Synergy Trading Method

[droesparky]

I found this elsewhere, take a look at it. It looks pretty good to me.
There is a nice pdf file for this system, but its to big to upload even when I zip it.

The Synergy Trading Method was developed by Dean Malone and is an effective Forex trading method developed to simplify trading decisions with high probability precision. It combines the market forces of Price Action, Trend, Momentum and Market Strength to produce higher probability trades. The Synergy trading method depicts…in real-time…the interaction of these market forces providing traders the means to make trading decisions with greater confidence and less emotional hassle.

With Synergy, traders identify and use two important trading components in real-time: Price Action and Sentiment.

Price Action is market movement, such as the oscillation of Open, High, Low and Close prices. Too often, traders are mesmerized by trivial price flucuations and lose sight of the underlying trend of the market. Many traders tend to jump in and out of the market instead of staying with the trade as a trend develops. Synergy is designed to eliminate price distortions. It reveals periods of market strength and trend and periods of consolidation.

Sentiment is the intuitive feeling or attitude of traders and investors in the market. For example, if the sentiment of the market is bullish, then traders and investors expect an upward move in the market. Often, sentiment is an indication of optimism or pessimism in the market based on recent news announcements or political events. The Synergy method uses a hybrid custom indicator developed to show postive (buyers) sentiment or negative (sellers) sentiment.

Working in unison, Price Action and Sentiment give traders a distinct trading advantage. When both are in agreement, favorable trading conditions exists. For instance, when price action is showing upward movement with buyers sentiment, there is higher probability of a Long position having a favorable outcome. Similarly, when price action has a downward movement in conjunction with sellers sentiment, a short position has a favorable outcome.

Aim of this thread is to backtest and optimize the strategy and finally to make an EA out of it. In this first post you find the up-to-date indicators and templates.

First backtests show that the strategy works best on the 1H or 30M timeframe with the GBPUSD, EURJPY, EURUSD, GBPJPY, USDCHF, USDJPY and CADJPY. Here are some average results:

GBPUSD: ~ 160 pips per month
EURJPY: ~ 104 pips per month
EURUSD: ~ 100 pips per month
GBPJPY: ~ 95 pips per month
USDCHF: ~ 85 pips per month
USDJPY: ~ 82 pips per month
CADJPY: ~ 75 pips per month

To setup this strategy, please unzip Synergy.zip and copy all indicators into \experts\indicators\ in your metatrader directory. Then copy the template into emplates in your metatrader directory. After restarting metatrader and choosing the template you can see arrows and crosses which shows entries and exits according the trading method. Each cross displays a number which means the profit or loss of the closed trade. The yellow numbers at the end of the chart displays the overall result when every signal was traded. But be careful: due to some technical problems with the template at the beginning of a chart no guarantee can be given. A filled arrow shows the first time a new trade can be entered. A hollow arrrow means “add to buy” it is only used as a confirmation signal.

For backtesting the some options of SynergyInd indicator can be adjusted:

UseEntry68_32: When this is true, the indicator enters a long position even when RSI is above 68 or a short position when RSI is below 32.
UseSmallerExit: When this is true, the system closes a position when the actuall candle is smaller than the previsous candle. “DefineSmaller” needs to be a value.
ReqRedYellowCombo: When this is true, the TSL must be above the MBL before entering a long position or the TSL must be below the MBL before entering a short position.
UseVolExpanding: If this is true, positions are only opened when volatility increases (measured by the Bellinger Bands of the TDI).
UseChaikin: If this is true, positions are only opened when colatility increases (measured by the Chaikin’s Volatility indicator).
Use4Trend: If this is true, long positions will only be opned when the 4H trend is up and short positions will only be opened when the 4H trend is down.
Use Alert: … I think everybody knows this feature.

So far the following settings seem to work most suitable: UseEntry68_32 false, UseSmallerExit false, ReqRedYellowCombo false, UseVolExpanding true, UseChaikin false, Use4Trend false.

synergy.zip (12 KB)

[ahefner33]

Good system…I have been testing this around a month now…But I started using real candle sticks because the HA candles seem to give traders a false indication where price is if you dont know what your looking for.

