BALUDA'S SUPER CSS-2.0. THE SIMPLEST TRADING SYSTEM EVER

[traderduke]

Carl
Could you be a little more clear about the SMA because when I set it up it did work in a few spots but no where near the full spectrum.
BR
Ray

Hi Everyone,

I am not sure whether the implications of the method of calculating Slope are well understood. According to the code:
dblTma = iMA( NULL, tf, maperiod, 0, MODE_LWMA, PRICE_CLOSE, shiftWithoutSunday );
dblPrev = ( iMA( NULL, tf, maperiod, 0, MODE_LWMA, PRICE_CLOSE, shiftWithoutSunday + 1 ) * 231 + iClose( NULL, tf, shiftWithoutSunday ) * 20 ) / 251;
dblDiff = dblTma - dblPrev
Slope = dblDiff/ atr;

Now, it can easily be shown that the difference of the two LWMA moving averages is actually equivalent to:
dbfDiff = Close[0] - iMA( NULL, tf, maperiod, 0, MODE_SMA, PRICE_CLOSE, shiftWithoutSunday+1 );

What this means is that anybody who is trading the signals coming from the CSS crossing at zero, is in effect trading a signal which could simply be derived from observing the crossing of the Close of a simple moving average of the same period (shifted by one bar). This can easily be confirmed visually by adding the appropriate SMA to a chart and observe that the crossing of the SMA correspond to those of the CSS lines.

Carl

[carl]

Ray,
Here is an example (using the template of TraderJoeForex using M15, H1 and H4):
The three moving average periods are :
aqua - 7
yellow - 28
green - 112

This is a M15 chart.
The vertical lines show where the SMAs are crossed: The crossing times are
aqua - 0930
yellow - 1015
green - 1115

Only the aqua appears correct on all crossings. However the longer time frames appear incorrect (do not correspond to the ribbon). This is because the ribbon at the bottom is "belatedly" redrawn to correspond to the start of the timeframe of the indicator. Therefor on the 1 hour timeframe the boundary for 1015 is 1000, and on the 4 hour timeframe the boundary for 1115 is 0800.

This discrepancy highlights a problem with looking at historical signals generated with this indicator. The indicator then appears to call a turning point early whereas it may have actually occurred quite a bit later.
When using this indicator on a longer timeframe than that of the chart, it will probably be better to show the signal only at the time of the crossing, or alternatively at the end of the timeframe boundary.

Or, maybe just use the SMA?

Carl

[traderduke]

Carl
Thank you for your lengthly answer. That's the problem with using higher TFs with lower Charts. I still don't see the MAs as being an answer. I have tried several times using longer periods on lower charts and could not get any consistency with them.
Thanks again

Ray

Ray,
Here is an example (using the template of TraderJoeForex using M15, H1 and H4):
The three moving average periods are :
aqua - 7
yellow - 28
green - 112

This is a M15 chart.
The vertical lines show where the SMAs are crossed: The crossing times are
aqua - 0930
yellow - 1015
green - 1115

Only the aqua appears correct on all crossings. However the longer time frames appear incorrect (do not correspond to the ribbon). This is because the ribbon at the bottom is "belatedly" redrawn to correspond to the start of the timeframe of the indicator. Therefor on the 1 hour timeframe the boundary for 1015 is 1000, and on the 4 hour timeframe the boundary for 1115 is 0800.

This discrepancy highlights a problem with looking at historical signals generated with this indicator. The indicator then appears to call a turning point early whereas it may have actually occurred quite a bit later.
When using this indicator on a longer timeframe than that of the chart, it will probably be better to show the signal only at the time of the crossing, or alternatively at the end of the timeframe boundary.

Or, maybe just use the SMA?

Carl

[nanningbob]

I was hoping Balyda would have answered this question but my understanding is we are measuring the slope or angle of a MA line. So when they cross it's because price has now taken a different direction of the angle rather than just the crossing of two MA lines. Maybe close to the same thing but not quite.

[nanningbob]

Basically all Indis are made from MA just the math applied to them is different. Some are more complex in the math than others.

[traderduke]

Bob
Thanks for your explanation, I didn't see the MA cross as the answer. I have been trying entries other than 7-50, in hopes of getting a set up that is actual time rather than future such as H4 chart with a H4 BSS with 20-50, a work in progress.
Thanks
Ray

[KhaosTrader]

Very Intersting Thread, I am looking forward to learning here...

[Pureforex]

hi every one , I'm new here. by reading the posts already benefit a lot. thanks all

[Fish]

Thank you

[neocount]

I have been using the system since this thread started.I trade 4H only when 4H,Daily and Weekly all line up and I just set a grid and let it do its thing. Grid settings can be anything. Just depends on your personal risk/reward needs.
I tripled my account last year and I have so far doubled a new account that I started this month.
Extremely simple and reliable.