Friday, February 13, 2009

Qs Engulfing System

This is the inverse of my previous inside days study and reflect the Qs behavior subsequent to engulfing bars. TradeStation already has a resident algorithm for engulfing bars (plus other candle patterns), so the coding doesn't require much effort. Nevertheless, I've combined the bull and bear patterns and added my no-brainer fixed bar exits just to see if any pattern emerges.
While nobody's gonna get rich playing the long side here, the short side is an eye opener, with 100% success (this version has pyramiding turned on.) When used as a complement to the inside days system, it helps confirm short term momentum.
Exposure time is a comfortable 5 days (for me).
Not a lot of trades over the past 16 months but, as with most of the Dirty Dozen systems, the trick is to just sit tight until the systems fire before putting any dollars at risk. Now that's just my own tactical approach to risk management and each trader should review their own unique comfort level (and trading plan) before initiating any new positions.

TS2000i code is shown below:

2 comments:

daveM said...

Interesting to see the difference between long and short trades...!

These are interesting posts..

Thanks for sharing your work.


dave

TradingToWinMeansFollowTheRules said...

Hi. Do you know the best way to get the code compatible for TS 2008 or v8.5 which is what i have?

A very good site by the way!

Regards