4H MACD FX Strategy - Forex Strategies - Forex Resources ...

Naked Forex Noob

TL;DR Just got into Naked Forex trading but I am stuck on backtesting. Can't correctly identify critical zones (supp and res zones) and I haven't found the criteria for my trading system (wammies and moolahs) on the charts that I have back tested. Any advice?

Hi there, I started learning about forex awhile back from a friend and he began to show me the basics while also directing me to babypips for the free course they put you through. Although I got into all of this awhile back, I have been stuck in the stages of finding my own strategy and backtesting it.
At first, I was very much into using the basic indicators (RSI, MACD, SMA/EMA) but then I came across a recommendation in this sub to read 'Naked Forex' and I was hooked. Not in a sense that now I knew exactly what my strategy was and how to implement it, but hooked in the idea of being able to read a chart and make trades based on price action and reversals.
Of course while reading the book, understanding the concepts, and looking at all the examples of the different trading strategies i'm getting hyped in my mind to get to the backtesting stage to see if I can put this knowledge to somewhat of a test. Now here I am, staring at tradingview's daily and 4h charts from 2006 onward.
Here's where I get stuck.
I understand identifying critical support and resistance zones and it all made sense to me in the book, but as I am backtesting I find that the zones are either always changing or I can't figure out which ones are critical. On top of that, my trading system looks something like this (advice is welcome on how this could be improved or if you see any glaring "wtfs" in it)
I trade wammies & moolahs (market touches supp. or res. zone twice, second touch is lowehigher with a bearish/bullish candlestick printed on the 2nd touch) and use either a kangaroo tail or big shadow for confirmation to initiate the trade.
The buy/sell stop is set 8 pips above/below the bearish/bullish candlestick and the stop loss is placed below/above the first touch.
The profit target is the following zone.
There's a bit more criteria for the trade but that's the blueprint of it. I apologize if it either doesn't make sense or confuses you but even after sifting through months/years of backtesting data my eyes never caught any of this action happening in the zones I've identified.
Any help would be appreciated as I am a sponge and will soak in as much criticism and advice as I can.
submitted by VileKyleTM to Forex [link] [comments]

Feedback on Trading System

I built a forex trading strategy recently for a friend, and wanted to share it / get some feedback on it, as most of the systems I build trade stocks and are more fundamental/macro based!
The system was inspired by this forexfactory post: https://www.forexfactory.com/showthread.php?t=343533 but I've made a few changes.
The Filter:
I didn't like the proposed TMA slope indicator as the calculation and cutoff values seemed too arbitrary to me, so I take the 5 bar ROC of an EMA and smooth it. I divide this value by its standard deviation to scale it for higher timeframe analysis. I take the value of this adjustedSlope at the 4H, 1D, 1W timeframes, and sumproduct them with weights of 40%, 30%, 30% to give a little more strength to recent movements. I call this the overallSlope (for future reference).
I describe the the market regime under these rules:
(overallSlope > overallSlope[1] and overallSlope > 0) = bullish
(overallSlope < overallSlope[1] and overallSlope < 0) = bearish
(overallSlope > overallSlope[1] and overallSlope < 0) = neutral
(overallSlope < overallSlope[1] and overallSlope > 0) = neutral
Just like the system from ForexFactory, only long trades can be taken if its bullish, only short trades can be taken if its bearish, and either trade can be taken if its neutral.
The Setup:
I believe this portion is identical to the original stated system. Take the 50 bar Triangular Moving Average on the 4H timeframe, where the UpperBand is TMA + (2.5 * H4ATR) and the LowerBand is TMA - (2.5 * H4ATR).
If the market regime is bullish/neutral and the price has traded below the Lower Band then we're setting up for a buy and vice versa with a bearish/neutral market regime and price trading above the Upper Band.
I'm considering switching this to Median Absolute Deviation Bands as I like using the modified Z Score but I'm unsure of applying it directly to a price series instead of indirectly through an indicator or factor, I assume the median isn't very effective due to the actual series drifting, where as its (more) static when applied to Earnings Yield or something.
The Trigger:
For the trigger I'm on the 1H TimeFrame using the MACD histogram crossing 0, but the MACD is based on the Jurik Moving Average instead of the standard. A couple years ago when I first started getting into programming and playing forex, the JMA was something I stumbled on and wrote up and I really like it, it's very effective and smoothing a series, allowing the use of shorter lookback values without the MA being too "jittery".
Exits:
On the losing side, at open a stop loss is placed at (2 * H4ATR) below(above) the low(high) if we're going Long(Short). I'm currently split between two exits on the profit side. Right now my current exit criteria for a hypothetical long position is a bearish MACD Histogram crossover while we are above the TMA (the "midline"). The other strategy I'm considering is half off at the midline and the other half off at the Upper Band, but I think this isn't great because it can reverse and hit the stop effectively nulling the trade.
Risk Management:
For the risk management of the system I'm using position sizes standardized to risk 3% of the account on each trade by calculating how far away the stop is, and scaling the # of units until $risk = AccVal * .03.
Additional Comments:
As of right now I only have it fully coded on TradingView and I've made sure to use open prices for everything to avoid? (not sure if this completely handles this issue, please let me know) lookahead bias and I'm in the process of translating my code into my backtesting system but a lot of what I've built is equity related so I have some work to do to get it running right for forex. In TradingView I have it plot the Entry, Stop, and two targets, and the background shifts based on if it's long/short/flat. https://imgur.com/a/A1UQi04

