someone emailed me about converting the rmo indicators into multi time frame varities..... that would be a neat trick and probably worth the time spent.... i'll give it some thought.....

by applying higher time frames indicators to the  lower time frame charts we are trading , we can see if we are trading with the main current or spitting into the wind..... i've always admired those that can short strength and buy weakness.... that ability escapes me.....

the rmo will provide some difficulty in conversion..... other indicators are quite easy..... if say for instance we want to plot the 60 minutes stoch(9,5,3) on a 30  minute chart we can place the stoch(18,10,6) on the 30 minute chart.....  or if we want the 60 minute macd(12,26,9) on that same 30 minute chart we would plot the macd(24,52,18).....  you can see we've just doubled the values cause we doubled the time frame.....  we can plot both the 60 macd and the 30 minute macd in the same window...... do it a couple times and you'll see the convienence of it.....

i'll study on the rmo conversion and report back......h

Well done you, sir!

HAY

 

tHAT WAS ME ON rmo MULTIPLE TIMEFRAMES

I has 5-15-30-45-60-360-720minutes and Daily - Weekly RMO template charts in one layout.

 

My trade decsion basis in on a blue arrow on the daily with the smaller timeframes also phasing into long entry. The 30 minute timeframe seems to be the key with it haveing say a blue arrow, blue candles and a positive RMO histogram. A sign change in the histogram ususally occurs about when the long term Swing 3 blue line crosses zero.

 

this 30 minute entry has to be supported with a strong 15minute, a 45minute looking like is pending to go positive and the 60minute following suite.

 

RMO stands for Rocking Monster Opportunities

 

Joe

Hayseed,

My RMO multiple timeframe trading rules.

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 currencies.

 

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 previous 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.

 

 

joehickle,

So far every user of RMO has focused on entries but there has little input on exits. The presentations suggested using LLV(L,2) at the buy arrows (HHV(H,2) for sell arrows) but in my personal experience this solution appears to give up too much profit (in strong trends arrows may not appear for a long time) while taking you out easily during ranging markets/consolidation. Also, nobody seems to have identified the nature of the exit swing signal indicator (a stochastic oscillator?). The application of this exit is left to the judgement of the user (when enough profit is made) but often a buy / sell signal will come up when the indicator is overbught / oversold. if you have any insight into exits, it would be appreciated.

 

minnamor

minnamor,

I am finding the arrow on the 15-minute chart, when you have made your goal profit, is a good approximation of the extreme of the price movement and an exit point. the exit swing indicator seems to be a stochastic that I can not interpert too well. Rahul seems to have group together here some classic indicators but they seem to work for me in finding trades and are very visual.

I trade currencies and the 60 arrow is the beginning of your trade. Smaller timeframes must support it and you have to be in the overall trend agreeing with the color of the 60 arrow.

the Swing2-Swing3 chart as lines must be multiple moving averages but I love them as predicators how the price will move.

What do you think of my entry rules?

Joe

RMO buy and sell signals bear similarlity with Equis Macd Signals on intraday 5 minute charts , so definitely he uses MACD to trade for day trading .

Need to know views of others ?

Inspired by WoodieCCI model, I tried a system where the rmo oscillator is replaced by PowerPivots Trend Direction (povot=1, timeframe=2), and RMO SwingTrd 2 and 3 are replaced by CCI(6) and CCI(14). Exits based on breach of pivot using PowerPivots. Results are similar if not better than RMO. Try it yourself.

 

regards.

minnamor

Hi all,

This is my first post to the forum. Great to see some fantastic posts with so much great info.

Anyway, I am a recent convert to MS and was delighted to 'try out' the RMO. I am afraid as a EOD trading system, it totally stinks. From the posts it looks like good only in intraday scenarios. If that you, good luck to you.

As an aside, my naive impressions lead me to believe the RMO was tweaked for intraday. Anyone with a sense of idea as to how to broaden this focus to EOD and beyond?

R/sa

hey r/sa ....    people like roy can probably just look at a specific indicators plot and work out the math behind it in his mind, he has done some comparrison work on the rmo..... until the day comes were i can do that, i'll just rely on their thoughts..... can't remember roy mentioning any tweaking involved but you might be correct.... it might work better on intraday but it seems to work eod also......

there are several ways to use the rmo..... my most often use is simply what was suggested  by raul in his videos..... as an addtional  filter for other trading systems.....

you should have the equis cci +/- 100 cross system...... run that on eod data on  all the s&p 500 components, or any such legitamate group...... now add as a filter the Fml( "Rahul Mohindar Osc (RMO)") as seen below...... it should return better results.....

henry has suggested i remove the filter on the 'buy to cover' and 'sell' orders.....h

 

