My FX strategy - PipMachine.
hi,
Can you please post your EA so that I can also test out this interesting system?
thx
shareef
normally I get confused by ADX, I have to adjust the period to make it fit price moment.
hi,
Can you please post your EA so that I can also test out this interesting system?
thx
shareefYou will need to find someone to code one for you. Sorry.
normally I get confused by ADX, I have to adjust the period to make it fit price moment.
The simple rules to follow are as follows:
The white line is important to take a lot of notice of. This will tell you the strength of the trend at that current time.
So... If you color the +DI and -DI lines as I have, things become a little easier to follow. I've colored the +DI line red. and the -DI line blue.
Now... when the Blue line crosses over the red line on the upside... this is a trend reversal and also a SELL signal. If the white line is coming down, then we ignore it - we wait for the white line to keep going up, because we only want to get in strong trends.
A BUY signal is when the red line crosses over the blue line on the way up. Again, we have to wait for the white line to go higher with the red line.
If the white line comes down, it's letting you know the strength in that trend is getting weaker. The final comfirmation of it getting weaker is when the blue line then crosses over on the upside of the red line as it comes down and goes under the blue line.
So basically, the DI lines are confirmations of trend reversal, and the white line basically tells us the strength of the trend. 
I hope this helps a little.
Hi FX Guy, So glad yo have posted this onto this forum. I had seen your posts over at Oanda's forum the other day and was amazed at the abuse you had got from some of the very cranky and weird members they have over there. Also the guys at SBFX have been saying a few positive words about you.
Hi there.
Yeah, some of them lost the plot a bit. I dunno. Must of been that week when they got their dole check and got drunk or something..lol
It seems to have cooled down lately and others are starting to participate in the thread and making good headway so far.
SBFX? Who are they. 
I've not heard of them before.
Your trade seems very interesting. I checked it out manually with the history (by eyes 
) and with good results. I have some indicators that can help with this. especially with the ADX, that it is confusing a bit.
I don't like the histogram version of MACD, so I put the line version, too. But its ok to use histogram version. I cannot see the cross very well, when it is in histogram.
Hope it will help
Arh, cool.
ADX confusing? In which way? As in the rules to indicate a buy or sell signal?
edit: hey, I like those extra visual confirmations. You know, you have these more or less bang on. But there would be one change I would make to the adx cross.
Once the white line reaches 25%+, to then and only then create the visual confirmation. Reason being, is anything less than 25% and acting from this confirmation is going to have some inconsistancies, thus resulting in some losses or premature entries so to speak. So to iron out those premature entries, when the confirmation reaches 25% (a rough figure), the chances go more in ones favor.
Hi
Confusing in a way that all the lines mixed up together and we cannot see clear which one is cross other.
I have another question. It is really very simple, to post-mortum the chart. How do u know, in your trade 1, that the trade is strong. See my pic and as you can see, by the time of the trade (left to the vertical line) there is no sign, about the strength, only afterwards. How do u know to buy and not sell 3-4 hours ago when the MACD and MA cross, show a sell signal.
I really want to know how u made you decision, because this is the key, I thing, between a good, long-time trade and a poor short-time one.
Thanks
Eli
Hi Confusing in a way that all the lines mixed up together and we cannot see clear which one is cross other.
Sure we can.
if +DI goes up and crosses over -DI = BUY. The strenght is indicated by the ADX signal; the white line.
I have another question. It is really very simple, to post-mortum the chart. How do u know, in your trade 1, that the trade is strong. See my pic and as you can see, by the time of the trade (left to the vertical line) there is no sign, about the strength, only afterwards. How do u know to buy and not sell 3-4 hours ago when the MACD and MA cross, show a sell signal.
if you take a peek at my chart.. see the white line? I have highlighted with blue arrows with blue text?
That's the strength of the trade.
Now, regarding the Macd, although it shows a EXIT signal for the previous long trade or a SELL signal, if no trades were open. We ignore it. Why?
because the histogram is above 0.00 on the macd. And the rule of thumb is any histogram above 0.00 is an uptrend, and anything below 0.00 is a downtrend.
This example is perfectly shown on the chart I have shown, see towards the right, we close trade 1 right at the point the macd confirms that it's now gone below 0.00. So what we do, is we stay the trade as described on the chart, and wait for a confirmation of the EMA to crossover on the downside, while waiting for the ADX to also show similar signs of a sell signal. Now the sell signal was a mild one when trade 1 was closed and was rather delayed in letting us know. This is why I rely also on the MAcd and EMA to give me these signs, taking note of the rule of thumb of each indicator.
