Wednesday, February 9, 2011

TRADING SYSTEMS........

1.Commodity Channel Index Trading System

Required Indicators:


CCI indicator
CCI Control Level (user-defined); default value is +40, -40
CCI Extreme Level (user-defined); default value is +100, -100

Entry-Exit Conditions

Long Entry: CCI crossing above CCI control level (+40)

Long Exit: CCI crosses above CCI extreme level (+100), then exit when CCI crosses below CCI control level (+40)
or
CCI never crosses above CCI extreme level (+100), then exit when CCI crosses below 0

Short Entry:
CCI crosses below negative CCI control level (-40)

Short Exit: CCI crosses below negative CCI extreme level (-100), then exit when CCI crosses above negative CCI control level (-40)
or
CCI never crosses below negative CCI extreme level (-100), then exit when CCI crosses above 0


2. Complex Trading System

Type: Always in the market trading system

Required Indicators:

Short Moving Average
Long Moving Average
Relative Strength Indicator
MACD

Entry

Long Entry Conditions:

1. short moving average > long moving average
2. rsi > 50
3. MACD fast line > MACD signal line

Long Exit Conditions:

1. short moving average < long moving average
2. rsi < 50
3. MACD fast line < MACD signal line

Short Entry Conditions:

1. short moving average < long moving average
2. rsi < 50
3. MACD fast line <MACD> long moving average
2. rsi > 50
3. MACD fast line > MACD signal line 


3. Channel Strategy

Required Indicators: Trend Lines

Recommended Trading Environment: Prior to fundamental market event or when used prior to open of major financial market

Rules for a long trade (rules for short trade are opposite):

1. Identify a channel on intraday or daily chart; the price should be contained within a narrow range
2. Enter long as the price breaks above the upper channel line
3. Place a stop just under the upper channel line
4. Trail your stop higher as the price moves in your favor  


Perfect Order

Required Indicators: Moving Averages (minimum of 5; ie: 10-day SMA, 20-day SMA, 50-day SMA, 100-day SMA, 200-day SMA)

Trading Environment: Trending environment near the beginning of the trend

Condition Required: Moving Averages need to be in perfect order or in sequential order. For example, in an uptrend, a perfect order would be when 10-day SMA > 20-day SMA > 50-day SMA > 100-day SMA > 200-day SMA

Rules:

1. Find currency pair with MA’s in perfect order
2. Look for ADX pointing upwards, ideally greater than 20
3. Buy 5 candles after the initial formation of the perfect order
4. The initial stop is the low on the day of the initial crossover for longs and the high for shorts
5. Exit the position when the perfect order no longer holds


4. Bollinger Bands of Ultimate Oscillator System
Type: Always in the market trading system

Required Indicators:

Ultimate Oscillator
Bollinger Bands based on the Ultimate Oscillator
Moving Average of the Ultimate Oscillator

Entries

Long Entry: Moving Average of Ultimate Oscillator crosses above the middle bollinger band
Long Exit: Moving Average of Ultimate Oscillator crosses below the Middle bollinger band

Short Entry: Moving Average of Ultimate Oscillator crosses below the middle bollinger band
Short Exit: Moving Average of Ultimate Oscillator crosses above the middle bollinger band 


5. SIMPLE MACD SYSTEM...

Type: Always in the market trading system[/color]
Required indicators: MACD (Moving Average Convergence Divergence)

Entries

Long Entry: MACD Fast Line crossing above the MACD signal line
Long Exit: MACD Fast Line crossing below the MACD signal line

Short Entry: MACD Fast Line crossing below the MACD signal line
Short Exit: MACD Fast Line crossing above the MACD signal line
   

IF YOU HAVE ANY DOUBTS, YOU CAN POST HERE..  

No comments:

Post a Comment