System Details

Copy of Equis - CCI +100/-100 Crossover with rmo Optimized No Order Bias Long Portfolio Bias Single Position Limit 1	Notes Enter long/short when the 14-period CCI crosses above/below -100/+100.
Buy Order Order Type Market Order Expiration Good Until Cancelled Entry Size Method Use Default Size     Signal Formula Cross( CCI(14),-100) and Fml( "Rahul Mohindar Osc (RMO)") > 0   Price Formula   Entry Size Formula     Strategic Delay Tick Minute Day # of Bars 0 0 0	Sell Short Order Order Type Market Order Expiration Good Until Cancelled Entry Size Method Use Default Size     Signal Formula Cross( 100, CCI(14)) and Fml( "Rahul Mohindar Osc (RMO)") < 0   Price Formula   Entry Size Formula     Strategic Delay Tick Minute Day # of Bars 0 0 0
Sell Order Order Type Market Order Expiration Good Until Cancelled     Signal Formula Cross( 100, CCI(14))   Price Formula   Strategic Delay Tick Minute Day # of Bars 0 0 0	Buy to Cover Order Order Type Market Order Expiration Good Until Cancelled     Signal Formula Cross( CCI(14),-100)   Price Formula   Strategic Delay Tick Minute Day # of Bars 0 0 0
Stops BreakEven Stop Positions None Floor Level 0.0 Pts Stop Loss Positions None Stop Value 0.0 Pts Trailing Stop Positions None Profit Risk Value 0.0 Pts Trailing Periods 0.0 Inactivity Stop Positions None Minimum Value 0.0 Pts Periods 0.0 Profit Target Positions None Target Value 0.0 Pts
Simulation Options
General Options Points Only Test No Initial Equity 10000. Default Size 100 Units Trade Long Yes Trade Short Yes Optimization Results 5 Trade Execution Options Realistic Market Prices Yes Buy Price N/A Sell Price N/A Sell Short Price N/A Buy To Cover Price N/A Delay To Open 1     Slippage Buy 0.00 Pts Sell 0.00 Pts Sell Short 0.00 Pts Buy to Cover 0.00 Pts	Broker Options Interest Rates Margin 0.00 % Money Market 0.00 %     Margin Requirement Long Initial 100.00 % Long Maintenance 0.00 %     Short Initial 150.00 % Short Maintenance 150.00 %     Commissions Entry $0.00 Per Transaction Exit $0.00 Per Transaction

I am pretty new to Metastock and only been using it for a couple of weeks and have been trying to get to understand the RMO strategy and its use and also the Exploration function. A couple of questions if anyone can help please?

1) When you do an exploration for RMO Market Trend New Blue for example I believe this is picking up stocks changing from a Red to Blue Bar. What time period is this change measured in? It appears to be daily - is this correct and is there any way to change it to shorter or longer periods if I want to?

2) If the above scan picks up items where the bar changes colour is there an exploration that you can run that picks up if bars are just blue regardless of the colour of the previous bar?

3) Similarly I understand that the Swing Trade Buy Arrow exploration picks up stocks where a Buy arrow has recently appeared? What time period does "recently" mean for this please?  Once again can this be changed and also is there any scan that can be run which shows where the last arrow to appear is blue regardless of when it appeared?

Hi Hayseed,

Much thanks for the guidance and tip. I really appreciate your posts, as I have learnt and continue to gather valuable knowledge.

Unfortunately, the RMO comes up with almost no recommendations in the market I trade in. This led me to believe it inherent internal architecture is directed at intradays, almost exclusively, imho. However, I will trying the CCI with or without the RMO in the future.

I have my own simple but nonetheless worthy system and returns are ok, at least so far. My my own limited knowledge, I was embarking on something more proven, more reliable, something better than my own system. I have to say, RMO falls short.

R/sa

 

hey r/sa..... now i see what you were refering to.... the scarce trades on daily charts would be common across any and all markets or at least all markets here in the states.... 

 the rmo seeks trades at defined trend changes,  which are painfully slow in coming...... as an example, there were only 84 trades in 'cat' from 1990 till now.....

that's why it seems to work best when used on a larger group of legitimate stocks daily, such as the s/p 500 , or perhaps the nasdaq 100 .... i see your from overseas so not sure what type grouping yall have....

i ran a test this morning on the riskier nas 100, the results using rmo were far improved over not using it.... and of course the rmo is not fool proof,  there will be times where it gets in the way.... but more often than not using it helps......h

Vinny:

 

Here is some code from a system test that you can use to assemble your own explorations for various RMO conditions:

 

{An RMO buy signal is generated on the first bar when all three conditions are met:}

{RMO oscillator is positive indicating bullish conditions}
Long1:=IF(Fml("Rahul Mohindar Osc (RMO)")>0,1,0);