I hope this helps 
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
I have a system that is automated, but it's not 100% perfect. I mean, it's a timing issue I can't get resolved that takes away some of the pip gains. So I tend to either trade it manually (I haven't had any losses this way for ages) or trade 50% | 50% by letting the MT4 platform open the trade itself, and I'll close it when necessary.
I've showed a few people, well, hundreds really this strategy, and a lot of people are starting to learn this system and getting really good results from it already.
This system works better on 1hr and 4hr charts. And has some good rsults with 30min charts too. Anything lower than that, you're going to face some inconsistancies later.
Platform Set up.
*Place EMA 6 & 10 on your charts. Reason: it helps track the price of the markets more freely.
**Place the default ADX setting on your charts. Set the colour of the –DI line to a light blue and +DI to a red, just so they are easily identifiable. And set the Parameters for the style to white with the period set to 14.
*** Place the default Macd setting on the chart also, place it underneath the ADX, but doesn’t matter where you place it.
Here’s how you spot the BUY signals.
*Wait for the confirmation of the EMA’s to crossover. Now, we don’t always have to wait for the EMA to crossover, we can enter trades if they are looks relatively close to being crossing over each other as long as the other two are showing confirmations. I tend to wait for a larger arch to appear before entering the trade, ie, in a nice ranging market, rather than a flat lined - consolidating market condition.
**Wait for the confirmation of the ADX signal. This is interpreted by the two dotted lines; +DI and –DI line.
The +DI line should be the red dotted line… and the –DI line should be the light blue dotted line.
When the red dotted lines crosses over the blue dotted line in a nice upward Sharpe movement, while the white line that represents the strength of that currency is in line (going in the same direction) of that of the red dotted line, this is your buy signal.
But be aware, never act from these crossovers if it’s not a strong signal, you can tell this by looking at how sporadic the lines are and the width of them, the wider apart they are, the better the signal.
If the EMA and ADX line up, then it’s a relatively good time to get in, but always check the Macd first just to make sure.
***Wait for the confirmation of the Macd. What you should be looking out for and mainly paying attention to is the red dotted signal line. The buy signal appears when the signal line has just EXITED out of the LOWER part of the histogram, i.e., under 0.00. When I say exited out of the histogram, I mean when it comes out of the right hand side of it and the histogram bars are getting smaller.
Now, if it has, and the ADX signals are showing you the correct signals, but the EMA hasn’t developed yet, it’s still ok to act from it, for as long as the EMA arch’s look like a deep arch. i.e., as if it’s doing a complete u-turn.
So, recap, we can either wait for ADX and Macd to confirm itself, or we can wait for all three, or we can wait for the EMA and Macd, or we can wait for EMA and ADX assuming that the Macd looks like it’s getting ready to come out of the histogram.
Here’s how you spot the SELL signals.
*EMA, as before above, wait for the crossovers, but obviously in the other direction to above.
** ADX, the opposite of above, the blue dotted line must crossover the red dotted line and the white line must be going up with it.
Do note, it’s a little confusing at first, but if the red dotted line is going up and later you decide to look for a sell signal, don’t think that the blue dotted line has to go down, it has to go up. Cross over the red dotted line on the upside. The higher it goes along with the white strength line, the better the trade.
***Macd, pay attention to the upper part of the histogram, i.e., above 0.00, when the signal line exits out of the right hand side of it, then it’s a sell signal.
As the signal line carries on going down and digs into the lower part of the histogram bars, don’t worry, this is a good sign too, you’ll notice that the strength of that trade is getting strong and you can easily see this by confirming it with the direction of the white line of the ADX indicator.
Now, here’s the easiest part of all, when to close the trade.
Just simply wait for the Macd to exit out of the histogram and get ready to open another trade when you have confirmations of the others above.
So if you’re long on a trade, keep note of the red dotted line of the Macd’s signal line, wait for it to exit out of the top half of the histogram at the top section. And visa versa for a short trade. This will allow you to scoop up more pips rather than waiting for the opposite signal to be created first before you close the trade.
I tend to wait for this macd to appear first, this is where I save more pips that were gained and don't let any slip through my hands. But you can also wait for the ADX and EMA confirmations or a combination of all 3 to decide when to exit.
I hope this comes of some help to you.
Here's some charts to show you what I mean.