Two Time Frame MA Crossover Strategy

[Sheera123]

Hello Apprentice,

I have an idea for a strategy that trades two MA crossover on a lower TF with respect to the open/close status of the CURRENT candle on a higher TF. The logic is as follows:

Long Position:
- On Higher TF - CURRENT candle's CLOSE is higher than it's OPEN.
- On Lower TF - fast MA crosses ABOVE slow MA

Exit Long Position:
- On Higher TF - CURRENT candle's CLOSE is higher than it's OPEN.
- On Lower TF - fast MA crosses BELOW slow MA

Short position:
- Opposite of Long Position.

Exit Short Position:
- Opposite of Exit Long Position

In the list of MA's the user has to chose from can you include the "McGinley Dynamic" indicator.

Thanks,

Shawn

[Apprentice]

Your request is added to the development list.
Development reference 2238.

[Apprentice]

Try this version.
viewtopic.php?f=31&t=70586&p=138577#p138577

Can you please review my coding,
and especially the exit rules?

[Sheera123]

Hi Apprentice,

Thanks for coding the strategy. I tried it in simulation mode and it opens, closes and exits trades, but at the wrong time. It doesn't seem to be following the logic or the timing of the logic. To reiterate my logic, just in case I wasn't I clear, I've added a graphical representation of how LONG positions are to be opened and closed. The opposite would be true for SHORT positions.

The general idea behind the strategy is to open only Long positions when the current price is greater than the current open on the higher TF. The lower TF is used as a filter, when a long position no longer exists on the lower TF, close the long position and wait for the next condition. The opposite is true for short positions.

This is meant to trade the higher time frames like H4 and D1 and at the same time avoiding most of the draw downs. The user will have to experiment with which two TF's works best for them. My personal intention is to use it on the H4, D1, m1, m5 combinations.

Thanks again and hope this helps with debugging.

[Apprentice]

Your request is added to the development list.
Development reference 2241.

[Apprentice]

I've reviewed the code.
It looks like everything is fine. It works as requested.
But keep in mind that you can't verify it just by looking on the chart.
I wrote an article about it here: https://www.patreon.com/posts/danger-of-mtf-31103413

[Sheera123]

Thanks for the explanation, it makes a lot of sense.