ChrisMoody

2 Stochastic POP Trading Systems From Jake Bernstein

FX:EURUSD   Euro / U.S. Dollar
Two Systems Revealed Directly From The Creator - Let's Talk Trading Systems.

I spoke to Jake Bernstein and asked if he had any updates to his Stochastic POP Trading Method. At the bottom of the page is a PDF Jake published a while back (Please read for basic rules, which also Includes a New Method). I’m Labeling the Original method Stochastic Pop Method 1, and the other method Jake discusses in the PDF as Method 2.

Jake Bernstein will be a contributor on TradingView when Back Testing/Strategies are released. Jake is one of the Top Trading System Developers in the world with 45+ years experience and he is going to teach TradingView.com’s community how to create Trading Systems and how to Optimize the correct way.

Jake asked me to share that he has Updated Stochastic POP Method 1 Recently. Now across all symbols he has found the Stochastic Values of 60 and 30 to be the most profitable. NOTE - This can be Significantly Optimized for certain Symbols/Markets.

Below I will List Backtesting Results for both Method 1 and 2. A Daily Chart of the EURUSD is used only as an example.

The point is to simply show soon we will be able to:
  • Find These Results Ourselves on TradingView.com when Strategy/Back Testing capabilities are released.
  • To Show How Simple Optimizations can Significantly Change the Results of a Trading System.
    BackTesting Results Example: EUR-USD Daily Chart Since 01/01/2005

Strategy 1 Stochastic POP Method 1:
Go Long When Stochastic Crosses Above 60. Go Short When Stochastic Crosses Below 30. Exit Long/Short When Stochastic has a Reverse Cross of Entry Value.

Results:
Total Trades = 164
Profit = 50, 126 Pips
Win% = 38.4%
Profit Factor = 1.35
Avg Trade = 306 Pips Profit

Strategy 2 Stochastic POP Method 1:
Rules - Proprietary Optimization Jake Will Teach. Only Added 1 Additional Exit Rule.

Results:
Total Trades = 164
Profit = 62, 876 Pips!!!
Win% = 38.4%
Profit Factor = 1.44
Avg Trade = 383 Pips Profit

Strategy 3 Stochastic POP Method 1:
Rules - Proprietary Optimization Jake Will Teach. Only added 1 Additional Exit Rule.

Results:
Winning Percent Increases to 72.6%!!!, Same Amount of Trades.

Two Important Items to understand about Stochastic POP Method 2.
  • To code the rules precisely we need a function that will be available when Strategy Capabilities are released on TradingView.
  • There is one of Jakes Profit Maximizing Strategies that needs to be integrated with this code…which again we need the Strategy based Function that will be coming soon.

Strategy 1 – Stochastic Pop Method 2 System:
Go Long When Stochastics below 50 and Crosses Above 55. Go Short When Stochastic is above 50 and Crosses Below 45. Exit Long/Short When Stochastic has a Reverse Cross of Entry Value.

Results:
Total Trades = 151
Profit = 40,758 Pips
Win% = 37.1%
Profit Factor = 1.26
Avg Trade = 270 Pips Profit

Strategy 2– Stochastic Pop Method 2 System:
Rules - Proprietary Optimization Jake Will Teach. Only Added 1 Additional Exit Rule.
Results:
Total Trades = 151
Profit = 60,305 Pips
Win% = 37.1%
Profit Factor = 1.38
Avg Trade = 399 Pips Profit

Similar to Strategy 3 listed above in Method 1 we can turn this system in to a 75% win rate but the profits decrease significantly.

Multiple Key Metrics Jake uses when evaluating a Trading System were not included. These will be introduced by Jake.

I was going to list several observations as to why the two systems have a different amount of trades during the same period, and why Method 1 was more profitable…But I’d like to see what you guys think first…

Leave a Comment Below With Your Thoughts…I have a Feeling This Thread Will Introduce Some Important Topics.


Link To PDF:
https://dl.dropboxusercontent.com/u/7718...

Comments

Hi Chris
The file does not exist in the Dropbox link. Looks like i am way too late here. Appreciate if you could kindly re upload and post the link here.
Thank you for sharing the above strategy.
+14 Reply
@Mur_Lee4, Great systems, but Jake never came to teach and CM seems to have disappeared ... at least on the scripts pages - no response whatsoever
Reply
Looking forward to any insight Mr Bernstein may share here at Tradingview.com and am grateful to Chris for sharing.

