HAMA PAD - A Simple Trading Approach - page 57
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I do understand what you mean and I had problems with people saying "spread not included" recently myself, but the fact that spreads from person to person can vary so much makes it better I believe to post results without spread. Its up to the person reading and analysing the numbers to decide their own spread and if the trade would or would not have been profitable for them.
Hi,
Deepdrunk, are you charts based on bid prices?
If I say, I buy at 1,2500 and I close at 1,2510, what's the net profit here?
USDCHF example:
Bought at 1,2538 and closed at 1,2540. That is + 2. But net profit is (my spread is 4 pips):
1,2538 + 4 = 1,2542. Closed at 1,2540. Result = -2.
We had another entry on EURUSD at 1,2674 (10:30CET).
Another one on USDCHF. Buy at 1,2549 (10:45CET)
SF
Hi Safareig,
you say :
If I say, I buy at 1,2500 and I close at 1,2510, what's the net profit here?
USDCHF example:
Bought at 1,2538 and closed at 1,2540. That is + 2. But net profit is (my spread is 4 pips):
1,2538 + 4 = 1,2542. Closed at 1,2540. Result = -2.
We had another entry on EURUSD at 1,2674 (10:30CET).
Another one on USDCHF. Buy at 1,2549 (10:45CET)
To make things easier, if you go long usdchf at 1.2538 + 4 pips spread than it is not 1.2538 it is 1.2542 ,the ASK price.
To close the long position you are closing it on BID price.
It makes confusion, maybe i am oldfation but if i buy i buy at ASK and sell at BID price and it is simple like that and i think we should all use this way for posting.
Long at ASK , short at BID and no confusion about spread.
Creztor say we have diferent spreads,ok we have but we also have diferente BID often so that is not the reason why should we count only using BID price.
Also if we say high was 1.2755 (for some cross) it should be high of BID (because we are in long position when talking about high and this could be our best exit, NOT 1.2758 wich is ASK ).
Reverse for short positions, we are short and we say low was 1.2525;it should be ASK price because 1.2522 cant be our exit from short.
You can see on the picture below how it is set by Saxo bank platform and it is only way to talk about prices.
Deep,
Always, when we post signals we take bid prices, cause bid prices are the ones you have in your charts.
We do not talk about spread. We assume we all know that. Today I said it, cause I wanted to stress it was a lost.
That's all.
SF
My Opinion About Hama Pad
I think some healty critisism is in place here...
The reason why ?... If giving the impression that this system is the goose with the golden eggs then there are systems on this forum that can be counted to the ones that will make you a billionair.
The motor of the HMA PAD ( indicators that can be found in this topic https://www.mql5.com/en/forum/general) is the crossing of price with a channel. An apraoch that I traded 7-8 years ago and called it the snake system (because of the shape of the channel).
It is an anproach that works well in nice trending markets. But 95% of the trend following systems do well in significant trend.
The problem starts when price is in a consolidation market. One will start to feel that he buys on tops and sells on bottoms.
To solve this problem (filtering out the bad trades or false moves) a RAVI indicator was added.
But if one now takes a look to the compleet set up then one will see that the moment there is a entry allowed by the ravi indicator the rest of the HAMA indicators are always in place. That means that the HAMA indicators are no longer the motor of this set up but the RAVI indicator is. But if we take an even closer look one can see that RAVI indicator does its filtering so good that it will bring you in to late of most of the entrys. Even more in severall occasions it misses out on some nice moves.
This means that the HAMA indicators are no longer the motor of this set up but the RAVI indicator is. And the HAMA indicators are only there to help you exit.
A good trend following system that uses filters need to be in simbiosys with eachother. You need to feel and see that they are helping eachother on the right moments or were needed. They need to be complemtary.
Sorry but this is absolutly not the case with this set up. They are 2 different things or set ups were one is nearly always in place when the other triggers so making this first one pretty uselles. And the seond one can bee seen as the only one that makes the discissions for entrys without the help of the first one.
The HAMA PAD is just a plain simple trend following strategy.
A strategy like this will NEVER give you ( when followed 100% to the rules) a hitrate higher then 45% over a longer period of time.
Not that this is a problem because 99% of the trend following systems have a hitrate lower then 45%, but then one needs to have an avg. winning trade that is at least 3X times bigger then the avg. loosing trade.
And here start the problems...on a five minute time frame this is impossible to achieve this because the trading costs are comming way to much in play.
