TMA_CG: EA to buy at support & sell at resistance

[dudest]

Hi dudest,

Zentoro posted in the other thread about how he uses TMA Bands with Kumo
http://www.stevehopwoodforex.com/phpBB3 ... =40#p84498

and after studying it a bit...it looks like there is some potential.
At the risk of making your system more complicated, we can use the Kumo to detect market is trending or ranging.

Risk: TMACG is a repainting indie so while this looks nice on the charts, it may not work in reality.

Some observations:
1) If Kumo is within the band, in general expect ranging conditions
2) If kumo is below the band or at bottom of the band, uptrend, if above or touching top of the band, downtrend.
3) Visually, it is possible to "predict" if the market will range by forward projecting the bands and checking the kumo

These may be false sometimes when market switches or when the band slope is very high, but most of the time it looks ok.
By estimations, the rules should be true at least 70% of the time, except during transitions.

Attached code for the kumo in case you want to use it.

Code: Select all

      // Kumo
      senkou_span_a = iIchimoku(NULL, 0, 9, 26, 52, MODE_SENKOUSPANA, 0);
      senkou_span_b = iIchimoku(NULL, 0, 9, 26, 52, MODE_SENKOUSPANB, 0);

This would probably make things more complicated, so sharing this for your study and consideration.
Probably zentoro67 has more points to add.

cheers

You have been a source of valuable feedback Spidey!, much appreciated !

I agree that Zentauro's idea has potential, and will look into it.

Cheers!

[dudest]

@All:

I'm going abit under-cover in the next few days/week for some deep-dive analysis and testing.

I know we are onto something great!, and I need to cross some T's and dot some I's [ results of which I will share ].

The best thing I did was post this idea and EA here!, the result discussions have clarified ALOT of issues in my head, and caused me to think and see beyond what I was doing before. Thanks peeps ! The forex journey (whether manual trading or EA trading) reminds me of the boy's journey in THE ALCHEMIST (Paulo Coelho). You know you have the makings of greatness, and your dreams reflect it. Then you 'travel' and meet people and events that change your perspective and make your skillz mad. Then at the end of the journey, you realize your treasure was right under your feet, only now your mind can comprehend and "see" it and maximize it to the fullest! [ Captain Jack in this sense reminds me of The Alchemist (the actual one in the story) who disciples Santiago (the boy) and is the last step in the puzzle ]. Good stuff.

Coz I need some extra processing power on my VPS, I will be taking down the original two demos (data from MyFXB has been analysed already), and hopefully in a week we will see.

Keep it locked!

Cheers

[SpiderX]

Hi,

Attached is TMACGKumo indicator, which is the foundation of combination between TMACG and Kumo as hilighted earlier.
Blue cross appears on the top band when it is bullish,
Red cross appears on the bottom band for bearish.
Yellow cross in the middle band when it is ranging.
Obviously a lot of room for improvement, but looks good in initial stage.
The crosses do not repaint

THIS IS AN EXPERIMENTAL INDICATOR FOR ILLUSTRATION PURPOSES

Cheers

[spotdespot]

It seems to me that something potentially worth testing if involving "trend" is setting the middle band as the tp target with counter trend bounces and the outer band for with trend & ranging bounces.

Thanks for the indi spider - I will have a play.

Cheers,
Dave.

[SpiderX]

This present version of TMACGKumo has a straightforward logic.

When the kumo is completedly above the top band or the top span of the kumo is above the top band --BULLISH
When the kumo is completedly below the bottom band or the bottom span of the kumo is below the bottom band --BEARISH
When the kumo is in between the two bands -- SIDEWAYS.

One of the weaknesses is that SIDEWAYS maybe inaccurate sometimes, as shown in the picture attached above (The first yellow region to the left).
The solution might be to introduce a slope value filter in the middle band.
If slope middle band exceeds or goes below certain threshold, then it is not SIDEWAYS anymore.
As we can observe for the second SIDEWAYS region, it is really sideways when the middle band slope is flat and we can see an up-shift when it starts going up.
As a note, probably this up-shift behavior can be used as an indicator of transition from SIDEWAYS to UPTREND.

P.S: dudest, hope it is ok to hijack your thread a little to play with this new toy.

