New idea for strategy with ATR and MA | Forex Factory

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New idea for strategy with ATR and MA

  • #1
  • First Post: Aug 6, 2014 4:53am Aug 6, 2014 4:53am
Hallo ,
Yesterday I came up with a trading idea that I want to shear with you all . So if anybody is willing to make it better he is welcome.
So here it goes
We will use ATR 2
MA median price 2
Candle close and we put on a horizontal line to thw poit that the MA cross the candle that has close Lets say EURAUD cross at 1.43842
We check the ATR and it is at 639 pips .
We check the candle closing price and it is at 1.43739 and it is bearish .
So here is the idea
As the ATR is 639 pips we assume that the next day it will follow about the same price ( about 640 pips)
We check how much is the distance between the candle close and the horizontal line and it is 130 pips . So we can bet short targeting the rest of the 640/2=320pips. So our target will be about 320-130=190 pips .
Now many of you will ask why short …… because the closed candle is bearish and the direction of the MA is bearish too.
So any ideas to make it better?
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  • #2
  • Aug 6, 2014 5:35am Aug 6, 2014 5:35am
Not to go off-topic but the EA pair (or any pair for that matter) doesn't move that many pips per day. Perhaps you mean 63.9 pips if you're averaging the last 2 days on that pair. Don't get confused with 4 digit and 5 digit brokers.

Best of luck with your strategy
  • #3
  • Aug 6, 2014 5:35am Aug 6, 2014 5:35am
Hi there,
you could try out how your trading method works with:

1. Fractals - if there is a fractal in the oposite direction the chance of the trade to fail would be bigger in my opinion.
2. Aligator - only take trades in the direction that the beast is eating - try it out on a demo or w/e.
3. If Fractals dont work for you, look for INFOcator on the internet - it is sort of the same with the difference that you can adjust the candle range. I think Bill Williams Fractals are with 5 candle range. With INFOcator you can make it 7, 9, 11 and so on (works with uneven numbers).
4. Look at H4 and/or H1 for signals in the same direction (could reduce the drawdown, i think) with the Aligator (for direction) and/or with some other indicator.

Have fun!
  • #4
  • Aug 6, 2014 5:38am Aug 6, 2014 5:38am
Quoting pierre23
Not to go off-topic but the EA pair (or any pair for that matter) doesn't move that many pips per day. Perhaps you mean 63.9 pips if you're averaging the last 2 days on that pair. Don't get confused with 4 digit and 5 digit brokers. Best of luck with your strategy
I don't think he is confused... Most people call pips everything... Yes, it is more correct to say points, but if that is all you have to say in the thread - you might as well not write in it lel...
  • #5
  • Aug 6, 2014 5:49am Aug 6, 2014 5:49am
Quoting phdmonster
{quote} I don't think he is confused... Most people call pips everything... Yes, it is more correct to say points, but if that is all you have to say in the thread - you might as well not write in it lel...
No, you're incorrect. If the distance between the first price point he has marked (1.4384) to the second price point is 320 pips, the second price point would be 1.4084. But as per the chart, the second price is 1.4352, which is 32 pips.

In most trading software if you trade one micro ($0.10 per pip), you will be making $3.20 as per above, not $32. Stating otherwise will just confuse anyone new.

If you don't know the very basics - starting with the difference between 'pipettes' or 'fractional pips' and pips, then you shouldn't be trading - read this first http://www.babypips.com/school/presc...-pipettes.html
  • #6
  • Aug 6, 2014 5:59am Aug 6, 2014 5:59am
Quoting pierre23
{quote} No, you're incorrect. If the distance between the first price point he has marked (1.4384) to the second price point is 320 pips, the second price point would be 1.4084. But as per the chart, the second price is 1.4352, which is 32 pips. In most trading software if you trade one micro ($0.10 per pip), you will be making $3.20 as per above, not $32. Stating otherwise will just confuse anyone new. If you don't know the very basics - starting with the difference between 'pipettes' or 'fractional pips' and pips, then you shouldn't be trading...
I don't want to be rude, but... Are you blind? The OP is using a 5 digit broker, not 4.... 1.43847 - 1.43520 = 327... Points... Not pips... As i said, the guy confuses pips with points and such
  • #7
  • Aug 6, 2014 6:04am Aug 6, 2014 6:04am
Quoting phdmonster
{quote} I don't want to be rude, but... Are you blind? The OP is using a 5 digit broker, not 4.... 1.43847 - 1.43520 = 327... Points... Not pips... As i said, the guy confuses pips with points and such
.... you said in your last post you don't think he's confused... that most people call pips everything... and now you're contradicting yourself saying he is confusing pips with points?.. Make up your mind. This is my last post on this. Back to the OP's strategy.
  • #8
  • Aug 6, 2014 6:11am Aug 6, 2014 6:11am
First of all i know what are pips. I wrote 325 instead of 32 .5 as we count with 5 digits broker thinking that is better to the eye to see it as 325 than 32.5 . I dont think its a big probleme to this . Anyway . The alligator factor i have try it and dont like it as this strategy work better in daily timeframe. The fractal factor i dont like too becouse it may take days to oepn position and i dont think it place a role to the strategy . Anyway thanks for your ideas . I was thing that the aproce shoud be more with momentum and ranges.
  • #9
  • Aug 6, 2014 9:53am Aug 6, 2014 9:53am
I suggest, Adding a EMA of 144 and 169, as a tunnel
  • #10
  • Aug 6, 2014 11:34am Aug 6, 2014 11:34am
Quoting fskliris
First of all i know what are pips. I wrote 325 instead of 32 .5 as we count with 5 digits broker thinking that is better to the eye to see it as 325 than 32.5 . I dont think its a big probleme to this . Anyway . The alligator factor i have try it and dont like it as this strategy work better in daily timeframe. The fractal factor i dont like too becouse it may take days to oepn position and i dont think it place a role to the strategy . Anyway thanks for your ideas . I was thing that the aproce shoud be more with momentum and ranges.
I guess to pierre it is a problem, but trolls will always be trolls and they will always trash you for the smallest of things.

I mean... Calling points pips or pips points is dangerous after all.. You can go to jail for that!....

I agree with JimFx... You can experiment with EMA-s or try some quancky settings on BB.
  • #11
  • Last Post: Aug 6, 2014 9:00pm Aug 6, 2014 9:00pm
Quoting phdmonster
{quote} I guess to pierre it is a problem, but trolls will always be trolls and they will always trash you for the smallest of things. I mean... Calling points pips or pips points is dangerous after all.. You can go to jail for that!.... I agree with JimFx... You can experiment with EMA-s or try some quancky settings on BB.
Mate I didn't 'trash' anyone and I sure as hell am not trolling. Saying that 32 pips is the same as 320 pips, even on a 5 digit broker is incorrect. If you still don't know that then you should go back to basics and learn about the unit of measurement you're going to be trading your hard earned money with. And if you do know the difference and you would still say 320 pips (even with a 5 digit broker), then again, you need to go back to the basics.

This is now my last post, sorry again OP for intruding. Phdmonster I wish your ignorant self luck in this industry.
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