- 02 Mar 2017, 13:13
#599
Hi Guys,
As asked by Martin, you can find here MADO tools.
I don’t trade this strategy anymore, but here are a few ideas and conclusions about the concept (from my archives):
The idea of MADO (the spirit of MADO at its creation) is to catch discounted trades in an established trend.
Rules for long setup (opposite for short):
- if H1 MAs are up
- if H4 MAs are up
- if price is above Daily Open
- if on current timeframe (M5 or M15) price is below the fast MA
- if Stochastic is in lower zone (below 30)
- if price is not overextended in ATR Channel
- Go & Buy
More restrictive rules could be:
- if H1 MAs are up and slope is up on the Normal MA (13)
- if H4 MAs are up and slope is up on the Normal MA (13)
- if Sto is not overbought on H1 & H4 timeframe
TP rules (not clear):
- Murrey math levels (Octaves)
- ATR channel Band 1 or 2…
There is also a lot of discretion into the entries with the usage of trend line.
From my point of view there are too many potential signals with this strategy. More restrictive rules would filter weak signals and with a proper money management it would improve cash results (it’s not a matter of pips or number of trades). 1 or 2 trades a day could be enough.
==> Discounted trades
I like the idea to wait for a discounted trade which provide a better entry with a lower DD if the price goes into the good direction. But this setup can also be the beginning of a reversal. That’s where the restrictive rules might help. Take a trade only if higher timeframe is in line.
==> Fractal box breakout
Another idea is to trade the fractal box breakout.
How:
Wait for a classic setup with a discounted price (Price above/below fast MA) and then place a pending order at the extreme of the fractal box. By trading this way, the good thing is that you avoid potential reversal, the bad thing is that you don’t have the discounted entry and potentially some DD.
An in between idea could be to take ½ of a standard position at a discounted price (standard setup) and take ½ at the fractal box breakout…
Here is the summary of the approach…
At the end this strategy was not profitable… If anybody can make something of this your feedback is welcome
As asked by Martin, you can find here MADO tools.
I don’t trade this strategy anymore, but here are a few ideas and conclusions about the concept (from my archives):
The idea of MADO (the spirit of MADO at its creation) is to catch discounted trades in an established trend.
Rules for long setup (opposite for short):
- if H1 MAs are up
- if H4 MAs are up
- if price is above Daily Open
- if on current timeframe (M5 or M15) price is below the fast MA
- if Stochastic is in lower zone (below 30)
- if price is not overextended in ATR Channel
- Go & Buy
More restrictive rules could be:
- if H1 MAs are up and slope is up on the Normal MA (13)
- if H4 MAs are up and slope is up on the Normal MA (13)
- if Sto is not overbought on H1 & H4 timeframe
TP rules (not clear):
- Murrey math levels (Octaves)
- ATR channel Band 1 or 2…
There is also a lot of discretion into the entries with the usage of trend line.
From my point of view there are too many potential signals with this strategy. More restrictive rules would filter weak signals and with a proper money management it would improve cash results (it’s not a matter of pips or number of trades). 1 or 2 trades a day could be enough.
==> Discounted trades
I like the idea to wait for a discounted trade which provide a better entry with a lower DD if the price goes into the good direction. But this setup can also be the beginning of a reversal. That’s where the restrictive rules might help. Take a trade only if higher timeframe is in line.
==> Fractal box breakout
Another idea is to trade the fractal box breakout.
How:
Wait for a classic setup with a discounted price (Price above/below fast MA) and then place a pending order at the extreme of the fractal box. By trading this way, the good thing is that you avoid potential reversal, the bad thing is that you don’t have the discounted entry and potentially some DD.
An in between idea could be to take ½ of a standard position at a discounted price (standard setup) and take ½ at the fractal box breakout…
Here is the summary of the approach…
At the end this strategy was not profitable… If anybody can make something of this your feedback is welcome
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Cheers,
G
G