Please, if you complety new to forex and MetaTrader 4 please check the basics!
(e.g. What is forex // What is MetaTrader 4 (MT4) // How to install an indicator)
When you “know forex” and how to use MT4, we start…
NEURO MACD and RSX
Basic of the “Forex Neuro Trader MACD and RSX” is the MACD and RSX as we know it.
Then we use about 20.000 bars of M5 data from EUR/USD and some other inputs (e.g. OHLC, RSI, MA, etc…) and let the neural network find the optimal output for the new indicator “Neuro MACD” and Neuro RSX”.
The new indicator is backtested on the one hand and on the other, we also test it out-of-sample,
to minimize the risk of “curve-fitting”!
You can combine the Neuro MACD / Neuro RSX with other indicators like, time, support and resistance, RSI, and others.
Be aware that this indicator is NO holy grail, it is NOT always right, NO set-and-forget-thing, etc…
This indicator is for traders, the indicator just show you the MACD / RSX with the advantage of some bars ahead.
|Here you see the Forex Neuro Trader MACD with a prediction possibility of one to five bar in advance!
At the indicator window you see the original MACD in green, and in red and blue you see the NEURO MACD.
It is able to be faster for one and up to five bars!
The Neuro MACD indicator is optimized for EUR / USD 5 Min timeframe, it maybe also works on H1, M30, M1, etc… but working best on M5.
Arrows (red – SELL // blue – BUY) are possible entries and the green “x” are possible exits.
Just give it a try for free!!
Don’t forget to update the Neuro MACD from time to time!
Training, Testing, Prediction
Out-of-sample result for the Neuro MACD
Here you see the out-of-sample test for the prediction of the Neuro MACD. (As you can see, sometimes your’re faster than the original MACD some times you’re not)
We used about 20.000 EUR/USD, 5 minutes bars for input/training and about 4.000 bars for testing “out-of-sample” data, so this is proportion of 80:20. (training vs. out-of-sample) You see the Neuro MACD (prediction) vs. MACD (actual) – the Neuro MACD has a R² of 0,98. (which is good)
After training, tests and good OOS (out-of-sample) results we use the formula and implement it to MT4.
|Here you see the Forex Neuro Trader Neuro RSX with a prediction possibility. New to this indicator is, you can add a smoothing level to it! (black line)
It’s possible to add a something of 2-5 MA, but be aware that this is also a delay for the signal.
Green line original RSX, blue line predicted Neuro RSX and black line is Neuro RSX smoothed MA=2