omit trades during braiding of ma crossovers - page 3

 

You will have to define 'braiding' more precisely, before you can answer. as it can happen if the market is consolidating, and it can also happen whilst trending sharply, depending on your period lengths.

It can happen with low or high volatility.

It just means the price is rising and falling a lot relative to an overall trend (including the flat trend)

There is probably a wealth of information on confirming trade entry with MA cross on the net.

What times of the day does it happen? What sessions are in play? Any plans to look at higher time frames or just plough on :)

 

there all good questions I don't have answers to right now.

 
zmalick:

there all good questions I don't have answers to right now.


As others have mentioned...

You are basically talking about sideways or flat markets with lots of back and forth crossings for the MA's...

One solution is to consider not trading when MA's are within a certain distance from their crossing points. WHRoeder suggested this earlier.

For example - Add a variable for Distance between MA's:

double Dist;

Dist = fastMA - slowMA;

Use that Dist variable in your Buy/Sell formula...

For example...if the Dist < 10....don't trade...or...if Dist > 10...trade.

Find the right pip distance range for the TF's you are using.

This should help you filter some of those flat markets.

Hope this helps,

Robert

 
cosmicbeing:

As others have mentioned...

You are basically talking about sideways or flat markets with lots of back and forth crossings for the MA's...

One solution is to consider not trading when MA's are within a certain distance from their crossing points. WHRoeder suggested this earlier.

For example - Add a variable for Distance between MA's:

double Dist;

Dist = fastMA - slowMA;

Use that Dist variable in your Buy/Sell formula...

For example...if the Dist < 10....don't trade...or...if Dist > 10...trade.

Find the right pip distance range for the TF's you are using.

This should help you filter some of those flat markets.

Hope this helps,

Robert





sounds like what we all started of saying really but it does help so thanks. by the way what are TF's?
 
zmalick:
sounds like what we all started of saying really but it does help so thanks. by the way what are TF's?

TimeFrames
 

zmalick: Have you got any experience with the ATR indicator and the braiding KalebC.

i wonder if there is certain price behaviour prior to brading, ma's definitely seem to flatten during the clusters.


I don't yet. I mean, I've briefly tried a breakout strategy somebody showed me using ATR to determine stops/limits in pending orders, that's the extent of my use of ATR at this point.

I'm still working on the script that will create a backtest database of indicator data, and I expect the ATR to be useful somehow.

It would be neat to be able to predict MA braiding, or minimal price action. My guess is the best we can do for that is to pay attention to session times and holidays. Other than that, I think the other two things we can do is to detect it happening early and wait for it to end and to pay attention to big movements that are likely to be followed by periods of consolidation.

Reason: