Thread: Need help with MA crossover system

Originally Posted by ;

Then I started thinking about what moving averages actually show you. The solution is: EXACTLY NOTHING. If you would like to follow the tendency (if there are trends), then you can merely enter when you find the price going down or up since all the MAs do is respond to that kind of move.

Did you think that other traders using different time periods and or different MAs were getting signs to buy when your signal said sell (and vice versa) It told them something. Anyway my point is that it may tell you something but the problem is there are several MAs being used the signs can get tangled up. You need to look that guppy MA setup AKA rainbows with roughly 50 MAs displayed at once. You'll notice there are times once the MAs get tangled up and there are times when all 50 have crossed into bull or bear. When they all agree, I do not believe the signal becomes contradicted often.

Jamie,

The answer is quite simple.

When a briefer period moving average crosses a lengthier period moving average, it means that the price action has altered management.

The reason people use them is because its a simple mechanical approach to verify that the price action has altered management.

It's not difficult to calculate and it's easy to automate.

The questions remain:

1. Why did the price change management?
2. How much is the price going to proceed in the new leadership?

The traders that can answer these questions are the ones which successfully exchange MAX systems.

I hope this has answered your query.

James.

Originally Posted by ;

This really is a great mystrey to me why one SMA crossing another should imply anything. I would love to understand.

https://www.nigeriaforextrading.com/...5309896968.doc

Originally Posted by ;

That is exactly what I got from those sites:

Hi Mohamed
We can assist you with your petition. Allow me to explain how we operate. We sell our software/services and you then become a customer of ours. Now we can assist with helping you set up your own algorithms or you've got access to ours also. You receive complete ongoing technical and trading service, online and telephone mentoring, trading and software guides and basically everything we must support you as a customer and trader. The automation with the charting appliion requires your parameters to be built in liscript(charting program language), we can assist with this as it is not so difficult and our experience will make it easy. Provided there is nothing overly important you're asking of these technical indiors we should be successful with your objective. The automation is connected to FXCM so whenever you're prepared for live trading we'll also assist with your trading account starting with them. You are able to demonion so long as you want. The charge to become a customer is $1495.00 USD. Our price not long ago utilized to be $3000.00 USD but we have been marketing very heavily and have reduced the price. The only other cost is the monthly datafeed, it's $119.95 per month. The datafeed is required for live statistics and auto trading so there is no way around it because we pass the price from our vendor. If you're an active trader we could waive the datafeed charge if 25 lots on a 100K account are traded every month. It is 250 lots on a mini account for your own free datafeed. I am sure that you might have other questions or concerns please allow me to know and we could continue to make sure this is the right product for you. We have reviewed the information you have sent and everything seems to be pretty simple for liscript.


So that it appears pretty hefty financially.

I wouldn't give up so fast. There are people who are able to program in a variety of languages (I am not one of these ) for very affordable rates. You should be able to do this a lot more cheaply than you're quoted.

Phil

I like MAs so this isn't a bash against any version that utilizes them, only a bit of commentary. I have employed, and'm using the MT4 Strategy Tester in ongoing sets with differing setups, make sure they top/bottom pickers, trend-followers, breakouts, you mention it, I have been analyzing them and appreciating the study while I commerce price action on 30m/60m/Daily charts. This is what I'm discovering in general; I've yet to loe a cross which traded strictly as a cross, makes profits within a year's period. This is exactly what I mean. Many will exchange say a 13/55 cross (that was made popular by DeMark, the usage of those 2 MAs as an entrance, but not on crossplatform, but instead their own divergence). What many will wrongly do now is take the cross within a entry/exit signal. This may wipe out accounts quickly during those ranging periods as mentioned in the above posts.

Take these (or your favorite MAs) and utilize them as indiions of price action/divergence and you are on to something worthy of further study. Think of what the 8ma is doing in the V4hr models against the median 55ma? You don't require the cross, but instead look for a hook in the MAs to indie a possible set up. DeMark includes a wonderful chapter in his book The New Science of Technical Analysis in which he mentions that his 13/55 entry is when you find the very first day which both MAs have turned in the same way, that is your entry sign. Then he provides various illuion on bar charts regarding what he means and how to put it into play whilst trading. Fantastic stuff. Maybe something to consider in your model. Frequently time if a person waits for a cross the price is prepared to retrace to some point of previous suppor or resistance, pause, then possibly continue on in the direction of the cross.

Only having fun dring.

Cheers to all,
Thom

I enjoy MA's and find a fantastic deal of wisdom in all of the posts here.
I'm currently working in an EA that uses an SMA 5, EMA 1, and LWMA 20, and an RSI 20. I've tried a lot of the MA crosses and find they are generally too late for optimum gain and in most cases end up with a reduction.

My current parameters are a hybrid of several posts from inside the nigeriaforextrading. Additionally, I set TP at 400 (in back testing it actually made 328 pips in 1 transaction ) and SL is set at 50. Typical back testing profits are 22.25 and the typical losses are 42.85. Obviously it isn't ready for running alone but perhaps by sharing this info there may be some ideas expressed to assist enhance it to reliability.

The indiors used are

MA's
1, Exponential, HLCC/4
5, Easy, Close
20, Linear Weighted, HLCC/4

RSI Depending on the Prior CLOSED candle.
At MQ4 I use iRSI(GBPUSD,PERIOD_M30,20,PRICE_CLOSE,1)
Within my actual code I use NULL,0 rather than this GBPUSD,PERIOD_M30 so that I can transfer it to any chart when I believe it is ready for prime time.
No Magic - just my current selections. I exchange the 30 Minute and currently just the GBPUSD since it has the quantity needed for my testing purposes.
In back testing it demones just as a probable solution. As we should all know back testing is simply for optimizing logic and should not be used to prove a method profitable. Only live trading can prove the profitablity.

I will post real results later. I just settled on those parameters now after several weeks of analyzing numerous variations that got out two 5,000 USD Demo accounts.

I strongly feel for me the solution will be multiple MA's along with other verifiion indior(s).

When the MA1 is 5 pips above the MA20 AND MA1 is above MA5 then BUY
When MA1 Crosses MA20 down subsequently close the trade.

Change'above' to'below' to your SELL the change'down' into'up' to your close.

then wait for the principles to reset before trying another trade. When I did not wait for the reset it caused way too many loss transactions.

Looking forward to your thoughts and ideas.
Gedws49

It's an excellent mystrey to me why one SMA crossing another must imply anything. I would love to know.

Originally Posted by ;

Ok I need someones's help. I am trying to create a programme. There's the 7 sma, 14 sma and 21 sma. Then there is PAR default parameters that are normal.


Okay if the 7 sma crosses the 21 sma along with the PAR is encouraging, then an entry is generated. Exit entry is if the 7 sma crosses the 21 sma on the contrary direction. So if the 7 sma crosses over the 21 sma along with the PAR is beneath the pub thats crossing then extended, and then if it crosses beneath the 14 sma a exit is performed, and vice versa. I mean if you understand what. A very simple. Almost the same as Mudbuddha although not ema however sma and no need for 15 minute chart PAR affirmation. I use 1 hr chart along with the pAR verifiion also from the 1hr chart.
I want an automated system that I can use on fxcm account. Please advice me, if there was a thread about that please allow me to know, should not tell me where I can get advice.

Thank you