I look forward to any thoughts or comments y'all may have, thanks for reading!
submitted by ilovemygirlfriend69 to Forex [link] [comments]

HOW TO TRADE USING THE MACD INDICATOR (SCALPING STRATEGY) The Secret Code of Successful MACD Trading (Forex & Stock ... 4 Hour Market Rhythm (MACD) Strategy By Phillip Nel - YouTube H4 MACD Forex Strategy Forex 4 Hour Winning Trading Strategy - YouTube 4 Hour MACD Forex Strategy forex strategy

Philip Nel started a thread at ForexFactory forum discussing the 4-hour MACD Forex Trading Strategy.It is an impressive forum thread. It began in 2007 and it is still active now. (It has 1338 pages and growing.) This trading strategy focuses on finding patterns (for e.g. double top and head and shoulders) on the MACD indicator. 100 EMA and MACD 4H Strategy is an trend following forex trading system based on Exponential moving average and MACD indicators. How to install 4H MACD FX Strategy in forex trading platform metatrader 4 (MT4)? Extract the downloaded 4H MACD FX Strategy.rar. Go to “File menu” in Mt4 trading platform and click “open data folder”. Open templates folder and paste the 4H MACD FX Strategy.tpl file. Open Mql4 folder and open the indicators folder. Now paste the 3c_JRSX_H.ex4, 4h_MACD_FX_Strategy.mq4 and 4h_MACD_FX ... 671# 4H MACD FX Strategy; 672# Spat Forex System; 673# Forex Pro Indicator filtered; 674# Swing Signals System; 675# IAB SWING strategy; 676# FGM Profitable Strategy; 677# Incremental Profit System; 678# Trend Detection; 679# Accelerated Awesome System; 680# Absolute Non lag Ma with Stochastic Drake; 681# IBS, RSI, CCI System ; 682# Zig Zag ma with Support and Resistance; 683# Heiken Ashi ... Is this strategy still working (Feb2012).....Page 1654 Post 24801 This is my list of major pdf's and mp3's from this thread. 4h MACD strategy EA Post # 1; Quote; First Post: Sep 2, 2009 6:21am Sep 2, 2009 6:21am Feliks Joined Mar 2009 Status: Member 194 Posts. Over 7 months observing forex by tih strategy i realized we can create EA for this strategy How? I'll show the system, but need some coder's help for making EA.. Ok here we go.. System consist 3 part - Entry rules, Exit rules and Risk managment. For ... MA 4H MACD Swing Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template. The essence of this forex system is to transform the accumulated history data and trading signals. MA 4H MACD Swing Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye. Based on this information ...

[index] [27242] [14434] [24330] [9245] [16336] [528] [25674] [24852] [25530] [20807]

HOW TO TRADE USING THE MACD INDICATOR (SCALPING STRATEGY)

All about Trading in Forex Marked Forex 4 Hour Winning Trading Strategy Background Music: Eine_Kleine_Nachtmusik_by_Mozart ----- Mo... AWESOME and MACD forex trading strategy that works on 4 hour time frame, listen to it and get mulla⛅⛅⛅ Ever wondered how you can use the MACD indicator to scalp the forex markets? In this video, we teach you a simple and backtested scalping strategy that can get you 20-40 pips every single time! The MACD is one of the most popular and broadly used trend-following indicators for Forex and stock trading. In this video you’ll discover: • what is MACD in... The 4 Hour Market Rhythm System Forex Trading: 4 Hour Time Frame Winning Strategy - Yusef Scott - Duration: 15:57. So Darn Easy Forex University 127,102 views I created this video with the YouTube Slideshow Creator (https://www.youtube.com/upload) 4 Hour MACD Forex Strategy,forex demo ,forex trading platforms ,onli...

http://binary-optiontrade.dewarminimo.gq