Forex Trading - Suggestions for Trading Systems

Previous CLose Price Action

buccas13 — Tue, 17 Nov 2009 09:13:13 GMT

Dear Friends,

I�ve been trading for about six months, I think it is better said I�m learning. I�ve seen quite a few indicators and read on price action. I find myself to be inexperienced to follow a discretionary method. So I�m trying to device a trade method that works on price movement (not indicators).

I want help of forum members for the same to make the get more precise rules for the system. I'm writing blue print, we can make fine tune it to make it more robust.
TF: Daily

It happens on rare occasions that previous day�s close = Today�s Low / Today�s High.

Mostly, price moves on both sides of the previous day's close.

a.Trend continuation: If there is an uptrend, Price moves dips below today�s close and then it continues the trend and if it is downtrend vice versa.
b.Trend reversal: In case of reversal after an uptrend, price first moves in upward direction (continues trend for few pips) and then it falls down to close as bearish bar. The close is well below previous day�s close.

I was thinking how to make a strategy to capture the big move on at least on one side of previous day's close the either side of the previous day�s closing price, as the closing price happens to be an important price point.

I had one plan,
1.If price moves 20 pips on one side of the PC (Previous day�s close) then place entry order on the other side of the previous day�s close at close +20 points.
2.When entry point is triggered, scale out � position size on 30 points and BE rest of the position and put a trailing stop loss.
3.To cover Negative up-bars / Positive down-bars, if price reaches the High / Low, trigger entry at 20 points i.e. High + 20 - Buy order/ Low � 20 points � Sell order.
Negative up-bar is a bar which makes HH (compared to previous bar, but closes below previous bar�s close) classic e.g is Pin bar and positive down bar is vice versa.

I've not traded it yet, I want experienced traders to comment (so that the method can be improved) and if possible someone to make an EA so that we can back test it.

Buccas13

Attached Images

PC-PA.JPG (82.8 KB)

Market Swing Indicator Idea

rosscub — Mon, 16 Nov 2009 17:52:50 GMT

I have an idea for an indicator if anyone is interested in coding it for everyone to use. It would measure the distance of swing highs and swing lows and provide an average for each. You could use fractals to determine the swings. See the attached image for an example.

This information could help the trader:
a. determine trend direction (ie. swing lows are longer than swing highs)
b. determine stop loss positioning
c. determine profit targets.

Hopefully this will be useful to the community.

Happy trading,
Art

Attached Images

swing high and low.gif (16.4 KB)

Trend and Range Indicator

shawnmstout — Mon, 16 Nov 2009 16:39:17 GMT

here are some thoughts i have for a ea that im making
after alot of time i have found out that the reason why alot of ea's fail is they need to base the ea under 2 different rule bases
these conditions are either trending or ranging.

base 2 different sets of indications, 1 for trending and another for ranging

this is for short term, m5 or m1

what im wanting to find out is the best way to calculate trending or ranging so i can apply rules to each.

what im thinking is using ma's for trending

ranging i would use wpr and cci

whats your thoughts on something like this?

also is there a good way of detecting ranging or trending, i tried with adx but i cant seem to get a good indication from it.

sma 14 based system (5 minutes)

ancomarzio — Thu, 12 Nov 2009 09:53:29 GMT

Excuse for my english, i hope to be able explain my idea for trading system

Ok I'd like to present a very simple and profitable way to trade eur usd
only one important indicator: sma 14,,,,,,,, when price cross sma 14 we take position
5 minutes setting
short when price was over sma 1 lot
long when price was under sma 1lot
0,5 lot have tp 5 pip
0,5 lot close at the next cross of sma with reverse position,,,,,,,,this is in the case the trade was profitable for us,( of course sl positioneted don't work inthis condition)

stop loss is inserted at the max price + 1 tick after the price crossed sma 14 the last time if the price is going in direction of stop loss, after we opened position, we trade another lot at 50% of the distance from sl and sma,

