The Murrey Math Trading System - page 72
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Sorry I have been away for so long from this thread. I will try to catch up with all of the great developments and research.
I have a few issues and conundrums with the Murrey Math system, mostly the lack of deep documentation by Murrey. I emailed him after reading his book a few times, and my questions were essentially ignored. Took a training class, same issue.
Forex and Murrey Math are not natural bedfellows. Murrey only uses the NY market forex to trade in his classes, which creates massive gaps every day. In many cases, he also trades end of day data (so he can sell you software upgrade using intraday data).
Murrey has said 3 different things about the fractal size applied to currencies, we don't know if it is base 2 or base 10 and I see his most recent documentation I can find directly contradicting his most recent software. In order to apply 1.5625 fractal to USDJPY, they actually inverted the currency, and then multiplied by 100 which turns 117.00 into 0.008547 displayed and treated as 0.8547.
I had to step away from MM for a little while in order to finish a project for hire, which I completed but was not paid for. (Lesson Learned: be very restrictive with source code you haven't been paid for.)
This morning I pounded out an EA that uses a few simple rules from Murrey in order to trade. (It is profitable now, but adding more conditional restrictive rules = better profits. My first EA without any signals to optimize and it feels weird.) I'm not doing any square in time trades yet. Another person and I are going through all of the murrey documentation we can find and documenting trading rules as a "cheat sheet" that I can turn into code easier.
Anyway, I'd like to say "Hello Again!" to everyone. I'll be reading the history.
I should add, the EA is also an experiment in confirming Murrey Math applied to Forex. Some of the Murrey Math rules say things similar to, "If [end of day] price remains above 8/8 for 3 consecutive days, the new square is the next fractal up." 3 Days later, the market is a mile away. End of Day Data? We don't even have official "market hours" and Volume based approximations are... odd.
I did some neat validation though. I went in and mucked with some of the numbers, and found that if you don't align the murrey math octaves, the effectiveness was the same as random entry. Aligned decently (or near decent) and it looks much better. As I work in more of the conditions, I'm pretty sure the best performance will approach the stated fractal sizes, and I can get some definitive answers. I did a little experiment with optimizing the fractal and scale dynamically and the results were "decent" at finding the MML, but I'm sure more rules will result in optimization finding the fractal and scale.
I'm going to use THAT approach to figuring out the square in time.
Murrey Math
Hi Daraknor,
I am a fan of the murrey math system..is your ea available for download for testing purposes? i would like to see how u coded it..
Thnx in advance,
keep up the good work
shaker
I'm sharing the insights I learn from trying to validate MM in code, but the EA itself is closed source and commercial. Counter to the Russian EA style and typically American EA style, ideas are free and code is paid for.
If you want to look at Murrey Math related code, I recommend Xard777's indicator code because it is clean and works well. All of my EA was written from scratch, but I might release a separate indicator based on Xard's code.
xard777: Has there ever been a template made that shows the five circles of concern on a murrey math chart? Would seem to be a handy thing to have. tia
The 5 circles of conflict are the intersection of the 2/8 & 6/8 MML and MMI lines on charts with the center part at 4/8 MML 4/8 MMI. If you are doing daily trading, the 64 day method is a good way to calculate the circles of conflict.
On the other hand, intraday trading simply has no good answer to the MMI question. We don't know timeframes, we don't know MMI size. I'm writing an EA to answer these questions, and I will definitely share any insights I have. What I hope to do is find the 'automatic reversal times' that the MMI are based on by doing research with EA. (Assumption: once per hour)
When Murrey calculates timeframes, he discards all data outside of the NY market leaving a large number of gaps. (He also claims you should trade these gaps as special cases but I disagree.) He applies stock market mentality to trading forex.
I was considering chopping the day into 6 blocks, and discarding the block holding NY close and JPY open. This leads us into an issue, because Murrey's rules are based on 8 MMI per timeframe. Basically I would just skip the scaling part, and then use a different timeframe for weekly data based on as many as possible lines intersecting. Forex is so much more liquid, some of the rules change.
Once the answers are meaningful (or as part of a 64 day chart) someone can play with OBJ_ELLIPSE and draw shaded circles on the chart.
daraknor
taking on board what you have said do you think it will ever be possible to devise a MM system which will have the circles as a useable method. I only know a little about the system but if you take these as points of resistance could that be the way round it. Probably a daft idea but just a thought
Yes, I do think the circles will be a usable method, but the circles are really just a junction of 2 rules.
Rule A = even MML are Support and Resist Lines
Rule B = even MMI are reversal times
You are simply "more likely" to bounce off of 2/8 support line when it coincides with a reversal time. Again, it is only "more likely" because the behaviors are all based on percentages (which are sometimes not revealed for stocks, and seemingly inaccurate for forex).
I am becoming more convinced that some of these signals are "timing" but not "direction" as claimed by Murrey. Adding more rules from Murrey's book will likely help, but they are presented as standalone trading rules.
Eventually lining up both reversal time and price will help, but I don't think it will be a standalone system. E.g. even if you have circles, I wouldn't use them exclusive to other methods.
enclosed latest ver w/holiday date fix defaulted to 32day timeframe Xard777
Hello, trying to follow and understand this unbelievable work of xard and others and big thank to all of you.
Ps: the update "Timeframe-2007-v0.05" do not work for me (mt4 last build). Message error when i try to compile : comma or semicolon expected.
Is anyone trading the 4-7 rule; 10-12 rule; 5,6,7 rule; 50% rule or 3 times rule?
Is anyone trading the 4-7 rule; 10-12 rule; 5,6,7 rule; 50% rule or 3 times rule?
never heard about these rules.mind to elaborate more?