new system on overbought/oversold

Discussion in 'Automated Trading' started by travis, Jul 22, 2009.

  1. travis

    travis

    I'm starting this thread to build all together a new system, based on going short/long in an overbought/oversold market.

    The idea came from a friend, whom I recently introduced to trading. After making money in his first day of trading, he told me that when price "goes up too much and starts to come down", that's when you should go short (and viceversa).

    I don't want to use oscillators, but simple concepts like 1) closes (hourly closes), and 2) time of the day. Picking the right market (one that ranges) should be ingredient 3).

    The whole system must not exceed four lines of easylanguage code (two for entries, and two for exits). For now I'll stop here. This is tiring so I may post as little as once a week.

    Oh, and by the way, once the code will start getting too good, I will stop sharing it. I would say beyond 60% of wins (with frequent trades, not one trade per year), I won't feel like sharing the code anymore. Of course this doesn't apply to all those who have been working on it, so we'll continue the discussion in private.