...Trading the E-Minis with eSignal...

[Phoenix]

Great Avatar

Vlad: Love the new avatar! LOL!

So you still are liking those Renko charts as much, eh? Have you tried using regression lines on Renkos for signals?

Phoenix

[Phoenix]

An Hourly Trading System

Here is another real simple trading system that is a takeoff on a 21 period moving average crossover system I had been using on ES hourly charts. This one uses a 21 period linear regression line instead of a moving average, and instead of trading price crosses of the signal line, you trade the direction of the signal line. Go long when the regression line turns up and go short when it turns down. The linked chart shows the trades on the ES hourly chart over the last month, netting about 70 points on nine trades:

http://share.esignal.com/groupcontents.jsp?folder=&picture=movtrend%20trades.png&groupid=49

The advantage of the linear regression is that, unlike the moving average, it is not a lagging signal. Notice how much more quickly the regression line turns in the direction of the new trend than does the 21 period moving average (the black line). The 21 period regression also is long enough that there are very few whipsaws. (A shorter lookback could be used to catch trend changes more quickly, but with subsequently more whipsaws.)

This seems to work well on other timeframes besides hourly, and looks like it would do well on the NQs also.

[whizz]

I did put the 21 regression on the renko, and it turns out to be precisely, exactly and to the dot, the same as the 21 weighted.

I didn't try and figure out why that was the case, but as you noted, it is very useful so there it sits.

[Phoenix]

Moving Average Delta Indicator

Someone PM'ed me asking for the Moving Average Delta Indicator efs file. I have uploaded it to the file sharing area linked to this thread:

http://share.esignal.com/groupcontents.jsp?folder=&groupid=49

The file is called "MA Delta.efs"

Phoenix