X=crossover 1. 10 min MACD/MA > 0 line then buy, 10 min MACD/MA < 0 line then sell 2. If 10 min says sell, then if 2 min MACD is above 0 line and crosses MA downwards then sell X 3. If 10 min says buy, then if 2 min MACD is below 0 line and crosses MA upwards then buy X I think this is what T28 meant. Also he mentioned 2 min MACD distance from 0 line as an important variable to be considered, the closer to 0 line the more momentum, if all above conditions have been met.
The bog standard MACD (12 26 9) is used because you cant adjust it in MetaStock... I wish I had a more esoteric reason but that's it really. I've also read that many variations have been tried over the years but the original is still the most successful
T28 and others any suggestion on 5 min charts. as on 5 min charts you can have 1 or 2 signals per day. but those would be more reliable and for longer time frame.
OK, but for the benefit of "believers", would you be willing to identify the exit/entry rules? I mean, look, after some 1600 posts, we are still not sure what a "Simple Profitable Method" is. I'd program that in precisely the same manner as I programmed everything else in your system. I am not sure what you doubt is all about.
The indicator you could program, but my anticipatory decision based on rate of approach, market conditions and a 100 other variables a good trader has in his arsenal??? I don't thinks so Even something as simple as not trading through lunch is not set in stone, there are days when the market is roaring and it blows straight through lunchtime and you would be silly to sit on the sidelines, no program is going to assess the subtleties of trading
Nonlinear, could you try this. I have a gut feeling that you will get better results: Long Entry Rule: When all four of the following conditions are met: - MACD10 is above zero - MACD10 signal line above zero. - MACD2 is below zero - MACD2 has crossed its signal line upwards. Exit from Long Entry: When 2 min MACD has crossed its signal line downwards Short Entry Rule: When all four of the following conditions are met: - MACD10 is below zero - MACD10 signal line below zero. - MACD2 is above zero - MACD2 has crossed its signal line downwards. Exit from Long Entry: When 2 min MACD has crossed its signal line upwards.
To replicate the human brains complexity you would need a computer the size of Texas, don't rely on a computer small enough to fit on your desk when you have the most sophisticated computer in the universe encased in your scone
Trader28, can you confirm all 3 of these rules? My interpretaton of your original post was different.
You got it. I'll post it in about 10 minutes. Although I think that the last rule was meant for "Exit from Short Entry".
Cool, I would very much like to see the end results. Thanks! One thing though, what are conditions for stops?