This is very easy to code in my software and I would do it for you and post it if I had asx data, but I only have NYSE data. There would be a number of software platforms out there that would let you create custom filters and scans, hopefully someone that knows of a free or inexpensive platform that can do the job will read your post. The software that I use is called 'Trade Navigator'.How can I scan for/find asx stocks where 50dma has crossed above 100dma along with having made a "60 day high price" ?
Am keen to know if there is any software that can scan those specific parameters/filters across the ASX please ?
A big thanks to both of you @DaveTrade & @Austwide for your feedback/suggestions as I'll check it out.@Telamelo I think most charting software easily does that
Amibroker would require programming or code downloaded.
Incredible chart I believe does without coding, just pick the boxes.
30 day free trial, then I think $10 a month for data and software use. You can use it for free but can't screen stocks without
How can I scan for/find asx stocks where 50dma has crossed above 100dma along with having made a "60 day high price" ?
Am keen to know if there is any software that can scan those specific parameters/filters across the ASX please ?
@Telamelo I think most charting software easily does that
Amibroker would require programming or code downloaded.
Incredible chart I believe does without coding, just pick the boxes.
30 day free trial, then I think $10 a month for data and software use. You can use it for free but can't screen stocks without
is this because the overall market is generally rising (since sept) and this makes all TP seem OK.
In a less favourable market do you :
The ultimate test is are you beating the market averages over time, once you deducted your trading costs and account for the markets dividends.I hope this is the right place to ask this question.
I have just recently joined the forum and started paper trading with a TP I have put together. It is early days but appears to be performing OK.
What I have in the back of my mind is - is this because the overall market is generally rising (since sept) and this makes all TP seem OK.
It would be good to hear how traders on here consider this and what difference it makes to their TP.
In a less favourable market do you :
- do you just take shorter length swing trades on spikes on the down trend with tighter stops
- do you trade less
- are your return targets smaller
- do you consider this at all?
- do you adjust your TP at all?
Note I only currently trade long.
Thanks Darrin
After seeing a couple of people mention starting out learning to trade in their posts, it got me interested in how people start to learn trading these days and what their experiences were. If anyone is willing to share their experience it could be helpful for others.
In sample tested systems are all fine and dandy but the proof of efficacy lies in out of sample testing or even better live testing , Its ridiculously easy to curve fit almost anything to fit a known fixed data set . Id love to know how this system here has gone since the dates on those charts . If you have the system parameters or code in any language i can replicate and backtest since and i am very confident it wont pumping out those numbers .Perfect indicator?
That’s what I’d like to cover this month. Is there such a thing as a perfect indicator? And if so… what is it and how do I trade with it? The answer may surprise you. Remember, there are many factors that influence the market and it’s behavior. For now, let’s put news and fundamental analysis aside and focus on market types.
There are basically two market types.
First, there are markets that move in a trading range, or that are range bound. The other is markets that are trending. Markets that are making strong moves to the upside or downside.
The astute trader quickly recognizes that no one indicator will work in both types of markets. But there are indicators that work in each type of market very well. The trouble many inexperienced trader faces is when they try to force their “favorite” indicator to work in both market types.
Since there are two types of markets, I will focus on two types of indicators: momentum and oscillators. Oscillators are best suited for the “range bound” markets and momentum indicators are designed to identify strengthening trends. Yep, this question comes up many times by email, phone and at seminars. Everyone always likes to ask, which indicator is the best? Oscillators were designed to tell us when a particular market is overbought or oversold and is getting ready to reverse.
Some of the most popular oscillating indicators are Stochastics and the RSI (Relative Strength Index). I will be using Stochastic indicators for the examples. In these examples, you will see that the majority of the time when the Stochastic Oscillator drops into the oversold range, the market tends to reverse and turn upward. The flip side of this is also true. When the Stochastic rises into the overbought range, the market usually turns downward. Since this is not true in a trending market, it is important that we understand what kind of market we are looking at. Is it a range-bound market, meaning that it is not breaking new highs or new lows? Or is it a trending market that is making consistent moves in one direction or another?
Once we determine which kind of market we are dealing with, then we are better equipped to choose the indicator best suited for the situation. Let’s take the Dow Jones Industrial Average during the period shown below as an example. You can see that the DJIA was not making any significant moves one way or another, so we are using the Stochastic Oscillator to point out reversal moves. Clearly, the Stochastic Oscillator was a good choice to use for the range-bound DJIA in Mid to late 2005:
View attachment 177489
Now let’s talk about the Momentum indicators and how they are used in trending markets. of the most popular trend indicators used today are the MACD (Moving Average Convergence Divergence), and the ADX/DMI.
