Open/Close Crossover Method
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thread: Open/Close Crossover Method

  1. #1

    Open/Close Crossover Method

    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.

  2. #2
    Because the traces are really close 18, it might be harder to spot a trade in real time. 13 SL away from the cross sounds great in the event that you can enter trades precisely where they cross. I am afraid this will not work cuz the price will go far away from the cross before you can affirm it is a real cross.

  3. #3
    Junior Member pknino_mdc's Avatar
    22
    Hello,

    Just picking up on which nitman was stating
    Scenerio 1) as soon as the EMA(34,C) crosses beneath the EMA(34,O) then your trend is DOWN, and you enter 3Units of short positions in the point of crossover.
    Is the entry price on your program the crossover price or the pub close price?

    Best regards
    Alan

  4. #4
    It may be harder to spot a transaction in real time since the lines are really close together. 13 SL in the cross sounds great if you can enter transactions where they cross. I am afraid this will not work cuz the price will go far away in the cross until you can confirm that it is a cross.
    Hi nitman,

    The crossing point could be made a lot easier to see a custom indior below the chart using one line showing the difference between both ma's along with a zero crossover line.

    After a solid crossing price, look for the very first pullback to the 34 before entering. Then you put on a size that was larger and consequently can place a stop.

    Dial

  5. #5
    Nitman, this would be true on paper, but now we've got software, so it tells us all ;--RRB-

    The specific point is most likely not that mandatory, but indiors can provide alerts in almost all software.

    Firehorse, I am not just sure your query....

    Just woke up. . So somewhat groggy. I will post a few screenshots, which will clear my thoughts and yours.

  6. #6
    Attaching Shades, one with detailed explaination, another just a vanilla version of the exact same screenshot.

    I will basically visually backtest rather quickly. .

    I am trying to figure out how to eliminate the rocky transitions, so any suggestions are great!

    It seems that to safeguard profit, I may need to move that stoploss to 1 pip after it hits the 55 pip line. .
    https://www.cliqforex.com/attachment...0265977482.zip

  7. #7
    Rough version of the procedure in VTTrader attached. Take it and allow me to know!

    Thanks.

    ?blink
    https://www.cliqforex.com/attachment...3743643811.zip

  8. #8
    Member ina99's Avatar
    98
    This is intriguing. Do you have any stats on it however? You have been busy havn't you? Cool

    Scott


    Attaching Screenshots, one with comprehensive explaination, the other just a vanilla version of the same screenshot.

    I can basically visually backtest fairly quickly. .

    I am attempting to figure out ways to get rid of the rugged transitions, so any hints are great!

    It appears this to shield profit, I might have to transfer that stoploss to 1 pip after it hits the 55 pip line. .

  9. #9
    Junior Member romenlm's Avatar
    17
    Here is the first system I've seen that entails two of the same moving average except which one is placed on the open and yet one is applied to the close. The uniqueness might explain the effectiveness.

    I almost want to say that this technique is similar to comparing EMAs which are 1 price bar different. Of course, this isn't correct. It is like zooming in on time amounts that are quicker, more. I would like to study this, as I'm pretty certain you will find MA systems that correspond to the one mathematically. I simply need to think about doing it. I don't care about how to display the stuff in MetaTrader or whateverthe math works.

  10. #10
    Hey Mike,

    We've Bulls and we have Bears.

    Assuming bulls, then we could presume that the close is greater than the start.

    Assuming bears, we could presume that the close is lower than the start.

    If you EMA on precisely the exact same number of bars, with Open vs Close, then in theory you can tell if we're heavy on the bulls, or on the bears.

    That is the theory anyways. When the scale is balanced, you are in a choppy market, or if the scale is tipping back and forth in a small range.

    I feel that a small modifiion I could make to the machine is like what Vegas has for his or her tube. If the MA_O, MA_C, and price is within 20pips or something like this, then hold off.

    That will probably be an excellent filter to add.

    Again, any help to improve the system would be greatly appreciated. .

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