Tuesday, February 17, 2009

Short Qicker

As long as I was off on a tangent looking at the relative performance of certain candlestick patterns like the inside day and engulfing bar, I decided to look at a pattern that Steve Bigalow calls the most powerful pattern. . .the "kicker". This is basically a reversal bar that forecasts a change in market direction. Now Steve's definition of the short side "kicker" pattern requires the trigger bar to open at or below the previous day's low, which (no surprise) limits the number of incidents significantly.
In typical fashion I've revised the setup to loosen up entry conditions , I've added a little momentum filter and I've turned on pyramiding to take advantage of those times when the markets decide to do a little head-fake or retrace before going in the original direction forecast by the kicker . . . the result is the "Qicker".
I've written the TS2000i code as a series of conditions and,as usual, I've used a simple fixed bar exit. It's interesting that the fixed bar exits on the short side for the Qs system typically optimize in the 7-9 day range, so that encourages me to be alert for other Qs setups that mirror this timing cycle.


mr rolfsson said...

Nice, but what about the long side?

bzbtrader said...

mr rolfsson,
As with many of the patterns I've posted recently the short side performs not as well as the long side.
These posts are designed to stimulate readers to ask questions and to, more importantly, conduct research on their own and are not not necessarily intended as templates for you to trade, although as my emails reveal, several have done so.
When, and if, market momentum ever returns to an upward bias, I would then expect the upside to outperform the short side trades.
There are many ways to use these systems, as I've mentioned in previous posts. Trading them as swing systems is merely one application.

bzbtrader said...

A little correction here:
The previous post should have stated " . . .the long side performs not as well as the short side."

Cucca said...