My trading system --- need help

martijn · Dec 12, 2006

First of all, I want to say I'm a noob, so please be gently

Second I want to apologize if I posted this one in the wrong thread. I didn't know if it belongs to forex or to trading systems. Sorry. Now let's get to work
I'm developping a system and it's almost finished. The only problem is that I have to have some backtest result for the different patterns for my system so I can look wich are the profitable systems. Look in the attachement and I hope you will understand. I have to have an adaptable stop loss, and an adaptable take profit. I use metatrader.
with testing, i think I have at least 1 long determined and 1 short
ex.
long: JJMA>JMA, OSMA above zero, filter AO green and under zero, PCCI >0 and stochRSI crosses the 75 upwards.
Hope this helps and that someone can help me, I really believe in this strategy, and isn't that the beginning?

Doctor Leo · Dec 12, 2006

I'm afraid you don't have a system yet. You seem to have entry rules but before you have exit rules they do not constitute a system. I'd suggest looking at some well-known methods such as projections, existing support-resistance levels, trailing stops at worst, as targets, and some distinct highs and lows, say daily max's and min's for stops. And then you will want to try any combination of the rules to find out the best result. Anyway exit rules are far more important than entries...
Good luck.

jacinto · Dec 12, 2006

Doctor Leo said:
I'm afraid you don't have a system yet. You seem to have entry rules but before you have exit rules they do not constitute a system. I'd suggest looking at some well-known methods such as projections, existing support-resistance levels, trailing stops at worst, as targets, and some distinct highs and lows, say daily max's and min's for stops. And then you will want to try any combination of the rules to find out the best result. Anyway exit rules are far more important than entries...
Good luck.

i would suggest that any method (not system, system means something different) is based on price action and technical analysis. if then, the method you mention is supported by the above, then you have something going. not before. good luck

tradewinds · Dec 13, 2006

jacinto said:
i would suggest that any method (not system, system means something different) is based on price action and technical analysis. if then, the method you mention is supported by the above, then you have something going. not before. good luck

there seems like quite a few variables here, which can lead to a break down of the rules as markets can be quite random at times.

Also be careful you aren't using 4 or 5 indicators/oscillators that tell you the same thing. Try to use 3/4 non-correlated methods, eg price action, chart patterns, oscilators.

I think a system should consist of:

1. entry rule
2.how much to risk?(risk control)
3.how much to buy(contracts)Moneymanagement whichs tells you whether or not you should buy more contracts while in the trade.
4.Exit strategy

Of course this is basic, you could back up your rules by understanding the philosophy behind the system, and why it works.

good luck.

barn_burner · Dec 14, 2006

martijn said:
First of all, I want to say I'm a noob, so please be gently
Second I want to apologize if I posted this one in the wrong thread. I didn't know if it belongs to forex or to trading systems. Sorry. Now let's get to work
I'm developping a system and it's almost finished. The only problem is that I have to have some backtest result for the different patterns for my system so I can look wich are the profitable systems. Look in the attachement and I hope you will understand. I have to have an adaptable stop loss, and an adaptable take profit. I use metatrader.
with testing, i think I have at least 1 long determined and 1 short
ex.
long: JJMA>JMA, OSMA above zero, filter AO green and under zero, PCCI >0 and stochRSI crosses the 75 upwards.
Hope this helps and that someone can help me, I really believe in this strategy, and isn't that the beginning?

Why does everyone assume there is a black box method to success? Trading is about watching the market and making decisions.

Cyclon · Apr 2, 2008

Reducing your risk at both ends makes a reversal system

tradewinds said:
I think a system should consist of:

1. entry rule
2.how much to risk?(risk control)
3.how much to buy(contracts)Moneymanagement whichs tells you whether or not you should buy more contracts while in the trade.
4.Exit strategy

I disagree. A trade system should be transparent toward position sizing (pt.2) and MM (pt.3) because if not it is not adaptable by large and small traders alike.

"IF" you want to make that an EA then of course that must have some specs in order to run on its own. But the job of a system is to put you in right to begin with. And if its Good Enough to do That then it is good enough to get you Out Right also. If it can't do that then face it - it can't get you in right either.

Chorlton · Apr 2, 2008

Doctor Leo said:
I'm afraid you don't have a system yet. You seem to have entry rules but before you have exit rules they do not constitute a system. I'd suggest looking at some well-known methods such as projections, existing support-resistance levels, trailing stops at worst, as targets, and some distinct highs and lows, say daily max's and min's for stops. And then you will want to try any combination of the rules to find out the best result. Anyway exit rules are far more important than entries...
Good luck.

I agree 100%

... and IMO, Correct Money Management & Position Sizing for that System can be more important than both of them..... No matter how good ones Entries and Exits are, if you are using the wrong Money Management Strategy you can very easily still lose money.......

Chorlton

My trading system --- need help

martijn

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Doctor Leo

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jacinto

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tradewinds

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barn_burner

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Cyclon

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Chorlton

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