Actually, one guy told me that Dean Malone uses candle sticks but shows the HA because it makes it easier for new traders to understand.

But I like it, add the power of using higher time frames as a direction to trade and enter off your lower time frames, it can make you some money.

AH

[Harry]

Good system…I have been testing this around a month now…But I started using real candle sticks because the HA candles seem to give traders a false indication where price is if you dont know what your looking for.

Actually, one guy told me that Dean Malone uses candle sticks but shows the HA because it makes it easier for new traders to understand.

But I like it, add the power of using higher time frames as a direction to trade and enter off your lower time frames, it can make you some money.

AH

I have faced such problem with this method when I used it for the first time but with time I am used to it and now I find it good. It was just a matter of time that this method proved better then others for me. making money for me which is what a trader wants!!

[Moddy]

I have faced such problem with this method when I used it for the first time but with time I am used to it and now I find it good. It was just a matter of time that this method proved better then others for me. making money for me which is what a trader wants!!

Yes initially we all generally face problem when we try any thing new for the first time but as we get use to it we start liking it and get habitual to it. Just give little time to it and you will be comfortable with it.

[branac]

Hi everybody,

I have been testing Synergy for a month or so, like it very much. Thank you droesparky for the indicator and template you posted, it makes finding signals a lot easier.

There is one thing I’ve noticed so far. If there is a divergence between the price and the green line, than the signal is most likely not going to work. There is an example on the attached GBP/USD 4hr chart, check the area with purple lines. From one buy signal to the other, the price made a higher high but the green line made a lower high, and then the signal failed. I am going to do more testing on this one, but I was wondering if someone who is good with MT4 programming could incorporate this divergence in the indicator?

Thank you,
branac

[hjamident]

I am new at this. I tried to unzip the attached “synergy.zip” file without any success. I could not use what was downloaded. The system sounds very logical and practical. Can you provide me with the proper way to download the system? Thanks.

[Superion]

This is also known as Dean Malone E A S Y Method. I’ve been looking to this method for sometime but gathering the required indicators was a tall order. Just our luck that somone has coded it for us.

Surely to code and EA shouldn’t be a painful task as the SynergyInd provides entry and exit signal code right there for the taking below.

We need to create an EA that calls on this part off the code to place orders and exit our positions.

The question is how do we call this Indicator. My guess is using the iCustom cmd but I’m a rookie mql programmer.

Also droesparky how did you backtest without an EA in place?

	// Main loop
	for (i = limit; i >= 0; i--) 
	{
		AcquireIndicatorValues(i);
		
		// Check for open signals ---------------------------------------------
		MA_Trend_Dir = GetMA_Trend();
		HA_Outside_MA_Dir = GetHA_CloseDir(i);
		TDI_Dir = GetTDI_EntryDir();
		H4_Trend = GetH4Trend(i);
		
		// Calculate where to put arrows (and labels)
		upperPos = MathMax(High[i], MathMax(HA_HiLo_2, HA_LoHi_2)) + (sp*Point);
		upperTextPos = upperPos + ((sp)*Point);
		lowerPos = MathMin(Low[i], MathMin(HA_HiLo_2, HA_LoHi_2)) - (sp*Point);
		lowerTextPos = lowerPos - ((sp/4)*Point);
		spread = Ask - Bid;
		
		// If all in Long position, signal to BUY at this candle's open
		if (!InBuy && MA_Trend_Dir == OP_BUY && HA_Outside_MA_Dir == OP_BUY && 
			TDI_Dir == OP_BUY && (!UseVolExpanding || VolBandsExpanding()) && 
			(!UseChaikin || Chaikin > 0) && (!UseH4Trend || H4_Trend == OP_BUY))
		{
			BuyEntryBuf[i] = lowerPos;
			InBuy = true;
			OpenPriceB = Open[i] + spread;
			DoAlert(i, "Synergy: New Buy Signal, candle = " + i);
		}
		
		else if (InBuy && AddToBuyPosition())
		{
			AddBuyBuf[i] = lowerPos;
			DoAlert(i, "Synergy: Add to Buy Signal");
		}
		