However, having said that please allow me to make a statement and ask a couple of questions. First of all, about 75-80% of all retail traders lose money and never become successful at trading. There are thousands of indicators available that suggest success. There are as many systems available that suggest success. Yet, 75-80% of all retail traders still lose money. A very few people actually master trading and become consistently successful trading. There is a huge market for trading products and services.

Why can't there be consistently successful traders who share the exact trading system they use and do it in such a away so that it is cost effective to the average student/trader, presented in such a way that will allow the student/trader to see how the system is implemented over an extended period of time so that folks can actually become successful?

Instead, it seems the guru's charge enormous sums of money for trading classes and/or indicators and/or systems that ultimately never prepare the student/trader for success. And, frankly, many if not most of the information being sold, including training, advice, indicators and systems simply never meet the needs of the average retail trader and mostly don't work.

Best of success to everyone.
+4 Reply
ChrisMoody Codetrader
It would be IMPOSSIBLE for me to AGREE with your comment any more that I do. Personally, I've spent well over 100K on these educators you mention. A few were good...90%+ terrible. Without sitting here bashing other educators I'll just mention what I'm excited about regarding Jakes Systems.

1. We're bringing Jakes Trading Systems to Retail Traders for the first time ever.
2. We are going to undercut the prices everyone else charges by a Significant Amount, while delivering what NO ONE Else is Teaching. We will deliver Proven Trading Systems for traders just looking for a reliable Trading System...AND Teach those who want to create there Own Trading Systems How To...Teaching You to Fish per se...
3. All of the Trading Systems will be 100% unlocked Indicators so you know Exactly what your trading with. No Black Box Systems or Proprietary Code.
4. All Systems will be set up to Backtest...And will have 100% Rules Based Strategies...No Interpretation...Clear, Concise Rules...so you know the statistical probability of every trade you take. You will know if you have and Edge, or Not.
5. I will be providing Weekly, Ongoing, Live Education for Students Sharing everything Jake taught me regarding his 45+ years of experience on what factors are important in developing a Trading System (This differs slightly depending on Time Frames You Trade, & Whether your staying in trades for a Long Time...or a couple of Bars). Jake will stop by the Live Session when his schedule permits.
6 We will be releasing 4-6 Complete Trading Systems from day 1....and by the way the Stochastic Pop Systems didn't make the top 4-6 list...I just asked Jake if I could share it when ucsgears (good friend of mine) coded a modified version of Jakes old Stoch Pop System

Thanks You SOO Much for your comment...Everything you said is the EXACT Reason we decided to bring the same concepts and methods that Multi-Billion Dollar Institutions pay Jake for...To the Retail Traders....

Can't wait until the first day we release....just waiting for Strategies and Back Testing...Since All Methods taught by Jake are 100% Rule Based and you need Back Testing capabilities to see for yourself...We don't believe in "Hey here is a Power point with statistical data"....we want you to see for yourself...

Thanks Again For Your Comment....
+7 Reply
ChrisMoody ChrisMoody
Oh and I forgot to mention...Unfortunately, we won't be selling something new that you "Have To Have"every month...Traders will have lifetime access...and if we release a new method...everyone just gets access to it....Hey what a concept....
+5 Reply
Seal ChrisMoody
Refreshing change. Jake is the first webinar guru I ever attended in person 10 years ago or so. Great to be circling back with him and yourself. Thanks Chris!
Reply
Codetrader ChrisMoody
I believe that if Chris Moody is involved that what ever takes place will be first class, upfront and honest. I think we are in for a major treat. Best of success to everyone involved!
+1 Reply
ChrisMoody Codetrader
Thanks....That means a lot.
Reply
MEGALO1 Codetrader
@Codetrader, Well said Codie and to much of this same greediness is still happening today. Their so called programs and super indicators are flawlessly designed to bilk the retail investor's out of millions ? If these programs are so good they would not need to mentor retail investors for a arm and a leg ???
Reply
On the settings,(45 55 method 2 & 30 60 method 1), I can see little difference on any timeframe using his entry/exit rules. Maybe by a bar. I looked at EURUSD and other ETFs like SPY. What I do like about it is that it makes you wait for confirmation for a trend. On longer timeframes (weekly) it's the bees knees:) Keeps you in longer (method 2, 45 55). Daily charts lately have a lot of chop...not much help. You probably want to use something else for choppy markets...at least my observation. Can anyone show me where I'm wrong?
+3 Reply
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