The SeaHorse Shuffle Adventure Trading System

Trading Systems Free Forex Trading Systems
1

He who makes it gets to name it :slight_smile:

Seriously but :56:

This is a simple idea that should work on all pairs

entry Buy if:
entry on start of bar.
1st use Macd on 1 hr TF
Macd is below 0,
also
on the H4 TF
if the current price is bigger than current bar LOW plus x pips (0.005 eg)

Simple hey!

So simply
macd below 0 on 1 hr tf
& H4 bar is on its way up. if H4 bar is going down dont buy.

Sell is reverse.

exit. I am using the reverse signal. But it could definately be improved.

Here is a screen Shot of live trading (demo) as of 2 mins ago.

3 weeks and account is up about 17000 pips.

pips picture.jpg700Ă—411 42.2 KB

2

17000 pips in three weeks? yeah right

3

The reason the pips are so high is for 2 reasons.

  1. trading on multiple pairs.
  2. I trade it like a swing trade system. So I will have multiple buys and sells open until I get an opposite signal.
4

Continue, don’t be discouraged, lets see…

5

I have a thick skin. I would be skeptical of me too!

Look I only posted this to win the prize.

just kidding! (or am I ?? :35:)

I thought seeing there are alot of newbies here they might want to know what works and what dosent. I am a prolific obsessed ea writer. I do it more as a sport then to win money. Over the time I have been doing this I have learnt heaps about forex and ea’s. I am still learning and I am by no means an expert on forex. I learn by trial and error mostly and by thinking outside the box (being creative).

The main reason I posted this system is not because it is the best, but because of what you can learn from it. It is the basis of many good systems. It is easy to understand and easy to see how it works, easy to trade manually, easy to see the problems it might face.

The truth is that the ea I wrote for this system might fail. A majority of my ea’s do. They backtest well, but forward test horribly. It is the nature of the business.

6

sounds nice

now please, for the rest of un plain english speakers, rephrase that in a cleaner gramatical and reasonal manner :slight_smile:

i d be willing to give it a shot

dont use short cuts and abreviations that much, except for currencies and indicators

7

Please, simpler rules better explained, looks good otherwise.

8

Hi Aztec,
Ok I will try to make it simpler. I hope i dont complicate it more.

1st
We use the MACD indicator.
MACD is based on moving averages as are most indicators.
A Moving average looks back in history X number of bars and returns a value of the average price. The problem with this is it lags or gives you a result that is based on the past not the present.
MACD returns a positive value if the trend is up and a negative value if the trend is down.
If you try to trade with this indication alone you will probably be too late in your trade as the lag is so great the trend probably has reversed.

With this system we are using the lag effect in MACD to trade the opposite trend.
If MACD says trend is up - we sell.
If MACD says trend is down -we buy.

Obviously the problem with this is what happens in a really long trend? We are buying or selling in the wrong direction. If your EA is using this as a trigger then you are probably going to lose money.
If you are trading manually, you know to stop buying/selling. Or even cut your losses if it is not looking good. Really bad news for example.

In post 1 you can see the MACD indicator and the Buys are only when the MACD is below 0 and the sells are only when MACD is above 0.
You can also see the lagging effect. the trend has reversed, but MACD is still Below 0

2nd High/Low on H4 Bar.

I will attach a pic of the same EU graph but on the H4 time scale.

First of all you notice on the H4 Graph that the Buys are at the Top to the H4 Bars and the Sells are toward the bottom of the H4 Bar.

What we are doing here is looking at the current H4 bar and saying. Ok, we will buy if the price is x number of pips above the bottom of the bar.
So if it is a really small bar we will not buy because our requirements are not met.
Only if the price has risen suffeciently on this bar will we buy.

What dose this do?
Good question.
What it does is - if it is a severe trend the price will not rise enough to trigger the trade (hopefully).
Also if it has risen enough it might be the reversal we are hoping for.
It also forces us to trade with the trend. (sort of)
Again it is not perfect, but it works.

The other thing to notice on the H4 chart is that there are quite often a group of 2 or 3 trades together.
Our other condition, which I think I forgot to mention earlier is our next trade has to be x pips higher then the first one for each H4 Bar.
So the buys will always be going up, and the sells always going down.
Dont forget we look to trade only at the start of the 1 hour bar, so we only take the trade if the H4 bar is higher then the previous buy price.
This is reset every 4 hours as a new H4 bar is opened.
The new H4 bar can not be x pips above the bottom or x pips below the top, so we only can trade every 3 hours. You will never see 4 trades in a row.
On the H4 bar we are trying to trade with the trend.

Both the Macd and H4 high/low bar conditions have to be met to make the trade.

