Filter to stop Moving Average Crossover EA from executing market orders in a consolidation
During the crossover, the crossovers happen many times back and forth before price starts trending towards a particular direction, which means i loose a lot of money from the spread and/or commission
This is typical of Moving Average cross-over strategies as they cause a lot of whipsaw during ranging or choppy markets, especially at lower time-frames such as M1.
Consider the higher time-frames H1 and above which have more clear trends and have less noise and are less choppy.
I suggest using multi-time-frame analysis so that you only open trades in the direction of the prevailing trend.
Please kindly suggest a filter i can use to stop my moving average crossover EA from trading in Consolidation, I've tried adding more moving averages and slope calculation as a filter, but its still not enough.
During the crossover, the crossovers happen many times back and forth before price starts trending towards a particular direction, which means i loose a lot of money from the spread and/or commission
use a filter based on price move (relative to symbol daily range) before entering trades.
if(my_crossover_conditions_are_met && Price_change_since_last_crossover > 0.1*symbol_daily_range) trade... // requires 10% of daily range activity before trade
That is a very relevant question for which everyone for sure did look for an answer but here's another question ..
- Your two MA crosses LONG ---> entry signal
- Your two MA crosses SHORT during consolidation and are filtered ---> no exit signals
- Price will downtrend, but you won't know about
That is a very relevant question for which everyone for sure did look for an answer but here's another question ..
- Your two MA crosses LONG ---> entry signal
- Your two MA crosses SHORT during consolidation and are filtered ---> no exit signals
- Price will downtrend, but you won't know about
that's the inevitable price to pay, when filtering.
no trading strategy will ever be able to catch all best moves.
either take every chance to hit a possible jackpot, or stick to safer entries and see your EA miss many jackpots.
all one can hope for is to find a midpoint between these two extremes.
¯\_(ツ)_/¯
Try
Highest close minus lowest close of x bars. If range is less than certain pips means consolidation
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Please kindly suggest a filter i can use to stop my moving average crossover EA from trading in Consolidation, I've tried adding more moving averages and slope calculation as a filter, but its still not enough.
During the crossover, the crossovers happen many times back and forth before price starts trending towards a particular direction, which means i loose a lot of money from the spread and/or commission