NDX Signals As Simple As Possible

Discussion in 'Automated Trading' started by gg12, Feb 24, 2007.

  1. gg12


    Attached what I found out looking at the NDX on a 5 point grid during the recent few weeks.

    The system would be extremely simple (and profitable).

    Who has experience backtesting over a longer period with results that confirm (or reject) that?

    Signal rules (examples see attached graphics):

    Open postion, if wave (-2) =1
    Close position using a trailing stop of 1

    Wave 1 = 1
    Wave 2 = x
    Wave 3 = 5 (open here at 1 and hold until TS 1 exits trade)
  2. gg12


    Up-Trend could be broken...
  3. gg12


    NDX intraday signal on a 5 point grid

    Result +6*5 = 30 points
  4. gg12


    Over years NDX is/was a swing index.

    See signals on 4 years daily closings.
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  5. can you explain why some down and up waves dont get counted? i see many 5 point swings that have no arrows? english please

  6. Yes, please give a short explanation of the strategy so we can comment :) .
  7. gg12



    thank you for your offer to review.

    Step #1

    First of all I took a 5 minute chart of the NDX (10 days chart attached). Then I market the intersections between the graph and the 5 point grid.
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  8. gg12


    Step #2

    Then I looked at the lenght of the waves.

    The first wave is starting from 1720 and end at 1750. So, the length on a 5 point grid is 30 (1750 - 1720).

    Therefore I noted the length of 6 units (30/5 point grid size).

    I did that for all waves. In total 62.
  9. gg12


    Step #3

    Then I analysed the statistics. Which wavelength occured how often?

    PS: I you have counted we have actually 64 waves in that 10 days timeframe.
  10. gg12


    Step #4

    Then I developed a strategy how to enter and exit the waves.
    #10     Mar 15, 2007