“double seven” by Conners and Alvarez

• 03/30/2021 at 2:00 PM #165752
  f1_maik

  Double Seven
  A system by Larry Connors and Cesar Alvarez

  The “Double Seven” strategy was described in 2008 in the book “Short Term Trading Strategies that Work”.

  The name “double seven” is also almost the whole description of the strategy:
  Go long when today’s close is lower than the lowest low of the last seven days. Sell the long position again if today’s close is greater than the highest high of the last seven days. A moving average over 200 daily periods serves as a trend filter.

  The prorealtimecode for double seven would be this?

   

  double seven

  // double seven // buy larry conners and cesar alvarez // timeframe daily If close < lowest [7] (low) then If close > average [200] (close) then buy at market Endif Endif If close > highest [7] (high) then sell at market Endif

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  // double seven // buy larry conners and cesar alvarez // timeframe daily     If close < lowest [7] (low) then If close > average [200] (close)  then buy at market Endif Endif   If close > highest [7] (high) then sell at market Endif

   

  kind

  maik

  

  f1_maik

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  03/30/2021 at 2:48 PM #165759
  Vonasi

  Your code is not quite correct as it includes the current days low in the condition test and it is impossible for today’s close to be less than today’s low – and the same for the highest test.

  Change the code to this:

  defparam cumulateorders = false // double seven // buy larry conners and cesar alvarez // timeframe daily If close < lowest [7] (low[1]) then If close > average [200] (close) then buy at market Endif Endif If close > highest [7] (high[1]) then sell at market Endif

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  defparam cumulateorders = false // double seven // buy larry conners and cesar alvarez // timeframe daily   If close < lowest [7] (low[1]) then If close > average [200] (close)  then buy at market Endif Endif   If close > highest [7] (high[1]) then sell at market Endif

   

  

  Vonasi

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  03/30/2021 at 2:55 PM #165760
  robertogozzi

  Or it could reference CLOSE, instead of HIGH & LOW:

  // double seven // buy larry conners and cesar alvarez // timeframe daily If close = lowest[7](close) then If close > average[200](close) then buy at market Endif Endif If close = highest[7](close) then sell at market Endif

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  // double seven // buy larry conners and cesar alvarez // timeframe daily   If close = lowest[7](close) then    If close > average[200](close) then       buy at market    Endif Endif   If close = highest[7](close) then    sell at market Endif

   

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  f1_maik

  

  robertogozzi

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  03/30/2021 at 2:55 PM #165761
  Vonasi

  It is not a very good strategy as if the market keeps falling and fails to make new seven day highs then you will hold into a massive market drop and have massive draw down.

  Image shows the strategy compared to buy and hold on DJI with no spread:

  

  Vonasi

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  03/30/2021 at 3:52 PM #165764
  f1_maik

  You have helped me.

  Thanks very much.

   

  

  f1_maik

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  04/01/2021 at 4:34 PM #165964
  f1_maik

  Can this be coded as a 7-line break in imitation of a 3-line break? What would that look like?

  

  f1_maik

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  04/01/2021 at 6:20 PM #165969
  robertogozzi

  3 Line Break, Kagi, Renko, Ticks and all other non-time based charts cannot be used for automated trading.

   

  

  robertogozzi

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