Thanks HappySingh for the feedback.
By having a open discussion, we are getting insights and ideas from traders that we may not otherwise consider. I have analysed hundreds of charts closely looking for insight into different indicator based system. The obvious conclusion is that money can be made in a trend, and good money management and going big (with strict discipline) when the trend changes is the way to make good amount of money.
One thing that I learnt from studying about MA's is that we will have to use some filters, especially when the 20MA's turn flat (this is especially so after a big trend) It is better to be out of the market to avoid choppy situations and whipsaws. Entries as per MA's should be considered when the MA's slope upwards or down after being flat after consolidation. We will have to define some rules for this as we go along.
It is good to have this discussion in this thread and LIVE is so that we don't do the perfect 'postmortem analysis' which is 100% right always. So tracking the system live will help us to understand the nuances of the system and learning better.
Will post XL sheet for 20SMA so that we can compare this with Supertrend and track the same till 31st Dec. And for better comparison, will have to consider taking yesterday's entry signal. Will update the tracker later.
Thanks for your views.
BTW, just to clarify, I am no guru. For me and for us all THE GURU IS THE MARKET, which we all must respect follow.
By having a open discussion, we are getting insights and ideas from traders that we may not otherwise consider. I have analysed hundreds of charts closely looking for insight into different indicator based system. The obvious conclusion is that money can be made in a trend, and good money management and going big (with strict discipline) when the trend changes is the way to make good amount of money.
One thing that I learnt from studying about MA's is that we will have to use some filters, especially when the 20MA's turn flat (this is especially so after a big trend) It is better to be out of the market to avoid choppy situations and whipsaws. Entries as per MA's should be considered when the MA's slope upwards or down after being flat after consolidation. We will have to define some rules for this as we go along.
It is good to have this discussion in this thread and LIVE is so that we don't do the perfect 'postmortem analysis' which is 100% right always. So tracking the system live will help us to understand the nuances of the system and learning better.
Will post XL sheet for 20SMA so that we can compare this with Supertrend and track the same till 31st Dec. And for better comparison, will have to consider taking yesterday's entry signal. Will update the tracker later.
Thanks for your views.
BTW, just to clarify, I am no guru. For me and for us all THE GURU IS THE MARKET, which we all must respect follow.
Hi
A trader starting with a simple system, trying to optimize the performance, usually starts making it more and more complicated
In the above system without introducing a new indicator we can make it quite complex so much so that the number of choices becomes so high,
resulting in trader freezing up at execution . . .
For e.g. let us consider the degrees of variability . . .
1. Play with the MA Length
2. Instead of just the close above/below let the complete bar clear the MA
3. Instead of MA of close lets introduce the MA of H/L for Long/Short
4. Play with various combinations of Stop Loss / Profit Stop Values
Now do all the above with different types of MAs
Of course, if someone can write an AFL for all of it then testing everything becomes so much easy . . . soooooo easy to the extend of the original idea becoming useless.
We all talk about KISS but when it comes to trading . . . . some how our mind tricks our-self into thinking that KISS = more complex the better :thumb:
When I write code for others, many times I wonder if I am really helping them out or just it ends in making them more confused . . .
Anyway, I have faith in DSM that he can steer around his followers on this thread in-spite of the multiple options available and focus on trading the markets . . .
Here's the code with 4 different trading logic's and variable length, and Stops with optimizer . . .
Last few months on 30 Mins, MA 5-10 seem to perform better,
trading logic 2 & 3 do better with smaller values of Length and
Logic 1 does better with higher values of Length
Cheers
Happy
A trader starting with a simple system, trying to optimize the performance, usually starts making it more and more complicated
In the above system without introducing a new indicator we can make it quite complex so much so that the number of choices becomes so high,
resulting in trader freezing up at execution . . .
For e.g. let us consider the degrees of variability . . .
1. Play with the MA Length
2. Instead of just the close above/below let the complete bar clear the MA
3. Instead of MA of close lets introduce the MA of H/L for Long/Short
4. Play with various combinations of Stop Loss / Profit Stop Values
Now do all the above with different types of MAs
Of course, if someone can write an AFL for all of it then testing everything becomes so much easy . . . soooooo easy to the extend of the original idea becoming useless.
We all talk about KISS but when it comes to trading . . . . some how our mind tricks our-self into thinking that KISS = more complex the better :thumb:
When I write code for others, many times I wonder if I am really helping them out or just it ends in making them more confused . . .
Anyway, I have faith in DSM that he can steer around his followers on this thread in-spite of the multiple options available and focus on trading the markets . . .
Here's the code with 4 different trading logic's and variable length, and Stops with optimizer . . .
Code:
Len = Optimize("LENGTH",Param("LENGTH",5,2,95,1),4,14,1);
e = MA(C,Len); eH = MA(H,Len); eL = MA(L,Len);
C15 = IIf(e > Ref(e,-1),colorBlueGrey,colorRed);
Plot(e,"MA-C",C15,styleThick); Plot(eH,"MA-H", C15, styleDashed); Plot(eL,"MA-L",C15,styleDashed);
Cond = 1; Cond = Optimize("Condition",Param("Condition",1,1,4,1),1,4,1); // Choose Trading Logic
if (Cond==1) {Buy = e > Ref(e,-1) AND C > e; Sell = e < Ref(e,-1) AND C < e;}
else if (Cond==2) {Buy = e > Ref(e,-1) AND L > e; Sell = e < Ref(e,-1) AND H < e;}
else if (Cond==3) {Buy = e > Ref(e,-1) AND C > eH; Sell = e < Ref(e,-1) AND C < eL;}
else if (Cond==4) {Buy = e > Ref(e,-1) AND L > eH; Sell = e < Ref(e,-1) AND H < eL;}
Buy=ExRem(Buy,Sell); Sell=ExRem(Sell,Buy); Short=Sell; Cover=Buy;
PlotShapes(Buy+2*Sell,colorWhite,0,IIf(Buy,L,H)); SetPositionSize(100,4);
//ApplyStop(stopTypeLoss, stopModePoint,Optimize("StopLoss",Param("StopLoss",20,10,100,10),10,60,10));
//ApplyStop(stopTypeProfit,stopModePoint,Optimize("Profit", Param("Profit",200,40,500,10),50,500,50));
trading logic 2 & 3 do better with smaller values of Length and
Logic 1 does better with higher values of Length
Cheers
Happy