun 27, 2006 1:19pm
Quoting Yardie
Well no trades triggered in my test yet after 24 hours.
I suggest you start backtesting first and see how frequently trades are being executed with different parameters. Only then you can go for forward testing.
  • #24
  • Jun 27, 2006 1:21pm Jun 27, 2006 1:21pm
How would I backtest this system? What would I need on my charts.
  • #25
  • Edited 1:56pm Jun 27, 2006 1:46pm | Edited 1:56pm
Quoting Zach
How would I backtest this system? What would I need on my charts.
All you need is to open the strategy tester and run the EA on it. It has nothing to do with open charts, but with historical data.

GOOD NEWS

Here's version 1.1 of the same EA. Slowly I'm beginning to learn how to best utilize this system. It will need your help to get it going even better. This version applies only one MACD and uses it for entry when crossing zero and closes when reaching the peak in a buy and the bottom of the pit in a sell.

Try it on M5 with defaults parameter values. Note that the parameters would probably need to be optimized for each timeframe.

I also added the gap parameter, which is the number of bars we need to wait before confirming an exit. The default now is 10.

Please help in testing this one. I don't have DSL and it's tough to keep it running on a modem line

Thanks in advance.
Attached File(s)
File Type: mq4 simple-macd-EA_v1.1.mq4   9 KB | 2,402 downloads
  • #26
  • Jun 27, 2006 1:49pm Jun 27, 2006 1:49pm
Hi, interesting EA for sure.

Does anybody have a custom made indicator, so we visiably can see when trades are triggered and learn more by follwoing the trades in a visuasl way? I know there is defalut MACD in MT4, but im a bit unsure how to set it up for this method...any help will be much appreicated

Thanks guys,
  • #27
  • Jun 27, 2006 1:57pm Jun 27, 2006 1:57pm
I've got the EA showing on upper right hand corner of chart. There is nothing else on the chart. No MACD's, and no entry/exit signals. How would I backtest?
  • #28
  • Jun 27, 2006 1:58pm Jun 27, 2006 1:58pm
Quoting fingotrader
Hi, interesting EA for sure.

Does anybody have a custom made indicator, so we visiably can see when trades are triggered and learn more by follwoing the trades in a visuasl way? I know there is defalut MACD in MT4, but im a bit unsure how to set it up for this method...any help will be much appreicated

Thanks guys,
You can load this template for the default 500 MACD value.
Attached File(s)
File Type: zip simple-macd-500.zip   < 1 KB | 2,435 downloads
  • #29
  • Jun 27, 2006 1:58pm Jun 27, 2006 1:58pm
I am using the 5 minute chart as instructed by Investor_Me. I will now try his latest version and see if any orders are triggered from that.

Quoting Purple
I put it on Eur/USD and turned the chart to one minute.

It sold one lot minutes before at 1.2585.
  • #30
  • Edited Jun 28, 2006 5:57am Jun 27, 2006 2:14pm | Edited Jun 28, 2006 5:57am
Here's an illustration how the EA works.


http://img63.imageshack.us/img63/1248/simplemacd3ja.png



It was part of my backtest for May.

Notice how sell and buy orders are opened and closed. But note that there is also a stoploss value based on time. The further you go without a proper close value, the more you would tolerate higher loss.

Hope that helps. Please do your part in testing and contributing here!

i_me

  • #31
  • Edited Jun 28, 2006 5:48am Jun 27, 2006 2:27pm | Edited Jun 28, 2006 5:48am
Hi Investor,

thanks a bunch, just what i needed, i like the visuals

Have a nice evening,


Quoting investor_me
Here's an illustration how the EA works.





It was part of my backtest for May.

Notice how sell and buy orders are opened and closed. But note that there is also a stoploss value based on time. The further you go without a proper close value, the more you would tolerate higher loss.

