GridMACD - page 5
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Hi Pengie and fellow traders. When i did my search for GridMACD threads i was in the Elite section and this one did not show in the search. I am going to repost something from over there that i've incorporated into my take-profit rules/model in live account with success. It is the idea of taking profit off at certain mathmatical levels as shown below. I have no idea if something like this could be workied into this seemingly great EA but i put the thought out here for you all to ponder and discuss?
~~~~~~~snip and paste from my post in Elite section today:
On Take Profit? As i'm new to the GridMACD and don't know what it's trading signals are exactly, other than deducing from the name it takes some info/direction from MACD settings i have a thought. And this is not original to me, it goes to Vegas and crew.
The following is not an entry. We are not using this moving average cross for anything other than a point in price/time to suggest possible profit targets.Before you think i've lost it. Place the following onto a 30m chart:
55ema with the following "levels" as + and - 21,34,55,89,144,233
Then place a 13ema all prices can be set to median if desired.
OK, now place a vertical line marking the crossing of the 13ema and the 55ema. Look where the price stalls. Scary accuracy! Lots of pips to be taken. I think if this could be coded into the EA we would really have a nice logical and repeatable way to take profits!
Again the idea would be to include in the TP part of the code the above idea of when the 13 crosses the 55, the code marks this position in time and price. Then it looks from central 55ma up and down the extensions at the moment of crossing and marks the price levels at those extensions. Then, when price reaches the 34extension, the SL is moved to the 55tunnel, when price is at the 55ext SL is moved to the 21ext, when price is at the 589ext SL is moved to the 34ext, and then the last stop would be to now place the trailing stop and let the remaining lot(s) ride. Trailing stop loss could be set one price has exceeded say 30 pips or so from price, or this could be user definable also? Maybe this would be nice and over time we will get optimal settings for the trailing stop per pair traded. We could also have different models just like Vegas does? Say look at the above for the EUR/USD 34/55/89/144 and then for the GBP and others with more volatility, have first TP at 55ext then 89/144/233??
Now of course none of the above works if GridMACD is a counter-trend trading EA, but it does not appear to be trading contra-trend? The above also assumes that the GM-EA has placed it's trade in the direction of, and prior to, the cross of the 13/55 ema?? Maybe someone else knows what is actually going on behind the scene on position entry and can shed some light?
Just thinking while i type. If i knew how to code i'd do it and post it for forward demo testing !
~~~~~~end of paste.
Cheers,
Thom
Hi accrete,
Thank you for your contribution. Very interesting idea you have got here. This is certainly worth looking into to improve GridMACD. As you know, GridMACD does not trade that often so we need quite a long time to do a proper forward testing. That is why I have not made any updates yet.
The idea of a trailing stop is good. Initially when I was developing GridMACD, I tried using a trailing stop but in the end, I abort that idea because it seems to reduce profits quite substantially. But I guess I could relook at that idea.
With the several months' worth of forward testing data, I should be revising GridMACD before the end of this month. Maybe it will be a small revision. Maybe it will be a new EA, that is no longer based on MACD. Not sure yet...
Well, I'm sure that trailling will improve this EA. The only fact that I dont know is how much to set on trailling. I think it should be somewhere around 50-60 pips. But we need to test before. And this value is for EUR/USD only.
Pengie, thank you for your kind reply. I am genuinely excited about this EA as it appears to be very simple in design (maybe less to break?), and fits within my desire to trade the trends.
I was able to grab over 650 pips today with a draw down of about -25 pips if i close out as of this post at 2200 Pacific time Thursday eveninng based on trading off 1m charts with default settings on four majors. Granted i would probably trade in a live account only w/EURUSD for starters and just increase lot size keeping within good MM.
Pengie, i would not ask you to share anything that is secretive or proprietary in nature, but i was wondering what exactly, if you are willing to share, the MACD is doing for this EA? Is it closing out all trades that are positive when it crosses?
