Part Time Wealth Building Trading System

No. Never try to ambush an established trend. Will undermine your discipline which is a very important component of successful trading. Have patience...

Tkimble

Hi all,

Can someone provide some illustration or screenshots that illustrates the events as they are happening. Visuals is easier to absorb for me

Thank you

Hi tk, hi mikejody,

Thx for tk for sharing this, and thx for mikejody for put it simpler. You 2 are making a good team, you know that?

This is my first time following TK method, and here are what I need to ask tk:
1. Since we are using a real time MA, the value of the MA is still moving, right. What if the price 5 pips above MA, but then move back even below it? What do you do? Pls kindly advise.

2. Lets say that the price move 5 pips above MA, and the RSI is above 50. We enter long, right? But then, some time later, the price move below MA, and the RSI also move below 50, but the price hasn't reach the stop loss yet. What do you do? Pls kindly advise.

3. What is the use of the ATR? Because it's not used to determine entry level, and also not for exit point. In one of your post in this thread, you said that you close your position before you reach 200 pips because the ATR dropped. Could you please tell me more on this? Pls kindly advise.

Tk, we are the same level in this forum, as junior member. But different than you, I'm also junior in this biz. Still try to build my confidence in this field, so I'm expecting a lot to hear your explanation. Hopefully, you may have time to make me more clearer in your method. Many thx beforehand.

Best regards.

Hi again tk,

one more thing:
if we have entered the signal (the price is 5 pips above MA and the RSI is above 50), and then before it reach the 200 pips target, the same condition appear again (the price and the RSI give another long signal). What do you do? Pls kindly advise. Many thx.

Best regards.

Hi, i saw your post and have tested 100's of systems like this so thought i would write a quick program to test yours. I have it if you want it. note this is not a post to discredit your system, just becasue i developed so many similar to it early in my trading career i can see curve fitting.
i have written the test in esignal and have results if anyone would like to see them. Again, i really am not trying to discredit the system, the problem with it is in trending markets you will do well, in flat, you will get chopped up. it will always end up around break even, but with massive drawdown. always prepared to discuss more or listen to what anyone has to say, cheers,
Paul

Is that you from woodies, comoke,

paul felby?

Hi,

I got a couple of requests for esignal code, so rather than give it to indivduals, i will post here for everyone to dsicuss. the post has the 50 tick stop and 200 target in place, you can change how you like for tests. i actually found the commented out cross back of 50 level in 45 rsi gave best exit results, but still overall a losing strategy.
heres the code, Paul

var MAfast = new MAStudy(9, 0, "Close", MAStudy.SIMPLE);
var studyATR = new ATRStudy(21);
var studyRSI = new RSIStudy(45, "Close");
function preMain() {
setPriceStudy(true);
setColorPriceBars(true);
setStudyTitle("Forex Factory");
setShowTitleParameters(false);
}
//var bCrossedUp = false;
var nStop = 0;
var nLimit = 0;
var nStopDiff = 0.005;
var nLimitDiff = 0.02;
var tickDiff = 0.0005;
function main() {
var sma = MAfast.getValue(MAStudy.MA);
var vRSI = studyRSI.getValue(RSIStudy.RSI);
var vATR = studyATR.getValue(ATRStudy.ATR);

//if in one not already, enter a long trade
if(!Strategy.isLong()) {
if(open() > (sma + tickDiff) && vRSI > 50) {
nOpenPrice = close();
Strategy.doLong("Going Long", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
//set the stop for the trade
nStop = nOpenPrice - (nStopDiff);
//set the limit for the trade - calculate percentage gain (100 / entry price) * net gain
nLimit = nOpenPrice + (nLimitDiff);
}
}

