AlexanderHamilton

USOIL short based on trading system.

TVC:USOIL   CFDs on WTI Crude Oil
I will begin posting both backtested, and live trades with updates using the set of rules I've developed for short/long entries across 5 min, 30 min, 1 day time frames.

This system merely runs with trends and exits for this purpose are based on a set of rules.

On equities this system is mostly successful in a long only strategy as short side moves tend to be too aggressive to generate a return large enough to justify the risk level taken.

I will be testing this primarily on SPX , USOIL , BTC , and a few equities.

I appreciate any and all input.

Comments

Interesting idea. Wich platform did You use? The Salomon indicator seems to be useful to understand the averge of choppy market movements . It seems better than Stoch or MACD.
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getmadz getmadz
@getmadz, May I also test It?
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@getmadz, It involves a set of rules and formulas that govern entries/exits. I intend to eventually create it into an automated algo. Having the indicator alone is useless. I found that out the hard way lol. You can't trade off one indicator and call it an "end all be all".
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On equities this system is mostly successful in a long only strategy as short side moves tend to be too aggressive to generate a return large enough to justify the risk level taken. Not sure why you would think this would only work to the upside.....although market has been unbelievably strong. Selling stock short and selling a put would be almost the same thing as a covered call with puts fetching much higher premium due to skew on *most* stocks.....oil and other commodities however are a different matter.
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@dluxe23, I should have explained it more, looking at FB in particular I noticed that the returns on the short side are much smaller but that is more a result of the strength of the market like you said. So theoretically in a bear market, this will be most effective short side due to the strength in that direction. What worries me most is how it performs in a market that moves sideways and is choppy. I will find securities with that pattern and test it.
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AvinashMudaliar AlexanderHamilton
@AlexanderHamilton, Its always a best idea to avoid Choppy Markets if you able to find it. I find it using Ichimoku Cloud.
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AlexanderHamilton AvinashMudaliar
@AvinashMudaliar, I dislike those subjective technical analysis indicators. I can trade a choppy security, it just involves altering strategy a bit.
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