Hope that helps. Please do your part in testing and contributing here!

i_me


  • #32
  • Jun 27, 2006 4:10pm Jun 27, 2006 4:10pm
Investor_me. Based on your backtesting, how many trades can one expect to open per week?
  • #33
  • Jun 27, 2006 4:33pm Jun 27, 2006 4:33pm
Quoting Yardie
Investor_me. Based on your backtesting, how many trades can one expect to open per week?
I'd say it could be a trade every trading day. Meaning about 5 a week. But don't forget that could be highly profitable trades, reaching a few hundred pips per day with 1 lot scheme. But of course, this depends on your parameters, pair, and timeframe. That estimate was for EURUSD, M5, from 5/15 to 6/26
  • #34
  • Jun 27, 2006 6:12pm Jun 27, 2006 6:12pm
Quoting investor_me
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.
i_me
I wonder, if you could explain your system in plain english. Not because I didnt read the thread, I did, but I cant transpose mq language as yet {still} and would like to try to code it for VT.

If you don't mind, would you also define the default parameters for a particular pair?

tia. and sorry if it's an inconvieniance.
  • #35
  • Jun 27, 2006 9:42pm Jun 27, 2006 9:42pm
1st Sept 05 to 28th June 06. 9 months profit $8324 @ 79.7% with 133 trades. Drawdown was $3404.

5min Euro Optimization is; T/S 65, level 530, tp limit 100, gap 13, wait time 2935.
Attached File(s)
File Type: doc 1st Sept 05 - June 28th 06.doc   101 KB | 1,227 downloads
File Type: doc Graph 9 months.doc   84 KB | 1,221 downloads
  • #36
  • Jun 27, 2006 10:22pm Jun 27, 2006 10:22pm
More optimization [too much?] gives $9774 @ 79.5% with 132 trades in the same 9 month period [as in the previous] and a drawdown of $2312.

Same setting as before but with the MACD level at 549
Attached File(s)
File Type: doc sept to june 2.doc   84 KB | 952 downloads
  • #37
  • Edited 1:38am Jun 28, 2006 1:09am | Edited 1:38am
Quoting bluemoon
More optimization [too much?] gives $9774 @ 79.5% with 132 trades in the same 9 month period [as in the previous] and a drawdown of $2312.

Same setting as before but with the MACD level at 549
That's really impressive indeed. I'm worrried however that live forward testing may not be as good. One needs to start with that and hope the optimized parameters will work for forward testing. Thanks for all your efforts.

Have you noticed that USDCHF works best for this strategy, or am I alone in this conclusion?
  • #38
  • Jun 28, 2006 1:14am Jun 28, 2006 1:14am
Quoting Bemac
I wonder, if you could explain your system in plain english. Not because I didnt read the thread, I did, but I cant transpose mq language as yet {still} and would like to try to code it for VT.

If you don't mind, would you also define the default parameters for a particular pair?

tia. and sorry if it's an inconvieniance.
It's a very simple strategy:

1) When the MACD value changes from - to +, issue a buy, and if it goes from + to - issue a sell
2) When the MACD value reaches the peak in a buy just after the crossing of 0, then close the buy, if it reaches the bottom of the pit then close the sell
3) In cases of loss just close the position with minimum damage

Also note that the MACD value in the parameters is the fastEMA value
in the indicator, and the gap value is the number of bars to wait before confirming a close.

Check the chart to get a better idea.
  • #39
  • Jun 28, 2006 2:30am Jun 28, 2006 2:30am
Just curious - the visuals that are posted here - obviously they do not appear when you attach the EA. My question is what MACD setting are you using to achieve that "look", because mine looks nothing like that.

Thanks,
lonespruce.
  • #40
  • Jun 28, 2006 2:38am Jun 28, 2006 2:38am
Quoting bluemoon
More optimization [too much?] gives $9774 @ 79.5% with 132 trades in the same 9 month period [as in the previous] and a drawdown of $2312.

Same setting as before but with the MACD level at 549
my problem is the huge stop loss I wouldn't tolerate (psychologically) on a live account..
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