Question for AK1

Noticed your trade method today. Could you elaborate a little more? What kind of stop do you use and what targets do you set. How long have you been trading this and roughly how profitable is it? Thanks.

ak1, if you take a trade once the fast line crosses the macd with the corect candle, when do you take the next trade, do you wait for the next zero line crossing or what triggers the next trade?

ak1:

What has been your average annual return on a per contract basis? I understand that you have been using this technique for the past 3 years.

My reason for posting the tech. was to potentiate Bruce's VO's KB's methodology. I want you all to think it like this: while you wait for other setups to materilize take trades with this method also. Remember always that no methodology is perfect. If you are waiting for some level to reach something is also happening to bring it to that level. Cycle through various methods rather than being sitting ducks at one level. We all have to be smart or else............... Also best trades come from the initial(First) cross over.

Question asked:

Hi aki; Just wanted to ask you a few things about your methodology and to suggest something. I have not had success in the past with macd crossover systems because of the lag. Usually the move is over once you get in. I am happy to hear that you are doing so well then with your system. A few questions if you dont mind. Your criteria for entering a long is when the macd and the macd moving average BOTH cross from below the zero line to above the zero line with a green candle having an open and close above the 10 sma. Is that correct? If that is correct where do you usually enter- a couple ticks below the close of the green candle on a limit order perhaps? Do you ever enter a long trade when the macd line crosses above its moving average (ie without any reference to the zero line)?

In your system do you find that the macd line usually crosses the zero line before you get your candle confirmation? Finally, a couple of suggestions. Dont know if this is any value since I havent tested it. You might want to consider filtering the trades by reference to a 10 min macd and only take shorts when the 10 min macd is below its zero line and vice versa for longs. Let me know what you think and I appreciate if you could respond to questions as posted. Thanks very much and I wish you continued success!

My answer is:

If the MACD confuses you with the two lines (Slow and Fast) use this setting and make them one 12/26/2. for the zero line cross over. That should not creat any confusion now. Also I trade the first time the cross over occures and then aim for the bollingers. My only concern is that the Macd line stays above for long and below for short with reference to the zero line. Also always enter one tick below the close of the green candle(Join bid) and 1 tick above the close of a red candle(Join offer)

here is the setup for AK1 copied from the other thread.....any chance we can get you to post some charts to pull this together for us??


"My technique is simple and here it is:
On a 1 min chart apply a 10 period (High) Simple moving average and an 8 period (Low) SMA. Now when the MACD passes above the zero line(Zero line is where the Histogram is formed) from below and you get a green candle whose open and close are above the 10 SMA go long. Now when the MACD passes below the zero line from above and you get a red candle whose open and close is below the 8 SMA go short. Today is a wonderful day where there were good shorts as the MACD was below the zero line. MACD settings are 12/26/9 "

The charts posted by vast524 on page 1 be please referred to. I have answered to his question regarding entry and exit

Thanks AK1..I was hoping we could have a few from you to establish some base examples but those will do I suppose.....

Your wish is my command guru, As I trade through GS TRADER it is not possible however I shall set up a sim a/c with what ever you recommend that allows chart posting

ak1 if you go to the charts thread there is a sticky for screen capture software. I use Jing which I'm very happy with but there are others mentioned. Ninja Trader allows you to setup sim account www.ninjatrader.com.

AK1, all you need to do is press the Alt and Print screen keys at the same time. This will make a copy of the active window at the time. Then open an image editing program. (MSPaint)
You will not need to use another program.
Here is the link that outlines how to screen grab, open MSPaint and upload the chart.
http://www.mypivots.com/forum/topic.asp?TOPIC_ID=10
The link to BruceM's suggestion for screen grabbing software. (I really don't think you need it. Just use Alt+Printscreen)
http://www.mypivots.com/forum/topic.asp?TOPIC_ID=1204
Thanks for answering my questions. It seems you are mainly focused on the MACD line crossing the zero line, and not the MACD crossing the trigger line.
Regards

Sorry! Found it after more reading/searching.