Hi Folks,

My friend introduce me to this system where you chart an indicator graph purely based on pricing. He used this in the futures market. And I thought that I'll share it with you guys. I manage to backtest this manually back till July 2009. I am looking out for any big losses.

The formula is

(SMA of open-close for last 5 period / SMA of high-low for last 5 period)*40+40

Mark of the 40 and 65 levels and trade long if it touches 65 level and short the on the 40 level. You will be in the market 100% of the time. Stop Loss will be the when the next trade is triggered.

The rational is based on price action alone to discover the underlying trend.

Manual backtest shows it has some potential especially on the major pairs.

Please note that this is a long term strategy. Please see attached chart.

Sorry I did the levels manually on a spreadsheet as I am not an indicator programmer.

Note: I posted this also in Trading Discussion when I should be posting this up here. Is there any way I can delete the other discussion? Sorry for that.

My friend introduce me to this system where you chart an indicator graph purely based on pricing. He used this in the futures market. And I thought that I'll share it with you guys. I manage to backtest this manually back till July 2009. I am looking out for any big losses.

The formula is

(SMA of open-close for last 5 period / SMA of high-low for last 5 period)*40+40

Mark of the 40 and 65 levels and trade long if it touches 65 level and short the on the 40 level. You will be in the market 100% of the time. Stop Loss will be the when the next trade is triggered.

The rational is based on price action alone to discover the underlying trend.

Manual backtest shows it has some potential especially on the major pairs.

Please note that this is a long term strategy. Please see attached chart.

Sorry I did the levels manually on a spreadsheet as I am not an indicator programmer.

Note: I posted this also in Trading Discussion when I should be posting this up here. Is there any way I can delete the other discussion? Sorry for that.