Wednesday, August 12, 2009

GRaB Indicator for MetaTrader

GRaB indicator (green, red, blue) for MetaTrader is a visual hint intended to reflect the movement of prices on the canal. The indicator shows whether the price inside, above or below the channel, and depending on this, paint bars. The channel is formed by three sliding EMA with a period of 34 built by 3m price different time-series - High, Close and Low. Despite the extreme simplicity of this indicator, including its code, the usefulness of this development seems to be rather high.

The second title of the indicator GRaB - Raghee's Indicator, on behalf of its creator, Raghee Horner - a trader, author and manager of capital. Two of the books, "Forex Trading for Maximum Profit" and "Thirty Days of Forex Trading", published by Wiley and Sons, enjoy stable demand. It is a leading trader at www.gotforex.com.


Set indicator

To use an indicator, unzip and copy Raghee's Indicator.mq4 a folder indicators. C: \ Program Files \ MetaTrader (the name depends on your version of MT4) \ experts \ indicators

This indicator - not the system or is not it. Ideas about the system might be in monitoring the movement of prices in relation to the channel (wave). Because of how the price compares with dynamic support and resistance of this channel, you can draw a lot of visual signals.

We build 3 Exponential Moving Average EMA (34) on the values of high, close and low - and they form a channel.
The main idea of this indicator - color candles to mark the moments when the price is above, below or within the channel. Green is marked by a candle that closed above the upper border of the channel, blue - those that have closed within the channel, and red - to close below the lower limit.

Signals may be a candle, break the upper boundary to move up (purchase) or a candle, break down the channel (sales). Blue Candles - neutral and warned that soon may be a signal. Blue candles can be displayed when the market is in a sideways motion or with the rebound from support or resistance.
It is useful in applying the trading strategy Wave / CCI, and may be useful in strategies based on the channels from several EMA.

Using - Theory

1st Option Strategy Wave / CCI
Construct 3 indicator EMA (34) for the high, low, close and the CCI 20/100. Log in LONG when price opens above the 2nd EMA and the CCI is 100, entrance to the SHORT at the opening below the 2nd EMA and CCI is -100. Out of the transactions and rasstavlenie foot, at the discretion of the trader.

2nd version of the strategy Wave / CCI
The signal to buy (LONG) when:
- The current candle to close above MA (34) (high)
- Previous candle also closed above MA (34) (high)
- CCI> 0
- Histogram MACD> 0 has at least 2 bars
Closing the deal LONG, when the CCI crosses the zero level

The signal to sell (SHORT) when:
- The current candle closed below MA (34) (low)
- Previous candle also closed below MA (34) (low)
- CCI <0
- Histogram MACD <0 already at least 2 bars
Closing the deal SHORT, when the CCI crosses the zero level

Use - Practice

In the theory of everything, of course, looks smooth, but without practice, as is known, the theory is worthless. Especially in the Forex. So, try to test the indicator. Switch the type of schedule to the "bars".


The first thing you will notice when using the real - is lagging draw at 1 bar, so the 1 is a beautiful and large red / green bar to the transaction system is impossible.

Second - redrawing the last rectangle. You see, the last picture on the left box - the blue, and right - already red. So do not be surprised if the signal first appears, then disappears. To repaint the system of trade means that the position should be opened only after the complete formation of the bar. Given the lag of one bar indicator and moving the first box we get a delay of 2 bar.

With a longer observation of the indicator, it appears that the redrawn not only the last bar, but the previous one. So do not believe what you see - an indicator for the beautiful stories, but much worse in real time. Analysis of the code shows that, in principle, can be redrawn, not only the last 2 bars, but more distant rectangles.


Implementation Strategy

While the indicator and redrawn, but it's still no reason to discard strategy. Let's try to test one of its options in the MT. To do so, was written by an expert called RH (Raghee Horner), who, along with GRaB Indicator can be downloaded at the end. Some transactions conducted by an expert on the history, look very attractive.


A total yield since the beginning of this year on EURUSD with parameters TP = 100 SL = 100 was in the vicinity of 100% when trading 1 lot. Although Drawdown, it is necessary to notice, was serious. According to the schedule shows that the strategy is working well since April of this year.


This expert RH can be used to risk and the real work, but for greater sustainability is to work on optimizing it, but if you have skills in mql4 - even over the algorithm.

Conclusions

Indicator GRaB a very beautiful, and lies within the idea of trading in line with the channel - a profitable idea. But this indicator repaint make trading more comfortable on it only in history, a real-time need, or sell without the lights - on the relationship between the moving averages, bars and the CCI, or do not sell.

But the strategy itself has the right to life, which is proved by testing, without fitting in, in a sense, the standard parameters.

Download

GRaB indicator (8.4 kB)

No comments:

Post a Comment