{SwingTrd 2 oscillator is positive indicating display of blue bars}
Long2:=IF(Fml("SwingTrd 2")>0,1,0);

{SwingTrd 2 oscillator is greater than the SwingTrd 3 oscillator indicating that the last arrrow was blue}
Long3:=IF(Fml("SwingTrd 2")>Fml("SwingTrd 3"),1,0);

Long:=Long1+Long2+Long3;

BuySignal:=Long=3 AND Ref(Long,-1)<3

received an email reguarding my post above where i ran a comparsion test on the equis supplied "cci" system and an exact copy of the system with raul's rmo used as an addtional parameter......   when running a test using both the standard equis and our rmo'ed up version , be sure to use a legitimate group of stocks..... last time we used the nas 100, this time the s&p 100 was used..... all the 100 components.... the extra option's such as interest income, commisions, any sort of stops and such were not used.....

the theory is  to only consider trades when the rmo favors your direction.... of course this will miss many profitable trades but those misses pale when considering the number of unprofitable trades that will be also missed...... 

if you run comparrison tests , such as seen here, the average profit will undoubtly catch your eye.... but also pay attention to the number of trades made by each..... now consider the savings in commissions......  the average trades on the rmo enhanced system was 77 , the average trades on standard cci system was 197.....  the commissions savings alone could cover the cost of  a new dell every month....

 

the past 9 months my complete days have been spent with metatrader, forex, ..... only now can i understand much of what henry and roy have been coding....  anyone wanting to enhance their understanding and productive use of metastock should consider downloading a free copy of metatrader..... h 

 

 

Hey hayseed -

did you ever get around to putting more thought into 'timeframe conversions' for RMO system signals?  I have tried, but no success.  Played with varying the timeframes for RMO (Rainbow Osc 81), Swing 2 (EMA30 of the Rainbow), and Swing 3( EMA30 of Swing 2), trying to use on 1, 5, and 30 min.  Figured I could multiply by 5 to go from 1 min to 5 min; then multiply by 6 to go from 5 min to 30 min....

Do you need to make the changes in the core of the Rainbow Osc?

your thoughts?

SirShaveKWSN -

Great code and thanks for posting; I've been trying to solve for this to test RMO in the system tester and always came up short.  Your code appears to be working and I am now trying to modify for a "fancier" (perhaps) entry...

Given the long entry example above, have you any idea how to replicate one of the entry rules mentioned by Rahul in his traing video: if going long, then enter a few ticks above the signal candle given all three (ribbon (green), candle color (blue), and arrow (blue)) synchronize.  Your entry above enters a long position at the open of the candle following the signal (with 'market' as order type).  My attempt to script to enter, say, at 1 point above the signal candle high is as follows:

Your code above, with the following mod-

BuySignal:=Long = 3 AND Ref( Long,-1) = 3 AND H >= Ref( H, -1) + 1

This will trigger an entry given both the current and previous candle qualify, with the 2nd candle's high equal to or exceeding the 1st candle's high by 1 pt.  However, if the 2nd H is lower than the 1st H, and then the 3rd H is lower than the 2nd,,,,,and then perhaps the 4th H is finally higher than the 3rd H by 1 pt, this will finally trigger an entry - but it may not be higher the the 1st candle's H (depending on how much lower each succesive candles H was...).  My goal is to try and script code that will enter once a qualifying candle finally pushes above the original signal candle's H by 1 point ("qualifying" means that all successive candles continue to satisfy  your "Long=3" conditions).

I have played around with "HighestSince" and "lowestSince" coding, and "valuewhen"...but am getting stumped!

any ideas?

 

This will do the trick:

BuySignal:= sum(long=3,2)=2 and H>Valuewhen(1,long=3 and Ref(long,-1)<3,h)

Hey hayseed,

thanks for all your great input and that goes to everyone else too.

I'm trying to start trading the RMO on the forex market.

Am I right in thinking, it works best on the 4 hour chart?

Many thanks.  

Hi All,

To everyone on this thread, thanks for all the effort on the formulas and explorations. Also must thank Metastock for providing this on the ver 10, the study material is lacking which needs to be further enhanced.  I am begining to like the RMO and its been giving great returns from past 2 weeks of its use. It works best on hourly for stocks and forex 4 hours. Would share my views as i go along.

thanks a lot

 

 

 

minnamor - great stuff and it is indeed triggering an entry after the second candle exceeds the primary signal candle - but it picks ups the entry price as the 'open' of the third candle...

perhaps it's how I have my 'trade execution' set up in the simulation mode? or perhaps I need to construct the 'buy' and 'sell short' orders as limits or stops (vs market)?

thanks for getting me this far!

Thanks for sharing your system. I am just getting started with Metastock and RMO. How do I test the past performance of your system.

Regards
ML

I want the ATM RMO II...

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