My current strategy - request for your thoughts

This is a discussion on My current strategy - request for your thoughts within the Trading Systems forums, part of the Methods category; I'd like some thoughts on my system please if you can humour a noobie Using the 10 min and 5 ...

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Old Apr 18, 2014, 12:29am   #1
Joined Jul 2010
My current strategy - request for your thoughts

I'd like some thoughts on my system please if you can humour a noobie

Using the 10 min and 5 min charts on the FTSE/DOW (DOW needs more testing and control over leverage)

Look out for a combination of:

Engulfing candle of min 5 points on FTSE and 10 points on DOW
MACD about to cross over
RSI around 60 or 20 region and turning in direction of trade
Stochastic around 70 or 30 and turning in direction of trade

Enter on break of engulfing candle (within 2 candles)
Stop 3 points above engulfing candle (5 on DOW)
Target - length of engulfing candle or if in direction of overall hourly trend or bouncing off a resistance/ support area let it run and move stop to b/e after bar length
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Old Apr 20, 2014, 2:07am   #2
Joined Feb 2014
Have you considered trading price and time?

I can't make the MACD, RSI, or Stochastics backtrade with any consistency. Perhaps someone has advice for these indicators?
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Old Apr 20, 2014, 2:21am   #3
Joined Oct 2008
Quote:
Originally Posted by inzimam View Post
I'd like some thoughts on my system please if you can humour a noobie

Using the 10 min and 5 min charts on the FTSE/DOW (DOW needs more testing and control over leverage)

Look out for a combination of:

Engulfing candle of min 5 points on FTSE and 10 points on DOW
MACD about to cross over
RSI around 60 or 20 region and turning in direction of trade
Stochastic around 70 or 30 and turning in direction of trade

Enter on break of engulfing candle (within 2 candles)
Stop 3 points above engulfing candle (5 on DOW)
Target - length of engulfing candle or if in direction of overall hourly trend or bouncing off a resistance/ support area let it run and move stop to b/e after bar length
Didn't bother reading your system. - If you are asking, then answer is no. When you are ready and you have back tested your system then the answer is possibly yes.

Last edited by Jason101; Apr 20, 2014 at 2:25am.
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Old Apr 22, 2014, 12:05pm   #4
Joined Jul 2010
inzimam started this thread
Quote:
Originally Posted by Jason101 View Post
Didn't bother reading your system. - If you are asking, then answer is no. When you are ready and you have back tested your system then the answer is possibly yes.
Thanks Jason for your constructive feedback.
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Old Apr 28, 2014, 3:13am   #5
 
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As Jason101 indicated, there is no way anyone can comment on how well a trading system may perform without backtesting it.

Even so, my inclination is to say that your system won't be profitable. I have tested hundreds (if not thousands) of systems, and developed a number of profitable ones, and using a simple combination of textbook indicators (RSI, stochastic K, etc.) in the traditional way, rarely (if ever) works on the US stock exchanges or the LSE anymore. The short-term timeframes that you mention pose additional challenges as well, as market data at them is quite noisy.
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Old May 2, 2014, 9:16am   #6
 
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Are you really are looking at 5M TF for an Engulfing ?
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Old Jul 22, 2014, 12:28am   #7
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inzimam started this thread Yes 5m for engulfing candle, happens very often but I only takes the trade if other factors are aligned.
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Old Jul 22, 2014, 12:34am   #8
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inzimam started this thread So far 66%success rate
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