ChrisMoody

CM Stochastic POP Method 1 - Jake Bernstein_V1

A good friend ucsgears recently published a Stochastic Pop Indicator designed by Jake Bernstein with a modified version he found.

I spoke to Jake this morning and asked if he had any updates to his Stochastic POP Trading Method. Attached is a PDF Jake published a while back (Please read for basic rules, which also Includes a New Method). I will release the Additional Method Tomorrow.

Jake asked me to share that he has Updated this Method 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.

Jake Bernstein will be a contributor on TradingView when Backtesting/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 how to create Trading Systems and how to Optimize the correct way.

Below are a few Strategy Results....Soon You Will Be Able To Find Results Like This Yourself on TradingView.com


BackTesting Results Example: EUR-USD             Daily Chart Since 01/01/2005

Strategy 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
***Most Consecutive Wins = 3 ... Most Consecutive Losses = 6


Strategy 2:
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
***Most Consecutive Wins = 3 ... Most Consecutive Losses = 6


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

Results:
Winning Percent Increases to 72.6%!!!, Same Amount of Trades.
***Most Consecutive Wins = 21 ...Most Consecutive Losses = 4


Indicator Includes:

-Ability to Color Candles (CheckBox In Inputs Tab)
Green = Long Trade
Blue = No Trade
Red = Short Trade

-Color Coded Stochastic Line based on being Above/Below or In Between Entry Lines.

Link To Jakes PDF with Rules
https://dl.dropboxusercontent.com/u/77187122/TradingView%20Posts/JakeBernstein%20Stochastic%20Pop.pdf
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//Created by ChrisMoody on 3-13-2015
//Original Creator is Jake Bernstein from www.Trade-Futures.com

study(title="_CM_Stochastic POP Method 1_V1", shorttitle="CM_Stochastic POP Method 1_V1")

length = input(14, minval=1, title="Stochastic Length - Default 14")
smoothK = input(5, minval=1, title="Smooth K - Default 5")
ul = input(60, minval=50, title="Buy Entry/Exit Line")
ll = input(30, maxval=50, title="Sell Entry/Exit Line")
st = input(false, title="Change Barcolor To Show Long, Short, or No Trades")

//Stochastic Calculation
k = sma(stoch(close, high, low, length), smoothK)

//Upper and Lower Entry Lines
uline = ul
lline = ll

//Bar Color Definitions
Long() => st and k >= uline ? 1 : 0
Short() => st and k <= lline ? 1 : 0
NoTrade() => st and (k > lline and k < uline) ? 1 : 0

//Color Definition for Stochastic Line
col = k >= uline ? green : k <= lline ? red : blue

//Stochastic Plots
plot(k, title="Stochastic", style=line, linewidth=4, color=col)
p1 = plot(uline, title="Upper Line", style=line, linewidth=4, color=green)
p2 = plot(100, title="100 Line", color=white)
fill(p1, p2, title="Long Trade Fill Color", color=green, transp=90)
p3 = plot(lline, title="Lower Line", style=line, linewidth=4, color=red)
p4 = plot(0, title="0 Line", color=white)
fill(p1, p3, title="No Trade Fill Color", color=blue, transp=90)
fill(p3, p4, title="Short Trade Fill Color", color=red, transp=90)

//Bar Color Plots
barcolor(Long() ? green : na)
barcolor(NoTrade() ? blue : na)
barcolor(Short() ? red : na)
Link to PDF with Jakes Stochastic Pop Rules - Plus Background Info on Method.

https://dl.dropboxusercontent.com/u/77187122/TradingView%20Posts/JakeBernstein%20Stochastic%20Pop.pdf
Reply
Codetrader ChrisMoody
2 years ago
Best Regards Chris, You Are A Champion! Thanks for Sharing and Caring.

BobH
Reply
AdamSragovicz ChrisMoody
2 years ago
Funny how powerful some of the classic indicators can be with the right settings. Thank you so much for sharing.
Reply
ChrisMoody PRO AdamSragovicz
2 years ago
#1 - I didn't cherry pick this chart...but you'll notice putting it on other charts the trades aren't as Clean as they are on this chart. However I did state that it only has a 38% win rate over the last 10 years...but it makes money.

#2 - I've had the opportunity to see the code for many of the most successful trading systems out there...Typically codes are "Locked" so most people don't get to see what the signals actually come from. I can tell you 100%...Most people would be Amazed how simple the best trading systems are.
Reply
rmwaddelljr
2 years ago
Thank you for sharing this. Very good signals!
Reply
ChrisMoody PRO rmwaddelljr
2 years ago
No Problem
Reply
rcheema
2 years ago
Thank you, for sharing ... Awesome
Reply
ChrisMoody PRO rcheema
2 years ago
Anytime....
Reply
TASAVANT
2 years ago
Great, cant set the candle colors to the indicator...might be me
Reply
moneymaking
2 years ago
Hey Chris, Thanks for sharing :)
Reply
SamJ5f
2 years ago
Hey Chris
Joined the community a month ago. Hard to believe that a person like you exists and shares so much information. Keep it up
+1 Reply
ChrisMoody PRO SamJ5f
2 years ago
Thanks for the compliment...And Welcome...
Reply
TASAVANT
2 years ago
Cant get the bar colors to work anybody else having the same problem?
Reply
ChrisMoody PRO TASAVANT
2 years ago
They are turned off by default...In indicator settings open Inputs tab...should be a checkbox there

Let me know if that solves it.
Reply
TASAVANT ChrisMoody
2 years ago
Thanks Chris was looking at the style tab...
Reply
Xilpa
2 years ago
BIG thank you - Chris!!
Reply
ChrisMoody PRO Xilpa
2 years ago
Anytime....More to come...
Reply
400golpes
2 years ago
Hi, When will we be able see the strategy 3?
Reply
Hey Guys...Let's take any discussion regarding the Trading System to this thread.

2 Stochastic POP Trading Systems From Jake Bernstein


2 Stochastic POP Trading Systems From Jake Bernstein
Reply
You guys rock. I have just started using some of your indicators and trying to do trades using them. They are extremely useful and a good learning experience for me. Thanks for all your contributions.
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