Anyone Use the HMAs

[ephi144 10]

has anyone worked with hulls moving average

i am expirmenting with HMA 24 an HMA 55. using some color rotation ideas for the HMAs and combining with visual price pattern to trade eurusd and ES.

 

has anyone done anything like this? what was your result? did you add other indicator for helping filter out trades?

 

even if you have not what do you suggest about working with somethin like the explained before?

 

thanks for your input/

[ZOSO 10]

I experimented with HMA and didn't find it very useful probably because I trade tick charts. Then again, I feel that way about most indicators except for heiken ashi.

[ephi144 10]

Definition:

Fast MA = white/magenta line.

Slow MA = white/red line.

 

1. Sell when Fast MA moves below Slow MA with a candle close below Fast MA but only when Slow MA turns Red.

2. Long when Fast MA moves above the slow MA but only when Slow MA turns White and a candle closes above Fast MA.

3. No action when one Magenta and one red.

4. No action when both white.

5. No action if we have moved away 15 pips or more from the entry candle(fast MA).

 

 

Initial stops are always at 15-20 pips. You can also use the 1 – 1 risk:reward ratio.

First target is 15-20 pips at this time you move your stops 10-15 so you are closer to breakeven.

Second target is 40 pips. Here you move your stops to 20 pip in profit.

 

Volatility stops are in experimental phase.

 

i am becoming a fan of volatility stops they are giving me really good resuls for trailing stops.

 

Reentry

If you close at target 1 or 2 then reenter only when there is a break above/below your exit point + 10 pips.

Edited November 25, 2008 by ephi144

[ephi144 10]

here is what i am worried about...whipsaws as show in the figure below.

 

Trade 1: Buy - gets stopped out lose of $150 + $10 spread + $2 comm

Trade 2: Sell - gets stopped out lose of $150 + $10 spread + $2 comm

Trade 3: Buy - moves close to target so you move your stop up to breakeven point (we assueme this but we could use volatility stops). you get stopped out lose of $10 spread + $2 comm

Trade 4: sell reaches close to target one (1.28149) so you break even when your stop is taken out. lose of $10 spread + $2 comm.

 

trade 5: Buy - gets stopped out lose of $150 + $10 spread + $2 comm

Trade 6: sell - gets stopped out lose of $150 + $10 spread + $2 comm

Trade 7: reaches both target Gain or $330 - $10 spread + $ 2 comm

 

 

Lose of: 150 * 4 = $600 + 10 * 7 = 670 + 7 * 4 = 698.

 

Gain of: 320

 

total = -700 + 320 = 380 draw down.

Edited November 25, 2008 by ephi144

[ephi144 10]

The rewards if you trail your stop and are patient

[brownsfan019 17]

Here's what you need to know about ANY moving average system:

 

1) Will do well in a trending market

 

2) Will get slaughtered in a non-trending market

And your screenshots prove just that - you found some trending days and a non-trending day. From there, it's money/risk management as to whether the idea will work in real-time or not.

[ephi144 10]

hi Brownsfan,

 

thank you for your input. do you mind sharing what else can i do to develop a descent system?

 

I am also learning gartley patterns and divergence models.

 

i would appreciate your helping and any input on indicators etc that i can implment within my system.

 

thanks

[waveslider 10]

Use your MA system when market is trending. Adapt a different criteria when MAs or price action dictates a range.

Multiple time frames are very useful for this, hint..

[brownsfan019 17]

http://www.surinotes.com/

 

Get his book and start there. It will save you a ton of time.