wma cross
by Colombino
The next thing – very logical, but many traders don’t realize it, is that 5&20 MA on the 30min is the same as 30&120 MA on the 5 min. Both shows the same, just in the second case are the MAs more accurate and more correspondig to the market.
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Bunnygirl
I’m just catching up with the thread, sorry for the delay.
The filters I have been trying out lately are:
Eur/usd 22 pips
Usd/chf 25pips
Gbp/usd 32pips
Eur/jpy 30pips
I chose these 4 pairs out of the 10 that I tested as they gave the most reliable results and made an average of a minimum 30 pips per day per pair. I havn’t backtested the pairs I rejected since I did the initial tests, so maybe circumstances have changed.
A bounce is really a failed cross when the wma’s touch or come within a pip of each other. I use the filter in exactly the same way to enter either long or short as the market could go either way from here. With hindsight you will see the wmas just touch and bounce off each other.
‘A day’ – I count this as european time, 6am onwards, as asian time is often flat and has many whipsaws without hitting entry. (although I’ve seen some very nice crosses in asia lately).
I have 3 options at big news time. If I already have a decent profit then I’ll lock in most of it and sit tight. If I’m around breakeven then I get out and wait. If I’m in a loss then I bring my stop up tight and chance that it will turn in my favour.
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Hi Leeanne
If I miss the cross entry at the time then it is possible to re-enter later when we get a ‘bounce’ – which will be when the price consolidates and then moves off again. If the price doesn’t cross the wma20 then take the price bouncing off it and making a higher high/low of the previous bar. I try to stick to the rule of only entering in the same direction as the cross (so if the cross was up I’ll only take longs) until we have a cross in the opposite direction.
The filter thing is what the whole strategy is based on. The idea is to keep out of ranging days, but to catch the intraday trends.
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Your first 3 paragraphs about entering using the filter is correct. My exits are a bit of a grey area. I do look at bollinger bands and wma100 on both 5 mins & 30 mins for exits, along with trailing stops. I don’t use the wma5/20 cross on 5 mins for exits.
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Yes I do use a live account and trade with real money. My winning percentage is around 90%. With that percentage and cutting losses at the cross it is very successful. Maybe my rate is higher because I don’t take every trade, I should backtest to see how I would have done if I had. My longest streak of 46 wins ended 2 weeks ago.
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The gimmee bar set up is exactly as described in the link in Blaiserboy’s post and is a great tool for scalping.
Mr Sheen is just a nickname I gave to entering a trade after the dust has settled. (Mr Sheen is a brand name of polish ). I use it after big news events and also any other time I see the price retracing by 30 – 40 pips after a strong move on a 30 min chart. I move down to a 5 min chart and look for the price bouncing off wma20 or wma100 and closing in the opposite direction. I then take the breakout of that bar with the initial target being the previous high/low made (around 30 – 40 pips). Stops can be fairly tight at around 10 – 20 pips depending on which pair is being traded as anymore than this would be more than a normal pullback – it would be a reversal.
Mr Sheen is also a great tool for re-entering the cross trade if stopped out anywhere along the way or if the cross was missed due to being in the wrong timezone. I take partial profit at the initial target & let the rest run for the normal +50, +100 if seen with stops moved to breakeven.
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by tigerman
A bounce has to be confirmed by the same filter as a cross.
Personally, when the 5WMA bounces off the 20WMA I sometimes buy/sell WITHOUT waiting for a filter but also with a tighter than normal stop. That way if I’m right, I make a better profit and if I’m wrong I lose less. Checking other time frames, indicators and candle formations agree with the trade direction can further put the odds in your favor.
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by dentist007
A bounce has to be confirmed by the same filter as a cross.
Personally, when the 5WMA bounces off the 20WMA I sometimes buy/sell WITHOUT waiting for a filter but also with a tighter than normal stop. That way if I’m right, I make a better profit and if I’m wrong I lose less. Checking other time frames, indicators and candle formations agree with the trade direction can further put the odds in your favor.
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If I’m waiting to enter a trade I’ll set an alert to tell me when the price is approx 10 pips past the wma20 to save watching the screen all day. When the price has reached this level I check first to see how close the wma5 is to crossing, then I watch until either the wmas cross or bounce.
If the wmas are flat at the end of the day and I have no trade then for the Asia market I set 2 orders, 1 long & 1 short with accompanying ‘if done’ OCOs to take profit at 30 pips or loss at 30 pips because this type of OCO can’t be split into smaller stakes.
If I’m already in the market and in profit and want to hold overnight then I’ll simply set 3 OCOs and 1 stop loss. The first to take +30 or b/e, the second to take +50 or b/e, the 3rd to take +100 or b/e and the 4th just a plain stop at b/e.
It’s a bit complicated but saves a lot of wasted time.
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by dentist007
bg.enjoy the holidays.is it club 18-30.2 weeks in faliraki?again.
i am not old enough for that???
some thoughts for youre holiday.i did some testing on the nasdaq yesterday with the underound trader methods.
the 3 lane highway.ieon 3 different time frames.say 5/15/30 mins.if all the ma and stoch are moving in the same direction on all three,then why bother with a filter??
exit strategy,according to them the exit is determined around the price in reltion to 5 ma.maybe the price crossing the shorter ma by a certain amount or number of candles will determine whether the price is consolidating or retracing
the displaced 3 ema looks good.available on gftforex.they also have trailing stops.can give you the reentry.i have looked at this,they claim you have 6 mins on nas 3 min charts before the world knows there is a break.ie 2 candles
a good book to take on hols.20 quid from amazon.secrets of the underground trader.the principles can be applied to forex.
lcan someone please let me know if i am going in the wrong direction.i can take the criticism
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by tigerman
Guys the Bunny Cross works and is profitable IF you know when to trade it and when to ignore it. When to take profits and when to let them ride. This comes from experience and knowledge.
