EMA Crossover system -- huge earning potential

[myamit]

Hi how to add the info box?

Hello JJIT,

Below is the code to display info box...


GfxSetBkMode(1);
GfxSelectPen( colorBlack, 1, 0) ;
GfxSelectSolidBrush( colorWhite );
GfxRoundRect( 10, 20, 210, 145, 9, 9 ) ;
GfxSelectFont("Courier New", 9, 700 );

GfxTextOut("Action Type : " + ActionType, 25, 25);
GfxTextOut("Triggered at : " + TriggerPrice, 25, 45);
GfxTextOut("Current Price : " + C, 25, 65);
GfxTextOut("Stop Loss at : " + SLValue, 25, 85);
GfxTextOut("Profit / Loss : " + ProfitLoss, 25, 105);

You have to substitute variable depending upon your code/signals.

 

[myamit]

Amit,
I am surprised with your finding after including the scale-in logic

I am not sure, how much of thought /research/knowledge of market behaviour has gone into deciding the scale-in logic for your system.

To give you some ideas to improve scale-in logic ..............

Dear AW10,

First of all, thank you very much for your detailed post & suggestions. I will certainly revisit my scale-in logic with your inputs.

Few of my findings for your queries are...
1. My initial scale-in logic was very simple. I assumed that I should add more qty to my winning trades & hence decided to start with smaller qty (2 lots). As max value of my trailing stop is 60, I decided that once trade is in my favor (60+ points) ... it will be a winning trade & I should scale-in. I tried various qty methods (200 at first trigger, 100 at each additional trigger). However I've realized that my original trades are so evenly distributed (in profit ranges of 0-60, 60-120, 120-180, 180-240)…. Scale-in actually did not make any difference.

2. I've checked all 50+ trades (in last year since I'm testing this system in live mode without any optimization to my original numbers), I've found out that...
-- I'm not at all missing anything at top (except 60 points trail stop). This was even surprising to me
-- At entry, I'm missing average 30-40 points but I guess that is necessary to avoid whipsaws & determine strong trend before entering into it.
-- My avg. trend size is about 300 points.
-- So per your calculation, I'm in capturing almost 67% of trend.

3. One more parameter, I've tried to find is how much time I'm not in trade. But again with few odd exceptions (3 occasions to be precise), my alternatively trade is triggered in max of 14 bars (i.e. 7 hours of trading max)

4. Why I chose to scale-in at fixed point basis is because any other logic (such as MA convergence & expansion will become a sub-system in primary system). However now I'm working on a possibility where I should scale-out when price is too far of primary MA & again scale-in when nearer to MA. I'll update you once I can test this little proactively.

5. Lastly, I feel that one more improvement (instead of scale-in) that I need to add to this system (but do not know how) is to come out of alternate mode of system. Currently system is giving buy signal after short signal & again buy signal. Over a last year not in one instance this has gone wrong where my SL has triggered and then price has gone upwards. However i can see such possibility & maybe I can introduce small sub-system within the framework of primary system rules.

Once again thank you for your time. Your suggestions are really important to me in developing this system an improved one. Above reasons/findings are only with a view to share info that I've and see where this can be improved.

All viewers of this post: Please feel free to share your views on this discussion. Thank you.

 

[myamit]

i am using 9 ema and 20 ema and 35 ema when all moving average crossover each other than i buy or sell . it is the best method for me i am accurate 80% profitable by this formula when 9ema, 20 ema crossover in upside and buy above on 35 ema . 35 ema is my stoploss so try this once again after that tell me

Dear Manjit,

just to clarify...

1. You buy at the cross over of 9 & 20 ... both of above EMAs should be above 35 ema.

2. Short is cross over of 20 & 9 and both EMAs should be below 35 ema

3. You exit in either trade (long or short) when price hit 35 ema.

Also... please specify,

1. Timeframe you use
2. SL & Trailing stop points/formula (if any)
3. Target points/formula (if any)
4. Scale-in / Scale-out logic (if any)

Thank you.

 

[Kiranks]

I have used NIfty futures with 26 EMA and 9 EMA crossing the closing line for Buy or sell . If 26 DAY EMA is above and 9 DAY EMA is above the closing then SELL . If the 26 DAY EMA is Sell and 9 day EMA is buy then exit the SELL position and go against the 26 DAY to do a reversal ( only if the gap between 26 EMA and closing is less than 100 points). This has resulted in 50% gains CAGR for 1 year. Not applied this to stocks. I have also referred MACD Histogram, RSI to confirm the decision.
I am have just used the Fcharts software to do this .

