Filter for 8 EMA / 20 SMA Crossover Signals

[Chence27]

Is anyone aware of a suitable indicator for filtering bad signals from a short term moving average crossover strategy (8ema and 20sma)?

 

[rad14733]

You should never rely on a single indicator for trade decisions... Some of the standard indicators to help with entries and exits would be RSI, MACD, and Stochastics just to name a few... These forums are filled with other custom indicators and Studies so dig in and see what you find visually and functionally appealing... What you choose to use will partially depend on your trading style...

I'm sure you already know most al of this, Chence27, but mentioning it all anyway... I use multiple MA's as you have probably noticed, along with several other indicators...

 

[Chence27]

@rad14733 Right, I'm aware of all the indicators out there. I was wondering if anyone had experience with using one in particular with a moving average crossover strategy with success. I've tried a bunch and haven't found anything that works well as a filter. That being said, I'm getting a consistent 60% hit rate with a crossover alone. Of course, finding a way to weed out some of the bad signals would be ideal. I do have some rules using MTF that act as a filter, but it only works on a small minority of the bad signals.

 

[MatthewTherrien]

For what it's worth - I trade MNQ & MES using 20 period EMA with Hull average type, Twiggs Money Flow and Balance of Market Power on TOS and Cumulative Delta on Tradovate as my confirmations - and getting very high win rate

 

[Chence27]

For what it's worth - I trade MNQ & MES using 20 period EMA with Hull average type, Twiggs Money Flow and Balance of Market Power on TOS and Cumulative Delta on Tradovate as my confirmations - and getting very high win rate

That's great man. Would you mind sharing a TOS link to your grid? I'd love to see the setup.

 

[MatthewTherrien]

Here you go - http://tos.mx/ZSOp8Mh. I do realize that the Trend Reversal indicator repaints and many have stopped using it - but I find it helpful to get a strong visual clue - to make me focus on my setup. I also use PSAR - which is not shown on this grid and here are today's results from Tradovate

 

[Chence27]

@MatthewTherrien You're the man, thanks for sharing that! Would you mind giving a little rundown of how you use all the indicators in conjunction? What do you look for in each? What are the signals that inform you when to enter and exit a trade?

 

[MatthewTherrien]

Hi - I am new to Futures - so I am basically following AlgoTrader77's NQ Strategy which is all based around the 20 EMA. My setup goes further and I use the Twiggs Money Flow and Balance of Market Power to confirm my shorts/longs - but most importantly - I watch Cumulative Delta on Tradovate to see if buyers or sellers are taking control

 

[Chence27]

Hi - I am new to Futures - so I am basically following AlgoTrader77's NQ Strategy which is all based around the 20 EMA. My setup goes further and I use the Twiggs Money Flow and Balance of Market Power to confirm my shorts/longs - but most importantly - I watch Cumulative Delta on Tradovate to see if buyers or sellers are taking control

Thanks. I checked out the balance of market power indicator and it looks interesting. I noticed it picks up divergences well. How do you use it?

 

[MatthewTherrien]

I am just using it to judge buyer/seller momentum - but I rely on Cumulative Delta on Tradovate more specifically to confirm market control and my possible entries

 

[tradeidea20]

@MatthewTherrien Can you share a picture on how you are using cumulative delta as i am confused on what you are looking at it?

 

[MatthewTherrien]

@tradeidea20 It's not on TOS - it's on Tradovate

 

[Chence27]

I tried out that 20ema strategy on nq. It's not practical on any day that has a range, even if it trends for most of the day..all the losses from the range would surpass the wins.

@MatthewTherrien I'm looking for a broker to trade micros. How do you like Tradovate? I wanted to go with AMP but they don't have any good platforms for Mac. How much are the commissions?

 

[MatthewTherrien]

@Chence27 Well - my strategy is a little different as can be seen from my earlier posts in this thread and I am using to scalp - with very high win rate. I am extremely happy with Tradovate - great web app and Desktop app - low margins and great support so far

 

[Chence27]

Great man. Maybe you can take some screenshots of some winning trades to show the signals from the indicators.

 

[MatthewTherrien]

Great man. Maybe you can take some screenshots of some winning trades to show the signals from the indicators.

Sorry but It's too hectic to take screenshots of trades in real time - if you have an account with Tradovate you can demo trade using the indicators I am using but here are my buys and sells from last week

 

[Chence27]

Can't you just go back in the charts to see your past trades? I'm seriously considering opening with Tradovate. Seems like the best option for a mac user.

 

[MatthewTherrien]

No you can't

OK here is a screenshot just as I placed an order on TV - I use TOS charts and TV chart - this is the TOS chart -

 

[Chence27]

Man I find it hard to believe that you can't go back and analyze your past trades.

 

[MatthewTherrien]

Man I find it hard to believe that you can't go back and analyze your past trades.

You asked me to show you past charts - I don't know any platform that you can do that with