Trading With CrossOver And BB

[prabit]

hello scorpio.

very happy to note that you have found the method promising.

Now, please specify the following.

entry ( at which point?) , exit ( stoploss?/SAR?), scaling in, scaling out, position size.

my strategy is,

in the case of bullish crossover:

entry at the opening of the bar immediately after the crossover bar, with three lots.

trailing stoploss at the low of previous three bars lows or entry bar minus ATR of that time frame.

profit booking of 1 lot at entry + 20 points, 1 lot at BB piercing (if it happens) and 1 lot at bearish crossover.( if BB piercing does not happen then 2 lots) or at end of the day( if bearish crossover does not happen).

would like to see your strategy and also charts ( at least at EOD)


cheers.

prasad.

Hi Prasad,
Thanks for your contributions.Will you pl explain what is meant by ATR?
Regards
prabit

 

[prasadam]

Hi Prasad,
Thanks for your contributions.Will you pl explain what is meant by ATR?
Regards
prabit

ATR = average true range

TR = true range = high of the bar - low of the bar.

ATR 14 = ATR of 14 bars.

 

[docvijay4u]

Jai Baba!!! Sarvana Ganpatichya Hardik Shubecha!!! Saturday I Went At Babaji's Samadhi For Darshana, Needless To Say It Has Been A Great Experience.

Thanks.

Hi Doc,

Where Are You....?

Ganpati Cha Hardik Subeksha !!!

Happy & Safer Trading

SavantGarde

 

[vicky_ag]

Scorpio

I have been testing this system for sometime. I am finding 4&5 SMA crossover too close for comfort. I have been using 3 & 15 EMA from .Pride's system and they seem to be very good. Give them a try.

Hi All,

I am posting the 10 min chart for the 12th. I have also marked the pivot points given by savant for the day.
At 1:30 the system explained earlier gave a buy signal (stochs and SMA cross over). The 30 min chart was also bullish. Note how 4350 acted as a pivot.

Bought 4400 call at 120, rode the wave until the BB piercing followed by red candle at 4450 where I sold for 140 :thumb:

It's a diff story that it ended the day at 160 and went on to touch 250 the next day

 

[scorpio77]

Thanks Vicky,

Will definitely do that. Incidentally, Arun (aqua9) has been trading the same settings 3 and 15 EMA for a month now.

Arun: Any learnings to share?

Scorpio

I have been testing this system for sometime. I am finding 4&5 SMA crossover too close for comfort. I have been using 3 & 15 EMA from .Pride's system and they seem to be very good. Give them a try.

 

[cnbondre]

Hi,

DOC,

Thanks for your afl on BB(9,2) and CROSSOVER(5,6). I want to know was it developed for Interaday trading or for Positional trading ? I want to file it accordingly in my records, hence the question.


Hi, Anant,

Savant sir always mentions to keep a close eye on contracting Bolinger band.

I found an afl (perhaps you might have come accros with it !) which I feel may be useful to sort out / FILTER the contracting BB equities in advance and help out to mark scripts, in DOC's afl for BB (9,2 ) and CROSSOVER (5,6 ), though it will require some correction as per the writer of the afl itself. It plots a nice graph but needs corrections for scan/filter. Need your help for required correction in the afl.

May I request you, Doc and others to check the usefulness of the afl and then release it for all if think so by you seniors. I am not competent to write an afl neither so far reached to a level to juge the system, but feel some-where the need of some supportive add on in the afl developed by DOC (under able guidence of Respected Savant Sir)for SORTING/FILTERING ONLY ( LET ME BE VERY CLEAR NOT FOR PLOTTING) a large number of equities giving buy/sell signals after scan/explore at EOD study. This may give an additional signal! Not any change in the DOC'S original SGS.afl please!


AFL GOES LIKE THIS COPY AND PASTE IT IN THE FORMULA EDITOR


/*
Bollinger bands squeeze.
By Vladimir Gaitanoff, 2005. support<at>vglib<dot>com

This is a volatility indicator.
It can be used to determine the periods of extremes of low volatility which usually followed by big moves.
Indicator does not show direction of the trade, only timing. Some other aspects of technical/fundamental analysis should be employed for direction.

There is a signal line with colored dots. Red dots indicate periods of low volatility (sqeeze).
Green dots indicate periods of high volatility.
Indicator line crosses above and below signal line. Time trades at historical extremes of low volatility.

