Things I noticed - tips thread

[TraderSeven]

Surely everyone has noticed some things when studying systems and charts.
But not always that observation is put into a system.
Sharing such observations can be useful I think.
Just small and insignifictant tips that you normally wouldn't start a thread about.

[TraderSeven]

USDCHF/AUDUSD Daily seems to have strong and lengthy trends.
JMA crossover of 12 and 21 days seems to give nice results.
(only checked visually)

[Rastarr]

Never had much to do with Jurik indicators though I've starting seeing more and more mention of it over the last few weeks for some reason.

Maybe due to the JMA Metatrader indicators as opposed to the Metatrader wrapper for the authentic Jurik DLL that was posted on a forum yesterday.

Anyways, I placed the Metatrader JMA on a Daily chart and, yes, there certainly does appear to be some signals.

Good one, TraderSeven. All adds to my further education of FX so thanks - I love learning new stuff

Cheers
Martin

[TraderSeven]

Surely the right values need to investigated. But it's just a loose thoughts thread.

----------------- prices & MA
Some trading systems depend on a price being above/below a moving average.
Most of the time the MA is calculated using Close.
The close of the bar constantly changes during the bar. That can sometimes be a problem. Especially on shorter timeframes. Try using Open. It's set at the start of the bar and obviously don't change during the bar. It will shift the MA a bit but it's result is just as good/bad as a Close based MA.
Also try High for a uptrend and Low for a downtrend. Again little diffrence with close, and the same problems, but the little diffrence probebly reflects the trend in a better way.

[TraderSeven]

-----triple EMA Xover ------
Another quick one.
Plot 3 moving exponential moving averages with periods 5/13/68.
30 minute charts seem to work very nice. Experiment with other timeframes at will.

Short: (only apply at close of the candle)
EMA5 crosses below EMA13
You will see this catches the trends very well. But like all MA systems you will get bitten by a sideways market. The EMAs keeps crossing and giving you several small losses in row.
When you look more close at when that happens you will notice that it's best not to trade on major (USA) holidays, Greenspan and on Friday(afternoons). On those occassions the market doesn't move 'realistic' so avoid it or watch the trade very carefully if you want to trade or have an open position.
One more refinement is using the EMA62
Using the EMA62 enters the trade a bit later and does give less signals than just a 5/13 cross. But if you look at the charts a bit you will see it usally signals strong trends. Both EMA5 and 13 need to cross eachother and recently crossed EMA68.

To summarize a short trade:
- Never trade on holidays.
- Never trade on Friday afternoons. Or probably don't trade on Fridays at all.
- Wait around 7 hours for the market to settle after a Greenspan speech.
- Entries are only taken at the close of the candle.
- Go short when EMA5 crosses below EMA13
- For an extra strong signal wait for EMA5<EMA13 and EMA13<EMA68.
This crossing should happen in a short period of time. Between 0 and 3 candles seem to give the strongest signals.
- Exit the trade if EMA5 crosses over EMA13

A simple system. Unfortunately not easy to program because it needs to keeps an eye on Alan

[Rastarr]

This is Rob Bookers System isn't it?
He uses 5/13/62 EMAs though - I actually have this open at this very moment as it looked like a reasonably good manual system.

[TraderSeven]

This system comes under many names I guess. Like the majority of systems it's just refinement upon refinement of old ideas. In the end it's impossible to say who really made the system.
But I agree with you that it looks good. It's simple. The drawback is the false signals. But which system has no false signals... Did you find additional tricks to reduxe those false signals?
Anyone programmed this system with exception of the Greenspan part?

[Rastarr]

Originally Posted by TraderSeven

Did you find additional tricks to reduxe those false signals?
Anyone programmed this system with exception of the Greenspan part?

I think you just about covered all the rules. I can shoot you the PDF if you're interested in glancing over it before you're required by law to destroy it unless you purchase the system. [cough].

I'd think the difficult part is coding the requirement to keep out of a ranging market - the eternal question.

[FrankTheTank]

I have been using this system with a few "tricks"

-Wait for price to go in your favor for 10 pips after the EMA cross (yes, you will miss some trades but this weeds out most of the bad ones)

-Only trade in the direction of the trend, or, in the same direction that the 62EMA is moving. If 62 EMA is flat, then try taking the trade which is the opposite direction of the previous 62 EMA trend.

-Only trade when their is momentium behind the trade. Look at the ADX or metatraders "juice: indicator.

These tricks can turn a system that is 55% wins, to about 75-80% wins