Time frame can be quite misleading - the chart above could easily be daily.
The chart above shows signals from a system I have been working on. I have stated I am a longer term trader - the chart shows monthly bars. What is surprising is that, as long as I can get in/out around the open of the following month, the system drawdown is quite low. If I use a random entry / exit price (as opposed to the open price) in the following month drawdown increases, but the results are still good enough to encourage me to make some trades using a monthly timeframe.
The system does use stochastics, as well as index filters, volume and a momentum indictator. Above 50 on the stochastic sets up a buy, below 50 triggers a sell. Stochastics, combined with RSI in a monthly timeframe can work quite well, although I am not using RSI in this system. But not in the traditional sense.
The bar colours are set by the stochastic to show the trend.
Stevo
5 comments:
Hi Stevo,
You have a great trading system, who are you using as your datafeed?
And you broker?
Regards
Simon
Simon
www.justdata.com.au and Commsec
Stevo,
How do you do random trades in Amibroker?
I'm wanting to go through the process along the lines of what Acrary outlined in this thread:
http://www.elitetrader.com/vb/showthread.php?threadid=33654
I also wanted to say I really enjoy reading your blog and good luck for 2007!
faze
In the post I refer to random entry and exit price in a timeframe not random trading.
I haven't played with random trades for some time but in AB something like;
Buy = Random()>0.5;
or some other value such as 0.9 - similar to trade when you throw a 6 on a dice.
Stevo
Thanks for that Stevo.
faze.
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