It can be used for scans, for instance, to find stepper stocks before big moves.
The original author of the idea uses it for intraday trading.

For confirmation look for sqeezes in two different time frames.

*/

Length = 8;
Price = EMA(Close, Length);

// Keltner
kLength = Length;
kN = 1.5;
kATR = ATR(kLength);
kUpper = Price + kN * kATR;
kLower = Price - kN * kATR;

// Bollinger
bbLength = Length;
bbN = 2;
bbStDevValues = StDev(Close, bbLength);
bbUpper = Price + bbN * bbStDevValues;
bbLower = Price - bbN * bbStDevValues;

IsSignal =
bbUpper <= kUpper AND
bbLower >= kLower;

Graph0 = 1;
Graph0Style = styleDots;
Graph0BarColor = IIf(IsSignal, colorRed, colorGreen);

Proportion = (kUpper - kLower) / (bbUpper - bbLower);
Graph1 = Proportion;

Title = "Next Move Signal.BB SQUEEZE. In squeeze: " + WriteVal(IsSignal, 1) + " Keltner/Bollinger: " + WriteVal(Proportion);

-SECTION END();

--------------------------------------------------------------------------


Please give attention to the thoughts of the afl writer,

Indicator does not show direction of the trade, only timing.

It can be used for scans, for instance, to find stepper stocks before big moves.

Will somebody explain the meaning of

For confirmation look for sqeezes in two different time frames.

and the,

Some other aspects of technical/fundamental analysis should be employed for direction.

Regards.

CNB

Hi,

All ,


I noticed one more afl and thought might be useful for this BB and Crossover strategy. The afl is written by somebody else. It plots a graph and I didnot understand much from it, need help from the seniors to guide to understand it.

Also I here by request seniors to help to write an afl on the logic of above or afl given bellow to write a code/ afl that will help to EXPLORE CONTRACTING BOLLINGER BAND

I TRIED MY LEVEL BEST TO WRITE AN EXPLORATION AFL FOR BB SQUEEZE BUT STILL COULD NOT DO IT. A FAILURE AT MY SIDE !

Regards and thanks in advance,

CNB

OTHER AFL GOES LIKE THIS....

==========================================================

//~~~~~~~~~~~~~~~~~~~~~ John Carter's TTM Squeeze Indicator~~~~~~~~~~~~~~~~~~~~~
// Description: Bollinger Bands AND Keltner Channel define the market
// conditions, i.e. when BB is narrower than KC then we have
// a market squeeze. When BB break Outside the KC then trade
// in the direction of the smoothed Momentum(12).
// Parameters:
// * chanPeriod - Bollinger Bands AND Keltner Channel length
// * bolBandStdDev - width of the Bollinger Bands
// * keltStdDev - width of the Keltner Bands
// * momPeriod - # of bars for Momentum indicator
// * momEMA - EMA of the Momentum indicator
//
//~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
// Source : John Carter, www.TradeTheMarkets.com
// Interpretation : Kris Tokarzewski, Johannesburg, 15-Dec-2006
// AmiBroker Conversion: Levent Pancuk, 22 Feb-2008
// [email protected]
//~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
_SECTION_BEGIN("TTM Squeeze");

function Momentum( array, period )
{
return array - Ref( array, -period );
}



chanPeriod = Param("Channel Period", 20);
bolBandStdDev = Param("Bollinger Band StdDev",2);
keltStdDev = Param("Keltner Band StdDev",1.5);
momPeriod = Param("Momemtum Period", 12 );
momEMA = Param("Momentum EMA Period", 5);

highBBChl = BBandTop( C, chanPeriod, bolBandStdDev);
lowBBChl = BBandBot( C, chanPeriod, bolBandStdDev);

centerLine = MA( C, chanPeriod );
highKeltn = centerLine + keltStdDev * ATR(chanPeriod);
lowKeltn = centerLine - keltStdDev * ATR(chanPeriod);

momHist = EMA(Momentum(C, momPeriod),momEMA);

BBUp = IIf(highBBChl > highKeltn AND momHist > 0, momHist, 0);
BBDo = IIf(lowBBChl < lowKeltn AND momHist < 0, momHist, 0);
BBMid = IIf(BBUp == 0 AND BBDo == 0, momHist, 0);


Buy = BBUp;
Sell = BBDo;

