MAMA Combo

This is one of my earlier inventions.
Maybe "invention" is not the precise word to describe this,
it is more like a concoction...
because I did not "invent" the indicators,
I merely combined them together in one presentation.

This indicator should be called MA-MACD Combo,
but I thought MAMA Combo sounds more catchy. ;-)

This is a basic run of the mill MACD indicator,
with a Fast Moving Average overlaid on top.

I have created an oscillating black and white panel in the background;
when the MACD value crosses below the MACD average,
the panel will turn black, and white in the reverse direction.
(you can adjust the panel height with BG.height in Study Format)

The Fast Moving Average is the Red Light / Green Light indicator.
It serves as an early warning to impending moves.
You can see the code and description here:
http://www.traderslaboratory.com/for...html#post63641

This indicator works best in a fast fractal chart. eg. 2 minutes ES.


Let me know if you have questions or suggestions.

Enjoy!

[Akili]

Where is the ELD to download? Thank you.

[Tams]

Originally Posted by Akili »

Where is the ELD to download? Thank you.

look below the chart illustration...
under the section heading "Download Now".


the code is in a text file.
you will need to copy and paste the code into your charting software.

[razzbarry]

How do you use this indicator? Do you trade it manually or automatically? Do you obey the signals or only take some? If you only take some what else affects the decision? Do you trade long on the green light and reverse on the red or do you go long on the white bar and reverse on the black?

One of my main systems is based on short period MACD and one or two short period MAs, EMAs or DEMAs. But we do not use this manually. Our systems trade automatically, no human intervention. Auto trading on the red and green lights would run into whipsaw and late signals which would hurt performance, if it makes any money at all. On long trends it makes money but gives it all back and more during rapidly changing markets or shallow sideways moves. We have been testing all sorts of MACD and MA variations for two years and are not satisfied with the results. We are trying to move away from any type of indicator that uses averages, CCI, RSI, Stochastic, etc.

Thanks,
Barry

[Tams]

Originally Posted by razzbarry »

....
One of my main systems is based on short period MACD and one or two short period MAs, EMAs or DEMAs. ...

Thanks,
Barry

maybe you can enlighten us on what to look for...

[razzbarry]

I really wish I could. But as I said we have been working on MACD MA systems for over two years and have not gotten it to produce good results. We have tried it on periods 1, 3, 5, 7, 10, 15, 20, 30, 45 and 60 minutes. The longer periods do better.

Then we designed systems with multiple windows, each with a different time frame, up to 4 at once, with the same input, MACD and MA settings, and that helped some but not enough to trust it with real money.

One of my partners was an options analyst at CBOT. We have been trying to program what he did successfully there. All looks good until we turn it loose with live data. Then pain and agony. The signal delays and problems with whipsaw and wild markets moves simply kill the system. Long trends we do well on. Sadly they are only about 30% of the time. We gain well on those but not enough to counter the losses on bad market action.

We have tried other indicator conbinations with similar results. That is one reason I started programming VSA, to move toward some sort of pattern recognition. We have not gotten far down that road yet.

Barry

[Tams]

tradestation version

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