example: price cross sma at 1,4975 direction 1,50 max price 1,4987 , now price cross sma at 1,4981 direction 1,49 the higher price(1,4987 is now our stop+1 1,4988) we sell 1 lot at this price(1,4981),but we have a stop order already inserted at 1,4984/85 always short at the same stop loss and tp become 5 ticks under sma (for this position) if there 's a problem with metatrade 4 we can stop at 5 tick over trade in this situation( for courageous people indeed stoploss is possible insert reverse,,,,stop new crossing(...or reverse, better) sma 14

adjustment:
1.)we are in market in correct position but it's arriving an important support o resistence, we close position at the support o resistence, or we reverse,,,,,,,some tick before
2.)rsi 14 over 80 under 14 we close position,
3.)during important news, we don't see resistance or support, or rsi
this trading system go better from 6.00 to 9.30 during morning, from 14.00 to 20.30 in afternoon,

who help me to make an ea?( all price 00 50 are natural support and resistence,,,example 1,4950
1,50 1,5050 and i prefer close or reverse trade,,,,,,,, , not during news, but we can close or reverse maually in theese situation )

Thank goodness I found you !!

simongb — Tue, 10 Nov 2009 14:06:06 GMT

I'm so happy to have found this site. This is my first post so please someone reply!!!

I'm trying to develop some MT4 EA's. These are systems that I have traded profitably in the past whilst trading live without the benefit of automated trading.

I am trying release myself from the screen and to learn to program but I find it very difficult. The EA builders have helped but I am seemingly not able to incorporate many of my trading rules using them.

My first strategy is an ADX pullback system. For buys ADX >30, 130EMA and 130 SMA must be rising, DI+>DI-, current price<13EMA and >26EMA. I have only 1 trade open at any one time and no trade may be opened while any of the previous 5 bars have crossed 26 EMA. For sells simply reverse the rules. I have backtested this with manual bar by bar testing and it is fairy robust but probably would benefit from optimisation.

I use a trailing stop of 20 pips and this strategy gives on average 1-2 trades per day on the 5 min bars. Works on all currencies but I only trade tight spreads.

My problems are that I have not found a way to express the rising EMA rule. the 'only 1 trade open' rule or the 'no trade within a 26EMA cross for 5 bars' rule using an EA builder.

Can anyone help please?

Time out EA?

travelbug — Sun, 08 Nov 2009 20:36:20 GMT

I have a idea for a EA but I have not seen any applications that would accomplish my goal. So here is the idea...
1. I would use fast and slow moving averages to initiate a buy or sell. (on M30 or 15)
2. take the profit after 15 pips (a moving average crossing in reverse would also indicate a sell)
3. this is where i run into trouble... i have the simple idea of having the EA time out after the profit taking for a period of time or candles, say 2h and the turn back on and have the EA asses whether the fast moving average is still above the slow and make a buy. (a MA reversal would override the time out and would buy into the reversal)

I want the system to be continuous (once the MA indicates a reversal the EA sells the previous position and buys into the current position). I have read tutorial that state you can't make more than one transaction in a candle. Would i fix that by having the the M30 chart be the indicator and the M5 initiate the buy?
Thanks for the help

My idea for a "Grand Trading System".

KarmaTigerTrader — Wed, 04 Nov 2009 15:41:40 GMT

Hi all.
I've traded off and on since 1999 ( juggling other businesses in the process).
My idea for a mainly quantitative system is as follows: -

1)Fundamentals.Each currency pair would be given a price within a "band".
The band is used as a reference for the technical trades.
This could be updated monthly or after key news events.
This would mainly involve econometric analysis or a similar approach.( eg see Jack Schwager's earlier work).
Alas, this is not my specialty.
There is already some excellent coding built to manipulate data in MT4

2)Intermarket factors.
This could include the currency correlation work that we are seeing on various forums.But should also include the key indices, commodities, bonds etc.
That way we can classify sessions/ markets as "US safe haven orientated" / "global growth seeking" etc etc
This would help filter out false signals etc etc

3)Pure technicals
- a mixture of traditional indicators
- the use of predictive indicators
- advanced optimisation eg with the use of some Neural network items
eg the excellent work of Yuri Reshetov.

