MBFX Timed
It’s All in a Name
We’ve profiled indicators in the past and found out later they appear elsewhere under a different name. That’s totally cool, after all; what’s in a name? For us, many indicators have names which bear little or no resemblance to what its function is. If an indicator named “Bootylicious 1-2-3” displays spot on signals, who cares what it’s called.
Kissing Cousins
The MBFX Timing indicator, we discovered during our research, is actually a renamed indicator called Jurik RSX (Relative Strength Quality Index) developed by Mark Jurik; a derivative of the RSI (Relative Strength Index).
Notable Mentions
Mr. Jurik has been broadcasting his work since the late 80s; however, the earliest reference we can find of the RSX is the mid-90s, which was coded into various platforms starting in 2009. By the way, this profile comes courtesy of a community submitted suggestion. Let’s give a shout-out to Thomas P. who hails from Nigeria. So, what is the RSX, or MBFX…or whatever?
Oscillating Oscillator
In the various versions we looked at, there were references to overbought and oversold; however, we noticed that signals were cherry-picked and the buy/sell levels differed between sources. So many variables and too much uncertainty. That being the case, we’re just going to use it as a color change. It makes things easier for everybody and removes ambiguity when determining the moment to open a trade.
Reactivity
The default view is very quick. So quick, that it generated more signals than we cared to look at, which you’ll soon see. We slowed things down a bit in the second view, and it makes more sense. Naturally, you have the power to dial in better settings when you get your tweak on.
Migraine
Below is the chart with marked up signals on the default settings. More energetic than a small child with a 3-foot long pixie stick; grape flavored…naturally.
Settings
Before we get a gander at a better version of the chart, we’ll cover the settings. There’s not much to it. Just two to fiddle with.
Len: The number of periods used for the overall calculations. The default setting is 7.
Filter: Applies a filter function to adjust the turning points between signals. The default setting is 0.0.
Preferable
Here, we slowed down the “Len” to 20 and adjusted the “Filter” to 1.0 and voilà, we’ve got this. Better signals and a lot easier on the eyes. By the way, the altered settings are just random with no implied significance. Seriously, we’re not that complicated.
The big trendy bits are identified with significantly fewer signals and does well with changes in direction. An odd losing signal is nothing that the rest of your algorithm can’t filter out.
Don’t Call Me Yellow
We wanted to address the yellow elephant in the room, namely the…One yellow period, which appears between signals.
Or, the two yellow periods which appear between signals.
It’s in the Details
Upon closer inspection, we noticed something offbeat and needed to find out exactly when the signal to enter was accurate. We did so by going back to the 1-minute chart and recorded it real time and see what exactly is going on.
We’ll be explaining this with graphics in the technical analysis video as price/indicator movement progresses.
Clarify & Verify
What we noticed is the YELLOW is the initial signal candle, however, you need to verify the actual trade signal in the next period before pulling the trigger. In the following sequence of screenshots, we identify the accurate signal.
Look At The Birdy
This first image displays a yellow signal, meaning that change is coming.
In the second image, the next price action has given us a green signal. We DO NOT enter on this candle until the candle closes, because it is not fixed yet. We sit tight and remain at the ready.
In the third image, when the next candle has opened, we take this as the entry point because the previous candle closed green.
In the fourth image, we have a new yellow signal, indicating that change is coming.
In the fifth image, a SECOND yellow candle has printed, meaning that the change is sill in progress. Do nothing. Continue loitering and perhaps twiddle your thumbs to keep from pressing the “Order” button on your platform.
In the sixth image, we’ve got a green candle indicating that a potential long signal is coming, but we do not enter until the candle closes, and the condition is verified.
In the last image, the long signal has been confirmed, and we enter on the second green, at the open of the candle.
…and there you go.
What We Got
Rainbow Results
Looking through the results, the Euro was average(ish) and the S&P returned somewhat soft results, but BTC and XAU did pretty well. Remember, these are not the most optimized settings because that’s not the purpose of what we do. The numbers we post just give you an idea of the indicator’s capabilities. As the market flexes, results will indeed go up or down and naturally, and how this indicator meshes with your algorithm will dictate your personal return on investment.
Resources
You can get the indicator from the on-line library for free. We’re going to keep the MBFX Timing script name, as this is what’s used in the code. When you’re ready to get it, click HERE. Also, be sure to subscribe to the Stonehill Forex YouTube channel for the technical analysis videos. Sign up for the Advanced NNFX Course HERE.
Our only goal is to make you a better trader.
*Our published testing results are based on money management strategies employed by the NNFX system and depend on varying external factors, which may be different between individuals and their specific broker conditions. No guarantee, trading recommendations, or other market suggestions are implied. Your results and subsequent trading activities are solely your own responsibility.
BTW — Any information communicated by Stonehill Forex Limited is solely for educational purposes. The information contained within the courses and on the website neither constitutes investment advice nor a general recommendation on investments. It is not intended to be and should not be interpreted as investment advice or a general recommendation on investment. Any person who places trades, orders or makes other types of trades and investments etc. is responsible for their own investment decisions and does so at their own risk. It is recommended that any person taking investment decisions consults with an independent financial advisor. Stonehill Forex Limited training courses and blogs are for educational purposes only, not a financial advisory service, and does not give financial advice or make general recommendations on investment.