Buy = ExRem(Buy,Sell);
Sell = ExRem(Sell,Buy);

Plot(BBUp, "TTM Squeeze - Momentum Up", colorBlue,styleHistogram | styleThick);
Plot(BBDo, "Momentum Down", colorOrange, styleHistogram | styleThick);
Plot(BBMid, "Momentum Mid", IIf(BBMid > 0, colorLightBlue, colorBrown), styleHistogram | styleThick);

PlotShapes( shapeSmallCircle*Buy, colorGreen,0, 0, 0);
PlotShapes( shapeSmallCircle*Sell, colorRed,0, 0, 0);

_SECTION_END();

==========================================================

 

[hardik_b_shah]

Hi Savantji/Prasad,

Just now while doing a bit of intraday + swing trading in NYSE stocks... just figured out that for some strange reason I was finding the 5/6SMA system a bit hard because possibly I was not able to get the entry at the right time after trigger...

but at the same time, I tried a few paper trades with below system and it gave some very very impressive results... although the number of triggers are quite low...

Can you please comment..

Trigger goes as follows:
Buy- 6SMA crossing 20SMA and 50SMA ends up in a very strong bullish trend
Sell- 20SMA crossing 6SMA and 50SMA ends up in a strong bearish trentd
.. does that sound right???

I still need to work on a good stop loss/exit signal... suggestions are most welcome..

Awaiting reply..

Thanks in advance,
hardik

 

[SavantGarde]

Hi Hardik,

You Have Mixed 2 Different Systems Into One....

SMA 5/6 Is A Separate Standalone System
&
SMA 20/50 Is Another System

Now I Do Not Know Which Stocks You Were Trading....Try AAPL
Moreover You Can Try A Change In The SMA Combination SMA 3&5
You Need To Overlay It With BB (9,2) Also, Also Lookout For Candle Stick Pattern Around The Crossovers.
S/L & Exits Are Built Into The Crossover......

Happy & Safer Trading

SavantGarde

Hi Savantji/Prasad,

Just now while doing a bit of intraday + swing trading in NYSE stocks... just figured out that for some strange reason I was finding the 5/6SMA system a bit hard because possibly I was not able to get the entry at the right time after trigger...

but at the same time, I tried a few paper trades with below system and it gave some very very impressive results... although the number of triggers are quite low...

Can you please comment..

Trigger goes as follows:
Buy- 6SMA crossing 20SMA and 50SMA ends up in a very strong bullish trend
Sell- 20SMA crossing 6SMA and 50SMA ends up in a strong bearish trentd
.. does that sound right???

I still need to work on a good stop loss/exit signal... suggestions are most welcome..

Awaiting reply..

Thanks in advance,
hardik

 

[vanram]

Hello vicky.

One week has elapsed since your above post. till date you have not posted any data in support of your above claim. whats up?

please do share your findings and substantiate your claim.

unless, properly proved, such comments will be treated as spam.

BTW, 3 & 15 ema is used by stockshunter and not pride. pride uses 5 & 13 ema. :lol:

Scorpio

I have been testing this system for sometime. I am finding 4&5 SMA crossover too close for comfort. I have been using 3 & 15 EMA from .Pride's system and they seem to be very good. Give them a try.

 

[prasadam]

Hi Hardik.

sorry for the late reply. I think SG has answered all your questions.

still, if you feel that you are comfortable with the settings you mentioned, please go ahead.

But, my suggestions are,

1) try to understand the logic behind the selection of a particular SMA.

2) backtest the settings a) mechanically, b) manually and c) by simulation.
if, these facilities are not available then atleast paper trade for 10-15 days.


cheers.

prasad.

Hi Savantji/Prasad,

Just now while doing a bit of intraday + swing trading in NYSE stocks... just figured out that for some strange reason I was finding the 5/6SMA system a bit hard because possibly I was not able to get the entry at the right time after trigger...

but at the same time, I tried a few paper trades with below system and it gave some very very impressive results... although the number of triggers are quite low...

Can you please comment..

Trigger goes as follows:
Buy- 6SMA crossing 20SMA and 50SMA ends up in a very strong bullish trend
Sell- 20SMA crossing 6SMA and 50SMA ends up in a strong bearish trentd
.. does that sound right???

I still need to work on a good stop loss/exit signal... suggestions are most welcome..

Awaiting reply..

Thanks in advance,
hardik