3B)I'm also trying to do something with how cycle lengths shorten and increase in response to the interrelation between time frames and their momentums etc

4)Awareness of order flows and issues pertaining to time of day etc.
eg central bank buying, opening of US futures markets etc etc.
These can utterly crush what is otherwise a sound tech or fundamental trade.

5)Risk management and all other factors.

_________________________
I firmly believe that profitable trading requires a good mix of tools.
I don't see the point in having one terrific method if it is not filtered with other suitable strategies.

My main weakness is my coding ability and advanced maths.
Altho I have programmed in MT4.
But I have strengths in other areas.

So who wants to see what we can do together?
Thanks for reading
Best regards all :)

MAAngle Indicator

fxrulez — Tue, 27 Oct 2009 02:30:16 GMT

Greetings everyone,

Ive been doing some research on the Moving Average Indicator a.k.a (MAAngle Indicator) and i came across this site that has the coding/programming for the indicator.

Ive heard from several other successful trading systems that the MAAngle indicator is 80% of the time precise in determining the trend of markets on different TF's and comparing them...Is anyone here able to program this into a working indicator (shades)..

Thanks

Here is the code exactly as it is on the website:

--------------------------------------------------------------------------

//+------------------------------------------------------------------+
//| MAAngle.mq4 |
//| original jpkfox |
//| edited by dariuske |
//| You can use this indicator to measure when the MA angle is |
//| "near zero". AngleTreshold determines when the angle for the |
//| EMA is "about zero": This is when the value is between |
//| [-AngleTreshold, AngleTreshold] (or when the histogram is red). |
//| MAMode : 0 = SMA, 1 = EMA, 2 = Smoothed, 3 = Weighted |
//| MAPeriod: MA period |
//| AngleTreshold: The angle value is "about zero" when it is |
//| between the values [-AngleTreshold, AngleTreshold]. |
//| StartMAShift: The starting point to calculate the |
//| angle. This is a shift value to the left from the |
//| observation point. Should be StartEMAShift > EndEMAShift. |
//| StartMAShift: The ending point to calculate the |
//| angle. This is a shift value to the left from the |
//| observation point. Should be StartEMAShift > EndEMAShift. |
//| |
//| Modified by MrPip |
//| Red for down |
//| Yellow for near zero |
//| Green for up |
//| 10/15/05 MrPip |
//| Corrected problem with USDJPY and optimized code |
//| 10/23/05 Added other JPY crosses |
//| |
//| |
//| |
//| 12/01/07 Dariuske: Changed code for SMA50 (PhilNelSystem) |
//| 18/01/07 Dariuske: Changed code for multiple mode MA's |
//+------------------------------------------------------------------+

#property copyright "jpkfox"
#property link "http://www.strategybuilderfx.com/forums/showthread.php?t=15274&page=1&pp=8"
//---- indicator settings
#property indicator_separate_window
#property indicator_buffers 3
#property indicator_color1 LimeGreen
#property indicator_color2 FireBrick
#property indicator_color3 Yellow
//---- indicator parameters
extern int MAMode = 0;
extern int MAPeriod=50;
extern int Price=4;
extern double AngleTreshold=0.25;
extern int StartMAShift=2;
extern int EndMAShift=0;

//---- indicator buffers
double UpBuffer[];
double DownBuffer[];
double ZeroBuffer[];

//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- 2 additional buffers are used for counting.
IndicatorBuffers(3);
//---- drawing settings
SetIndexStyle(0,DRAW_HISTOGRAM,STYLE_SOLID,4);
SetIndexStyle(1,DRAW_HISTOGRAM,STYLE_SOLID,4);
SetIndexStyle(2,DRAW_HISTOGRAM,STYLE_SOLID,4);

IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS)+2 );

