TrendLover

[digf]

Yes, this is correct and it depends on the number of instruments you decide to watch.

Thanks for your reply. I haven’t had many trades using this but I am a bit in front on the one’s I have traded.

[peterbee77]

Hi, The equivalent of a SMA60 on a daily TF is: 1440 x 60 (1440 minutes in one day times 60 periods), and for the 60SMA on the 4H chart you’d need 240 x 60. So the MAs you’d need to put on the 1H chart is not 240 and 1440 but rather 14400 and 86400.

The numbers you’ve been using correspond to a 1 period SMA of both 4H and Daily. I believe that is the explanation for you finding trouble with profitability of the backtesting.

Hope that helps.

I must agree with Zhangshuo. My base chart is the H1 timeframe (not M1), so the SMA60 of the 4-hour chart would simply be 4 x 60 (4 times the SMA60 on a 1-HOUR chart) = SMA240 on the H1 chart. Likewise the SMA60 of the Daily chart would be 24 x 60 (the number of HOURS in a day x 60-period for the MA)= SMA1440 on the H1 chart.

It might be that I didn’t backtest a long enough period. Since I was doing a “manual” backtest I only went through about 2 months of data. Maybe a longer period might give different results?

Going back to my original problem, do you use any particular pairs, o99? And also, do you use the H1, or do you mainly use the H4 and M5 tf?

thanks,
Peter

[o990l6mh]

hi, o990I6mh:
I also had difficulty using the MTF moving Average indicator so I’ll have to plot them manually. But can you explain to me again in detail how you go about plotting higher timeframe moving averages on lower timeframes?
From the explanation above it seems that you are counting minutes? But why? What if I want to plot a 60SMA of monthly chart on the weekly? What is the calculation process?
THX.
Shuo

Hi,

Let’s do an example:

I have a 60SMA plotted on the 1H chart and now I want to set a SMA on the 1min timeframe to reproduce the 1H 60SMA as closely as possible without using MTF indicators.

So the question is, what period should I set the SMA to on the 1min?

The answer is very straightforward. We translate the 60SMA on the 1H into minutes: 60 periods where each period represents 60 minutes of course yields: 60 x 60 = 3600

So the 60SMA on the 1H timeframe corresponds to a 3600 period SMA on the 1min timeframe.

What we do is translate the different timeframes using the common denominator, the minute. The Weekly contains 10080 minutes in MT4, the Daily 1440 and the Monthly 43200.

So, for instance a 60SMA on the Daily equals 60 x 1440 minutes. Say that you want to translate that into a 4H SMA. The math is then: (60 x 1440) / 240 = 360. So a 360SMA on the 4H corresponds to a 60SMA on the Daily.

I’m not sure I can explain it in a simpler way, it’s very basic math.

[o990l6mh]

I must agree with Zhangshuo. My base chart is the H1 timeframe (not M1), so the SMA60 of the 4-hour chart would simply be 4 x 60 (4 times the SMA60 on a 1-HOUR chart) = SMA240 on the H1 chart. Likewise the SMA60 of the Daily chart would be 24 x 60 (the number of HOURS in a day x 60-period for the MA)= SMA1440 on the H1 chart.

It might be that I didn’t backtest a long enough period. Since I was doing a “manual” backtest I only went through about 2 months of data. Maybe a longer period might give different results?

Going back to my original problem, do you use any particular pairs, o99? And also, do you use the H1, or do you mainly use the H4 and M5 tf?

thanks,
Peter

Oh dear, I must have been confused more than usual. You’re quite right of course about the math. The multiples of the ordinary MAs do a fair but not perfect job of representing the higher TF SMAs, but it doesn’t matter if there’s a small difference.

I do think the short backtesting period might be the problem. Although profitable this system does go trough periods of up to six months on a single pair where not much happens, small winners and then several losses.

When traded live you tend to get more even results since the trades are spread out over many pairs and if some are ranging others will be trending at the same time.

I like natural gas as well as audusd, gold, usdjpy for instance, but the approach works on anything really.

[FxLowe]

Thanks for sharing this. I haven’t tried it on a live account yet, but it makes a lot of sense, and certainly checks out from a quick (and very rough) eye-ball-backtesting.

I have a quick question for you though. Have you tried pyramiding the winning trades after a successful entry?

Taking EUR/USD (H4) for an example. A short would have been initially triggered on the 10/08. On the 28/8, after falling 208 pips, another entry signal appears. What are you ideas on managing the trade at that point, and do you have any stats on how well pyramiding works with your method in the long run?

Thanks again.

[fxtradercy]

Hi o99,

Found you from Captain Currency’s thread.

Are you still trading this system, using the parameters in the original description? Or has it evolved during the year?

What timeframes are you trading it with?

[o990l6mh]

Thanks for sharing this. I haven’t tried it on a live account yet, but it makes a lot of sense, and certainly checks out from a quick (and very rough) eye-ball-backtesting.

I have a quick question for you though. Have you tried pyramiding the winning trades after a successful entry?

Taking EUR/USD (H4) for an example. A short would have been initially triggered on the 10/08. On the 28/8, after falling 208 pips, another entry signal appears. What are you ideas on managing the trade at that point, and do you have any stats on how well pyramiding works with your method in the long run?

Thanks again.

Pyramiding or not is a personal choice. It’s not something I do in my trading, but if I were to, I would only enter a new position once the previous had its stop loss at break even or better.

[o990l6mh]

Hi o99,

Found you from Captain Currency’s thread.

Are you still trading this system, using the parameters in the original description? Or has it evolved during the year?

What timeframes are you trading it with?

Hi, I trade similar to this but not exactly the same. This method does work however so that’s not the reason I’ve changed my method a little.

[fxsnowball]

Can you give us more details on how your system evolved in the past year, since your original thread?

Is it still based on the 3ducks?

[fxsnowball]

By the way, the combination of 3-ducks concepts of trend with the stochastic, has provided with high probability setups on EURUSD recently, while in a strong downtrend.

Looking forward to your update.

[lucariga]

Hi, I trade similar to this but not exactly the same. This method does work however so that’s not the reason I’ve changed my method a little.

Does your new method improve your results?
If I don’t ask too much, what are the changes to the original method?

Thanks in advance

[o990l6mh]

Does your new method improve your results?
If I don’t ask too much, what are the changes to the original method?

Thanks in advance

Hi!

Sorry for a very belated response, I don’t spend much time here anymore.

The big change I made was finally learning and understanding how to use COT data to trade. After that everything changed and I went from consistent but moderate gains to another level. It’s not something I can easily share or explain in a few posts, but there’s a lot of material out there. Be careful though - COT is one of the least understood things around in trading. Learn from those who understand it such as Larry Williams

[fxsnowball]

Hi!
The big change I made was finally learning and understanding how to use COT data to trade. After that everything changed and I went from consistent but moderate gains to another level. It’s not something I can easily share or explain in a few posts, but there’s a lot of material out there. Be careful though - COT is one of the least understood things around in trading. Learn from those who understand it such as Larry Williams

COT gives a good indication of the positioning of “smart money” and helps identify the prevalent trend.

Care to give more details on how you combine your observations re: weekly COT data with your trading plan that was outlined in the initial posts of this thread?

Thanks