Macfibo system

[CryAgony]

good one

[Muneeb]

EU showed a valid Sell signal, the daily trend is down as well

[sufiansaid]

Placement of SL is absolutely upmto one’s risk profile. 38.2 SL is designed to protect ourselves from trading against markets reaction on a specific news/economic data. I have tested this in a specific sample size and I am so far happy witb 38.2 SL. When 5ema recross 8sma before hitting SL, I will close thebtrade anyway especially during early hours of Monday asian sessions or late hours of London open… More on that in the future. But I do reccomend to combine fixed SL and 5ema 8sma recross for this two objectives : a- protect ourself from trading against news spike b- to let the market decide when to exit the trade more often than discretionary elements.

For newbie traders, based on my own experience, it is best to keep things simple and more mechanical. 5x8 is well tested exit mechanism and use it withoutbhesitation, but set your SL at maximum 38.2 (1:1 risk ratio) just incase some ugly big candle goes against your way… And exit trade whichever come first. keep it simple and again, basic Macfibo is profitable too. Heheh…

[daxter22]

Thanks sufiansaid and other SL comments - currently backtesting on Bloomberg for my prefered time frame - the daily. Thanks

Placement of SL is absolutely upmto one’s risk profile. 38.2 SL is designed to protect ourselves from trading against markets reaction on a specific news/economic data. I have tested this in a specific sample size and I am so far happy witb 38.2 SL. When 5ema recross 8sma before hitting SL, I will close thebtrade anyway especially during early hours of Monday asian sessions or late hours of London open… More on that in the future. But I do reccomend to combine fixed SL and 5ema 8sma recross for this two objectives : a- protect ourself from trading against news spike b- to let the market decide when to exit the trade more often than discretionary elements.

For newbie traders, based on my own experience, it is best to keep things simple and more mechanical. 5x8 is well tested exit mechanism and use it withoutbhesitation, but set your SL at maximum 38.2 (1:1 risk ratio) just incase some ugly big candle goes against your way… And exit trade whichever come first. keep it simple and again, basic Macfibo is profitable too. Heheh…

[CryAgony]

update: bullish divergence on 30min chart for GBPUSD/EURUSD… let’s wait for further signals

nevermind this divergence, cable managed to do a LL later on

[CryAgony]

keeping an eye on AUDUSD, despite strong S nearby

[sufiansaid]

My EU sell trade hit TP. Sorry no charts. Later or tomorrow. I’m PS3-ing with my son now… :47:

[sufiansaid]

keeping an eye on AUDUSD, despite strong S nearby

AUDUSD Macfibo is a green day today. Hit 1.618.

[sufiansaid]

EU showed a valid Sell signal, the daily trend is down as well

…and I am sure you have pips for today brother! Fantastic…

[sufiansaid]

Thanks sufiansaid and other SL comments - currently backtesting on Bloomberg for my prefered time frame - the daily. Thanks

D1 Macfibo? Tremendous. Backtesting is hell… but important. :D. Keep reading and post any findings from the backtest buddy. Than you for the interest.

[sufiansaid]

It’s a pleasure to help where I can!

Yes, the strict rules say to exit after the 5EMA crosses the 8SMA and the candle where the cross happened has closed (so that you get confirmation of the cross), so it’s really up to you from here. I’d personally get out of it around now, but that might just be the paranoid trader in me speaking

Let me know what you decide? Good luck!

We can use some common sense eventhough it is important to follow the rules. For eg say it’s 3.58pm (2 mins before new candle) and 5ema clearly crossing 8sma way down/up already, then it is fine to close it earlier. But this is not reccomended because I’ve seen price reversed 30-50 pips in less than a minute.Hence putting fixed SL (38.2 or 50 or 61.8 or 70.0 or 78.6…whichever that fits to your risk profile) to protect from ugly spike.

[sufiansaid]

BOOM! :59:

My shortest trade with Macfibo yet!