		// If all in Short position, signal to SELL at this candle's open
		if (!InSell && MA_Trend_Dir == OP_SELL && HA_Outside_MA_Dir == OP_SELL && 
			TDI_Dir == OP_SELL && (!UseVolExpanding || VolBandsExpanding()) && 
			(!UseChaikin || Chaikin > 0) && (!UseH4Trend || H4_Trend == OP_SELL))
		{
			SellEntryBuf[i] = upperPos;
			InSell = true;
			OpenPriceS = Open[i] - spread;
			DoAlert(i, "Synergy: New Sell Signal");
		}

		else if (InSell && AddToSellPosition())
		{
			AddSellBuf[i] = upperPos;
			DoAlert(i, "Synergy: Add to Sell Signal");
		}
		

		// Check for close signals --------------------------------------------
		HA_Closed_Inside_MA = GetHA_ClosedInside();
		TDI_Dir = GetTDI_ExitDir();
		CandleSmallerOrOpp = GetCandleSmallerOrOpposite();
			
		// If all in Short position, signal to EXIT LONG at this candle's open
		if (InBuy && CandleSmallerOrOpp == OP_SELL || HA_Closed_Inside_MA || TDI_Dir == OP_SELL)
		{
			BuyExitBuf[i] = upperPos;
			InBuy = false;
			pipsMade = (Open[i] - OpenPriceB) / Point;
			RunningTotal += pipsMade;

			// Create label for pips made for this trade
			clr = Red;
			if (pipsMade >= 0)
				clr = Green;

			if (!IsEA_Calling)
			{
				name = "SynIndBuy" + DoubleToStr(i ,0);
				text = DoubleToStr(pipsMade ,0) + " - " + ExitReason;
				ObjectCreate(name, OBJ_TEXT, 0, Time[i], upperTextPos);
				ObjectSetText(name, text, 8, "Times New Roman", clr);
				DoAlert(i, "Synergy: Exit Buy Signal");
			}
		}
				
		// If all in Long position, signal to EXIT SHORT position at this candle's open
		if (InSell && CandleSmallerOrOpp == OP_BUY || HA_Closed_Inside_MA || TDI_Dir == OP_BUY)
		{
			SellExitBuf[i] = lowerPos;
			InSell = false;
			pipsMade = (OpenPriceS - Open[i]) / Point;
			RunningTotal += pipsMade;

			// Create label for pips made for this trade
			clr = Red;
			if (pipsMade >= 0)
				clr = Green;

			if (!IsEA_Calling)
			{
				name = "SynIndSell" + DoubleToStr(i ,0);
				text = DoubleToStr(pipsMade ,0) + " - " + ExitReason;
				ObjectCreate(name, OBJ_TEXT, 0, Time[i], lowerTextPos);
				ObjectSetText(name, text, 8, "Times New Roman", clr);
				DoAlert(i, "Synergy: Exit Sell Signal");
			}
		}

[droesparky]

my bad for not answering this in a long time.

Long before there where EA’s we did manual backtest. EA’s in my thoughts are very capable of giving you false security in a system. But at some point you have to forward test. thats the true measure of a system.

As I said it wasnt my system I got it off of another forum, and it does seem to work.

[dipson]

Does this really work, if so i will try it.
Thanks for sharing.

[grayghost]

[QUOTE=branac;29519]

Thank you droesparky for the indicator and template you posted, it makes finding signals a lot easier.[/QUOTE]

Droesparky:

The Synergy indicator shows promise. Based on the chart shown in the previous post, which I have tinkered with below below, I think the entry, continuation, and exit rules could stand some augmentation. The initial entry seems to come too late, the corresponding exit way too soon, the second entry again too late, and the corresponding exit again too late. I looked at other portions of the chart and other currency airs, and the timing problem seems to be general. I suspect that the lateness problem derives not from the Synergy indicator itself but from the way it is used. I am thinking of applying my own rules and using the Synergy as a check on my own method.