Bunny has both and if you don’t you may find it hard to make money with this or any method.
There are many great books available on technical analysis and they will help you to use the Bunny Cross at your own discretion as Bunny herself does.
If you flat out trade the Bunny Cross without discretion you will lose money or at best break even, but you’ll have fun either way
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by dailydow
To filter out bad trades only trade when the market is going to turn hmmm yes phil and how do we do that
Well the last three days on gbp look at an hourly chart on a daily basis there is allways one big move a day look at any day there is allways a move a reversal it is this move that you have to capture.
now check the times of the big moves for the last three days they have all been around 1 pm uk time which i understand is usa forex traders at there desks time
Now scroll back over a number of days and see what times of the days there are turns 10 am bar jumps out as being really significant.
So what im saying is do some bactesting to see which bars the market turned on reguarly 10 am i think will be the winner and only trade the cross on these bars lie in the sun for the rest of the day.
This whole topic of time of day to trade has been dicussed at legngth on trade to win under spot on trading system jonny t
hope its ok to say that
time of day is what its all about
Remeber there is allways a biggish reversal everyday
it
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by rivertrader
ahhhhhhhhhhhh the strategy of bunny cross, i will put my two cents in, i have found it to be genius. the filters are a miracle…80% of the time they keep me safe. and i am profitable, big time. ( this is a new thing for me.) and, i must admit, i can use my many years of gathered knowledge to make the bunny cross work better for me… (yes, any strategy we use, we can`t help but have all our past experience blend into the trades) trading is an accumulatinon a zillions hours of study and highs and lows…
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Yes I’m still using exactly the same rules, except the filter has been reduced on gbp/usd & usd/chf to 25 pips for shorts and 30 pips (25pips + spread) for longs.
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by Beachie41
Instead of looking for hard & fast rules for the filter, start to think of the concept behind it & apply a pip filter based on your own observation.
The filter is based on past price action, so eyeball the charts for recent months & see where, on average, a cross fails. Then use that as the filter.
The market isn’t static, therefore volatility will change and so will the filter.
If you do this exercise, rather then asking someone else for the answers, you will benefit far more from the observations you will make and thus have a better understanding of market dynamics.
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I use multilots using a different strategy for each lot so hopefully at least 1 lot will make it to the end of the trend.
1st lot 10 – 30 pips depending on the speed of the move & moving the reamainder to breakeven
2nd lot 30 – 50 pips locking +10 for the remainder
3rd lot 50 – 100+ pips,
4th lot trails using the extreme of the previous bar or the halfway point if it’s a longer than average bar.
Sorry to be a bit vague, but that’s what’s supposed to happen in theory. Quite often i’ll take half out at 10 – 30 pips and then trail with 3rd & 4th lot.
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“I`m normally here in the chatroom 7 am GMT until 5 pm GMT trading.
Best time to trade generally is 6:00 to 9:00 am GMT and 12:30 to 15:00 pm GMT. Be wary of entries between 10:00 and 12:30 GMT and after 16:00 GMT. Europe and US opening are most reliable. Be aware trends can change when a new market opens.”
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by Blaiserboy
Trading can be simple and very gratifying….. you need to define your approach, keep it relatively simple and practise until you master it…....
The system, bunny cross, works very very well without alteration, although sometimes people want to ‘improve’ it… and complicate it to all extremes…...
Practise makes perfect…!!!!!!!
Good luck trading
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3) From the sounds of it you only moved to EMA because your current platform does not do WMA. Would you use WMA if you had the choice to? From the little looking I have done, it seems that WMA gives crosses sooner then EMA, and thus could weild more pips.
3) It’s swings and roundabouts between the wma & ema. Yes the wma will have an earlier entry when there is a sharp swing in the price, but you will also see some very nice bounces off the ema too, and sometimes using the ema will keep you out of a bad trade. The last few days I’ve been putting both on Netdania and with some interesting results.
4) If the cross was in a range where the 100 EMA (WMA) prevented a trade, do you get in after say 20 pips above/below 100 MA or just wait for another cross?
4) First of all I wait to see if the price closes beyond the ema100. If it does, but by quite a long way (more than 10 pips) I’ll wait to see if the next bar pulls back to the ema100 and then uses it as s/r. If it makes a clean bounce off it I’ll enter using a 5 min chart. If it goes back over the ema100 then I wait to see if the bar closes the other side and repeat as above, but in the oposite direction. If this isn’t clear, just holler and I’ll find a chart to post.
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Sticking to the rules is the hardest part.
It’s a vicious circle –
If I break the rules I make bad trades, If I make bad trades I doubt the system, If I doubt the system I change the rules, If I change the rules I make bad trades.
Then I start pedalling backwards –
When I feel I’m on a downward spiral this is what I do:
I look back over the last month’s trades. At the point where I started to doubt the system, I take a look at the daily and weekly chart to see what was happening in the bigger picture. There’s usually somthing going on there, either a crossover, or a bounce that I’d missed.
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4) If the price is far away from the entry level I wait for it to pullback to at least the ema5, & preferably the ema20, this can take a while, but worth the wait, I’ve pointed out some pullbacks on the charts on page 90.
5) If I’m stopped out I wait to see if the emas are bouncing or crossing back. If they are crossing back over then normal entry rules apply to try to avoid getting caught in another whipsaw. If I get stopped out and the emas bounce off each other (sometimes news can have this effect) I try to re-enter when the price closes back below the ema20.