In this article we are going to look at the Double 7 strategy. It can also be applied to the futures markets. Download this free guide on how to stop curve fitting. Following these four simple steps can improve your trading dramatically! About Us Blog Contact Free Easylanguage State of Futures. Markets Live Trading Results. Recent Posts Seasonality in the Bond Market? Using Metals to Trade Bonds MCVI Indicator and Strategy on Trading Charts Market Seasonality Study Open Up! Connors 2-Period RSI Update For This Simple Indicator Makes Money Again and Again. The Most Important Performance Measure. Improving The Simple Gap Strategy, Part 1. A Different Term of System…. Categories Buying And Leasing Coding Lab Development Tools Indicators Market Studies News Quick Tip Strategies Strategy Development System Development Trading Live. The rules of this system are very simple. If the instrument closes at a 7-day low — buy. If a long position is open and the instrument closes at a 7-day high — sell. This system does just that. The major up-trend is defined by price being above the day moving average. A pull-back is defined as a close below the lowest-low over the past seven days. Once a trade is entered, we simply look for a new seven day high to exit. Click the image for a larger view. Later in this article I will also reverse the rules and test it on the short-side. Unless otherwise stated, all the tests performed in this article will be based on the following assumptions: Volatility is estimated with a five times day ATR calculation. This is done to normalize the amount of risk per trade. There are no deductions for commissions and slippage. There are no stops. Is The 7-Day Optimized? First, I would like to see if the default seven value is optimized. Secondly, I would like to know if other nearby values are used, would the system remain viable. The neighboring values around seven should still produce positive results. As term trading system is defined, both these variables use systems same value. The results of the test are in the graph below. You can click the image to see a larger view. Any value you choose produces positive results. Each change in the look-back period also does not drastically change from neighboring values. In any event, I think this brings a lot of confidence to the look-back period. The results are in the graph below. This looks great as well. All values produce positive trading. In general, the longer the look-back period the more profit the system generates. While I did not study the numbers just beyondI feel confident that a period look-back is not optimized. We can do this by simply reversing the rules. Trades will futures open when price makes a new 7-day high and close when they make a new 7-day low. If the instrument closes at a 7-day high — sell short. If a position is open and the instrument closes at a 7-day low — term to cover. The results of the system can be seen in the equity short below. This is not so great. Most of the time the equity curve is futures the zero line. Taking a wild guess simply from past experience, I have found that exiting quickly during bear markets tends to work better than in bull markets. However, such modifications are best left for another day. If our shorting concept is truly flawed, I would expect to see not much improvement in modification of our look-back period. Just as I expected. For this test we are going to use all the same trading assumptions and position sizing as we did above except for the following modifications. The Double Seven Strategy does produce positive results across systems four major market ETFs we tested. Is this system tradable with real money as is? Remember, there are no stops. However, this does appear to be a great start to a viable system. I would imagine systems some of the larger losing trades could be eliminated by some type of stop method, this system could be viable with real money. Trading Seven Strategy TradeStation ELD. Double Seven WorkSpace Trade Station TWS. Double Seven Strategy text file. Previous Post Better To Buy Strength or Weakness? Next Post Simple Shorting Strategy. About Us Futures Short Income Disclaimer Terms of Service Privacy Policy. Learn To STOP Curve Short
Simple Day Trading Strategy for Any Futures Market - kumeyuroj.web.fc2.com
Simple Day Trading Strategy for Any Futures Market - kumeyuroj.web.fc2.com
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Universally liked-Both children and mothers like NIDO. 2.9 Marketing strategy of NIDO full cream Milk powder Every organization has forms some strategy to follow.
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War Drawings, Mount Hood Community College, Portland, OR, curated by Pat Barrett.