Playing with ADX: Display Arrows at Difference

Busying playing with ADX... again.
Not doing anything special really. Just making an indicator that displays a colourful difference between rising ADX and falling ADX. In addition, I threw in a some arrows to be displayed on the chart. Not working properly at the moment: in order for the arrows to be displayed on the chart I have to load the indicator in the chart, and then compile it. So, gotta fix that, and then, hopefully, make it with multi timeframe settings.

Automated Gap Trading

So, lately I've been working on a project that involves making profits from gaps, and so far it seems pretty solid. There are a few bugs with the program, but those are generally quick fixes. The big heralds are already done, such as:

• having my trade orders deleted/closed when it should
• allowing for multiple markets to be run simultaneously with the EA
• and, to allow for other trades to opened/closed not related to the EA

I'm thinking I'll post the progress of profits/losses on the site, but we shall see. It just might be one of those EA's that works well on paper and not in a live situation. Fingers crossed!

Oh, and just to get everyone excited, here's a picture of potential profit that could have been made of the span of a month on the OIL market with an initial deposit of $300, and at 0.50 cents a point (Strategy Tester from MetaTrader 4):

Not too shabby eh?

Forex Strategy Builder: Great Strategy Testing Program

A viewer recently made a suggestion that I could use a strategy testing program to figure out if my strategies are profitable, and do it in a timely manner. The program he suggested was Cognitum Wave Explore. I tried out their demo, and found it rather difficult to grasp. It looks like it could be a handle program if I were to spend more time with it, but it was a trail version I was trying, and I hate to say this, but I don't have the $69.00 to invest in such a program.

So, I went on the hunt for a user friendly strategy tester that was free. Believe it or not, I've found one:

Forex Strategy Builder

From what I've seen this program is very user friendly (espcially for those non-programmers out there), and is everything I would expect a strategy testing program to have. The developers of this program also put out a couple other programs, such as: Forex Strategy Trader and forex Strategy Builder Pro (beta). Check it out!

Multiple Timeframe (MTF) Fractal Breakout: Possible Short Trading

I recently applied the basic Fractal indicator that comes with MetaTrader 4, and noticed that a good breakout system could be made by observing the price break the lower-high fractal point, or the higher-low fractal point.

This idea is not new, since I remembered that the 1-2-3 Pattern system employs such a method. Regardless, I still decided to design an indicator to display such a pattern. Instead of using the Fractal indicator that came with MetaTrader 4, which uses two bars back and two bars forward to determine Support/Resistance areas, I made an indicator that did two bars back and only one bar forward. It resulted in more signals, and consequently more breakout points. This would not do.

To solve this problem I decided to apply Multiple Timeframes (MTF) to filter out most of my false breakout points. So now whenever price breaks the lower-high or higher-low on a Daily Timeframe I look to the 5-Minute chart to trail my stoploss with each coming support fractal point. Here's a picture of my "rough draft" indicator (longer lines are the Daily Timeframe Fractal points, and the small dots are the 5-Minute Fractal points):

This idea will not give you vast riches, but I think a person could make a small, consistent profit every month.

I have NOT tested this idea to its fullest. So unless you are willing to wait, then I would suggest testing this on your own.   

VWAP: Problem With Colour Change

I been trying to post my Volume Weighted Average Price (VWAP) indicator, but I'm having a problem with the change over of colour when price closes above/below the VWAP line. Here is a picture of said problem:

 You can see where the circles are that the red line should have disappeared as soon as the bar closed. But as it turns out the red line will stop moving in the direction of the price movement as soon as the price cross the line, and if the price remains above the line the red line will then cease to exist, and the blue line will take over.
So, the problem lies with the red line not moving with the price action even though the bar has yet to close.


This is my predicament. Hopefully I can come up with some sort of solution to the problem. But for now the posting of the VWAP indicator will be postponed.

Volume Weighted Average Price (VWAP): Colour Change

Just finished with another indicator I've been working on for MetaTrader 4: Volume Weighted Average Price (VWAP). I've seen this indicator around, so it is nothing new. The purpose for making a indicator that already exists is for practice with my coding skills. With this indicator I started from a formula posted on Wikipedia, and tried to code it, but ran into difficulties. I had to sum close and volume data AND split those summations into set periods. A little more difficult than my usual coding practices. But, none the less, I found a solution, and now I have a colour changing VWAP line on my charts:

I'm not posting the indicator on the Indicator portion of my site just yet. Still have some more bugs to work out.

Testing, Testing, Testing... RSI vs. MA Crossover on Hold

I was testing my theory on whether or not RSI could beat a Moving Average (MA) Crossover in terms of early entry and less false signals, when I got sidetracked by working out the most suitable MA Crossover settings for EUR/USD exchange. I made it so that for every signal I would enter a trade and close my previous trade (signal-to-signal). The results I came up with rather poor. My favorite MA combo's were 5/8 and 5/13, and both did not perform well on the 15 minute timeframe or the daily timeframe (I chose these two timefames because I would use them the most).

The both 5/8 MA and the 5/13 MA Crossover's did produce a profit on the daily timeframe, and this profit does include spread and swap price. The 15 minute timeframe, however, did not produce profit if the spread and swap price were include. So one could make a cautious assumption that a MA Crossover does not fair too well in intraday charts, but rather in daily, weekly, and monthly charts. 

Now, this does not mean that MA Crossover could not work for intraday charts. For my purposes I hoping to find a indicator that doesn't require any or very little filtration. Currently I'm reading the book Millioniare Traders by Kathy Lien and Boris Schlossberg, and they talk with a man who has made good use of the 5/13 MA Crossover on 30 minute charts. So unless the man was lying it would seem that it is possible to work with MA Crossover's in intraday charts. No doubt the man applied other methods than just a MA Crossover, but unfortunately it was not mentioned in any sort of detail.