I have not thought of a cool title for it, but that I will ;--RRB-
Basically I was analyzing The Wave, and noticed some thing helpful. . So I pulled out things, borrowed a couple of things from everybody and developed a system that appears to backtest fairly well large likelihood of winners vs losers stoploss loions, and quite significant profit. So I'm going to clarify the machine below, in hopes that somebody could backtest it and independently verify for me, the machine works. Additionally, these types of talks (hopefully) result in tweaks and mods for the enhancement of everybody with this board.
I've programmed this at VTTrader, if a person wants it, PM me. I am not a MetaTrader user, but hopefully someone will program it predied on the easy instructions below.
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The Open/Close CrossOver Method version 1.0 by Twoblink
(This Seems to work best on a 4H chart. . So I'll talk about from the 4H chart for today)
1) Open up a GBP/USD 4H chart.
2) Insert EMA(34,Close)
3) Insert EMA(34,Open)
Scenerio 1) When the EMA(34,C) crosses below the EMA(34,O) then your trend is DOWN, and you also input 3Units of short positions in the point of crossover. Your stoploss is placed 13 pips over the EMA(34,O) (Believing in Tunnel Conditions, your stoploss is 13 points on the opposite side of the tunnel).
When the place is 55 pips profitable, take 1 off unit. After the place is 89 pips profitable, then choose the off unit. You let out the previous one ride till you are signalled out OR you get a signal for alteration of Trend and you close it out. Don't forget to keep moving your ceases, as the stop is a stop. So consistently 13 pips over the EMA(34,O) line.
Scenerio 2) The Specific opposite in every way to Scenerio 1. After the EMA(34,C) crosses over the EMA(34,O) then your trend is UP and you also input 3Units of long positions in the point of this crossover. Your stoploss is placed 13 pips beneath the EMA(34,O) (again, on the opposite side of the tunnel). After the place is 55 pips profitable, take 1 off unit. When the positions will be 89 pips profitable, have another unit away. The previous one, let it ride out the trend has reversed, or till the stop is hit by it. Remember to keep moving your stoploss so that it's always 13 pips below the EMA(34,O) line.
Once I state 55 pips profitable I mean if you are 55 pips out of the positions you entered, not the total pips of profitability. So if you entered 3 Units, and you were 55 Pips profitable (every), then you would be at 165 pips in reality.
If you've taken off 2 components, you must be 55 89 = 144 pips locked in profit today.
The reason I use the 13 pips prevent loss on the opposite side of this tunnel is, even if ou use the EMA(34,O) as prevent loss, often times, the price hits it melts off again, at the correct direction.
This works really well for a trending market. Small ranging markets do not function as well.
Another thing about the system is, you are ALWAYS in the market, because the market is down or up, so in theory, nearly like the Parabolic SARS, you are always in the market, and also the indior tells you which side to be around for maximized likelihood of profitability. (Say that 3 times fast!!)
Upon backtesting on the on the GBP/USD4H and the EUR/USD4H, this yields amazing results. So amazing, I'm thinking (because it's 3am here, and I've been working on tweaking this to the past five hours) it might be the sleep becoming to me and so would really like to have somebody else independently verify my findings for me.
Additionally, if a person can program this into Expert Advisor in MetaTrader, I'd greatly appreciate it!
That I will probably add the semi-hard rule of although the stop is 13 pips on the opposite side of this tunnel, I'll place a 89 pip stoploss limitation, whichever is less.
Additionally, if I've taken off 2 units, I will probably transfer the stoploss to the 89 pip point or the original 13 pip on the opposite side of this tunnel, whichever yields the smaller reduction.