MACD H4 Pic.jpg700Ă—396 30.8 KB


MACD H4 Pic zoom.jpg700Ă—396 20.8 KB

9

Ok here are some stats over the last 3 weeks demo trade.

macd ar info.jpg700Ă—468 38 KB

10

Thanks it is a lot clearer now

11

I’d like to help you refine your system.
Let me ask you a question:
The Macd I am clear on.
Can you clear up exactly what you are looking for on the 4hr. bar and the 1 hr. bar in order to enter the trade.
I didn’t quite follow what you meant to look for on the 4 hr. and 1 hr. bars in order to enter the trade.

Thanks,
Michael

12

1H= 1 hour chart
4H= 4 hour chart
Ok,
Every hour, we look to trade. So every Hour at 1.00, 2.00, 300, 4.00, etc go to your computer and check the following.

on the one 1H chart, we simply look to see if MACD is up or down.
Up we have a 1H sell signal .
Down we have a 1H buy signal.

Then we move to the 4 hour chart.
Is the 4 hour bar above/below our required number of pips to take the trade?
If the current bar is x pips or more up from the bottom of the bar we have a H4 buy signal.
If the current bar is x pips or more down from the top of the bar we have a H4 sell signal

If we have a 1H buy signal and a 4H buy signal we BUY
If we have a 4H sell signal and a 4H sell signal we sell

13

Michael,

Refining is good.

Maybe we should look at how to write the conditions into an EA as we cant be at the computer every hour?

Once we have the code for the basic conditions we can look at improving it.

14

Goldylox,

HOW MANY pips, on the 4 hr. bar, must the price be from the bottom to get a buy signal?
HOW MANY pips, on 4 hr. bar, must price be from top to get a sell signal?

Thanks,
Michael

_ There are old traders and there are bold traders but there are no old, bold traders.

15

Finally,
The number of pips on the 4 hour chart is not all that important. Just make sure it is heading in the right direction.
Tell you the truth I did look to see what my settings were and found an error in the code. (i saw it when i was printing the chart picture) So the number I was using is useless information. It didnt matter that much as the real key to this system is the MACD oscillation.

I realise looking up the 4hr chart is a bit confusing, so there is no reason it cant be replaced by something easier.
I was thinking either using:
the highest and lowest price over 4 hours ie. highest or lowest price for the last 4 bars.
or
number of white or black candles in a row ie. last 4 bars are all white or black.

The idea is to just help us confirm there might be a change in direction.

16

Can you share the EA code (or pseudo code) OR perhaps annotate your charts? I was hoping your response to finally regarding the [I]X number of pips above or below[/I] would fire some synapses but …

Maybe its just me, but I am NOT following what you are trying to do here.

17

What dictates your SL/TP?

18

So if I understand this correctly, if the MACD is above “0” then it would give us a sell signal. So then we look at the 4 hour chart and if it is above zero by more than the 1 hour chart is above, then it is a sell, correct? Vice versa, if the MACD is below zero on the 1 hour chart, we look to the 4 hour chart to see if it is also below zero (by more than the 1 Hour chart). Then it is a buy, however this could mean that this is a full reversal and therefore if it doesn’t behave the way we think it should and it actually does head in the direction the MACD is saying it is, then we cut our loses.

I get the lagging part of the MACD and how, a lot of times, if you move on a pair when you get a positive direction, that particular movement is already finished. Just seems strange to trade completely against the indicator…but then again I have a lot of trades that go the opposite direction I thought they would based on the MACD, RSI and other lagging indicators. :slight_smile:

19

to answer a couple of questions,

Use no stoploss or takeprofit for now. (shock horror!!)

Also dont get bogged down in the indicators or settings.

Think of it as an oscillator based on Macd. Up we sell, down we buy.

The trick is to try to buy at the bottom and sell at the top. That is why we are filtering the Macd results with something that will give us indication of true direction.

Of course you could take the other approach and try to follow the trend, but that is for another thread.

I will post the code soon so you can see, I am just a bit busy. I am looking for a free EA template too if anybody has a good one.

20

Ok here is the guts of the code. I have changed it a bit to make it easier to understand. I did away with the H4 bars. It is just looking at the Highest and lowest on a H1 chart.

extern int MacdFast=15;
extern int MacdSlow=28;
int MacdSma=12;
extern double Movement=0.3
extern int HistoryBars=4;

double macd=iMACD(NULL,0,MacdFast,MacdSlow,MacdSma,PRICE_CLOSE,MODE_MAIN,Shift); // MACD indicator returns value for time frame your ea is attached to.
double highcurrent=High[HistoryBars];      //High Value of the last x number of bars
double lowcurrent=Low[HistoryBars];        //Low Value of the last x number of bars
double firsthigh=iHigh(0,NULL,0);// High Value of the first bar we are testing
double firstlow=iLow(0,NULL,0);  // Low Value of the first bar we are testing
  if(macd<0      
     && firsthigh<highcurrent-Movement)
     {
     return(1);  //We Buy
     }
     
  if(macd>0 
     && firstlow>lowcurrent+Movement)
     {
     return(2);  // We Sell
     }

Note the movement is in Pips, so 0.3 might work with JPY pairs, but 0.003 is equivelent for other pairs.