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  1. #1
    Legendry Member Michael Hodges's Avatar

    Bogdan's Pinky And The Brain Strategy !!!

    If there is an example of the idea that you never know where, when or why inspiration will hit this strategy is it. Bogdan has laid out an impressive strategy that might not help you take over the world but it will help you make some binary options profits. This is an interesting use of MACD in a trend following setting that is akin, in my view, to using Bollinger Bands. The 200 bar sma is used to determine trend, the MACD is used with tighter than normal settings to create a sort of volatility meter. When the histogram is between the two lines the market is flat, when it moves outside the lines it is moving... this is when signals are to be taken, only in line with the trend. Signals are derived from a moving average of the RSI (called RSX in the article)that is a newer tool being used by forex scalpers.

    Strategy approved for advanced traders, or any trader smart enough to set it up and follow the signals!

    Pinky And The Brain Strategy

    Extra Reading :

    The Geek's Simple Moving Average Strategy -- explains the simplest use of moving averages and how to apply them to your charting.

    MACD, Moving Average Convergence Divergence Tool Review-- A favorite tool of BOTS pros, this is a basic look at what it is and how to use it.

    MT4 The Must Have Charting Softward -- basic look at what MT4 is, how to use it, why you should use it and more.

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  3. #2
    Master Member Bogdan G's Avatar
    Thanks Michael for that! I am sure there will be plenty of questions, so I will be here to answer them.
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  4. #3
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Bogdan G View Post
    Thanks Michael for that! I am sure there will be plenty of questions, so I will be here to answer them.
    I wasn't sure about my read on the RSX... is what I said correct, that it is an RSI smoothed with a moving average?

  5. #4
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Michael Hodges View Post
    I wasn't sure about my read on the RSX... is what I said correct, that it is an RSI smoothed with a moving average?
    Well, RSX is based on the RSI and is a smoother version of it but I dont know the exact formula. The added moving average on top was my idea (the vanilla RSX comes without it).
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  6. #5
    Solid Member Daniel Rea's Avatar
    Bogdan.

    Firstly - I loved Pinky and the Brain

    Secondly - The way you write just cracks me up e.g. Just ignoring all grammar when it comes to sentences paragraphs etc

    Thirdly - I have set it up and will be testing it out. Thanks for the tips

  7. #6
    Master Member Bogdan G's Avatar
    Cool mate. If u have any questions, i'll try to answer them.
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  8. #7
    Solid Member Daniel Rea's Avatar
    You mention "MACD to show good momentum (not trapped between the 2 levels)". Just to clarify, it can be between the 2 levels just as long as it has recently been outside them?

    One other thing I have noticed is that simply scrolling back through the charts to see history does not work properly as entry points will be different. On a strong move the cross over becomes earlier after 1-2 more candles.

    Also when using the strategy tester, the RSX and the moving average on the RSX does not behave as it does in real time. Using the "every tick" option improves them but they are still out. So looks like the only way to test this strategy is live with demo account.

  9. #8
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Daniel Rea View Post
    You mention "MACD to show good momentum (not trapped between the 2 levels)". Just to clarify, it can be between the 2 levels just as long as it has recently been outside them?
    Yep, exactly. Take a look at this: http://prntscr.com/apkp56 (no momentum/volatility)
    And now take a look at this: http://prntscr.com/apkprq (good momentum/volatility)
    If the signal comes in the second area but right when teh histo is inside the 2 lines, I would take it
    Here's the whole picture with a signal that i would take: http://prntscr.com/apkqln
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  10. #9
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Daniel Rea View Post

    One other thing I have noticed is that simply scrolling back through the charts to see history does not work properly as entry points will be different. On a strong move the cross over becomes earlier after 1-2 more candles.
    What do you mean by "entry points will be different"? Different than what?
    What do you mean by "the cross over becomes earlier after 1-2 more candles"? Earlier than what? Whenever it comes, that's the signal if all other conditions are met.
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  11. #10
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Daniel Rea View Post

    Also when using the strategy tester, the RSX and the moving average on the RSX does not behave as it does in real time. Using the "every tick" option improves them but they are still out. So looks like the only way to test this strategy is live with demo account.
    Sorry mate, never tested this strat using teh strategy tester but yea, I know that many indicators behave differently in ST than in real time.
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

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