Simple Trading Systems

[Wysiwyg]

The trading system has to suit the market one is trading. It can be discovered that historical results are better on other indices. Each group of index constituents are different so one system (in my testing) is best suited to one index.

Needs for a trading system ...

1) consistent entry trigger with experienced actual entry/s
2) defined stop loss/es
3) position sizing calculation/s (very important)

and most importantly (and unique to each individual or group)

4)
(a) exit at profitable time/s or value/s
(b) exit at the most profitable time/s or value/s (best achieved with experience pending information, f.a. and/or t.a., available)

 

[Wysiwyg]

Interesting to note there are over 14000 views of this thread and only 60 replies with some ambiguous or off topic ones. Tells me there aint no "simple trading system".

 

[TabJockey]

There are infinite ways to make money in the markets but profitable systems only come from within. You.won't find.them on forums, although there are lots.of great ideas to try to build into your own style.

 

[joea]

Interesting to note there are over 14000 views of this thread and only 60 replies with some ambiguous or off topic ones. Tells me there aint no "simple trading system".

The reason for this is that, those that post do not want to give secrets away.
The share market education industry must be worth billions.
To me, those traders believe its an internal society, and it probably is for those that have that particular beliefs.

i.e elliott by fibonacci, VSA, indicator combination.

The funny thing about it is, those that continue get a mental stimulation that beats reading the newspaper or what ever.
So I suppose you can say "ego is a powerfull thing". Or you have to cull the non - believers l!!

There is a simple trading system, but ego's want to complicate it.
Some traders want it to be so full of "bells and whistles", that they become advisers,
but then that's what humans are all about, isn't it?

Cheers

 

[tech/a]

Interesting to note there are over 14000 views of this thread and only 60 replies with some ambiguous or off topic ones. Tells me there aint no "simple trading system".

Of course there is
"Techtrader" is a simple system
Traded live for 7 yrs and still in use by many.
Its on Radge's site and will be in his next book.

Wysiwyg
You haven't got one then?

What it tells me is that very few trade!!!---at all.

 

[tech/a]

Advanced Get and Elliott have 4 fully disclosed systems which I'm happy to trade a few here perhaps in the Elliott (Practical application) thread to amuse Kenna's.

Only thing is that end of May I'm touring Europe for a couple of months so perhaps when I get back.

If people understood what make a system or trading method profitable it wouldn't be hard at all.
There are only 3 ways I know of.
Once you know what they are then your know what and how to build your method.
But as mentioned its a secret club of ego strokers who know!!---isn't it?

 

[stargazer]

Hi all

Any chance of a link to Tech trader might help me and others.

On the question of sharing secrets which in my opinion there are none just experience and knowledge.

This forum there have been many that have shared and being helpful but i must say TECH/A is abundant in his sharing of actual trades and the nitty gritty of trading.

Without over complicating things just to appear more intelligent than anyone else.

If you only understand laymans terms Tech/a accomodates, if you are complex in your explanations and try to dazzle forumites with brilliance Tech/a will spar.

Of course if you try and baffle everyone with bull**** Tech/a will pick you up on it.

Cheers
SG

 

[nunthewiser]

hahahahahaha....

no offence intended

 

[nunthewiser]

1. grab chart
2. in your own opinion,plot areas of intrest and previous support/ressistance areas..throw in outlieng short term overthrows.
3. plot entry level and risk size to the % loss of your " right or wrong area"
4. buy stock at point a to suit above
5. stock falls to point b , sell stock.
6.stocks runs to point c, move trailstop to point d previously mapped on the basis of the move using screentime.
7.from here different ppl go different ways....some have complete targets,some have part sells, some sell to keep stock.
that depends on you.

seems simple to me but im no typist and the grey areas are what makes it interesting.

and yes tech is the only real trader on all the forums.......

he is the wind beneath my wings

bless ya

 

[Wysiwyg]

Of course there is
"Techtrader" is a simple system
Traded live for 7 yrs and still in use by many.
Its on Radge's site and will be in his next book.

I back tested someone's Amibroker coded "Tech Trader" and got very ordinary to poor results on All Ords and S&P 500 over any period. I can only assume the entry/exit conditions are wrong. Code below and please enlighten if the code is wrong.

Wysiwyg
You haven't got one then?

Yes.

What it tells me is that very few trade!!!---at all.

What it tells me is people don't want to do the construction and testing of a "system" for trading or those that have are looking for new and better ideas.

// techtrader v2 amibroker version
// here we define buy conditions and name each one as a variable
PosQty = 10; // You can define here how many open positions you want
SetOption("MaxOpenPositions", PosQty );
PositionScore = Random();

SetOption ("UsePrevBarEquityForPosSizing", True);

SetTradeDelays(1,1,0,0);

// techtrader v2 amibroker version
// here we define buy conditions and name each one as a variable
PositionSize = -10; // always invest only 10% of the current Equity
cond1=Cross(H,Ref(HHV(H,10),-1)); // when todays high crosses last highest high over the last 10 periods
cond2=H > EMA(C,40); // todays high is greater than the 40 day Exp MA of closes
cond3=HHVBars(H,70) == 0; // todays high is the highest for 70 periods
cond4=EMA(V*C,21) > 500000; // ensure at least $500k of money flow
cond5=C < 10.00; // only trading in stocks less than $10
cond6=C > O; // todays close higher than open

// the following line is the trigger if all conditions satisfied
Buy=cond1 AND cond2 AND cond3 AND cond4 AND cond5 AND cond6;


