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Joe, while your continuing efforts in developing the RMO strategy are
commendable, I find little interest in joining your pursuit This is
mostly due to the following points:
1) It is my experience that basing a whole trading strategy around a
single indicator (regardless of multiple timeframes), often leads to
losses in trendless markets. I suspect that the reason for this is that
the trend-period profits have little to do with the system's indicator,
and more with the actual market trend. Just about anything works in a
strong trend.
2) It is my experience that basing a whole trading strategy around a
blackbox-type indicator leads to a lack of trust and understanding of the
system's performance, specially around volatile or drawdown periods.
3) It is my experience that basing a whole trading strategy around a loose
or subjective set of rules, eventually results in subjective trading
decisions. This is fine for traders who have the experience and good
judgement to make these decisions, but not so good for the less
experienced traders such as whom the RMO strategy aims for.
Examples of subjective trading rules:
"Exit when ... smaller timeframes start to break down. (30-15-5)"
"Wait for re-enter with the daily arrow foundation and smaller timeframes
corresponding to the trend. Usually best if the 60 swing3 (blue) has
cycled back down below zero and *starts increasing*."
"Blue candles are nice but are not mandatory."
"Study the 15 pink line to form a double-top as a possible exit signal."
Another reason for avoiding subjective trading rules is that they are not
backtestable. Without any backtest results, a potential trader cannot
tell if the strategy is profitable or if the risk involved is acceptable.
Good luck with your RMO endeavor, Joe.
jose '-)
http://www.metastocktools.com
--- In equismetastock@xxxxxxxxxxxxxxx, "Joe Hickle" <joehickle@xxx> wrote:
>
> Jose,
>
> You seem to be against and not like the RMO indicator inside
> MetaSctock-10. I wonder how much in-depth use that opinion is based
> on.
>
> Below are my rules for its use and showing great success. I suggest
> you revisit the application and my rules since your contributions
> and opinions are highly regarded in this discussion group.
>
> I look forward to developing the use of this chart analysis tool
> with you.
>
> Thank You.
>
> Joe Hickle
>
>
>
> RMO Trading Rules
>
> Generally:
>
> We want to trade into a trend. We prefer to take the market in the
> LONG direction so that we earn overnight interest on Yen pairs.
>
> The Daily blue arrow followed by blue arrows on smaller timeframes
> down to at least the 15 minute chart is sought in the chart analysis.
>
> We observed the Daily-720-360-60-45-30-15-5 charts.
>
> The 60-minute chart shows a couple of days of time which can be the
> life of a trade. Only when the 60 has a current blue arrow do you
> look for a trade.
>
> Enter when the 30 minute blue line, swing 3, crosses zero and you
> have blue arrows across the timeframes. Add a green horizontal line
> at zero for reference.
>
> The SARs should be underneath the price candles.
>
> Exit when your profit goal has been reached (2%) and smaller
> timeframes start to break down. (30-15-5)
>
> Wait for re-enter with the daily arrow foundation and smaller
> timeframes corresponding to the trend. Usually best if the 60 swing3
> (blue) has cycled back down below zero and starts increasing.
>
> Know that candle color change happens at the cross of the pink
> (swing2) line through zero.
> Know that the direction arrow on the price charts forms when the
> pink and blue lines cross.
> Know that the green RMO histogram crossing zero is more certain when
> the blue line has crossed zero.
>
> Now more specifically on the RMO charts:
>
> Observe the charts for
>
> 1. The trend direction is defined by the daily arrow, confirmed with
> 720 and 360 arrows.
> Entering a long trade right after a daily blue arrow has occurred is
> the start of a new uptrend.
> Trade entry is based on timeframes of 60-minutes and smaller.
> 2. The 60 must have the blue arrow. Same for the 45-30-15-5 minutes.
> 3. The 15 and 30 must have blue candles and their swing3 line have
> crossed zero. Blue 30 candles must open higher than the close of the
> precious candle. Enter above the high price of the first blue 30
> candle.
> 4. The 45 and 60 swing3 should be below the zero line and be
> inclined upwards toward the zero line. Blue candles are nice but are
> not mandatory.
> 5. If the 5 and 15 have a blue arrow, show the pink line above the
> blue line and all of the above are true, entry the trade.
> 6. Exit with 2% of the trade amount in profit and when the 5 and 15
> start to collapse, shown by a crossover of the pink and blue lines.
> Study the 15 pink line to form a double-top as a possible exit
> signal.
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