 

[lasty66]

I have used NIfty futures with 26 EMA and 9 EMA crossing the closing line for Buy or sell . If 26 DAY EMA is above and 9 DAY EMA is above the closing then SELL . If the 26 DAY EMA is Sell and 9 day EMA is buy then exit the SELL position and go against the 26 DAY to do a reversal ( only if the gap between 26 EMA and closing is less than 100 points). This has resulted in 50% gains CAGR for 1 year. Not applied this to stocks. I have also referred MACD Histogram, RSI to confirm the decision.
I am have just used the Fcharts software to do this .

Hi Kiran...nice of u to share ur trading ideas....can u upload a chart?
Thanks

 

[msa5678]

I have used NIfty futures with 26 EMA and 9 EMA crossing the closing line for Buy or sell . If 26 DAY EMA is above and 9 DAY EMA is above the closing then SELL . If the 26 DAY EMA is Sell and 9 day EMA is buy then exit the SELL position and go against the 26 DAY to do a reversal ( only if the gap between 26 EMA and closing is less than 100 points). This has resulted in 50% gains CAGR for 1 year. Not applied this to stocks. I have also referred MACD Histogram, RSI to confirm the decision.
I am have just used the Fcharts software to do this .

Hi Kiranks,

Nice to know the results obtained by you using 26 and 9 EMA. It is advisable to use some other type of criteria like RSI and MACD to confirm the entries and exits. This helps in avoiding the Whipsaws and being with the trend always. There are many AFL's available here on the forum which can be used profitably.

 

[myamit]

I have used NIfty futures with 26 EMA and 9 EMA crossing the closing line for Buy or sell . If 26 DAY EMA is above and 9 DAY EMA is above the closing then SELL . If the 26 DAY EMA is Sell and 9 day EMA is buy then exit the SELL position and go against the 26 DAY to do a reversal ( only if the gap between 26 EMA and closing is less than 100 points). This has resulted in 50% gains CAGR for 1 year. Not applied this to stocks. I have also referred MACD Histogram, RSI to confirm the decision.
I am have just used the Fcharts software to do this .

Hello Kiranks,

Great to hear your that you have made a good use of moving averages. Just a quick question... is this on a daily timeframe?

Also could you specify, what exactly your settings & decision criteria for RSI & MACD? Thank you.

 

[myamit]

Dear myamit,

Thank you for your screenshot for ema crossover system. I want complete afl as per your screenshot.

Waiting for your early reply.

Thanks and regards

JAYAKUMAR

Dear Jayakumar,

Core part of AFL is already posted in earlier posts. That should be sufficient to learn & track this system. If you need any specific help (syntax, logic or anything else), please feel free to ask.

 

[Kiranks]

The EMA settings made is for a single day. We can also use this for a week for long term investing. Instead of being invested for long we can see the 26 day EMA cross over for weekly data and take BUY or SELL. There wont be much whipsaw issues in this case.

Comig back to RSI i use 14 day RSI and MACD 10,25 and Signal as 9. I attribute all my learning to stockchartsdotcom ...a good website
BUY: RSI is low (35-40) means a good call (my assumption). MACD histogram should be increasingly moving on the positive side for a good call.

 

[vijayakishorebabu]

Hello JJIT,

Below is the code to display info box...


GfxSetBkMode(1);
GfxSelectPen( colorBlack, 1, 0) ;
GfxSelectSolidBrush( colorWhite );
GfxRoundRect( 10, 20, 210, 145, 9, 9 ) ;
GfxSelectFont("Courier New", 9, 700 );

GfxTextOut("Action Type : " + ActionType, 25, 25);
GfxTextOut("Triggered at : " + TriggerPrice, 25, 45);
GfxTextOut("Current Price : " + C, 25, 65);
GfxTextOut("Stop Loss at : " + SLValue, 25, 85);
GfxTextOut("Profit / Loss : " + ProfitLoss, 25, 105);

You have to substitute variable depending upon your code/signals.

Dear Amit,

when we copied the above into afl it shows the error
Action type not initialized
Triggered at not initialized
Current price not initialized
Stop loss at not initialized
Proffit/Loss not initialized


So, whatever avilable afl in back pages not containing the above lines. please look into it.