View Full Version : How to Build a Trading System around these Lines
Hello everybody,
I am looking for suggestions/Ideas on which I will add to these lines from the picture to make system principles.
I.e. if you had to build a system about these lines would you go about it?
Http://www.emerald-king.com/EKLines.PNG
On a Side note when an admin is reading this How do I get my title fixed? It should be Emerald King ( currrently I am overlooking the L )
Thanks for the Time and Effort
EK
And I also would say you ought to wait for a retrace to the speediest and use the slowliest for your stop.
Have you back tested a simple system based on crossing of the two lines? Seems as though it would be quite profitable.
When quick line crosses over slow line, buy. When quick line crosses under slow line, sell (or undo ).
I do not think I'd use a system based on price crossing or touching the quick line. Seems like it may cause overtrading.
If you care to share the formula that generates the 2 lines (moving averages?) I or others here can back test this. While the results look impressive for the period of time of the snapshot of the chart, farther back testing may show various results.
It may also be back tested using profit exits before the lines undo, with fitted prevent loss orders.
Perhaps you have tested a very simple system based on crossing of the two lines? Looks like it would be quite profitable.
When quick line crosses over slow line, buy. When quick line crosses below slow line, sell (or undo ).
I do not think I'd use a system based on price crossing or touching the quick line. Looks like it might cause overtrading.
If you care to explain the formula which generates the two lines (moving averages?) I or other people here can back test this. While the results look impressive for the time period of your snapshot of the chart, further back testing may prove different results.
It can also be back analyzed using profit exits before the lines reverse, with fitted stop loss orders.
CarlC no no no, consider where the price is when those two lines cross. You are not buying or selling WHERE that they cross, you're buying or selling WHEN that they cross. Massive difference. And those.
Aicccia,
that I DO know where the price is when the lnes cross, and I am still standing by my view that trades must reverse if the lines cross. Unfortunately EK or someone changed the resolution of the chart to where it is barely legible now. Otherwise, I'd take some opportunity to really go bar by bar to see how my theory worked.
It is obvious that the blue and purple lines are some kind of typical of the 1 hour price pubs, only because they follow price. Now whether they are easy moving averages, or the consequence of massaging price or volume pubs based on some intrie cosmic equation, then we won't know until EK tells us the composition of the lines. I don't know of any outside information aside from price or volume that will correlate so closely with the price action of the chart.
That being said, in my view the grim line follows too near price to exchange off the 1 hour chart. But that is a question of personal taste. Some traders want to exchange every wiggle, some are more individual. Some might use both, putting to a multiple contract place and legging out based on short and longer term signals. My doctrine is.
Hello Everybody,
I am searching for suggestions/Ideas on which I can add to these lines in the image to create system rules.
I.e. if you had to build a system about these lines would you go about it?
Http://www.emerald-king.com/EKLines.PNG
On a negative notice if an admin is reading this How do I get my name repaired? It ought to be Emerald King ( currrently I am missing the L )
Thanks for your Time and Effort
EK
blue line = B
violet line = V
1. If B is greater than V goto step 2
if B is less than V goto step 3
if B = V goto step 1
2. If B is greater than V and space between B V of current candle is greater than space between B V of earlier candle then go long else return to step 1
3. If B is less than V and space between B V of current candle is greater than space between B V of Prior candle then go short else return to step 1
You should add a candle count or pip worth prior to closing any orders
I hope this makes sence
Hello Everyone,
Thank You for the Fantastic suggestions. The admins deleted my very first pic because it was too big and I made it smaller. On Monday I'll post better pictures that show the fantastic simple setups and the whipsaws. I am trying to work out the best way to cut back on the whipsaws without missing out on the great moves.
Thanks for this forum and also to its members that donate.
EK
Emerald
Those lines Sounds like FATL or SATL?? Am I incorrect??
I think it's FATL and SATL. The crosses look like good signs, but I suspect you would get whipsawed to death in a flat market only trading these. Trading when the fast line crosses the slow line are the standard egy with only the two lines. Maybe try adding ADX as a filter. There are other specialized indiors which work in addition to these lines to make the complete system.
Hello Everyone,
My Goal is to build a system which utilizes precise rules for entry and exit. I would like a totally mechanical system that I can codify and turn into an EA to operate on Metatrader hands free (Mostly Hands Free).
I'm not searching for the Holy Grail; I'm not seeking to build a EA that needs optimization to possess Positive Expectancy. I want to build a system that's robust enough to operate on multiple markets, without optimization and without having constant observation.
My Lines are propriety but the nearest I have seen come to that which I have is your StepMA from Igorad from Forex-Tsd forums.
I am attempting to build a system with these lines since the core and to grab trends according to the system whilst limiting drawdown.
Thank you for your Time and Effort
https://forexintuitive.com/attachments/1527450767.jpg
https://forexintuitive.com/attachments/1527450768.jpg
I am not going to release my own indiors to the public
Thanks for you're time and effort.
EK
Hello Everybody,
My Goal is to construct a system which uses exact rules for entry and exit. I need an entirely mechanical system that I can codify and turn into an EA to operate on Metatrader hands free (Largely Hands Free).
I am not searching for the Holy Grail; I am not seeking to construct a EA that requires optimization to possess Positive Expectancy. I want to construct a system that's robust enough to operate on markets, minus optimization and without needing continuous monitoring.
My Lines are propriety but the nearest I have seen come to what I have is your StepMA out of Igorad out of Forex-Tsd forums.
I am attempting to construct a system with those lines as the core and also to ch tendencies according to the machine whilst restricting drawdown.
Thanks for your Time and Effort I don't know of any. I have never stumbled across a mechanical system which operates on every instrument. Optimization is not necessarily a bad thing, BTW.
Also, you have to be cautious with these StepMAs. You have to realize until the timeframe which they are set on comes to an end they don't paint.
If you are not planning to discharge your indiors, Emerad King, how can anyone help you? To everyone else, those are multi-level moving avarages, probably a mean of SATL in a multi interval, like the one I have attached. You must place both SATL and another one into habit indiors, and it's a little squirrely. I doubt those being displayed here would be all that first. These are not mine, a guy over at TSD came up with the idea...
https://forexintuitive.com/attachments/1527450774206389539.mq4
https://forexintuitive.com/attachments/1527450775242836158.mq4
I'd trade if the price is on the outside of this line.
I'm not going to release my own indiors to the people
Thanks for you're time and effort.
EK Then, don't ask the public it is opinion - and surely - not ask for help.
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