To better show how effective these can be, let’s look at the DJIA again, but this time in late 2006. It was clearly in an up trend move, but how were we supposed to know that it would continue like it did? Well we didn’t, but we could have used the MACD to confirm the strength of the trend. We are using the MACD with its Exponential Moving Average here to uncover the strength of the trend. For uptrending markets we are looking for, the MACD (the blue line on the chart below) to cross above its 9-bar exponential Moving Average (the pink line on the chart below).
When this happens, a yellow vertical Highlight Bar is drawn through the price bars. The library that you can download includes the Uptrending version of this Highlight Bar, MACD Uptrending. You can apply the Oscillentum (Oscillator and Momentum) template (also provided in the Oscillentum Library) to your chart to get a quick look at it. Keep reading for instructions on how/where you can download this library.
View attachment 177490
So, now that we’ve covered both types of markets and the types of indicators that you could use on them, let’s take a look at a Strategy built around these concepts. As part of the Oscillentum Library, we have included one strategy for our Platinum users, called the Underlying Momentum Strength. This quick strategy takes Long trades when the MACD is greater than its Exponential Moving Average and the MACD has crossed above its EMA in the NASDAQ Composite Index ($COMPQ).
We used the $COMPQ in this strategy to further confirm the market’s direction and strength. For exits, we used the generic Profit Target, Stop Loss rules for Long trades. Below, you can see how this simple little strategy didn’t perform too badly when trading Google (GOOGL) using the $COMPQ as the confirmation index.
View attachment 177491
You will have all the code for this strategy, so feel free to modify the library.
Within the Trade Navigator program, select the Blue Phone Icon to download. This brings up the download prompt. Select special file and enter the file name OSCMOM:
View attachment 177492
Follow the prompts. You will find the template and strategy added into the program.
In Conclusion
So, which indicator should you use and when should you use it? There is no black and white answer, but, using these simple rules should help you. If price is moving back and forth in a range, use and oscillator like Stochastic. If you see prices breaking out above or below previous highs and lows, moving in a fairly straight line, use momentum indicators. Will you have a possible loss when the markets change from one type to another? Yes there is a high loss, but it is better to suffer one loss vs. many from using the wrong indicator.
Thank you for partnering with us!
Glen Larson
President, Genesis Financial Technologies
@Chipp Perhaps I was a bit lazy when I posted this and should have added a paragraph of my own explaining the reason for the post. I copied and pasted the whole article from Glen Larson but in my mind it was simply showing people how different indicators work in different types of markets. I was not recommending a particular trading system to anyone but to be fair the article does also show people that when they develop a system of their own, they need to test it to obtain feedback about it's effectiveness.In sample tested systems are all fine and dandy but the proof of efficacy lies in out of sample testing or even better live testing , Its ridiculously easy to curve fit almost anything to fit a known fixed data set . Id love to know how this system here has gone since the dates on those charts . If you have the system parameters or code in any language i can replicate and backtest since and i am very confident it wont pumping out those numbers .
Edit ... Here is equity curve of some code i wrote . 25% annual return 160 trades in around 40 years 74% WR in market 27% Seems to good to be true because it is
View attachment 177517
For people out there that are still trying to wrap their brains around trading the markets, Chip mentions a number of things, each of which should really be explained in more detail to understand where they fit into the scheme of things. For now I'll comment on (not explain in detail) two of them;There is no perfect indicator and i would suggest the closest one to perfect is not one of the generic builtin indicators found in almost every chart platform . Of the builtins some are better than others and id go as far to say that the most popular indicators ( you know what they are ) are not amongst the best builtins , whilst ive built some profitable algos using the RSI , MACD types of the space barely one of them beats the markets by any significant % over a decade . Lag is the biggest issue along with way too many false signals . There are 2 sides to expectancy being Win Rate % and Risk/reward and whilst both are important WR is the number 1 factor in my eyes . Building systems you need to look at what is the biggest enemy ( volatility fwiw) and make a filter to actually turn that ' frightening ' thing into an asset . If you are trying to build a system that will stand the test of time and deal with most market biases/conditions you NEED some type of volatility filter/measure . Of the generic indicators i would rate ATR #1 but it is not to be used alone . 1 parameter systems will not work , you need to measure the various context of markets . But it is a diminishing return using too many parameters also . Seek the goldilocks amount and 3 is around the ideal depending on what you seek to do
These metrics need to be balanced to the trading method that you decide to use.There are 2 sides to expectancy being Win Rate % and Risk/reward and whilst both are important WR is the number 1 factor in my eyes .
This is generally the case but in my opinion up to five is OK. It all depends on how you trade, no parameters can also work well and some people do only have one parameter. People using one parameter trade based on price action and have the one parameter for some additional information.1 parameter systems will not work , you need to measure the various context of markets . But it is a diminishing return using too many parameters also . Seek the goldilocks amount and 3 is around the ideal depending on what you seek to do
Consistency is the hardest thing to achieve in trading, it requires a trading system with no weak spots. @Chipp has achieved it with this system. Chip can you tell us more about your system?
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