Profitable MA/MACD trading system

heikobaer · #1 (**permalink**) 06-25-2009, 04:19 AM

Hi All

I am posting here a very effective and simple trading system originally based on 5 min charts but extendable on other time frames also.

It is based on MA price cross which is confirmed by the MACD. I took this system from the e-book High probability Trading setups. It uses a very effective trade management technique, which I believe is fundamental for any system: Always trade 2 lots and close 1 lot after reaching risked amount and set 2 lot to break even and let the profits run.
The EA is fully parametrized in order to be optimized for different time frames and pairs.
I programmed the EA though a programmer, but unfortunately it did not come out as expected. The break even strategy was not correctly implemented.
The EA is not moving the second lot to break even but to some other level below.

I am posting here this EA in order to share this effective and safe method with you and to fix the break even issue.
I am attaching the EA document also in order to make clear how it works.
I pretend to use the EA especially for the hours I cannot trade, which is during the European opening where most opportunities arise. This strategy certainly is able to get correctly into most trades.

The next step for this EA would be to introduce higher time frame confirmation. My idea would be confirmation through 2 higher time frames with moving averages and some filters like MACD, SMI or RSI. In this case, the EA could be run more independently without any monitoring.
Currently I would analyze the trend and let the EA only trade in the preferred direction.

Feel free to ask questions about it.
Thanks,
Heiko

Ms_Mel · #2 (**permalink**) 07-04-2009, 12:38 AM

Hi,

I'm also using a strategy on the 5 min bars for scalping which uses the MACD (with good results).

I'll try to find some time over the week-end to look at you approach and if time permits, I'll test it out live (demo) next week and let you know how it turns out.

Thanks for sharing,

Happy trading,

SXMTrader · #3 (**permalink**) 07-13-2009, 11:19 AM

Hello,

It will be great to get the macd settings from both of you to get an idea.

Thanks for an answer.

Holger

ServerUang · #4 (**permalink**) 07-13-2009, 01:36 PM

for M5, maybe for MA :
SMA period = 5 close, EMA period = 25 close and EMA period 50 close.

For MACD :
MACD SMA = 5, Fast MA = 25, Slow MA = 50, Apply to = close.

and then : what is the rule ?

teamrecon · #5 (**permalink**) 07-13-2009, 02:34 PM

Hi,

I notice in the EA some time settings of 14:00 ~ 16:00

Are these GMT times please ?

Neil

heikobaer · #6 (**permalink**) 07-16-2009, 11:42 PM

Hi

The time settings are according to your broker and you can use the most adequate settings according to the pair traded.

fxbs · #7 (**permalink**) 07-18-2009, 07:26 PM

Quote:

Originally Posted by ServerUang

for M5, maybe for MA :
SMA period = 5 close, EMA period = 25 close and EMA period 50 close.

For MACD :
MACD SMA = 5, Fast MA = 25, Slow MA = 50, Apply to = close.

and then : what is the rule ?

according to EA:
(in short)

if... Macd(12,26,9)>0 during<=5bars && Close[0]>MA(ema20)

fxcatty · #8 (**permalink**) Today, 03:52 AM

Is that just simply a MACD Crossover code that just changes the histogram bar color?