Easy Does It off the TDI indicator - EDI TDI (Easy Does It off the TDI indicator - EDI)
Hello everyone,
I would like to submit for discussion a trading strategy that I think has great potential. There is no doubt that becoming an EA is very easy. This strategy originates from FF's Xman S3 system, which is a branch of Big E's TMS system. No doubt many of you are already familiar with these strategies, and you may have tried some EAs.
Dessert first, then meat and potatoes:
Starting at the beginning of this year, I conducted a visual backtest of the E/U strategy. I recommend it trades on H4, so the data set isn't very large, but it shows a lot of promise. EDIT: Since late April for live trading, I have switched to daily main entries .
Now, it is important to note that with backtesting, it is difficult to accurately determine where the entry and exit points are relative to the TDI. I tried to be conservative and choose the nearest new bar opening date, as that's when TDI would be updated.
Having said that, the attached pdf is an Excel file of the transactions made and results this year. The lot size was a bit difficult to decide on as I didn't want to try to adjust the lot size for each trade, so I chose an average of around 50 pips. Based on this, I calculated a risk factor of 1% per trade to determine the lot size. I do feel that in the live trades I have started, the actual stop loss could be lower, allowing for a larger lot size for the same risk percentage and thus faster equity growth.
From January 1 to April 23, a total of 22 transactions were made. There were 16 profitable trades, totaling 1,344.4 points, and 6 losing trades, totaling -92.8 points. During this period, total account assets increased by 35.44%.
Strategy:
As mentioned before, I use the Traders Dynamic Index with Alerts as my only indicator (besides that, there is the Trading Information indi, if you don't like all indi, leave it out). I trade on a daily basis as I feel this provides more trending opportunities than shorter time frames. Then I stack the orders based on H1 (while I'm in front of the computer)
Low spreads are always a plus.
All indi and templates are attached.
entry:
We buy/sell when the green TDI is outside the blue band and then crosses the red band. Stop loss is placed below/above the nearby last swing low/high. When the profit is approximately SL, SL will move to BE. 25 points.
Stacking:
Once the initial daily entry is completed and the trade has been transferred to BE as long as the green is still on the same side of the red where the daily entry was initiated, I then move to H1 and stack the order based on the TDI Cross regardless of the blue band . SL treatment is the same as daily treatment.
If the initial daily entry reaches SL before stacking begins, I will re-enter based on stacking criteria.
Reset:
The run ends when the green on the daily chart crosses the red from the other direction. Sometimes, after a long run, our reset point will be to go immediately in the opposite direction (assuming green has made it all the way back outside the blue band before crossing red again).
quit:
Trader’s discretion. When the daily reset occurs, many people exit all positions.
However, I will use this strategy as an equity millipede approach into Graeme . If you haven't read this thread yet, you owe it to yourself to do so. Here is the thread: http://www.forexfactory.com/showthread.php?t=245149
So when the daily trade goes against my trade, I close half of my position and let everyone else continue trading. If the entry conditions are met in the opposite direction as mentioned above, then I will start trading this way.
automation:
As you can imagine, it's impossible to be in front of a computer for all H1 stack trades, especially if you're asleep during London trading. So an EA for this problem would be great and I don't think that complicated.
I found an EA that Xaphod has written for trading TDI Cross. Hopefully adding "band" criteria and other parameters won't be too difficult. So for programmers who might be interested in solving this problem, let's try it out and see if it works.
In the meantime, I will continue to trade live as much as I can.
Let the discussion begin.
Edit May 27, 2012: I'm trying out some new indicators to try and filter trade exits. They may or may not become part of my strategy, but they are here now.
I would like to submit for discussion a trading strategy that I think has great potential. There is no doubt that becoming an EA is very easy. This strategy originates from FF's Xman S3 system, which is a branch of Big E's TMS system. No doubt many of you are already familiar with these strategies, and you may have tried some EAs.
Dessert first, then meat and potatoes:
Starting at the beginning of this year, I conducted a visual backtest of the E/U strategy. I recommend it trades on H4, so the data set isn't very large, but it shows a lot of promise. EDIT: Since late April for live trading, I have switched to daily main entries .
Now, it is important to note that with backtesting, it is difficult to accurately determine where the entry and exit points are relative to the TDI. I tried to be conservative and choose the nearest new bar opening date, as that's when TDI would be updated.
Having said that, the attached pdf is an Excel file of the transactions made and results this year. The lot size was a bit difficult to decide on as I didn't want to try to adjust the lot size for each trade, so I chose an average of around 50 pips. Based on this, I calculated a risk factor of 1% per trade to determine the lot size. I do feel that in the live trades I have started, the actual stop loss could be lower, allowing for a larger lot size for the same risk percentage and thus faster equity growth.
From January 1 to April 23, a total of 22 transactions were made. There were 16 profitable trades, totaling 1,344.4 points, and 6 losing trades, totaling -92.8 points. During this period, total account assets increased by 35.44%.
Strategy:
As mentioned before, I use the Traders Dynamic Index with Alerts as my only indicator (besides that, there is the Trading Information indi, if you don't like all indi, leave it out). I trade on a daily basis as I feel this provides more trending opportunities than shorter time frames. Then I stack the orders based on H1 (while I'm in front of the computer)
Low spreads are always a plus.
All indi and templates are attached.
entry:
We buy/sell when the green TDI is outside the blue band and then crosses the red band. Stop loss is placed below/above the nearby last swing low/high. When the profit is approximately SL, SL will move to BE. 25 points.
Stacking:
Once the initial daily entry is completed and the trade has been transferred to BE as long as the green is still on the same side of the red where the daily entry was initiated, I then move to H1 and stack the order based on the TDI Cross regardless of the blue band . SL treatment is the same as daily treatment.
If the initial daily entry reaches SL before stacking begins, I will re-enter based on stacking criteria.
Reset:
The run ends when the green on the daily chart crosses the red from the other direction. Sometimes, after a long run, our reset point will be to go immediately in the opposite direction (assuming green has made it all the way back outside the blue band before crossing red again).
quit:
Trader’s discretion. When the daily reset occurs, many people exit all positions.
However, I will use this strategy as an equity millipede approach into Graeme . If you haven't read this thread yet, you owe it to yourself to do so. Here is the thread: http://www.forexfactory.com/showthread.php?t=245149
So when the daily trade goes against my trade, I close half of my position and let everyone else continue trading. If the entry conditions are met in the opposite direction as mentioned above, then I will start trading this way.
automation:
As you can imagine, it's impossible to be in front of a computer for all H1 stack trades, especially if you're asleep during London trading. So an EA for this problem would be great and I don't think that complicated.
I found an EA that Xaphod has written for trading TDI Cross. Hopefully adding "band" criteria and other parameters won't be too difficult. So for programmers who might be interested in solving this problem, let's try it out and see if it works.
In the meantime, I will continue to trade live as much as I can.
Let the discussion begin.
Edit May 27, 2012: I'm trying out some new indicators to try and filter trade exits. They may or may not become part of my strategy, but they are here now.
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