Yet another newbie system!

[Jyde]

Hi all,

great system, beautiful in its simplicity. Thanks for sharing.

I was just wondering... has anyone ventured into this on any smaller time frames and MAs?

All the best...

[tim_nn]

Originally Posted by Jyde

has anyone ventured into this on any smaller time frames and MAs?

Yes. In a sense, BunnyGirl has (among others).

See her long and interesting thread called "WMA Cross". Similar principle of MA crossover plus filter after the cross (in her case 30 minute charts with 5 & 20 WMA cross; but a lot more to it as well and a _highly_ discretionary system).

The underlying theory of such systems, in a nutshell, is that by being willing deliberately to miss a significant proportion of the trend, you catch the smaller residual proportion of it with _greatly_ increased reliability.

[Jyde]

Originally Posted by tim_nn

Yes. In a sense, BunnyGirl has (among others).

See her long and interesting thread called "WMA Cross". Similar principle of MA crossover plus filter after the cross (in her case 30 minute charts with 5 & 20 WMA cross; but a lot more to it as well and a _highly_ discretionary system).

The underlying theory of such systems, in a nutshell, is that by being willing deliberately to miss a significant proportion of the trend, you catch the smaller residual proportion of it with _greatly_ increased reliability.

You are, of course, right. I have read through that thread, all in one afternoon. To be honest, it did my head in. Although I would never dispute anyone as gifted as bunnygirl, I also think in order to get the hang of the discretionary side, one have to start from a simpler beginning and gradually work in the more complex filters and decisions.

What I was wondering was if anyone has tried to implement - maybe only in testing - this system, though perhaps with other parameters, so to get the same realiability, though of course for smaller profits - and thus exposures - on a smaller timeframe.

If noone else has, maybe I will find the time to do so myself. It seems worthwhile. Also, since this is a very objective system, maybe it is possible to do a backtesting write-up for eSignal (what I use)... I shall have a ponder.

Once again, thanks to all for being so willing to share your knowledge. It really is great reading!

[tim_nn]

Originally Posted by Jyde

To be honest, it did my head in.

Well, it's an unusual and amusing reaction to BG's thread, I must say ... but I imagine actually that she would be the first to see the funny side of it.

I know exactly what you mean, in a sense. BG is indeed a gifted trader, as those of us who have encountered her in the chatroom repeatedly can attest to.

Originally Posted by Jyde

I also think in order to get the hang of the discretionary side, one have to start from a simpler beginning and gradually work in the more complex filters and decisions.

I don't disagree. The people I actually feel sorry for are all the ones trying to "code" and even "automate" the BG system; IMHO this is a huge mistake and they are destined for disappointment. (I suspect, even, that BG might agree with this viewpoint but she is doubtless far too polite to say so and in any case I shouldn't put words in her mouth).

Originally Posted by Jyde

What I was wondering was if anyone has tried to implement - maybe only in testing - this system, though perhaps with other parameters, so to get the same realiability, though of course for smaller profits - and thus exposures - on a smaller timeframe.

Yes, I see what you mean. Well, speaking for myself, I tried something very similar on a 3-hour timescale (now you will tell me, very reasonably, that that's not much shorter!) a couple of years ago and I couldn't make it work. But I did not have sr2's PSAR crossing idea.

Originally Posted by Jyde

It seems worthwhile. Also, since this is a very objective system, maybe it is possible to do a backtesting write-up for eSignal (what I use)... I shall have a ponder.

Indeed. Mechanical rather than discretionary; but at the moment in need of "exit management". I think we're all agreed about this(?). And that's partly my fault because I keep promising to explain ATR properly here and make some ATR-orientated suggestions for exit-management (of which I do have experience), and things keep getting in the way of that. But I'm planning to do so on Sunday!

[ImWanted]

When 10 MA crossover 40 MA, take the crossover price and let it runs for 100pips or 1 ATR = maybe average daily range for last 20days which is usually 100-200pips.. depending on currency pairs before entering. The 100pips or 1 ATR is the price filter... for ranging market.If u look at SR2 original setup, the PSAR cross 40 MA, most of the time.. it is >70% of the move

I see what you mean now Compro00. Could there be exceptions..take a look at the Usd-Cad, the up cross of the MA and now the PSAR' about to touch but the price dipped down.

[pipzilla]

compro,

Thanks for the link--that's a good article!

Originally Posted by compro00

Just like this link.. the filter "predict" price action

http://www.fxstreet.com/images/graf/...vember2004.pdf

ImWanted, i'm from Sg too.. hehe.

[Jyde]

Originally Posted by tim_nn

Mechanical rather than discretionary; but at the moment in need of "exit management". I think we're all agreed about this(?). And that's partly my fault because I keep promising to explain ATR properly here and make some ATR-orientated suggestions for exit-management (of which I do have experience), and things keep getting in the way of that. But I'm planning to do so on Sunday!

Tell me about it!
When I started, I thought getting the entries was all there was to it. Now it is easy to find entries, but exits...? It's right up there with avoiding entries in a sideways market and getting whipzawed to the poor house!
So far, for (semi-)mechanical systems, I have found PSAR to be the closest, though not perfect. Any thoughts you have on ATR would be most welcome!

And now - some shut eye and onto a new week. Best of luck, all...

[sr2]

Sorry everybody...I will post updates and replies soon...just a bit busy with a few personal things.

SR2