Quite a simple system

  • Uses a moving average, the blue line to try and get filled at favorable prices
  • The MA is multiplied by a number (e.g. .90) which means the system tries to get filled at a 10% lower price (on the Blue MA line)
  • This means that stop limit buy orders have to be set in advance on the blue line and hope that they would get filled when there is a temporary drop in price
  • This obviously works best on tickers with a clear long-term up direction
  • The multiplier can be set to .95 to try and get in on 5% drops instead of 10% drops
  • "Prof TRG %" determines what profit target you'd like the system to use, default is 1.2 meaning a 20% target, but 1.05, 1.10, and 1.30 would also be good considerations
  • "Loss TRG %" determines what stop-loss target you'd like the system to use, default is 0.90, meaning 10% stop loss, but, .95, and .85 would also be good considerations
  • The Profit Target line is green
  • The Stop Loss target line is red
  • Using the combination of the Stop Loss inputs and Profit Target inputs you can determine your own RR (Risk to reward ratios), for example, 1:1, 2:1, 3:1, 5:1

Let me know if anything is unclear and I'll try to clarify.

Again, this system assumes that you'll have waiting stop limit orders that are trying to get filled on the blue line, is below price most of the time -- so it's trying to get in on temporary drops on instruments that have a long term uptrend.

1:1 RR ratio would mean high win %
1:5 RR ratios would mean low win %

Not that win % matters, the important things IMO to pay attention to is Profit Factor and a relatively smooth equity cruve
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