Version 1.8 may actually be the one. In programming language I guess this would have been the RC (look it up if you don’t know what it means :p)
I think I have succeeded in doing what I wanted which was to remove as much of the discretionary component as possible. At the same time, as far as I can tell from the limited amount of time I’ve studied this, the approach seems quite profitable.
The combination of the EMA and the opening line also very often makes ranging price action go into the “no trading zone” between the opening line and the 200EMA.
I may post a chart if I have the energy to facilitate understanding of my ver 1.8 approach.
I’m using two indicators! Gahhhh! Who would have thought that I’d ever do that a couple hundred posts ago…
I guess it’s true that fundamentalism dies away with the passage of time…
Hmm, just realized that these were some big words above… hope this really works as I expect…
(Never mind the time frame, I just picked the first pair I clicked on. The principle is the same for all time frames and as far I’ve seen it works on all time frames.)
Here we go. Pretty self-explanatory I should think:
All right. I’ll try to have some meaningful backtest results done this weekend. In the meantime let’s have a look at how the method behaves during a range.
In this example I’m using the weekly open along with the 2H time frame as this is what I would have been looking at. (2H weird TF I know)
The yellowgreen lines mark the weekly open and the magenta lines mark that inside/ranging day 2010-nov-17. As we can see price is actually below both the 200EMA and the weekly open, so short trades are allowed, but there is no retracement to the upper BB and so there’s no CBL at all to be placed. (until right now actually)
In fact, this week would have seen no trade setups at all on GBPUSD:
However, this was not the clever way that the method can act to filter out ranges that I wanted to show. To get an idea of how that can work, look at the next chart where price is caught in the no trades land between the weekly open and the 200EMA.
Notice that there are actually two valid short CBLs but neither of them trigger.
What I meant by many ranges being filtered out by this approach is how price get’s caught between the EMA and the open. No trades can be taken until we get a directional bias by a CBL forming either above or below both the EMA and the open, not forgetting that it also has to retrace to the outer BB before we’ll consider it.
I’m working on my backtesting but I realize that I’ll need several days that I can devote 100% to this in order to get it done. So far so good however.
When I finish I’ll post the results here, whatever they may be.
A few more days until X-mas now. In case I don’t post more before that:
Bad news. I received an email today from myfxbook letting me know that they will no longer be able to track Oanda accounts after Jan 31.
Bummer as I’ve found no acceptable alternative.
The only alternative I’ve found at all is Currensee but I would have to trust them with my Oanda password which is completely out of the question for me as I’m not a complete idiot…
I am not sure how many trades you place if its not to many you could mirror your Oanda account on a MT4 demo and link the demo to myfxbook. Kind of a PITA but if your not making 10 trades a week it would not be to bad.
I’m bummed out about this too. I’m asking MyFXBook if they can allow just plain CSV uploads. I don’t really care if the results are “certified” or whatever… but they do a lot of great analysis that is helpful.
Sounds like it’s Oanda’s fault btw. They are dragging their feet with the API, and they’re turning something off that MyFXBook is currently using to get the (safe) account history.
I agree, Currensee is asking too much to give the account password like that. I did it once, but was so UN-impressed with their platform that I immediately changed my Oanda password and decided it was a bad move.
I guess you could say that 2010 was more talk than shop for me, something I’m going to reverse this year.
It’s actually a bit tricky to get the exact performance since I’ve been adding money several times during the year.
I can safely say that it was a negative return on the trading in 2010 but exact % is hard to figure out for said reason.
I have a bit to go on my backtesting but I think the results are fairly clear already, it performs about as well as a coin flip… I have a terrible cold right now but I’ll try to finish it before going back to work.
I have learned a few things from it though. Most of all, the risk/reward ratio is key, plus, there really is nothing that can beat a naked chart if you know what you’re doing.
Yeah, I had such plans in the past but it’s just unattractive to me to do the same thing twice, especially as I’ll have to place the trades at work sometimes and I can’t dabble around for too long… no time for placing the same trade twice in other words.
I guess it’ll have to be the good old spreadsheet.
I saw recently that Oanda is creating a trading statement function of their own. I’m hoping that might be a solution in the future but nothing to be certain about.
Generally it seems Oanda is a lot more careful with giving out API access to 3rd parties like Currensee or myfxbook etc. Deep down that attitude instills confidence in me, but sometimes, like with myfxbook, one wishes that they could have been a bit more cooperative.
Btw left feedback for Oanda about MyFXBook access and this is what they replied:
Short Description: API changes that prevent MyFXBook.com from working
Hello ,
Thank you for contacting OANDA.
In an effort to give our clients full control of their accounts and data, we are currently working on introducing a new API. The original fxTrade API is considered the best in the industry. This new API was created for users (fxTrade and fxTrade Practice) who wish to securely and efficiently connect with third parties while also specifying who and what types of access you choose to provide (read only, trade enabled, etc.)
OANDA recognizes the need to share trading information with various levels of access and once this is new API is launched you will see increased access to OANDA accounts with most third party sites of interest, including myfxbook and without any fees associated with these particular API connections.
We hope your find that this new API functionality is worth the wait and apologize for the inconvenience in the meantime.
