HAMA PAD - A Simple Trading Approach - page 9
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Hi:
In order to learn this system, could you please make recaps?
For instance, I think, according to main rules, that there was a sell signal on EURUSD at 1,2790 at 17cet, TF 30M. Am I right? And a buy signal on USDCHF at the same time at 1,2350.
Where do you place stops?
SF
Staying with our friend - THE TREND
Here is something beyond the basic and yet within the HAMA PAD.
pipsnaper mentioned in his illustration here: https://c.mql5.com/forextsd/forum/11/hamapad1.jpg, that "EMA50 helps him with trend verification"
On this post: https://www.mql5.com/en/forum/174941/page4, I also mentioned about EMA89 (which I use myself)for trend swing identification. Then Piponacci made reference to EMA200 in his post here: https://www.mql5.com/en/forum/174941/page4. Let us not forget the EMA100.
All these EMA indicators gives you an Area on the price chart which in turn provides you with trend Direction. When you place a trade either above or below these EMAs and while the HAMA bars are in these Areas of the EMAs, then you can stay with the TREND. Please see the LONG trade for GBP/USD in the sample illustration attached. With this approach, you maybe be deviating from the basic trading guidelines as far as exit is concerned.
I hope this helps.
ENJOY!
fxcruiser
Hi,
I think that the original breakout from the band trades are quite good as it is. To be honest I am not a big fan of EMA's as not only are they lagging but there is no real use of them here. The HA primarily is a trend indicator and does not really need additional indicators to help indicate the trend.
Keeping the rules simple is the way to go forward. Adding more indicators is making it more difficult and open to interpretation for each individual trader. And slowly what was a good system starts to lose. What starts as a straightforward simple system becomes complicated.
A great trader can profit from a mediocre system but a losing trader cannot profit even from a good system.
I hope you go back to the basic template and work from that.
Just my 2 pip suggestion.
Tks FXC for all your work.
36 pips
I ended up with 36 pips on the EUR/USD from the Asian session to sometime over night (east coast USA). I set a TP at 1.2812, just under the pivot. It had the makings of a good strong move, but apparently today is a European holiday. As for EMAs, I agree from the standpoint that they have nothing to do with the system, but they are helpful to the individual trader in anticipating trend strength. Breaking through all of the EMAs is a strong move and is reason enough to keep your finger off of the close button. Should we also ignore pivot points? I think they are used the sam way. Just another tool. The HAMA PAD can stand on it's own two legs though. Great stuff. Thanks FXC
Hi:
In order to learn this system, could you please make recaps?
For instance, I think, according to main rules, that there was a sell signal on EURUSD at 1,2790 at 17cet, TF 30M. Am I right? And a buy signal on USDCHF at the same time at 1,2350.
Where do you place stops?
SFOk, I see there are a lot of people willing to help here.
If I'm right, that sell signal on EURUSD gave only 10 pips, minus spread = 8 pips. That is what the move gave. If people took it they are now in a lost waiting for their stop to be hit or waiting for the pair going down again.
At 16:00cet, I think, the pair gave another buy signal at 1,2808. It only gave 7 pips, minus spread = 5 pips. Bad signal.
Good signal at 03:00cet. Long at 1,2771.
I could say the same about USDCHF. Bad 17:00cet signal so far. Of course.
THX
SF
All requests, prior to this posting, for indicators and template via e-mail have been fulfilled. Please check your email inbox. Now, I am going back to bed. Thanks. ENJOY!
fxcruiser
Harsh day today...
The NY session was weak and whipped alot today...
Some observations for today are on the attached chart. I think a trend strength indicator would work well with HAMA PAD - to help avoid taking position which don't have enough thrust behind them. Please comment.
OK then my misunderstanding of the entry rules, as per your chart here https://c.mql5.com/forextsd/forum/11/image7_hama_basic_trading_guidelines.jpg ...it appears to me that the arrows point to entry points on the open bars rather than the next bar after.
Yes iTrend might work as a cooperative strength indicator. Thanks again.
The NY session was weak and whipped alot today...
A quick observation and comments on your illustration here: https://c.mql5.com/forextsd/forum/11/hama.jpg. With reference to item 1 - there wasn't a full bar break out of either upper or lower band. The breach of either band is only a signal for possible trade. We wait for the next bar to execute the trade. The bar which was blue before, closed as red turned out to be more of possible short trade. This was confirmed by the next red bar where we enter the trade. Had we entered that trade we would have suffered some pips loss. Item 3 would have given us the same negative result.
However, the LONG trade prior to the whipsaw market, have generated 40 pips more or less. Although, profit would have covered the losses in the whipsaw condition, this should not be case. My observation of price actions as dictated by the market is, when it ranged some 30-40 plus pips, it is generally followed by either, range, whipsaw, chop, or flat market condition. So, personally, I would have taken the 40 pips and taken a break for an iced cold Heineken or Asahi or just hit the bed.
Nonetheless, you did mentioned the use of a trend strength indicator, possibly an i-trend (set with levels 0.001 - buy above, and -0.001 - sell below), or another similar indicator of your choice. Check it out and let us know. But I think you can get by without, once you get the feel of the market and how it dictates the price action which eventually affects whatever trading system, method, strategy, or approach you use.
Your contribution and participation in this thread is very much appreciated.
ENJOY!
fxcruiser