//---- 3 indicator buffers mapping
if(!SetIndexBuffer(0,UpBuffer) &&
!SetIndexBuffer(1,DownBuffer) &&
!SetIndexBuffer(2,ZeroBuffer))
Print("cannot set indicator buffers!");
//---- name for DataWindow and indicator subwindow label
//IndicatorShortName("MAAngle("+MAPeriod+","+AngleTr eshold+","+StartMAShift+","+EndMAShift+")");
IndicatorShortName("MAAngle");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| The angle for EMA |
//+------------------------------------------------------------------+
int start()
{
double fEndMA, fStartMA;
double fAngle, mFactor, dFactor;
int nLimit, i;
int nCountedBars;
double angle;
int ShiftDif;
string Sym;

if (MAMode >= 4) MAMode = 0;

if(EndMAShift >= StartMAShift)
{
Print("Error: EndMAShift >= StartMAShift");
StartMAShift = 6;
EndMAShift = 0;
}

nCountedBars = IndicatorCounted();
//---- check for possible errors
if(nCountedBars<0)
return(-1);
//---- last counted bar will be recounted
if(nCountedBars>0)
nCountedBars--;
nLimit = Bars-nCountedBars;
dFactor = 2*3.14159/180.0;
mFactor = 10000.0;
Sym = StringSubstr(Symbol(),3,3);
if (Sym == "JPY") mFactor = 100.0;
ShiftDif = StartMAShift-EndMAShift;
mFactor /= ShiftDif;
//---- main loop
for(i=0; i {
fEndMA=iMA(NULL,0,MAPeriod,0,MAMode,Price,i+EndMAS hift);
fStartMA=iMA(NULL,0,MAPeriod,0,MAMode,Price,i+Star tMAShift);
// 10000.0 : Multiply by 10000 so that the fAngle is not too small
// for the indicator Window.
fAngle = mFactor * (fEndMA - fStartMA)/2.0;
//fAngle = MathArctan(fAngle)/dFactor;

DownBuffer[i] = 0.0;
UpBuffer[i] = 0.0;
ZeroBuffer[i] = 0.0;

if(fAngle > AngleTreshold)
UpBuffer[i] = fAngle;
else if (fAngle < -AngleTreshold)
DownBuffer[i] = fAngle;
else ZeroBuffer[i] = fAngle;
}

return(0);
}
//+------------------------------------------------------------------+

Here is the link to the site directly if that helps...

http://www.abysse.co.jp/mt4/indicators/MAAngle.mq4

Thanks a lot
Fxrulez

Trading the Equity Curve

dino2007 — Sun, 25 Oct 2009 11:00:11 GMT

Has anyone tried trading off the equity curve of a particular trading system. For example, I am using a mechanical trading system on pound/dollar 1H time frame. After every trade I plot the equity curve on my charting platform. I use Metatrader for my trading system, but I plot equity curve in Metastock. After I update the equity, I plot some indicators such as RSI and moving averages. If you use these indicator on the equity curve, you will get much better signals than using them on the actual currency pair.
The equity curve of my trading system has a tendency to constantly rise. In fact, in the past 6 months, it went from $1000 to $18,000. However it experiences extreme volatility at times. If you look at the recent curve, it went down from all time high of $30,000 to current value of $18,000. I have plotted RSI and 50,100, 200 SMA on the equity curve. You can see that when RSI is overbought, the equity soon enters into draw down. At this point, you can choose to stop taking trades generated by the system. When the RSI enters oversold zone and crosses above it, you can resume taking the signals. In such manner, you are able to avoid draw downs of a particular trading system. Also, the last value of the equity on the chart below has touched 200 SMA and rebounded. So, there is a possibility of rebound in equity and also I drew some trendlines which all point to strong support around current level. So on Monday, I will start taking signals of my trading system in anticipation that the equity will rise.

This idea is unique and I encourage you to plot equity curve of your trading system and then using it to time your trades and hopefully you will be able to avoid drawdowns and take only winners.

Attached Images

GBPUSD_1.gif (26.3 KB)

Daily Chart for 30M TF trading

yyc196 — Sun, 25 Oct 2009 10:05:55 GMT

Hi All,

I wonder if anyone of you use daily chart to determine the market condition before zooming into 30m TF (time frame) for trading?(clock)(clock)(clock)

I would like to open up this topic to explore different type of method and system that deal with these 2 TF.

