Filter BEST Trades Using ADX Indicator Combined with RSI

Рет қаралды 45,112

Күн бұрын

In this video I demonstrate a way to use the ADX Indicator combined with RSI to improve a trading strategy.
We use ADX as a means to filter the worse trades from the RSI signals. The results end up doubling the net profit.
It's a trend trading strategy for GBP/JPY Forex pair on a 4 hour chart. Data is supplied by Oanda and I test from 2008 - 2021 using 100,00 units or 1 full lot.
Testing and programming is done by myself using Multicharts.
Grab 3 favourite strategies for FREE in my new 22 page Beat the Markets Strategy Guidebook here: www.thetransparenttrader.com/...
INSTANTLY IMPROVE YOUR TRADING BY ENROLLING IN MY COURSE:
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WEBSITE: www.thetransparenttrader.com/
EMAIL ME: jarrod@thetransparenttrader.com
DISCLAIMER:
I am not a financial advisor and I am not offering you financial advice. I am not regulated in any way. The purpose of the content I provide is for educational purposes only.
Any information you receive is based on my own knowledge and experience in the financial markets and how you act on the information provided is your own responsibility.
I cannot be held responsible for any losses you may incur as a result of ideas taken from my content provided.

Пікірлер: 54

@TheTransparentTrader 3 жыл бұрын

Hope you enjoy this one guys!

@noaholave5078 Жыл бұрын

Been backtesting the ADX - found this out - the best way to set ur threshold line is the average on the peaks and valleys of the ADX line? Dunno, give it a try, let me know your thoughts - Noah O

@alfarisabuziad9315 9 ай бұрын

Yes, thanks ❤

@Waseem_Amin 8 ай бұрын

I love the way you teach to the point and with examples. feel it is something tested shown before bringing it foward

@markhields8203 Жыл бұрын

really like the simplicity of this, thank you Jarrod

@peterokpara4451 3 сағат бұрын

Please, explain the ADX lookback to. I am completely lost. Is that the +DI > -DI and vise vasa I guess what I am trying to understand is how do you represent your ADX for the lookback to? Never heard of that before

@tomaszgrzybek5435 5 ай бұрын

Dziękujemy.

@tamaracastleicawfitness313 3 жыл бұрын

Excellent Tie Jarrod! Thank you for your informative charts as always. 📈

@TheTransparentTrader 3 жыл бұрын

Pleased you liked it 😉

@markkennedy5955 3 жыл бұрын

How do I scan for this or do I have to manually check every pair on every timeframe to see if the RSI and the ADX meets these parameters?

@hamzavictor2385 3 жыл бұрын

Thank you for making these videos, watching them has given me different perspective on using indicators for designing my Algos systems.

@TheTransparentTrader 3 жыл бұрын

That's what they are intended for. I hope you can pick up some useful ideas!

@hamzavictor2385 3 жыл бұрын

@@TheTransparentTrader Yes indeed. And the way you carry out your back test is quite scientific (Permit my grammar). The idea of optimising the system, then testing it on the 2+ years or so data. It truly shows the efficacy of the trading systems. I hope to learn much more from you. Thank you

@TheTransparentTrader 3 жыл бұрын

@@hamzavictor2385 I like to have a "process" to developing a system.

@duonganhquan6273 3 жыл бұрын

I tested ADX as volume/volatility indicator. It lags heavily and I have to adjust the level on different pairs which is a pain in the ass. Looking for something else that doesn't lag as much.

@prasadjadhav4487 3 жыл бұрын

I hve one querry, do u mean if we use RSI 14 and ADX 9 could give us more yield

@ashishtiwari1912 2 жыл бұрын

Quite informative. Thank you for making this video. Would request you to make some videos on forex scanners and fundamental analysis in the future.

@robertfrank3044 3 жыл бұрын

would you ever think about doing a video for a daytrading strategy using the eminis or the micro eminis with parameters of a challenge parameters for a remote prop

@djs3919 Жыл бұрын

Excellent analysis, Jarrod!

@tonythomas8409 3 жыл бұрын

I believe the macd with rsi is a better combination at 70 rsi buys and 30 rsi sells...the adx seems good as well, but only when the adx is above 25. In squeezes, the cross of the DI lines is a confirmation of the direction...

@noaholave5078 Жыл бұрын

Hello brother - love your work! 👏 keep up the good work - had a question for you - is the 8-9 look back candles/bars on ADX line the same as applying a 8-9 period MA on it? Would love your feed back - Thk u in advance - Noah O.

@stockcomposer8411 2 жыл бұрын

hi sifu, may i know the model of macbook you use?

@klangfarbeblau9087 Жыл бұрын

SUPERP!!! Do you have allready spoken about making custom futures for better backtesting results?

@dentonhess5810 3 жыл бұрын

Cool looking suit. Great information flow.

@ujjainwal.sumitsumit241 Жыл бұрын

Nice brother does it also work in indian market nifty.

@behnamdalaki8791 2 жыл бұрын

Hi thanks for the video, finally what period setting is the best for ADX?

