Wow...thanks Perry, that was a seriously quick reply. (minutes).
I just read this whole thread today and look forward to downloading everything and setting up my charts.
You have done some great work.
Those of you guys who are trading this system profitably, are you using Mwinfrey's DMPlus indicator to identify your entries? Looking at that indicator, it generates a lot of entries according to the defined rules, but the author says that the strategy is not profitable, so obviously those who are trading the system profitably have some additional rules that you follow to filter out the entries of the system. What are some of the additional rules and filters (indicators, price action, money management) that you profitable guys are using to make this a profitable system?
The following user says Thank You to monpere for this post:
If you follow just the rules and use the indicators as secordary confirmation you will succeed. If you look at the indicators first, you will make mistakes as you are not watching the price action. This system is based on price action FIRST AND FOREMOST.
The following 6 users say Thank You to perryg for this post:
I just started looking at the system, and have not traded it. I looked at the DMPlusSignals indicator and think that it is coded to the exact defined rules in addiction to a couple of confirming indicators, but the author says that the mechanical rules strictly traded are not profitable, yet I read many people trade the system profitably, so obviously there is some additional information that the profitable traders use to filter the signals, and make the system work for them. I am trying to find out what those ideas are. This is what I interpret the price action behind the rules are:
Method 1 Long Entries:
1. EMA(20) UP >>>> Medium Term Up trend
2. EMA(5) UP 2+ bars >>>> Short Term Up Trend
3. Setup bar LOW <= EMA(5) and HIGH > EMA(20) >>>> Pullback inside Up Trend and/or No Upside exaustion
5. ENTER 1 tick above Highest High of past 5 bars >>>> BreakOut above Short Term Resistance
6. Confirm that ForceIndex = BLUE >>>> Up trend confirmation
If this is the case, for a long entry for instance, do you require the EMA(5) to have gone down 1 or more bars before going up 2 or more bars? Would this insure we actually pulled back, or price is not too exhausted? Those are the types of similar ideas I am asking if profitable traders here use to filter the mechanical entries.
You do not have any requirement for the EMA5 to go down 1 bar. If all the rules are confirmed, take the trade. With that said, as this is a price action system, please also look at where you are on the chart, i.e. are you up against a major pivot, or murrey maths line, or some other resistance. Take head and do not just trade blindly. The rules are there to make your life easy to take trades without stress and as simply as possible. Let the price chart tell YOU what is is doing and do not try to read into it what you think.
The following 2 users say Thank You to perryg for this post:
Thanks Perry, you said: "...i.e. are you up against a major pivot, or murrey maths line, or some other resistance..." That is the type of additional filtering ideas I am asking about ... Cool, does anyone else have any pearls of wisdom like that they find increases the effectiveness of the system, and their profitability, if they want to share those ideas?, like taking 8Range/4Range setups combinations, etc.
I use this system on CL. When CL is trending, I use a 12 or 6 range chart; when ranging I use a 3 or 4 range chart. In conjunction, I also look at the 700 tick chart on CL that has floor pivots and volume related indicators to get feel for how the market is moving, price action, support/resistance, etc.
“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” - Sun Tzu
The following user says Thank You to cbritton for this post:
I've just found this thread today and I"ve read thru all 70 pages.
The 2nd post - quick summary gives links to various indicators but those links don't seem to be correct. I'm looking for where I can find the latest version of the DMPlus indicator that will work with NT 7.
When I click on the links next to DMPlus, it doesn't take me to a place where I can see the indicator download.