Triangular MA Counter System

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hesselvanderhoeven
Posts: 7
Joined: Mon May 14, 2012 1:21 pm
Location: Groningen, The Netherlands

Triangular MA Counter System

Post by hesselvanderhoeven »

Last month I came across a Triangular MA indicator, and have been playing around with it since. I have made a decent profit on EUR/USD using this method, and it creates little drawdown. It needs much attention though, since I use it on a 5 min time frame. That's why I am very curious if an EA could be made for this strategy, and if it would be profitable. Since there are a lot of great coders on this forum, I decided to post a new thread.

Triangular MA settings:
Half Length 50
Price 6
Bands Deviation 4.5

Basically, you enter the market when price touches the Triangular MA.
When price reaches this level, it is already overbought/oversold (confirmed by Stochs 8,3,3) and is likely to make a pullback. The candle doesn't have to close above/below it, when price touches the MA, we enter a counter position of 0.1 lots. We aim for 10 (or more) pips. I have not used a stoploss so far. Sometimes, price doesn't make the rebound, or won't make the 10 pips, this happens in strong trends. If price moves 10 pips against us, we do the same thing; we open a position in the opposite direction with martingale settings, so we open 0.2 lots, still aiming for 10 pips. If price moves another 10 pips against us, we open another position of 0.4 lots etc. Beside this, there should be an option to close the first 0.1 and 0.2 lots when they reach breakeven, we then take the 10 pips profit from the other 0.4 lots.
Price could move 30 or 40 pips against us, this means a pullback is yet to start, but is very likely to happen. Whe keep adding positions with martingale settings, cause sooner or later price WILL retrace 10 pips, and the biggest lot size will make up for the losses of the smaller positions.

Besides this, the option to enter a position only after stochastics 8,3,3 have crossed may be interesting too, to not enter the market too soon and having the chance of sitting out a continuation in trend and ending up with multiple positions..
Same idea could be, to enter the market when price moves from Triangular MA Bands Deviation 4.5 to another Triangular MA Bands Deviation 3.0, speculating on a further drop/rise to the center MA.
And, for extra protection, an option to only enter the market when price has moved .. pips under/above the Triangular MA 4.5.

I added the indicator, which the strategy is based on. I also added an example of 2 trades, to clear things out. I would appreciate it very much if you could take a look at it, and it would be fantastic if someone decided to make an EA of it, because I think it could be pretty profitable. Thanks in advance,

Hessel
TriangularMA centered abands alerts 2.mq4
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hesselvanderhoeven
Posts: 7
Joined: Mon May 14, 2012 1:21 pm
Location: Groningen, The Netherlands

Re: Triangular MA Counter System

Post by hesselvanderhoeven »

One more trading example of today on GBP/USD
Schermafbeelding 2012-05-16 om 17.05.50.png
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hesselvanderhoeven
Posts: 7
Joined: Mon May 14, 2012 1:21 pm
Location: Groningen, The Netherlands

Re: Triangular MA Counter System

Post by hesselvanderhoeven »

Friday was a very good day.. Took 4 trades on EUR/USD and 3 on GBP/USD. All trades reached their profit target of 10 pips within no time with little drawdown.

I really think this method could be a very profitable EA in the long run, and really hope that someone here will be able and willing to code it!
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slipshod
Trader
Posts: 404
Joined: Tue Dec 27, 2011 9:14 am
Location: Australia

Re: Triangular MA Counter System

Post by slipshod »

Unfortunately the triangular MA indicator posted here repaints, similar to the TMA Slope Indicator or the Belkhayate (Hurst) Channels though perhaps not quite as bad. Still, the lines move after the fact to fit what the chart ended up doing. Signals that were given that later prove false are magically disappeared, and if the lines bend enough to put a past peak or trough beyond the threshold, a signal appears that was never given in realtime.

I'm not saying a profitable strategy couldn't use this, but with all repainting indicators you have to be aware that it can & will lead you astray then lie about it afterwards.

Edit: All about Triangular MAs: http://www.forex-tsd.com/Empty4-4/3 ... e-tma.html
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