@arfa9601 2 жыл бұрын

Hi my friend. Just wanted to tell you your question shows you’re not in the right path in system development. If you are not interested to learn the proper development process I strongly advise you to pursue another career. Cheers

@moero3523 Жыл бұрын

RSI work great on Sidwind mkt. will sarcastic rsi work better on trending mkt ??

@mrzaragoza9281 3 жыл бұрын

Sir ,you should explain more on how adx works .. btw thanks nice video

@danield.thompson6158 3 жыл бұрын

Can you do a video on how to backtest these mean reversion systems properly with multichart

@TheTransparentTrader 3 жыл бұрын

Sure. Thanks for the suggestion.

@biblefarm9639 Жыл бұрын

Over the years, I've heard a handful of experienced traders say that ATR (Average True Range) is their main indicator. Please let us know if you've found any improvement in your work. I benefit from your work & appreciate you, Jarrod :) Thanks!

@arfa9601 2 жыл бұрын

Hi. Can you please explain why all these strategies only work on a couple of pairs out of 30 frequently traded pairs? My thought: lucky overfitting. How am I wrong?

@abekattenkatten3036 2 жыл бұрын

We've not seen any backtest on multiple pairs, in some of his prior videos, he explains how he uses 20ema on equity curve, to know when to shutdown the algo. I guess if you diversify with enough different algo's and change them when they stops to being profitable, it could work. Trend,reversal,scalp,swing If he was genuine, he wouldnt sell courses and remove yt comments.

@marsery 3 жыл бұрын

Hi i am finding all those videos interesting and this one in particular ..it would be terribly interesting and informative if you could do a series of videos on how to test a strategy like you did, where you get the data to test , how to, how you build your excel spreadsheet ( just like a pro systematic trading ) etc..the formula etc...very useful and subscribed ,-)

@TheTransparentTrader 3 жыл бұрын

OK, great idea!

@vadimvilchez1405 3 жыл бұрын

@@TheTransparentTrader If it is indeed what I was missing, how to build that database, what is the software for the analysis and to be able to know what was the best time to buy or sell. Excellent video is the first time I see one like this.

@tzvassilev 2 жыл бұрын

Well, what you do here is curve fitting. It is always possible to tweak indicator parameters to achieve nearly perfect equity curves in the past. 99.9% of this kind of strategies will fail during forward tests very quickly though.

@ErikPepping 2 жыл бұрын

This is not always the case. I had a strategy ROCEMATrend that worked for 4 yeasr 2004 - 2008. Then in the financial crises it stopped working. (Due to volatility)

@_runnersingh 3 жыл бұрын

Can be used to stocks ?

@TheTransparentTrader 3 жыл бұрын

You'd have to test on stocks yourself as I don't currently trade stocks.

@alfarisabuziad9315 9 ай бұрын

Nice ❤

@peterokpara4451 2 сағат бұрын

Ok. You are driving me crazy now. Did I hear you say 420 pips Stop Loss, or you meant to say 420 points

@finanzferdinand9874 Жыл бұрын

When RSI is high you sell and vice versa

@zorroboshielo8569 5 ай бұрын

I got lost. Are you saying you only trade signals when ADX goes up, and ignore when it goes down? I am not in support of your RSI strategy because markets are not forever on overbought and oversold. I introduced a second RSI, that looks for uptrend and downtrend. The other one is an entry points

@stephenpaeng492 2 жыл бұрын

If you wanna blow up your account, use this strategy.

@rebar33 3 жыл бұрын

Just for my clarity. The presenter is stating when RSI crosses over into “ over bought” territory above 70 that that iscan entry signal? That seems to be opposite of most others. Bare with me, I am new to RSI. Isnt above 70 overbought territory?

@TheTransparentTrader 3 жыл бұрын

Yes above 70 is overbought. But GBP/JPY on a 4 hour chart responds well to buying into strength (overbought) and selling into weakness (oversold). I hope that answers your question.

@michaelbloch4225 2 жыл бұрын

Hi Jarrod Your systems are good but do not take into consideration the fact that most retail traders have a small amount of capital - GBP 300 to 500 and with stop losses of 200 and more even trading with 0.01 the lowest amount they would be wiped out or be stopped from trading by the Broker. Why not try testing that if the trade goes against the trade opened - to open a trade opposite to the original one which would reduce the loss. Try on 20pips or 30 pips or 50 pips. Keep in mind also that most traders use lower time frames like M30 to H1. Please test that on the EURUSD and GBPUSD. THx in anticipation. Micha'el

@TheTransparentTrader 2 жыл бұрын

Hi Michael, I have tested ideas like that before and they've always underperformed. I understand your comment about smaller accounts. I create strategies which work the best regardless of the stop loss. So if a strategy needs a 200 pip stop loss then so be it. I rarely have strategies which use stop losses less than 100 pips. I can clearly see when testing / optimising that stop losses < 100 generally decrease the performance of the strategy. My type of strategy anyway..