Cheers

[pete14]

Hi,

Attached is TMACGKumo indicator, which is the foundation of combination between TMACG and Kumo as hilighted earlier.
Blue cross appears on the top band when it is bullish,
Red cross appears on the bottom band for bearish.
Yellow cross in the middle band when it is ranging.
Obviously a lot of room for improvement, but looks good in initial stage.
The crosses do not repaint

THIS IS AN EXPERIMENTAL INDICATOR FOR ILLUSTRATION PURPOSES

Cheers

Spider,
I've looked at the indicator and must say:
This is one of the most promising trend locating indicators I've seen so far.
If dudest could implement it into his EA it would save us from a lot of bad trades.
Anyhow, thanks for sharing.
Peter

[dudest]

...

P.S: dudest, hope it is ok to hijack your thread a little to play with this new toy.

Cheers

I am honoured to have the likes of you here, my good friend!, have a blast!

Cheers

[SWG123]

This present version of TMACGKumo has a straightforward logic.

When the kumo is completedly above the top band or the top span of the kumo is above the top band --BULLISH
When the kumo is completedly below the bottom band or the bottom span of the kumo is below the bottom band --BEARISH
When the kumo is in between the two bands -- SIDEWAYS.

One of the weaknesses is that SIDEWAYS maybe inaccurate sometimes, as shown in the picture attached above (The first yellow region to the left).
The solution might be to introduce a slope value filter in the middle band.
If slope middle band exceeds or goes below certain threshold, then it is not SIDEWAYS anymore.
As we can observe for the second SIDEWAYS region, it is really sideways when the middle band slope is flat and we can see an up-shift when it starts going up.
As a note, probably this up-shift behavior can be used as an indicator of transition from SIDEWAYS to UPTREND.

P.S: dudest, hope it is ok to hijack your thread a little to play with this new toy.

Cheers

Some nice ideas SpiderX and well illustrated today when the bot got slaughtered (on Gold) because it tried to short in the face of a strongly bullish market. So any means of avoiding that would be a good addition. Of course the problem, as always, is lag.

[zentauro67]

Congrats, SpiderX for this great indi!

I use kumo in the band only in the daily chart. There, Kumo can stand for weeks or even months inside the band and it´s in these cases when I try to milk the range zooming into 15 or 5 minutes.

I´m using now, as I posted in JL grid´s thread, a dual strategy with Blessing, using the ForceMarketCon to run at the same time an only buy and an only sell stance on the same pair. At this moment, you can only trade EURCHF and AUDJPY with this strategy, that it´s working as a charm (36% up in only three days). Kumo helped me to spot AUDJPY. It has been ranging for four months until now. EURCHF is a secure choice for a grid as it is the less volatile of all pairs. Kumo has been inside the EURCHF band for more than 10 months (!), so this is an ultra-ranger. Often, you read in grid related threads that EAs only work well in strong trends and many ask for filters to detect the change of the trend as the solution to the dead trades sooner o later will came and ruine your account. That´s childish. I fear that most of EA´s and this TMACG is a good example, only can win in the long run if they are applied wisely to ranging pairs and are manually switched off when the range is over. So, don´t fear low volatility, as in EURCHF, just increase the lots and milk the range in both ways.

Bands are a great tool for range trading and a suicide weapon for strong trends. So, some discretion is needed. Just go to the daily chart, draw two lines delimiting the range and then zoom into 15 or 5. Don ´t ever delete the lines. They are telling you where the safe zone is. As long as price remains inside, you can trust the bands.

[SpiderX]

Hi friends,

Thanks for the kind comments and thanks to zentauro67 for this idea !
Think there is a lot of room for improvement for this indi to be used ultimately as a trading system.

@zentauro67: was hoping that JL could program this into his Blessing, but if he doesnt, maybe i would consider it once we work out more of the kinks in this system.

At present, hope that everyone put this on more charts and try to look out for any room for improvement.
One of which i have already mentioned in my above post.
So far on my end, this looks great on daily charts.

Perhaps, we can still continue to use dudest's method of using the TMA slope as an additional filter in combination especially during the sideways period, which might be a bit off sometimes..

Cheers