+24 pips on EURUSD in 20 minutes, thank you, that’s my trading for the day

Goooolllllllll!! Hehehe… I’m in soccer/football mood. My son is kicking my ass in PS3 (FIFA 12)… Good job with the pips buddy

[Confirmado]

We can use some common sense eventhough it is important to follow the rules. For eg say it’s 3.58pm (2 mins before new candle) and 5ema clearly crossing 8sma way down/up already, then it is fine to close it earlier. But this is not reccomended because I’ve seen price reversed 30-50 pips in less than a minute.Hence putting fixed SL (38.2 or 50 or 61.8 or 70.0 or 78.6…whichever that fits to your risk profile) to protect from ugly spike.

I’ve done this a few times: close by 5EMA crossing 8SMA really soon (as I thought), but I stopped as soon as I’ve seen a few strong reverses in my favor within minutes, as you’d mentioned. So for me it’s only “after candle close” actions now:)

PS sorry for no updates today, was a bit busy, will come up with a review of today’s trades in the evening

[Confirmado]

I’ll do a quick signal update now, just before I leave for training:
Heads up for USDJPY and GBPJPY, some long Macfibo activations are awaited

[CryAgony]

I’m in a trade from several hours now long on AUDUSD… in profit but pff… volatility is on easter holiday or what?

[Confirmado]

I’m in a trade from several hours now long on AUDUSD… in profit but pff… volatility is on easter holiday or what?

More likely that, I think I’ll wait till Tuesday, may be after midday Monday

[alva]

Placement of SL is absolutely upmto one’s risk profile. 38.2 SL is designed to protect ourselves from trading against markets reaction on a specific news/economic data. I have tested this in a specific sample size and I am so far happy witb 38.2 SL. When 5ema recross 8sma before hitting SL, I will close thebtrade anyway especially during early hours of Monday asian sessions or late hours of London open… More on that in the future. But I do reccomend to combine fixed SL and 5ema 8sma recross for this two objectives : a- protect ourself from trading against news spike b- to let the market decide when to exit the trade more often than discretionary elements.

For newbie traders, based on my own experience, it is best to keep things simple and more mechanical. 5x8 is well tested exit mechanism and use it withoutbhesitation, but set your SL at maximum 38.2 (1:1 risk ratio) just incase some ugly big candle goes against your way… And exit trade whichever come first. keep it simple and again, basic Macfibo is profitable too. Heheh…

Thank you so much for your education! Waiting for your next version.

[goodpunk6]

Have you ever tried using this strategy on a m15 chart?

[CryAgony]

Yes! Not a lot, just to explore the system 360°. Results? Too many fake signals (especially exit), the lower the TF you are looking at, the more chance you have to get fake signals… this is what i noticed

Although with a bit of discrimination on exit signals, it can work well with a strong trend. Absolutely avoid it in a range mkt!

Do I find it useful?
Yes, Cos it gives you a shorter term market sentiment. Although the shorter TF i tend to look at with MACFIBO is the 30min chart.

I mainly search signals on 1H chart, and then I do check higher TF (4H), and secondary the shorter TF to have, as I said, a short term market reaction.

Note that I’m a intraday trader and I don’t base my analysis ONLY on macfibo. In case you would trade following only macfibo signals, then my advice would be to trade with 1H and up charts.

This is just my opinion

[Confirmado]

My trades’ review on April 5

H1 Trades

1. EURUSD
   i)Long Macfibo activation at night, didn’t reach any significant Fibo levels (127.2 and 161.8). 11 pips loss if exited @ 5x8:
   
   
   
   

ii) Short Macfibo activation in the morning, excellent trade, 161.8 and 261.8 levels hit, 30 pips and 78 pips (correspondingly) profit!

2. USDJPY
   Daytime cross activating long Macfibo, didn’t reach any significant levels (perhaps due to decreased volatility closer to evening). Insignificant loss on 5x8 exit:
   

   
   
   

3. GBPUSD
   Perfect short Macfibo trade with 161.8 target hit in one hour after activation + 261.8 in a while (22 and 58 pips profit):
   

   
   
   

4. XAUUSD
   Decent long trade in the early morning especially if you aimed for 127.2 TP. 161.8 TP reached aswell but only after a 5x8 and recross back into the trend, so if you closed @ 5x8 signal, not such satisfying result from the trade: