Dynamic Fibonacci Grid, Fx Money Map - page 6
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Hello, Kermit1964
I am neither the author of 4pma, nor a code expert. I like the idea of trading with dynamic fibo levels(I don't know why they are called fibonacci--the only thing to do with fibonacci is some of the ma lengths, they are fibo #'s) That is why I am working on developing a successful automated trading system, that will trade intraday. Typically, it will hold positions for no more than 4 hours, and most trades will be closed within 2 hours. I have a version of my ea that finally looks like it will be successful.
1648385 2006.09.06 12:52 buy 1.00 usdcad 1.1133 1.1096 1.1146 2006.09.06 14:07 1.1096 0.00 0.00 0.00 -333.51
1649400 2006.09.07 09:26 sell 1.00 eurusd 1.2803 1.2830 1.2786 2006.09.07 09:58 1.2786 0.00 0.00 0.00 170.00
1649463 2006.09.07 09:55 buy 1.00 usdchf 1.2374 1.2351 1.2380 2006.09.07 11:35 1.2380 0.00 0.00 0.00 48.47
1649480 2006.09.07 09:58 sell 1.00 eurusd 1.2782 1.2798 1.2751 2006.09.07 12:07 1.2751 0.00 0.00 0.00 310.00
1651096 2006.09.08 11:52 buy 1.00 usdjpy 116.52 116.26 116.69 2006.09.08 13:43 116.69 0.00 0.00 0.00 145.67
I just run the ea for a few hours for the past 3 days. We will see how it does next week. I will not be posting details of the ea until it is completely finished. The first trade was lost after the BOC interest rate statement--that is why it is important to close open positions before major data releases.
Now, back to your questions. I posted how to modify 4pma to get the same(or very similar values--due to data feed differences between platforms) values as MoneyMap. I guess they have set the fibsr shadow values at 8, 11, 16, 27, 43 etc. to make the indicator suitable for intraday trading.
I have modified 4pma for my trading to the following:
ma length: 21, 34, 55, 89, 113, 144, 233
fibsr shadow: 13, 21, 34, 55, 89, 144, 233
I am looking to make between 17-18, and 29-30 pips per trade. The S/L typically will be about 40 pips away originally, but then it normally moves closer to my entry, so if I lose, I lose about 25-30 pips on average. In the above usd/cad losing trade, the price reversed quickly. That is why I lost 37 pips on that trade.
Can you use 4pma to trade long term. Sure you can. The problem will be that you will have to have a loose stop(maybe 70-80 pips), to take care of the minor retracements. Therefore, you need to either have sufficient capital, or trade something like 1 mini lot. I will play with the indicator to see what I get. I will post a modified version of the indicator and briefly explain how to use it to trade. Then you can test the indicator and strategy yourself.
Hello,
Just a day or so ago I came across this thread and decided to do a little research on the MoneyMap clones and how to trade them.
Below is a portion of a Yahoo post by Todd Geiger. And is found is in the "[MT_E and I] FX Money Grab, er, um, Grid" thread. It talks about a MoneyGrid/Grab indicator that I believe was improved upon later to become the 4 MA spoken of here. What is noteworthy is what the numbers and horizontal lines mean and how to trade the indicator.
"The dark green prices, these are the slowest (longest period, eg 233,144, 89 period) sma's for each of the 4 time periods.
The light green prices are the mid length sma's, 55 & 34.
Small print, white prices are the 21 and 13 sma's for each time period. These represent the "road blocks" from the money map/money grid demo. If Price is above these, on all four "lanes" (columns), the market is assumed to be upward bound, if below, and the key sma's are red, then the market is assumed to be downward bound.
3 is an approximation of the mystical "Dynamic Fibonacci" levels, which after looking at their demo's and price charts, seem to be fixed pip shadows of the moving averages for each time period.
Well that's it. This is my first real indicator, if it works, great, if it doesn't, oh well...what do ya want for nothing?"
Another post:
"Strategy: If most of the S/R prices are red, sell, targeting at least 20 Pips to trendline represented support on at least 2-3 columns.
If most of the S/R prices are green, buy, targeting at least 20 pips to trendline represented resistance on at least 2-3 columns..."
Gordon Gekko wrote:
Its very simple. Look at it like 4 lane traffic. If there is a lot (red vaulues) resistance then you will not go LONG, then SHORT will be your choice because you will see there is very litle traffic below the price line, no support (green values) visable.
If both are above and below the price line then do nothing and wait till traffic clears up.
I used this system this morning and made 2 successful trades. I think this a very easy indicator and reliable one to use."
Note:Forex Money Map threatened legal action against the author of the thread and by doing so pretty much shut it down. Too bad, so sad.
fab4x in the MoneyTec, "forex fibonacci grid??" thread (post 77) says this:
"Horizontal lines are fibo levels and numbers are MA support/resistance levels. The gap is the spread difference."
There really is a lot of MoneyMap clone info to be found in the forums. What I have discovered is that the majority of it has some, but really very little negative things to say about the system in general and the basic algorithms they all share. It's actually pretty positive. See for yourself, do a little Googling.
Very good. The above post pretty much explains how I use the indicator to trade.
Kermit1964
I am ataching the modified 4pma that should work for day trading. Trades will typically take between 2-4 days to close. S/L will be 80 to 100 pips away, adn t/p will be 50 to 85 pips away. I have a screen shot of eur/usd attached as an idea for a trade. you trade when you are below(for short setups) the bundle of sma's in all 4 time frames, you are below 2-3 fibsr shadows that have similar values. Your target is the next fibsr shadows that are similar in at least two time frames. You only wanna trade between lcf and lo1, and between lo1 to lo2(any timeframe) for long trades, and hcf to hi1, and hi1 to hi2 for short trades. anything beyond that is a losing trade. Just watch the indicator and the market at least once a day , and you will understand what I am talking about.
i will have my ea running non stop next week, so we will see what happens, I will post the results, Friday nite.
New thread
OK, let's start a new thread called "how to trade with 4pma" or sth along those lines. This has turned into a total mess of ideas, questions, answers, etc.
re; mpower, hello!
OK, let's start a new thread called "how to trade with 4pma" or sth along those lines. This has turned into a total mess of ideas, questions, answers, etc.
---------------------------------------
mpower: hello!
Long ago, I wrote you to know about this 4PMA indicator.
It's nice to know finally, you decided to intiate this thread. It will certainly help many members of this forum.
Recently, I also asked some one make Ea for this indicator.
Very good intent, indeed.
Thank you!
Sincerely,
Rama
?
ignore please
is it advisable
Attached is a Word doc with my trading strategy. It works extremely well if you avoid data releases. It should work with 4 period MA since it is constructed in the exact same way--7 fibonacci momentum lines, 7 fibonacci bands. I refer to L1, L2, L3 for the moneymap. They correspond to MA1, MA2, MA3 in 4PMA. Now, the values of the lines and bands in 4PMA and moneymap are different, but that should'n matter. I guess the difference comes from the difference in data feed--1-3 pips.
The problem to me with trading with 4PMA is that it is very hard to me to see where MA1, MA2 are especially on the shorter time frames, or when they are within 1 pip of each other. Is there any way to check the exact values?
I am dying to create an expert advisor with my strategy applied to 4PMA and see how it does on the demo. I have high hopes... I am new to Metatrader, but I am going to start the lessons tonight. Any help is welcome.
Thanks a lot for your help folks. I was able to attach 4PMA easily.i new to the grid setup but after going through moneymap and their tutorials and webcasts, i feel convinced to buy the software.
as a veteran do you think itsadvisable to do so.
if not, why?
can i get somthing of equal benefit anywhere?
i hear of mt4............. wahts it all about.
regards
Money Map .EX4
DO NOT BUY THIS SOFTWARE. Its nice and neat, but its not nessisary. You can use the MQ4 version (I dont know who wrote it..but whoever did I appreciate it) This version is not as neat, but it shows all the pertinent information. Ill post again and give instructions on how to use it if you need it. One note is that this is an .EX4 file and you have to save it directly to the indicators file for it to work, you cant compile it in the editor. Enjoy!
Whoever is interested in this method may like to try the attached indicator.
It is more accurate and close to the original. I also atached a gif to show how it looks on the chart.
Doji