Below is a picture perfect example of what i'm talking about on the fibo extensions off the 13/55ema cross. Yellow circles mark the spot directly down from the cross at the various extension levels. Now this was really freaky and i don't know what is going on behind the scene on the GridMACD, but look how it took all profits and closed all trades at exactly to the pip of the 89 extension ! scary. I think there is something here to examine and ponder.?
Cheers,
Thom
When i sat down at the trade station this morning before the NY open i was pleasantly supprised to see the GM-TS version had closed out its first set of trades and i wanted to post a chart with the fibo extensions showing what took place, with a pondering below the image:
Now what i'm again puzzled at is that GM closed out all trades yet again right to the pip of one of the common fibo extension take-profit areas as seen above with the circled exit. This is at the 310 extension down from the most recent 13-55 cross. GBP will often go the distance but shows signs of weakness around these extreme levels most times. Certainly a heads up if trading live.
More food for thought. Still working off 1m charts on EA attachment, but next week i will begin testing in ernest on 1,5,15,39,60m charts both GM and GM-TS with various settings all running concurrently on a standalone station.
Cheers,
Thom
Pengie can you please tell us how this EA is contructed? I believe that this will help a lot
I have a question on this EAs availability for public use/post. I am very involved in a group that tests EAs and they are looking for alternatives to the current batch of EAs that perform well in ranging markets, and i've mentioned that i had begun testing on an EA that seems to perform well during trends. My Q: Can i share this EA with them, or do they need to be Elite members only?
I know way back in May you posted the below, just wondering if it is still in effect:
Thank you in advance.
: ) Thom
Yes, this EA is still for Elite members only.
I have a question on this EAs availability for public use/post. I am very involved in a group that tests EAs and they are looking for alternatives to the current batch of EAs that perform well in ranging markets, and i've mentioned that i had begun testing on an EA that seems to perform well during trends. My Q: Can i share this EA with them, or do they need to be Elite members only?
I know way back in May you posted the below, just wondering if it is still in effect:
Thank you in advance.
: ) ThomThanks for your reply Pengie. I've let the gang i chat w/know that it's a hush hush thing, it would have been nice to have that many more forward testers involved. So goes life at times.
Back to the EA, i know you've been asked in a handful of posts above, can you enlighten us as to more of what is going on behind the scenes? I don't think any of us want this knowledge for selfish reasons, only to understand how we can utilize this EA more effectively/safely.
My Qs are:
1) Are the MACD settings operating on the chart time frame that the EA is set on?
2) Are the trades closed upon a zero line cross? OR a MACD/Trigger Line Cross? OR MACD Divergence? OR a combination of these, and if so, what? This would allow us to safely watch the EA and help it along if need be.
3) IF the tradestation/computer looses connection, will the trades be closed? OR must the computer be connected for trades to be closed.
Pengie, I'll speak for each here in the forum, THANK YOU. I hope you are able to answer these simple Qs for us.
: ) Thom
My GM demo set up for week beginning Sept 10th 2006
Hi all, below is a rough draft of what my GridMACD demo set up on the EURUSD pair (maybe the GBPUSD also, not sure) for the month of Sept will be:
GridMACD on 1m.5m,15m,30m,60m,240m with default settings.
GridMACD-TS on 1m.5m,15m,30m,60m,240m with default settings of 30 pip trailing stop.
GridMACD on 1m.5m,15m,30m,60m,240m with default settings but adjusting the MACD settings to better suit the chart's time frame. I.E. if the default of 12,26,9 is defaulted to the recommended 60m TFchart, the 15m would be 48,112,9 and so on...)
---------below is a comment/question for the group and Pengie:
What i'm wondering, again is what exactly the MACD is doing for the execution/exits of trades. Once we know this function then we can tweak the MACD settings appropriately as now they are just defaulted to 12,26,9. I did much reasearch on the MACD and still don't know if the logic/reasons for such settings originaly for the stock market have the same weight in the FX.
Have a great day,
Thom