Trading with AMA and price action- forward testing

[vijkris]

People use ADX indicator to look for trending or sideways market. I tend to keep it simple. Just plot the ATR in the time frame you are trading. When the market is sideways we have small candles (hence small ranges). Smoothen the ATR with a say 10 period moving average and see the levels from where it rebounds over a few days. You will yourself realise after seeing the results as when to expect good trends intraday. (When market is sideways, the ATR starts coming down till it reaches a low which is fairly constant everyday)

There are lot of posts to save from varunji's thread but I don have the energy. lol
Anyway..

 

[varunkochhar]

Vijkris ji nice to see you back in our (not my) thread. But unfortunately not very many serious takers. Everybody wants mechanical auto system without burning the midnight oil. Remember if you do not know intricately how the system operates, you will not be able to master it ever. As they say the system is only as good as the trader.

 

[vijkris]

Vijkris ji nice to see you back in our (not my) thread. But unfortunately not very many serious takers. Everybody wants mechanical auto system without burning the midnight oil. Remember if you do not know intricately how the system operates, you will not be able to master it ever. As they say the system is only as good as the trader.

There will be detractors ,-ve attitude people, Jealous, etc. Just ignore them.. I have started ignoring few such peoples as they drain our positive energy. !!!

Ya, burning the midnight oil is definitely required. No shortcuts. My burning of midnight oil has increased to quite an extreme, thats y i am not visiting TJ,
Anyway I am working on something really big, if I succeed will be back in TJ.
If not succeeded then also will be back in TJ.

 

[monkeybusiness]

There will be detractors ,-ve attitude people, Jealous, etc. Just ignore them.. I have started ignoring few such peoples as they drain our positive energy. !!!

Ya, burning the midnight oil is definitely required. No shortcuts. My burning of midnight oil has increased to quite an extreme, thats y i am not visiting TJ,
Anyway I am working on something really big, if I succeed will be back in TJ.
If not succeeded then also will be back in TJ.

All the best Vijaybhai.

 

[toocool]

Nice waiting for your come back

 

[vijkris]

400 more posts to read, saving this one as of now...

15 min TF

MACD 36,200,9

Entry when signal crosses 0 line

MACD 4,12,9 on the same

Take all the adds thrown by 2nd MACD

Exit when 1st MACD crosses back 0 line

_SECTION_BEGIN("VK MACD Combo");
r1 = Param( "Fast avg I", 36, 2, 200, 1 );
r2 = Param( "Slow avg I", 200, 2, 200, 1 );

r3 = Param( "Fast avg II", 4, 2, 200, 1 );
r4 = Param( "Slow avg II", 12, 2, 200, 1 );

m1 = MACD(r1, r2);
m2 = MACD(r3, r4);

Plot( m1,"\nMACD ("+r1+","+r2+")", ParamColor("MACD I color", colorRed ));
Plot( m2,"\nMACD ("+r3+","+r4+")", ParamColor("MACD II color", colorbrightgreen ));
Plot(0,"",colorLightGrey,styleDashed);

b1= Cross(m1,0);
s1= Cross(0,m1);

PlotShapes( b1*shapeUptriangle + s1*shapeDowntriangle, IIf( b1,colorbrightGreen,colorRed),0,IIf( b1,-2,2) );

b2 = m1>0 AND Cross(m2,0);
s2 = m1<0 AND Cross(0,m2);

PlotShapes( b2*shapeUparrow + s2*shapeDownarrow, IIf( b2,colorbrightGreen,colorRed),0,IIf( b2,-1,1) );

_SECTION_END();

Plot both MACDs in different panes...so when 36/200 MACD crosses 0 line from below, the set up is bullish and we take initial long position here...then from second pane when smaller MACD rises above 0 from below...it is add time....continue till the 36/200 is in buy mode .....

Smart_trade

 

[vijkris]

Another observation/summary.

Good Evening Varun Sir & Extremist Sir
after understanding 2MACD METHOD & applying Extremistji's afl on charts..I have observed some points..as you friends know, I have only one way to check some method..I have been watching hundred of charts spending whole last night..
I have observing crude oil chart with Extremist's ji signal..I observe only intraday trades..
I have observed certain points so we can avoid some of the losing moves..this is observation of a student of market..Varunji & extremistji & other senior members can tell better..
1)If we start with initial position with just 1 lot only..so if we get opposite signal after some time during whipsws..so will you be loss only in 1 lot.but when you get trend , you will get so many points in so many lots..so after a day,you will get some days of small losses but more days of extrordinary profits
2) In crude, we can use 3 or 5 mins charts ,then also we get enough profits
3) when main signal (triangle) comes, enter only break of high/low of that candel (on which signal comes)
on add also , enter adds also on break of candle(on candel which arrow appears)
4)if you are long & ,if main RED MACD LINE is going down, for time being stop adding..resume adding when red line again going up ...vice versa for shorts ..
Varun Sir & Extremist ji can tell better
Thanks

My observation in longs, when price starts making LH & LL book profits, in Shorts when price starts making HH & HL book profits. we can always reenter once price action adverse to signal gets negated.

Following improvements are needed in the macd method to make it tradeable.

1) We need to keep some stoploss at some important swing point if the 200 ma line is far off .We also have to keep trailing the stops or profit taking to some important swing points.

2) We should take subsequent adds only if the add comes in lower level than the last add in case of shorting....we should not keep adding on smaller MACD when the price is going against us.....

If the above two are incorporated then this system will be very good. The backtest results posted few posts back show few days when the loss is 200 points ,which is probably happening because the above two points are not incorporated and we kept adding when the market was moving against us.

Giving these views only to make the system more useful for traders in actual trading.If not found useful, please ignore ....

Smart_trade

So when do you go long. When Price is above 200EMA. The SL for the initial long is just below the last pivot low below 36EMA. Now when do you add. You add when the price goes back into the cloud and comes back above it. The SL for the 1st add should also be below 200EMA if it is nearby or else keep it below the last pivot low. The TSL in all adds would be the last pivot low before the last add. The TSL for the initial lot would be a few points below the 200EMA only.

 

[vijkris]

So the above two posts summarizes last week's posts in our thread.. almost 500 posts, Sorry i might have missed a few more imp posts. anyway thanks @varunkochhar ,@extremist , @monkeybusiness and others.

 

[traderniftybull]

Bhai, where were you all these days.

 

[TradeJoker]

Vijay Bhai, how are u