I have been reading a post on Forex Factory by OzzieFX. It uses the Accelerator Oscillator (AO) and a 5-3-3 stoch setting to determine entry to a trade. He trades on a daily timeframe and only takes trades if the AO has crossed the 0 line (long if above and short if below) and the stoch is also above or below the 50 line.
I added the AO and the stoch to my charts (4 hr) and noticed that a lot of false arrows appear before the AO finally crosses the 0 line. If you wait till the AO comes into agreement with zig-zag pointer (within a bar or 3 ) you will eliminate numerous false entries.
I also noticed that if you hold the trade till both the AO and the stoch cross back and wait on an arrow to appear it will give you more pips. The important thing seems to be that
stoch, AO, and the Zig-zag all agree on the same direction. I see 800 to 2000 pip moves with this using the daily as confirmation when doing it manually. And it looks like it could generate 500 to 1200 pip moves for an EA unless you could get the EA to confirm on a daily chart.
The other problem i see is often the arrow will appear about 3 bars before confirmation on the exit.
If the arrow appears on the entry before confirmaion, that is not a problem. Then the AO would be treated like the nonlagdot in the current EA. And you would move your stop to breakeven + 5 to lock. If the trade moved against you, then you would have to wait on new entry criteria to reenter but you are eliminating a lot of false entries.
Before I get a lot of questions, check it out please. I seldom post but read about a lot of systems. Bear, FX11, and Mr. Pip : Your system is excellent and it will work (but I think I just made it better)
