Looking for feadback for my post on Quadpips.

Quadpips,

I'm heading off to work so I can't spend a lot with this now. I'm browsing through the images you've posted as they are easier to grasp than those thousand words you had typed. :) I'll quickly throw in a couple of questions though to get some coversation going.

Image 1: I'm not sure we really need that many EMAs... Wouldn't it just be easier to say when close < longest EMA? In your example it takes time before the pink EMAs cross the greens. In a fast market that can be costly.

Image 2: So what you're saying is short the market when it's trending lower and has moved enough against the trend. It is a good and often used entry technique. It works beautifully when you have a trend. When designing systems the biggest challenge (in my experience) is to define trends in such a way that I don't get false signals during the chop. Any ideas on filtering the chop out effectively?

Image 3: I found this a bit unclear but I might just be me trying to read it in a hurry. I probably should have read your text more carefully. Just one thing on this image: why not to choose stochastics values that'll give you better oversold signals or would you suggest using the pink EMAs for entry?

Image 5: Why should the first signal be skipped? That's where price created a higher low, which should signal a buy opportunity. Another thing: your system was to trade only when EMAs are fanned out. Here they are pretty close to each other, arent they? How do you define when they are fanned out enough?

I've gotta rush to work now, but I'll be checking back later on.

Cheers!
 
Hey good question. Thanks. Well lets see were to start. The more emas give a better visual of trend strength. On image 5 I always skip the first SI Pullback and wait for the second dip into OB/OS to verify the trend so I dont jump the gun.

The system is this. Only trade when you a have a strong trend. Period, no chop. You wait for the emas to fan out and then you wait for a pullback(PB). once a PB has happened you wait for a candle to close above the OB/OS lines.

I wait till the emas are good and fanned out. Thats why as a rule of thumb I skip the first PB.

I wait for you next question and thanks!
 
"The system is this. Only trade when you a have a strong trend. Period, no chop."

Yes I can see what you mean but I was looking for a more precise answer... something that could be quantified. I've been testing trend recognition systems with computer and found that wrong signals come when the system "thinks" a new trend is beginning. Have you studied how much the moving averages have to be apart to warrant for a trade?

In some of your images the EMAs are fairly close to each other and in some more wide apart. It seems to me that your set of rules are slightly subjective at the moment. But don't let this to put you off. It great that you're studying and trying to find a systematic way to trade.

- TT
 
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