Any comments?(teeth)

Regards

Multiorders Consrvative Strategy Development Request

giorgenio — Sat, 24 Oct 2009 13:56:39 GMT

Dear Community,
I need help to have my visual/manual trading system programmed as an EA.
My skills in programming are very limited, I am a spare-time trader and I have made quite a lot of money since I started with Forex. I used to trade with stocks and been always in trouble with this slow motion market...

Now the situation is different I trade Forex since 1 year and developed several visual/manual successful trading systems and resolved my financial situation finally!!!
One specifically is the one that I have described below, it works with all the timeframes and almost all currency pairs; it would be great to have it automated so that it will give me time to think to other systems or improve this one.

I don't have much time to start bulding my knowledge in programming and especially now that mpl5 is approaching I wouldn't spend so much time on learning mql4 to restart everything from scratch in few months. More than that I have seen that they are not compatible so I would like to ask to anyone that would like to take this challange to program the EA in mql4 and mql5; should you have any questions or would you like to discuss the project please contact me.

Please try to trade with this system and let me know your impressions and comments, I am really looking forward to share my knowledge with you all.

All the indicators I use are taken from different sources, I have changed just minor things to adapt them to my needs; I would like to make them all together in one EA and let it work for us:
(in case you may need I can post the files)

EA Requirements

Indicators:
EMA_color =7
EMA_color =21
(but is not necessary to have the colored version if automated)

HeikinAshiSmoothedLHM_mtf

@test_cross_newgigital slow=21; fast=7 to generate the arrows signal

GiP_!LinRegrBuf =50

RSI =14 on a separate indicator window

GiP_DoubleCCI Trend = 170; Entry = 34

Basic rule to enter the trades:

A. Condition: crossover EMA7 EMA21

B. Filter: RSI14 crosses 55 level down-->up (Buy) or 45 level up--> down (Sell)

C. Confirmation: EntryCCI crosses level 0 and TrendCCI confirms or crosses in the same direction

Advanced rule to enter the trades:
(to avoid 2 signals too close to each other, sideways trend and sudden reversal)

1. No entry order if RSI14 is between 45 and 55 when A and C are met

2. HikinAshi is on a "uncertain" situation and the EMAs are not coloring uniformely and according to trend

Order/Lots Management:

The system should open multiple orders at the same time, with different SL/TS and TP.

Example:
5 orders - EURCHF entry price short 1.5161

1st order = price 1.5161 --------SL= Bid-20 (1.5181)--------TP=Bid+10(1.5151)
2nd order = price 1.5161 --------SL= Bid-20 (1.5181)--------TP=Bid+20(1.5141)
3rd order = price 1.5161 --------SL= Bid-20 (1.5181)--------TP=Bid+30(1.5131)------@ 1st & 2nd closed move the stop at entry price and start TS
4th order = price 1.5161 --------SL= Bid-20 (1.5181)--------TP=Bid+40(1.5121)------@ 1st & 2nd closed move the stop at entry price and start TS
5th order = price 1.5161 --------SL= Bid-20 (1.5181)-------- no TP ------@ 1st & 2nd closed move the stop at entry price and start TS
(these rules can be also integrated with other consolidated strategies or ideas, FEEL FREE TO DO IT!)

Other considerations:
It happens that the price moves above the EMAs but as long as there is no EMAs crossover it is possible to stay in the trade; it should depend on personal trading �taste� and targets.

When price is moving above the EMAs keep the trade as long as the EMAs are not crossing over; normally in this situation there is a range forming and can be either traded as range and breakout.

In this case the indicator GiP_!LinRegrBuf generates the regression lines that help to identify the trade (probably this will continue to be a manual operation unless evaluate to implement reversal orders at regression bands)
The attached screen-shot is an example of the last 2 trading days of last week.

Thank you all
G.enio
Switzerland

Attached Images

20091023.png (51.5 KB)