//ApplyStop( stopTypeLoss, stopModePercent, amount=10 );
Sell= Cross(Ref(EMA(L,20),-1),C); // close crosses below yesterdays average of the low


Filter = Buy; // lists exploration results conforming to our buy criteria
AddColumn(Buy, "buy", 1.0); // 
Filter = Sell; // lists exploration results conforming to our buy criteria
AddColumn(Sell, "sell", 1.0); // 

// This section creates the data that you can plot to see how often TT2 trades
// NOTE:- Using VOLUME array so get correct number when switching to WEEKLY or MONTHLY display
AddToComposite(Buy,"~TTBuys","V");
AddToComposite(Sell,"~TTSells","V");

Buy = ExRem(Buy,Sell) ; 
Sell = ExRem(Sell, Buy);
Binary = Flip(Buy , Sell);

 

[Wysiwyg]

The reason for this is that, those that post do not want to give secrets away.
The share market education industry must be worth billions.
To me, those traders believe its an internal society, and it probably is for those that have that particular beliefs.

If one believes that trading is a competitive environment and revealing in detail what trading method one uses will give the competition an edge. Very few traders reveal their trading system in detail. Especially if it works in flat and bear markets.

I can't begin to imagine what niche the likes of Howard Bandy has tapped.

 

[maximillian]

Heiken Ashi is an indicator, not a trading system !

A trading system is a method involving the entry, stops, profit targets and exits, and that is an oversimplification.

A trading system may involve the use of indicators.

Boggo, thank you for your definition of a trading system.

I like to reduce things to their lowest common denominator, being a quantitative analyst.
My definition of a trading system can be as simple as an entry and an exit. Profit target is accepting a profit, while Stop loss is accepting a loss. They are still an exit, closing a trade regardless of what you want to call them.

Management of equity and risk I believe to be more important than any signal.
A couple here have hinted at equity curve averaging I see, which I can highly recommend. It has really turned around my currency trading. Also trade a momentum portfolio of stocks. An edge is wherever you find one.

 

[Wysiwyg]

At the end of the day though, it is the entry and exit times and values that are greatly varied. Position size relative to risk profile is finite to 100%.

 

[tech/a]

I back tested someone's Amibroker coded "Tech Trader" and got very ordinary to poor results on All Ords and S&P 500 over any period.

I'm interested in your definition of "any period".

It traded live for 7 yrs returning 1200% on initial investment----pretty ordinary--.
Its still up on the site ----

Its also been tested to death by academics who's qualifications would have your head spinning---Ive not had any comments from any of them remotely reflecting your results.

But still I'm sure your definition of "any period" will be enlightening.

Especially if it works in flat and bear markets.

This is SERIOUSLY the comment of a novice.

I can't begin to imagine what niche the likes of Howard Bandy has tapped

Niche' ??---what are you on about?
Define the type of Niche' you "think" he has tapped?

 

[Wysiwyg]

I'm interested in your definition of "any period".

Have a look at any calender and choose two different dates. e.g. 1/01/2003 to 17/7/2007 or 17/7/2007 to 3/3/2009. Can't define it any further but 'any' is quite varied.

It traded live for 7 yrs returning 1200% on initial investment----pretty ordinary--. Its still up on the site ----

Is this site Reefcap.com.au?

Its also been tested to death by academics who's qualifications would have your head spinning---Ive not had any comments from any of them remotely reflecting your results.

As you have conveniently left out, the Amibroker version of techtrader I have shows very ordinary results so again, what is not right in that version.

But still I'm sure your definition of "any period" will be enlightening.

Only for you.

Very few traders reveal their trading system in detail. Especially if it works in flat and bear markets.

This is SERIOUSLY the comment of a novice.

But true regardless of whatever stage you think I'm at.

Niche' ??---what are you on about?
Define the type of Niche' you "think" he has tapped?

The consistently profitable one.

 

[AlterEgo]

[/B]Have a look at any calender and choose two different dates. e.g. 1/01/2003 to 17/7/2007 or 17/7/2007 to 3/3/2009. Can't define it any further but 'any' is quite varied.

Hi Wysiwyg,

I just ran that code, exactly as shown above, and ran it on the past 5 years of ASX data. I get an average annual return of around 38%. What are you getting?

 

[AlterEgo]

It traded live for 7 yrs returning 1200% on initial investment----

Hi Tech,

Just out of interest, what were the start and end dates for that 7 year period? I can check what Amibroker shows over that same period.

 

[Wysiwyg]

I have sourced a tech/a post on Compuvision from 2003 which states techtrader began trading in August 2002. That being 10 months earlier than the date the post below was made. The strong bull market started in January 2003. In retrospect, good timing for a long trend following system to begin and along with leverage the reason why such an "average system" did so well.

 

[Wysiwyg]

Hi Wysiwyg,

I just ran that code, exactly as shown above, and ran it on the past 5 years of ASX data. I get an average annual return of around 38%. What are you getting?

Hello AlterEgo. My test period was 5 years from 21/4/2006 to 21/4/2010 on circa 2000 ASX stocks, not All Ords.
My commision is set at $20, my % of entry bar volume is set at 10, my initial equity is 100k, no stops or profit targets set and buy on open next day after signal.

 

[AlterEgo]

Hello AlterEgo. My test period was 5 years from 21/4/2006 to 21/4/2010 on circa 2000 ASX stocks, not All Ords.
My commision is set at $20, my % of entry bar volume is set at 10, my initial equity is 100k, no stops or profit targets set and buy on open next day after signal.

Test over same period, commission $20, % entry bar volume set to 5, initial equity 100K, all stocks on ASX. Not sure why there'd be this much difference between your and mine!