Example Trading System

Any comments/improvements to this simple YM trading strategy: Example Trading System

 

Nice informative article for beginners. thanks.
Maji

 

Nice simple example and easy to follow.

It would be nice if slippage and commissions were included in the results tables. They are mentioned in article itself and are covered in the Conclusions table. However, they are omitted in the quarterly total tables which follow.

 

Nice and informative explanation.
How a simple idea can lead to some profit, with simple and clear ideas and rules.
Keep the good work going on.
Thanks.

 

Wonder if any ET traders are using this system or a similar one and are now sweating bullets because it's been "disclosed"?

Not to worry, seems like this idea has been shown many times here before. I think 40yotrader is using something like this and has been for quite a while. But I think he INCREASES contracts when on a losing streak!

Good luck to all.

C

 

Hello Sid,

Again, nice job with the trading system. I would like to see if you have one more piece of information.

If the breakout fails, what happens if you stop and reverse? Basically, instead of just one trade per day, you will have maximum of two trades, one long and one short. If the long is triggered first and then the market reverses and takes out the stop, you will just go net short with the stop where the previous long level was. It will be interesting to see that.

Also, how did the method fare on ES, NQ and ER2 contracts?

I am sorry if it was mentioned in your website and I missed it. In that case, please post the page address.

thanks again,
Maji

 

hi tradermaji

Stop and reverse adds 39 trades for Jan2003-Dec2004 for a loss of 90 points. I should've mentioned that in the article, but didn't!

I am going to update the website with details of how the system performs on other contracts. Basically, ES and NQ weren't as profitable. EMD slightly more profitable and ER2 spectacularly more so!

 

That was to be expected judging by their dynamics, but the actual numbers and the results for these other instruments would be very much appreciated.

Thanks for sharing this nice article and the system with the ET community and keep up your great work.

 

Thank you Sid for your great workand prompt replies. What software did you use for backtesting?

Thanks,
Maji

 

Thanks for all your positive replies, glad you like the article.

I use MS Excel and VBA to do the actual testing.