See what you think of this


Hi Guys,

Here's a system I've just come up with. I have only back-tested on the FTSE to 11-6-02 so far and during that period it has only thrown up a total of 18 trades, so it's not what I would term fully tested by a long shot. However, as for the 18 trades, that's only on one index and I intend to not only back test further on the FTSE but also apply it to the Dow, Dax etc. so there should be (hopefully) enough trades to make it worthwhile as long as it continues to throw up a profit.

One particular area which needs further investigation is in regard to max draw down between buy/sell and intra-day high lows as the trades are typically held for several days. So if anyones interested and has the time/inclination.....

Anyway, have a look and let me know what you all think.

The strategies are an amalgamation of a couple of previously posted ideas. The main one is from JohnnyT and the other is gleaned from a reply to a discussion on Trendsignal by Tradertim.

JohnnyT's post was actually made on the Motley Fool site back in October 2002 and can be viewed at
Basically, this system advocates buying + selling using Candlestick reversals with exit triggers and appears to work well on its own.

The next part can be viewed at and refers to the use of Keltner channels in Trendsignal.

So, I put the two together and decided that a signal is only valid if is triggered according to JohnnyT's candlestick theory whilst outside of the Keltner Channels.

The only grey area (and you will see if you examine the trades documented in the attached spreadsheet) is what actually constitutes "outside" the channels. I decided that so long as the "most part" of the candlestick was outside then that was good enough - a little "woolly" perhaps but maybe as it develops (if it does) then this will be clarified further.

Anyway, enough waffle. Check out the spreadsheet and post your comments please. :cool:
Probably help if I actually attach the spreadsheet then would it :rolleyes:


  • ukx candlesticks & keltner bands.xls
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