This is a powerful yet very simple coloured candles indicator. It works based on simple moving average crosses or price above/below moving average. Simply BUY when the candles are GREEN, and SELL when the candles are RED. Close order when the candles change colour, or place a trailing stop.
McRobert.zip (5.95 KB)
You must be kidding. Shame on all of us who have put in thousands of hours of screen time when all we needed was an MA crossover system.
Do you have proof that this works long term? I know it probably works in volatile conditions, but it would lose in choppy situations.
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All one has to do is analyze it visually in history several days/weeks/months back. An EA could be strategy tested and it would have been much faster.
You would identify a winning trade if e.g the end of the green candles is higher than the beginning of the green candles, and a losing trade if the end of the green candles is lower than the beginning of the green candles, and vice versa for red candles.
Like in the picture above, the line of green candles in the middle of the picture ends higher than the beginning.
If you do as suggested and then compare the results to what happens in real trading, you will find a big discrepancy. The eyes are easily fooled when looking at a dead chart. Looking at your example chart, I can see a number of small losing trades before the big up move. I doubt if it recovered the losses though. The big down move would definitely make money, but in the long run, this simple minded approach will lose. Like many others who tout great results for their strategy, you cherry picked a chart to prove your point. In real trading, you can’t do that.
How can I be so sure you strategy will fail? Because I and many others have tried this and it failed every time. I ask again if their are results from actual trading to back up your claims?
This is why you should put a trailing stop, and the bigger the timeframe used, the bigger the profit over loss, and adjust the ‘period’ ‘period2’ values to e.g, 7,35 , you will see that there are few losing coloured candles, and most break even, usually after peaking above/below (trailing stop, remember to grab these peaks), the rest are huge gains, so the overall calculation is a profit. Best thing is to code an EA of moving average crosses and back test it.
Trailing stops are account killers. Its much better to trade support and resistance.
Yes I have coded an EA for MA crossover and several for Hieken Ashi. They were all losers. Plus I tested some other peoples’. Trading isn’t as simple as red bar / green bar. You still haven’t provided any real trading results. Must be because you haven’t actually traded it yet. So why post here?
Do you know of any system that works in choppy situations? I’ve spend many, many hours watching price move up/down/sideways (live, demo, manual backtesting), trying to find a system or EA that would provide consistent profits (the search for the ‘Holy Grail’), but up 'till now without much success. The best method I’ve found so far is simply the use of a WPR indicator, together with ‘WPR Candles’ - which looks a lot like the ‘Colored Candles Indicator’, presented here. Adding some common trading knowledge, like the use of support/resistance, round numbers, etc., can improve results, but you definitely don’t need more than a few indicators.
Price (gets) move(d)s up and down all the time and you can never be sure about where it’s gonna be a few moments from ‘now’, so that leaves two choices: go for quick profits (in and out, before price can turn on you) or aim for profits in the long run (more or less ‘position trading’). The first we call ‘scalping’ or, when you expose yourself to the market makers for longer than a few minutes, intra-day trading; the latter means you keep your trade(s) open for days/weeks/months…
As an illustration for the latter, just open a H4 or D1 chart, put a SMA 5 and a SMA 20 on it (zoom out a lot, in order to get a clear view of the main trend(s)), preferably combined with SMA cross arrows, and imagine you traded all the crosses… Because this allows for tight stops (just above/below the swings) you’d only lose little money when your stop gets hit, but the times you do catch the main trend would no doubt make up for that…
The ‘Colored Candles Indicator’ method (and other simple trading systems, involving only price action and/or a few indicators) is not the worst system one could chose as a tool to take some pips out of the forex markets, because more complicated doesn’t automatically means more chances of success (more than 90% of people wouldn’t be losing this game if all depended on ‘more knowledge’ and ‘more complicated systems’, you only have to visit forums to know that) - which also shows that the forex market is a manipulated environment and the more indicators (or ‘common trading knowledge’, especially applied to short term trading) you use, the easier it is for ‘them’ to trick you out of your money (‘stop hunting’ is just one of the methods they use, which depends on traders trying to pick tops and bottoms), another thing they love you to do is using indicators, especially with standard settings (the MACD 12, 26, 9 must be king here)).
Anyway, I’m not trying to give the impression as if I know a lot about trading, just trying to put in my two cents here. So, please, if you feel this posting isn’t helpful in any way, just ignore it and get on with you life…
Cheers
Sprotz, thanks for the post. Please do you have this McRobert indicator for MT5?
Most of the platform have this setting just change the candle setting will do.
Thanks Ronald 123.
Just as my head was going to explode you
put it all in context.
Simple, simple.
You got it right.
Sorry, I don’t
You’re welcome, Nimrif (sorry for the very late answer, I haven’t been visiting this thread up 'till now and this time it was pure accidentally). Hope you’re doing well in life as well as in trading… In case you see my reply here and are still looking for simple trading systems: open a clean H4 chart (eurusd for instance), put on a 34 SMA (set to ‘close’) and start looking for 3 consecutive candles of the same color nearby the 34 SMA. Try to set up
your own trading rules for opening buys/sells. The ‘safest’ way looks to be to keep one of the three ‘same colored candles’ in touch with the 34 SMA, which keeps one from opening trades too early/late… I’ve found that the best way to blow up accounts is to either use too big a stop losses and/or refuse to let price close your trade(s) by hitting your stop loss. Setting a stop loss and never touch it again until the trade is over definitely defines the meaning of ‘discipline’ (second would be following the rest of your trading rules, which is why I’m using the ‘set and forget’ method for trading any system). Again, good luck in life and in trading! Cheers
