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Momentum Capture Signal

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  • #16
    Maybe I should have choosen another name for the strategy "Capture" does not have a positive connotation anymore I guess.
    The original name was "Breaking Banx" because of trading around central bank events, therefore also the name of the Darwin "BAX", but MQL did not allow that name. Too aggressive.

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    • #17
      your ea will most certainly do better then capture, and stress free i might add........................

      and the name i still like btw, it fits very well as to how it trades.

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      • #18
        Originally posted by daileycon

        I think you are right. I thought this was another version of the "Steady Capture" strategy when I first saw it. Do they let you change your name?
        Not sure if they do. You got any suggestions for a better one? "Momentum Capture" is quite fitting because the strategy tries to catch big momentum.

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        • #19
          Originally posted by corni View Post

          Not sure if they do. You got any suggestions for a better one? "Momentum Capture" is quite fitting because the strategy tries to catch big momentum.
          Captum or Catchtum -__-

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          • #20


            Thanks for the suggestions.
            I guess I will stick with the current one since renaming the EA would be difficult anyway.

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            • #21
              Originally posted by corni View Post
              So price action this week was not very helpful. This strategy works best if there are some surprises in fundamental news, but the perception of central bank positions did not change much this week. So most trades were closed break even.

              The equity decline came mostly from trading USDCAD on Wednesday, which had the worst-case scenario where first one direction triggers then the other and both end in stop loss even though in the end the initial direction would have been correct. But it is hard to automatically judge where to go from this price action. I will check on historic backtest whether it is generally better to wait a bit longer after news on USDCAD before entering a position.

              But overall such periods were normal in the past. As long as we get enough surprises/trends in a given period the strategy should stay profitable.
              So have a great weekend.
              Quite often CAD and USD news comes out at the same time. Can be a very confused pair in the initial moments of releases.

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              • #22
                Originally posted by Big River Man View Post

                Quite often CAD and USD news comes out at the same time. Can be a very confused pair in the initial moments of releases.
                I did some historic testing and indeed on USDCAD it is best to wait about 5 minutes before entering (instead of the currently used 1 minute). However, waiting longer resulted in less profit.

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                • #23
                  Originally posted by corni View Post

                  I did some historic testing and indeed on USDCAD it is best to wait about 5 minutes before entering (instead of the currently used 1 minute). However, waiting longer resulted in less profit.
                  Does that take into account possible large spread increases?

                  Also interesting about the NZD. this may even be because quite often CB's or announcement are at market closure time (well the 2-5 mins brokers suspend their feeds every day)

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                  • #24
                    Originally posted by Big River Man View Post

                    Does that take into account possible large spread increases?

                    Also interesting about the NZD. this may even be because quite often CB's or announcement are at market closure time (well the 2-5 mins brokers suspend their feeds every day)
                    Yes I always use variable spread from Dukascopy data which is quite large compared to spreads of competitive brokers today. The EA is has a max spread parameter, which is set to 7 pips on backtests. On live trading it might be better to have a smaller value, maybe 3 or 5. But 5 minutes after an event usually the spread is far below that threshold anyway.

                    I will have to analyze NZD events when I have time. Interestingly, AUD shows good reactions so the Asian session in general seems to be able to produce strong trends sometimes.
                    But I will also backtest without max spread limitation. Because if your argument is correct then maybe the EA never enters because of big spread around those times.

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                    • #25
                      Momentum Capture EA is doing very well in recent months: good earnings and low DD (the profit factor remains high around 1.8) and follows the market better than strategies like SFE PA that have high DD.
                      Yesterday he rode the euro bearish movement very well after the declarations of Mario Draghi.
                      Too bad that I have halved the gains on my account, manually closing the shorts on the euro (I thought it could go at a loss as happened the day before with the statements of the Fed)

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                      • #26
                        laracroft I did a similar thing. I watched Wednesday go into profit, then loss. Then I cut the Thursday winner off early. Still, a profitable month and it made up for the last two months of losses.

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                        • #27
                          To be honest, if I did not have the pressure to keep the signal close to the EA backtest and therefore not interfere manually, I might have done the same. It is the nature of the human mind to lose trust after 1-2 month of false breakouts. Sometimes I even think big players use this psychological time window to switch from manipulating the price to ranging/trending behavior. When all believe there can never be a strong momentum/trend anymore, they start to push the price. But that is probably just my imagination.

                          The default settings will produce many small losses but historically always made new highs on occasions like this week. If you feel uncomfortable with those losses rather than closing the positions I would set them to break even and see what happens. Break even values are set from historic optimizations, so overall it was best not to change them. But it still might be good to modify them manually since you as a trader can estimate whether the news has the potential of a reversal. For example, the ECB had actaully very mixed news, end of tapering toegther with negative forward guidance (1 year without hikes), so it might have gone both ways. If you bought the EA yourself, you could even do this automatically, settings a smaller break even value etc.

                          I already posted this in Jimmy's thread, but here is probably a better place for it. I compared the performance of SFE Price Action and Momentum Capture EA during the recent drawdown period, which was very hard for every momentum strategy out there. The SFE master account had 16% drawdown with 7% returns while Momentum Capture had 3% drawdown with 5% gains. So one could have used 5 times the risk to get 25% returns with a drawdown still below that of SFE. However, I don't see both as direct competitors. If you can afford it I recommend to use both together as diversification, maybe even adding Momentum Simplex, another momentum strategy of mine that does not use a time filter and therefore triggers 24/7 on strong trends.

                          Comparison_SFEPriceAction_MomentumCaptureEA.png




                          Attached Files

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                          • #28
                            corni, how does momentum simplex strategy work compare to SFE? What's the difference between them?

                            Thanks.

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                            • #29
                              Momentum Simplex is as the name suggest a simple method. If there is a strong momentum, it will just open market orders in the direction of the momentum, but no pending orders in the opposite direction. So it will only catch reversals if the reversal itself has again a strong momentum. I just submitted version 2.0, which will have settings for H1, M30 and M15. The old version just used H1, so it only caught the very large trends.

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                              • #30
                                Originally posted by corni View Post
                                To be honest, if I did not have the pressure to keep the signal close to the EA backtest and therefore not interfere manually, I might have done the same. It is the nature of the human mind to lose trust after 1-2 month of false breakouts.
                                No question there at all. As a signal provider you've got to be totally consistent.

                                Ignore any temptation to interfere, the signal is clearly advertised as an EA.

                                If stupid subscribers (like me) decide to close trades early / late then it's entirely our fault if it doesn't work.

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