Simple system - improvement ideas welcome

Gazmeistergeneral · #1 (**permalink**) 09-08-2009, 01:05 PM

Hi all!!

been using my time out from trading(due to work commitments) to come up with new ideas in relation to systems and MM.

I have come up with a basic set of rules that are simple yet robust.....as follows:

The system use's 2 EMA's - the 5 and 60. It also uses MACD (standard setting) thats it!!

signal generation:

1, when the 5 ema crosses the 60 to the upside, this means potential long - and the reverse for shorts.

2, when you get the 5 over 60 ema cross, the fast MACD must be crossing or already be above (in the case of a long example) the ZERO line.

3, you don't take a trade based on the 2 events above alone. there must also be a clear break of a trend line or pattern at the time (or near) the crossing of the EMA and MACD crossing. I think using the 4hr, 1hr and 30min are a good place to find the overall trend (do not trade against this) and use the 15min tf for entry. Also you shouldn't take a trade if there is macd / histo divergence against you (look for that hidden divergence!!) - this normally occurs when you get a signal (ema and macd crosses) but against the main trend....hence the need to ensure you are with the main trend!!!!

For MM I like the idea of scaling out of trades. Initially I think putting the SL 10pips above or below the last recent high/low may be best making sure that you use correct position sizing so you don't risk any more then 3% of account. profits are taken in 4 steps. so you could exit some of the trade @ 20pips then move the SL to within 20pips of entry level (not BE). then take more profits at 50 pips (then move SL to BE). 3 TP 70 pips, then go for 100 pips on final piece.

another MM Idea could be to use pivots and fibs to TP?

Like I say guys this is just an idea at the moment and the point of posting here is to get some feedback and ideas off my fellow traders on this forum.

I haven't done any back testing as I am useless with this function so would appreciate some help there.

Also it would be appreciated if someone with decent coding skills could come up with a 'non-trading' EA that will give an alert (audio and visual) when the 5ema crosses the 60 and the MACD crosses the ZERO line at the same time (or within a couple of bars of each other) on the 15m tf. then its up to the user to take the trade or ignore.

Cheers all!!

Gaz

fairose · #2 (**permalink**) 09-10-2009, 01:14 AM

Quote:

Originally Posted by Gazmeistergeneral

Hi all!!

been using my time out from trading(due to work commitments) to come up with new ideas in relation to systems and MM.

I have come up with a basic set of rules that are simple yet robust.....as follows:

The system use's 2 EMA's - the 5 and 60. It also uses MACD (standard setting) thats it!!

signal generation:

1, when the 5 ema crosses the 60 to the upside, this means potential long - and the reverse for shorts.

2, when you get the 5 over 60 ema cross, the fast MACD must be crossing or already be above (in the case of a long example) the ZERO line.

3, you don't take a trade based on the 2 events above alone. there must also be a clear break of a trend line or pattern at the time (or near) the crossing of the EMA and MACD crossing. I think using the 4hr, 1hr and 30min are a good place to find the overall trend (do not trade against this) and use the 15min tf for entry. Also you shouldn't take a trade if there is macd / histo divergence against you (look for that hidden divergence!!) - this normally occurs when you get a signal (ema and macd crosses) but against the main trend....hence the need to ensure you are with the main trend!!!!

For MM I like the idea of scaling out of trades. Initially I think putting the SL 10pips above or below the last recent high/low may be best making sure that you use correct position sizing so you don't risk any more then 3% of account. profits are taken in 4 steps. so you could exit some of the trade @ 20pips then move the SL to within 20pips of entry level (not BE). then take more profits at 50 pips (then move SL to BE). 3 TP 70 pips, then go for 100 pips on final piece.

another MM Idea could be to use pivots and fibs to TP?

Like I say guys this is just an idea at the moment and the point of posting here is to get some feedback and ideas off my fellow traders on this forum.

I haven't done any back testing as I am useless with this function so would appreciate some help there.

Also it would be appreciated if someone with decent coding skills could come up with a 'non-trading' EA that will give an alert (audio and visual) when the 5ema crosses the 60 and the MACD crosses the ZERO line at the same time (or within a couple of bars of each other) on the 15m tf. then its up to the user to take the trade or ignore.

Cheers all!!

Gaz

hey mate..this system looks good but sometimes it repaint.. otherwise can get false signal.. i used it before this some sort of my experience..

i used
EMA 4 = close
EMA 24 = open
EMA 60 = close

how do you think? maybe i wrong or miss something about my EMA setting..