I trade breakouts like the one in the subject post, on the daily time frame. I use standard candles for price action, the Ichimoku and the ADX for trend recognition, and MACDH for divergences. I call this method the Breakout (catchy, yeah?). It would not be easily automated, because it involves judgment calls and drawing tools that would be difficult to describe adequately. I do not get many signals this way–maybe one or two per currency pair per year–but they are high-probability, enabling me to risk a larger portion of my account on each trade. So, if you are looking to trade continually, my approach may not be appropriate.

Unlike my Breakout method, the Synergy indicator is quite mechanical and presumably amenable to automation. I should say here that I do not believe that any automated trading method has ever proved profitable over the long run, because conditions change and there usually are complications that can be easily assessed by the brain but not by a set routine. I believe indicators are better used to augment discretionary decisions. However, should you want to develop an EA, the Synergy indicator seems like a good basis.

I will compare my Breakout method with the Synergy indicator and will than propose changes in the way the Synergy is interpreted. In the first chart below, I�ve used my discretionary Breakout method to trade the same chart as shown in the post. Reasons for decisions are given on the chart. Note that I got in earlier than the Synergy did and that I stayed in all the way to the top, adding to the position at one point, and realizing about three times as many pips as did the Synergy.

The second chart is the one shown in the previous post. I do not know exactly what criteria you use to evaluate the indicator signals, but your general approach is obvious. (Do you know where I might find a Synergy manual?) I have left the Synergy entry and exit points on the chart but have traded it using Synergy rules of my own devising, which I have noted on the chart. In this way I was able, using the Synergy indicator, to duplicate the trade I mounted using the breakout method. The criteria I used are noted on the chart.

If the Synergy is used as the basis for an EA, or merely in conjunction with discretionary trading, I suggest that my criteria be tried. Since they are based only on a single chart, they probably would need to be generalized for across-the-board use. But you get the idea.

[nikolaou]

ur synergy method sucks.

why dont you actually try reading how to properly do it, then you would see the utility of the “bollinger bands”

they are actually volitility bands and are quite useful

[grayghost]

ur synergy method sucks.

Perhaps you would know more about that than I.

I took your advice, however, and went looking for the PDF. For those of you who don’t know. In order to download it you’ll have to register. It is 81 pages and is impressive to say the least. I do plan to study the method in detail. I don’t envision using it in place of my current method–if it ain’t broke, don’t fix it–but it looks like an excellent ancillary tool.

[grayghost]

@nikolaou

ur synergy method sucks. why dont you actually try reading how to properly do it, then you would see the utility of the “bollinger bands”. They are actually volitility bands and are quite useful

Nikolou, after going through the Synergy Trading Method manual and trying out the method, I agree that the volatility bands are useful; you want them to be expending when you enter, and you also would like the TDI RSI to be crossing the upper band (for a long entry).

I stand by my comment that Chaikin’s Volatility is not particularly useful. As you must know from reading through the other forum, Derk Wehler tried for a long time to get some utility out of Chaikin’s in his Synergy EA, and he finally decided to delete the Chaikin.

The Synergy does seem a good system for riding a trend, but my trials–admittedly limited–do not convince me that the Synergy, for all its good points, is comprehensive enough to be used as a stand-alone system. Wehler’s recent verdict–after what must have been a humongous expenditure of time and energy in developing his EA–seems to confirm my admittedly thinly-based opinion: “I believed for a long time that there must be a settings combination that would work (and am not convinced it’s untrue), but the tests I have run just haven’t shown much promise. So if anyone finds settings that make good money, let me know and I’ll re-open the case…” There are no other Synergy EAs that I know of, although Dean Malone is said to be contemplating one.

The problem, I think, is that the Synergy Method does not discriminate adequately between trending and non-trending conditions. Heikin-Ashi candles give an immediate picture of the trend but not a longer-term view. The same is true of the Price Action channel. The only Synergy indicator that measures the underlying trend is the Market Base Line, and as you can see in the accompanying chart, this does not provide a very definitive meaure.

