TradeStation Story

Originally Posted by debashis

dear igorad,
can you make it for amibroker or metastock please?

Hi debashis,

Sorry but I can't help in this matter.

Regards,
Igpr

Hi,

Just want to inform that 2 new parameters added to the TSM Divergence EA: InitialStop and TakeProfit in pips.
Also please check out the optimized settings (EURUSD 60 min):

Attachment 3652

and the EA performance with them:

Attachment 3653

Regards,
Igor

Originally Posted by igorad

Just want to inform that 2 new parameters added to the TSM Divergence EA: InitialStop and TakeProfit in pips.
Also please check out the optimized settings (EURUSD 60 min):

Hm. I ran it on 60min EURUSD with those settings, on the same period, and my results don't look much like yours. I took nearly 2x more trades, and my profits (assuming you were trading 10,000 = 0.1 lot) were much lower... ????

Originally Posted by garyfritz

Hm. I ran it on 60min EURUSD with those settings, on the same period, and my results don't look much like yours. I took nearly 2x more trades, and my profits (assuming you were trading 10,000 = 0.1 lot) were much lower... ????

Hi garyfritz,

Sorry but it's not a commercial EA, it's just a variation of the P.J.Kaufman's EA which he published in his well-known book "New Trading Systems and Methods"(4th Edition). So you can find better settings for your market quotes.

Regards,
Igor

But if I run the same system, on the same symbol, on the same time period, with the same inputs -- I should see the same results you posted. So I'm wondering what's different between your posted results and mine ??

The only difference I can see is that you're running on the symbol EUR, while I'm running on the Tradestation forex symbol EURUSD. My Tradestation doesn't have a symbol EUR. Maybe your EUR is different to Tradestation's EURUSD?

Originally Posted by garyfritz

But if I run the same system, on the same symbol, on the same time period, with the same inputs -- I should see the same results you posted. So I'm wondering what's different between your posted results and mine ??

The only difference I can see is that you're running on the symbol EUR, while I'm running on the Tradestation forex symbol EURUSD. My Tradestation doesn't have a symbol EUR. Maybe your EUR is different to Tradestation's EURUSD?

Hi garyfritz,

There are different results because I am having different quotes (I am not using official TS quotes sorry). That is why my results may be dfferent from your results.

Regards,
Igor

Then there must be significant differences between your EUR and TS EURUSD. And your EUR works a whole lot better, at least for this system!

If you've got a minute, I'd like to compare your EUR to TS EURUSD. Could you open a 1-minute EUR chart, View -> Data Window, right-click on the Data Window and Save it to a file? 6 months of 1-minute data should zip-compress to about 1.3MB. 1-2 months would probably be plenty if you don't want to post a huge file.

Oh, and what's the source of EUR?

Thanks!

Originally Posted by garyfritz

Then there must be significant differences between your EUR and TS EURUSD. And your EUR works a whole lot better, at least for this system!

If you've got a minute, I'd like to compare your EUR to TS EURUSD. Could you open a 1-minute EUR chart, View -> Data Window, right-click on the Data Window and Save it to a file? 6 months of 1-minute data should zip-compress to about 1.3MB. 1-2 months would probably be plenty if you don't want to post a huge file.

Oh, and what's the source of EUR?

Thanks!

Hi garyfritz,

I take forex quotes via the QuoteRoom program from the Forexite.com. So if you wish to compare the quotes then please install this program.

Regards,
Igor

Hm. Thanks, but I don't like to install executables from websites I don't know. I won't be opening an account with Forexite (they won't take me, I'm in the US) and I do my trading on Tradestation, so I guess the Forexite data isn't relevant for me. Too bad, because those results looked pretty nice. The Forexite EUR must be a cleaner / less noisy signal. Which would be great if you could actually trade it ...

Talking Points:

• The MACD and Signal line crossover gives traditional buy/sell signals.
• Histogram is the difference between the MACD and Signal line.
• We can enter when Histogram begins to get smaller rather than wait for a cross.

Most technical traders have experience using the more popular oscillators, RSI, CCI, and MACD, etc. But many traders I’ve taught are not aware of the alternative way to use the MACD. In this article we will discuss how to use MACD’s histogram to open trades and show how in many cases we can get a quicker entry than the traditional MACD method.

What Does the Histogram Represent?

The green histogram or “bar chart” included in the background of the MACD displays the difference between the MACD and Signal line. When the MACD is above the Signal line, the bar is positive. When the MACD is below the Signal line, the bar is negative. The actual height of the bar is the difference between the MACD and signal line itself.

MACD’s Histogram Construction



The chart above shows what the Histogram represents. The first label shows how the MACD is higher than the Signal line. This creates a positive green bar that has a height equal to the difference of the two lines. The second example the MACD is below the Signal line. This creates a negative green bar that has a height equal to the difference between the two lines. We can also see that when the Blue and Red lines cross, the histogram flips from one side to the other.

How to Enter Based On the Histogram

So how can we read the histogram to generate trade signals? We first want to track the histogram as it moves away from the zero line, in other words, track it as its bars grow larger. The actual signal comes when the histogram no longer gets larger and produces a smaller bar. Once the histogram prints a smaller bar, we look to trade in the direction of the histogram’s decline. We can see an example of this in the chart below:

MACD Histogram Entry Logic



The Sell signal on the left was created by four growing bars in a row followed by a fifth bar that closed smaller. Five bars later, we see the MACD line crossing below the Signal line which is a traditional MACD signal. This later signal would have missed a majority of the move that the Histogram signal would have caught. Therefore, using the histogram as a signal can earn us a greater number of pips.

The Buy signal on the right is a similar story. We saw four bars growing consecutively until a 5th bar was created that equaled the 4th. We want to wait until a bar is smaller, so the trigger would have been presented after the 6th bar closed. This buy trade came several bars before the MACD/Signal cross and gave us a better entry as well.
Once we are in the trade, we can use sound Money Management to close out the trade appropriately.

And The Rest is Histogram

This entry strategy is fairly straight forward and can quickly be adopted by a technical trader.

Good trading!
---Written by Rob Pasche

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