On needs to have a NET profit (spread included) of 30pips and no more then 10pips loss (spread included) to be profitable over a longer period of time.
Is that realistic ?...No it is not. On a 5 minute time frame it is not possible to have an avg winning trade of 30pips net because there is way to much noise that will make you exit prematurely.
If an avergae loss of 10pips realistic ? No it is not..when spread included one will see that on a 5 minute time frame the avg loosing trade will be higher.
The author is also awere of these problems. That is the reason that he is playing with all kind of indicators. Every chart that he posts one can see an other set up or indicator.
So what are the rules of the HAMA PAD ?...One chart he shows 15 min without ravi. An other is 5 minutes with BB bands, then an other one with MCdots etc etc...
The author is asking you to fill in a form were he even asks how many children you have to be punctual and organised. But if it comes to the rules and indicators nothing is clear punctual and orginized.
I have the feeling some of you are sitting here like chickens without a head waiting for these goose with the golden eggs.
Take this set up to the test instead of investing your time in MAYBE something usseles. Take the rules and indicators (HAMA with RAVI) and go over severall months of data. Go over each day. And write down in excel the results of each trade. Make shure that you have about 200-300 trades. Then add all you results. Then look what your avg winner is and what your avg. loosing trade. And look what your positive hitrate will be.
I'm shure that most of you will be disapointed.
But it would not surpise me after someone of you would post those results that the author will suddenly add something to the set up so this way the rules are changed again and one can start all over.
My conclusion: The HAMA indicators are nothing more to help you visualize the price action in a smoothed way...but to make a compleet system with 100% to follow rules that are profitable over a longer period of time ...????......As I said: If there is a nice trend this system will have no problem by tracking the price moves.
But the moment that one arrives in a consolidation market the losses will be numerous.
I know that some of you will now jump on my back but if you open your eyes and think with an open mind and as I said, if you doubt my words, bring this set up to the test you will see what I'm trying to explain...
If the author of this topic would have been clear in every posible aspect of this set up then I would not have bothered to make a contribution.
But trying to make people believe that this is a goose with the golden eggs system is way over the top. Even more, it only helps to frustrate again newbies that read this topic and read the results and are hopefull. Once they start to trade it, they fail and think it is their fault. Trading is already a job full of frustrations. So as an author one needs do everything possible so people don't get frustrated. That, one can do by pointing out the pitfalls or booby traps. Not by pointing out the so called golden eggs.
I saw in my carreer more authors that are only interrested in topics with full of chears and woow and hoera for personall satisfaction then authors who are realy sincear and 100% correct and trying to be realy helpfull by giving valuable CORRECT information that people can REALY HELP in their further trading lifes.
regards...iGoR
I've been forward testing this system for a couple of weeks now (on a demo account).
I feel rather comfortable entering trades at the very forming of the price breaking away and aiming at abt 10-12 pips at a time. I found I am given many chances within the day to achieve this goal. Overall, I feel fine with it, but I will be testing some more before entering into real account.
Ok i understund you ,you all talk bid price then forget my posts about that.
For me say high it is BID ,say low it is ASK,say long it is ASk say short it is BID.It is traders language,just as long,short,swap,interest,lavarage.....
Igor i could not agree more with your post, any way this HAMA thing is good chart setup i would not say system as we all have to add our expirience and discretion in any system as no system is perfect itself.
Ravi is good indicator but i am using few more filters like bbsqeeze,delta,adx and few more charts from higher time frames before entering on lower (hama or anything other).
If we use any system on low times (5,15) blindly only our broker will be satisfied from earning spreads from us.
BTW with all respect to FXCrusier and everyone else who made this system,put moving average 5 and 34 exponetnial on your chart and you will get almost same signals as HAMA.
And please dont get me wrong ,i am not sayng HAMA is not good,MA 5 and 34 are often used as entry by lot of big traders and i know few of them.
My cousin who invited me in trading is still using MA 5 And MA 34,RSI with MA of RSI, few suport,resistance and trend lines and he is making goood profit out of it but i cant trade like that ,i dont have nervs and money like he does to hold bad positions long enaugh or to hold good positions long enaugh...
I dont know what i am tryng to say here
but let's just try to improve this verry nice looking HAMA chart to get maximum of it.
Hi
what type of indicators is McDots- oscilator?
where can I find something about it?
thx
hi,
here is MACD dot i have but it eats CPU espetialy on lower time frames
sorry, it is this one and he eat CPU