In view of the above, I do not think that blindly following the Synergy Basic Method would be a good risk. However, as the chart below suggests, I believe the Synergy could be combined with another indicator–one optimized to follow the trend–and that the two methods would then work synergistically (whoo, I love that word; Ithink I’ll take it to bed some night) to form an excellent trading method. Either the Ichimoku or the ADX woud seem to do the trick, although ADX is the more definitive for this particular purpose. For example, in the chart below, the consolidating price on the left side of the chart broke out of the kumo, indicating the possible start of a trend, but the ADX swooped beneath both DMs and then rose to break 18, which is a more definitive indication of a trend.

Note that the ADX entry signal, confirmed by the Ichimoku, came on the same candle as the Synergy signal. Either method, depending on one’s preference, could be used as the primary one, with the other as confirmation.

During the progress of the trade, quite a good picture of the trend is afforded by the relationship of the HA candles to the PAC and the relation of the TDI RSI to the TSL, the MBL, and the relevant Volatility Band line.

My opinions of the Advanced tools are noted on the chart. Another quote from the other forum (this one not from Wehler): “BTW, I don’t like Advanced Synergy. The basic one is enough for analyzing, and the more indicators you have on the chart, the more you’ll be screwed with them. Dean Malone says that Advanced tools give you more info about the market. But I guess you can get all that info from basic - Heiken Ashi + SMA + TDI.” I agree, with reservations. The Continuation tool is of some use in assessing the progress of the trend, although I prefer the RainGull Spectrum (Google it). I put both on the chart. The Dymamic Support and Resistance, also on the chart, seems also to be of some use in the same manner as a Pivot Point level. I coud not get Range Factor to work.

My overall impression is that the Synergy Trading Method is good as a tool for manually trading but that it is not entirely sufficient unless you combine it with one or more indicators that are more representative of the underlying trend. Also, the piercing of the PAC seems too tight as a stop loss and, as the chart in my prior post showed, is prone to cause a premature exit. The SL perhaps would be better left to another device, such as 1 or 2 ATRs below the kijun sen of the Ichimoku.

Note that the Synergy gave the same exit as my other indicators, although my experience shows that the 100 level of a Fibonacci Expansion, if one can be drawn, should always take precedence. And one additional point: Divergence is the strongest signal in technical analysis. If it says that a change in trend is coming, you can bet your bippy that it is. We just don’t know when, as divergence is a blunt instrument. It can, however, tell you that you should exit on the first indication. A good tool for showing divergence with price is the MADC histogram.

My verdict is that the Synergy Trading Method seems excellent if used manually and conflated with a more trend-conscious indicator.

[Max99]

Good system…I have been testing this around a month now…But I started using real candle sticks because the HA candles seem to give traders a false indication where price is if you dont know what your looking for.

Can you explain? I’ve been using the system very successfully for quite a while using HA candles.

Actually, one guy told me that Dean Malone uses candle sticks but shows the HA because it makes it easier for new traders to understand.

Where did this guy hear that? Dean never mentioned using “real” candlesticks to me.

[Tariq777]

Thanx a lot but how do I get the price action channel?

[jado911]

Hi guys,
I found a .tpl file for this system but it had some other indicatores added. I really like It coz its similar to my system The jado system found here on babypips, what Im trying to do is combine them( this system and jado system ) and pick the trades both system signal , less losses is the goal
so I was wondoring if any one knew where to find the pdf document id like to look over it, and thank in advance.

[Charles_Whitmore]

Here is Indicator with the PDF.

Thanks,
Charles

[zein]

thanks for the indicator, I really like this indicator, and enough to help me in making trading…
i like it…

[finally]

Here is Indicator with the PDF.

Thanks,
Charles

Do you take a buy signal with the first green arrow and a sell signal with the first red arrow?
What do you use for SL/TP?

[leospartain]

Here is Indicator with the PDF.

Thanks,
Charles

You made my day boi thanks very much.