//if not in one already, enter a short trade
if(!Strategy.isShort()) {
if(open() < (sma - tickDiff) && vRSI < 50) {
nOpenPrice = close();
Strategy.doShort("Going Short", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
//set the stop for the trade
nStop = nOpenPrice + (nStopDiff);
//set the limit for the trade - calculate percentage gain (100 / entry price) * net gain
nLimit = nOpenPrice - (nLimitDiff);
}
}
//set the bar colours - green for long, red for short, black for neutral
if (Strategy.isInTrade()) {
if(Strategy.isLong()) {
setPriceBarColor(Color.lime);
//set the stop and limit orders
//if(vRSI < 50) {
// Strategy.doSell("Close Long RSI", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
//}
Strategy.doSell("Close Long Stop", Strategy.STOP, Strategy.THISBAR, Strategy.DEFAULT, nStop);
Strategy.doSell("Close Long Limit", Strategy.LIMIT, Strategy.THISBAR, Strategy.DEFAULT, nLimit);
//debugPrint("In long " + sDate + " Stop: " + (nStop) + " Limit: " + (nLimit) + "\n");
}
if(Strategy.isShort()) {
setPriceBarColor(Color.red);
//set the stop and cover orders
//if(vRSI > 50) {
// Strategy.doCover("Close Short RSI", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
//}
Strategy.doCover("Close Short Stop", Strategy.STOP, Strategy.THISBAR, Strategy.DEFAULT, nStop);
Strategy.doCover("Close Short Limit", Strategy.LIMIT, Strategy.THISBAR, Strategy.DEFAULT, nLimit);
//debugPrint("In Short " + sDate + " Stop: " + (nStop) + " Limit: " + (nLimit) + "\n");
}
}
//else setPriceBarColor(Color.black);

if(open() < close()){setPriceBarColor(Color.lime);}
if(open() > close()){setPriceBarColor(Color.red);}
if(Strategy.isLong()) {
setBarBgColor(Color.teal);
}
if(Strategy.isShort()) {
setBarBgColor(Color.lightgrey);
}
return 0;
}

Hi Comoke,

I am not sure you are doing yourself an injustice here ;-)

It makes money with your code straight out of the box. This is for Euro Futures over a year, obviously the Long trades need looking at. I will say that strategy rarely hits a stop loss, so that might account for that to some degree. A trailing 50 pip loss should never hit a loss of 90 pips etc, which is happening.

I'll take a look at the code see if I can figure out whats happening there.

If somebody can tell me how to attach an HTML file I can post if for everybody

See attachment

I am not Comoke...

I realise that, however I was responding to the previous post which was Comoke, I hit reply instead of quote.

Actually tkimble, I have re-read that, and perhaps I owe you an apology, I think I should have written that the e-signal code may be doing you an injustice, not Comoke.

In hindsight that was a little disrespectful, I didn't mean to offend anybody, just trying to join in.

Hi Roger,

Whether or not a strategy finishes in profit after one year has very little to do with whether that strategy is actually tradable. Firstly, commission and slippage are not included in the results. but much more importantly, the workings, drawdown and charting of the system is most important. for instance, the system has a huge drawdown of over $10,000 trading just one contract. it also spends most of the time in a loss and finally goes in to profit in the last 2 months. a usable and good system should be a steady incline with no erratic movements or large drawdowns. when looking at the performance chart of this system, it shows that unless you are very lucky, you are likely to take substantial losses. funnily enough, the last 2 months of this year are the best performing on gbp and euro over last 2 years. this is not a coincidental factor in this system being disocovered during that period, hence my earlier comment about curve fitting. this is probably the most common factor in simple systems, subconciously desinging them to a best fit of the most recent market action. again, i really am just tryin to help out traders who are looking to design systems and always welcome any disscussion or debate.
cheers,
Paul

Totally agree with all of your statements Paul, however I (appear) to be getting very different results from you. I only was able to spend a short amount of time looking at it yesterday, I will try and have another look later today. One thing that I definitely noticed though was the non-consistant use of the stop-loss on my data. Now, this could be my data, and that is why we are getting different results, on the other hand could it contribute to your execptional drawdown ?

