Simple Profitable Method

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Quote from nonlinear5:

Reading the very first post, it seems to me that the basic principle for entry is to wait until MACD crosses the zero line and until MACD crosses its moving average. I am not sure what "X" stands for.
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X=crossover

1. 10 min MACD/MA > 0 line then buy, 10 min MACD/MA < 0 line then sell

2. If 10 min says sell, then if 2 min MACD is above 0 line and crosses MA downwards then sell X

3. If 10 min says buy, then if 2 min MACD is below 0 line and crosses MA upwards then buy X

I think this is what T28 meant. Also he mentioned 2 min MACD distance from 0 line as an important variable to be considered, the closer to 0 line the more momentum, if all above conditions have been met.
 
The bog standard MACD (12 26 9) is used because you cant adjust it in MetaStock... I wish I had a more esoteric reason but that's it really. I've also read that many variations have been tried over the years but the original is still the most successful
 
T28 and others

any suggestion on 5 min charts. as on 5 min charts you can have 1 or 2 signals per day. but those would be more reliable and for longer time frame.



Quote from bill321:

i had been watching this thread for last 2 weeks. wonderful thread. i would say best thread here.

thanks T28 for this thread.

couple of observation and questions.

1. 2 min chart can be very choppy. i am trying to watch how SPY stock behaves.

2. I am more inclined to trade SPY as i need to invest more money.I can buy 2000 shares of SPY and folow this rule. low trading cost.

3. Use 5 min, 10 min and hourly chart. very few trade thats ok. trade on 5 min chart.

4. 25 cent stop. half exit on 25 cent profit., 10 min time stop. avoid economic data release timmings.

5.BB, samuel and T28 what do u guys see in real time trading with this strategy for longer period investors.
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Quote from Trader28Lite:

I just don't believe in it, it wont translate the way you think because in the real world there are far too many variables, you are trying to bottle trading... nothing against you, just cant be done.
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OK, but for the benefit of "believers", would you be willing to identify the exit/entry rules? I mean, look, after some 1600 posts, we are still not sure what a "Simple Profitable Method" is.

Quote from Trader28Lite:

I use an 8 period Triangular Moving Average with 2+ horitontal shift to anticipate zero line crosses... how are you going to program that?
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I'd program that in precisely the same manner as I programmed everything else in your system. I am not sure what you doubt is all about.
 
Quote from nonlinear5:




I'd program that precisely as I programmed everything else in your system. I am not sure what you doubt is all about.
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The indicator you could program, but my anticipatory decision based on rate of approach, market conditions and a 100 other variables a good trader has in his arsenal??? I don't thinks so

Even something as simple as not trading through lunch is not set in stone, there are days when the market is roaring and it blows straight through lunchtime and you would be silly to sit on the sidelines, no program is going to assess the subtleties of trading
 
Nonlinear, could you try this. I have a gut feeling that you will get better results:

Long Entry Rule: When all four of the following conditions are met:

- MACD10 is above zero
- MACD10 signal line above zero.
- MACD2 is below zero
- MACD2 has crossed its signal line upwards.

Exit from Long Entry: When 2 min MACD has crossed its signal line downwards

Short Entry Rule: When all four of the following conditions are met:

- MACD10 is below zero
- MACD10 signal line below zero.
- MACD2 is above zero
- MACD2 has crossed its signal line downwards.

Exit from Long Entry: When 2 min MACD has crossed its signal line upwards.
 
To replicate the human brains complexity you would need a computer the size of Texas, don't rely on a computer small enough to fit on your desk when you have the most sophisticated computer in the universe encased in your scone
 
Quote from romik:



1. 10 min MACD/MA > 0 line then buy, 10 min MACD/MA < 0 line then sell

2. If 10 min says sell, then if 2 min MACD is above 0 line and crosses MA downwards then sell X

3. If 10 min says buy, then if 2 min MACD is below 0 line and crosses MA upwards then buy X
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Trader28, can you confirm all 3 of these rules? My interpretaton of your original post was different.
 
Quote from romik:

Nonlinear, could you try this. I have a gut feeling that you will get better results:

Long Entry Rule: When all four of the following conditions are met:

- MACD10 is above zero
- MACD10 signal line above zero.
- MACD2 is below zero
- MACD2 has crossed its signal line upwards.

Exit from Long Entry: When 2 min MACD has crossed its signal line downwards

Short Entry Rule: When all four of the following conditions are met:

- MACD10 is below zero
- MACD10 signal line below zero.
- MACD2 is above zero
- MACD2 has crossed its signal line downwards.

Exit from Long Entry: When 2 min MACD has crossed its signal line upwards.
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You got it. I'll post it in about 10 minutes. Although I think that the last rule was meant for "Exit from Short Entry".
 
Quote from nonlinear5:

You got it. I'll post it in about 10 minutes.
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Cool, I would very much like to see the end results. Thanks! One thing though, what are conditions for stops?
 
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