NDX Signals As Simple As Possible

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?

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Signal rules (examples see attached graphics):

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

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

 

Up-Trend could be broken...

 

NDX intraday signal on a 5 point grid

Result +6*5 = 30 points

 

Over years NDX is/was a swing index.

See signals on 4 years daily closings.

 

can you explain why some down and up waves dont get counted? i see many 5 point swings that have no arrows? english please

 

Yes, please give a short explanation of the strategy so we can comment .

 

Mark
Marsupilami

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.

 

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.

 

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.

 

Step #4

Then I developed a strategy how to enter and exit the waves.