Either way I need to spend some more time with it to be sure.

One thing I would ask though would be how long has tkimble actually been trading this, I got the impression it has been for quite some time ?

ok, i have been asked by a few people for esig results. this is a quick test over 100 days on euro futures trading one contract allowing shorts and longs. again, this is just for help, i have posted the code above. anyone can change it and run whatever tests you like. please do not ask me to run more tests or talk about these test results. my opinion on this strategy and the results is fully explained the previous post.
thanks again and good luck,
Paul
this line is just so forum does not detect same meesage as i retry to upload the results file.

All,

I have made some ammendments to Comokes work to now include the trailing stop, and from what I can see (on Euro Futures for 2005), it appears to be a nice strategy as tkimble has indeed been saying. This is tested without money management which can only enhance it as tkimble has correctly stated.

My backtest confirmed everything he has been saying, and the drawdown appears to suit me anyway.

Of course, this is my data that it has been tested on, and would like input from anybody out there to see how they get on with the code. (e-sig of course), and in different markets.

tkimble - I hope this helps, I can of course add/change things within this code, and would be happy to. But thanks for your information so far.

If anybody can find fault in my logic, please shout, nobody is infallable.

Its below, I have used tkimbles revised rules for keeping out of some of the whip:


var nStop=0;


function preMain() {
setPriceStudy(true);
setColorPriceBars(true);
setStudyTitle("Forex Factory");
setShowTitleParameters(false);
}


var nStop = 0;
var nLimit = 0;
var nStopDiff = 0.005;
var nLimitDiff = 0.02;
var tickDiff = 0.0005;


function main() {


//if in one not already, enter a long trade
if(!Strategy.isLong()) {
if(close() > (sma(9, high()) + tickDiff) && rsi(45) > 50 ){
Strategy.doLong("Going Long", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
nLimit = close() + (nLimitDiff);
nStop = close(-1) - (nStopDiff);
}
}

//if not in one already, enter a short trade
if(!Strategy.isShort()) {
if(close() < (sma(9, low()) - tickDiff) && rsi(45)< 50 ) {
Strategy.doShort("Going Short", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
nLimit = close() - (nLimitDiff);
nStop = close(-1) + (nStopDiff);
}
}

//set the bar colours - green for long, red for short, black for neutral
if (Strategy.isInTrade()) {
if(Strategy.isLong()) {
if (close(-2)<close(-1)){
nStop += (close(-1)-close(-2));
}
setBarBgColor(Color.teal)
setPriceBarColor(Color.lime);
if (close()< nStop){
Strategy.doSell("Close Long Stop", Strategy.STOP, Strategy.THISBAR, Strategy.ALL, nStop);
}
if (close() > nLimit){
Strategy.doSell("Close Long Target", Strategy.LIMIT, Strategy.THISBAR, Strategy.ALL, nLimit);
}
}

if(Strategy.isShort()) {
if (close(-2)>close(-1)){
nStop -= (close(-2)-close(-1));
}
setPriceBarColor(Color.red);
setBarBgColor(Color.lightgrey);
if (close()> nStop){
Strategy.doCover("Close Short Stop", Strategy.STOP, Strategy.THISBAR, Strategy.ALL, nStop);
}
if (close() < nLimit){
Strategy.doCover("Close Short Target", Strategy.LIMIT, Strategy.THISBAR, Strategy.ALL, nLimit);
}
}
}


return 0;
}

OK. My apologies...

I want to set my RSI Level to 51, 50 and 49, is there a way to show the gap between them by having it zoom in since it is hard to tell when it squeezes the levels together?

hmm...thx for share the system.but it's not the system amaze me..it's your spirit and wisdom.keep it cool.

I tried using this today on the EURUSD, just to many bounces over/under the RSI 50 level along with the 3 MAs. Not so good, just too many whipsaws....