RSI 2.1 and SAR old school TS

• 03/09/2017 at 8:35 AM #27906
  Marcello Succi

  Dear Traders,

  we often search for complicated trading systems, forgetting the K.I.S.S.  methodology (Keep it simple, stupid!) and searching for new and wonderful indicators.

  I’ve used 2 indicators of the “old school”, the Relative Strengh Index (for opening the position) and Parabolic Sar (for closing, in addition to the general money management).

  Since the simulation is done on  market of 24hours, in order to limit the false signals, RSI is calculated on typicalprices (not only closes) and the system buys only at the breakout of the previous maximum (for long case) or minimum (for short).

  I remember that in Prorealtime orders with “limit” are valid only for the next  1 candle.

  For closing the position, I haven’t inserted a filter based upon the opening market (as for opening) but I’ve preferred a decay of the main indicator (RSI < or > 50) against my position, and this simple choice is revelead effictive.

  At last, using instructions “if” in Proorder does not mean that all conditions must be verified all together in the same candle but all together <em>in sequence.</em>

  The results become from a simulation on a mini contract on Italy market (IG Data). Initial capital = 3,000 €, no slippage (platform on IG is indeed  very effective), commission per order = € 25.

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  GraHal

  Marcello Succi

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  03/09/2017 at 1:23 PM #27945
  robertogozzi

  It seems great at first glance, but if you start from 1 year before it’ll behave very differently.

  Also, having an initial capital almost as small as drawdown is a bit too aggressive and may produce false results in demo/live accounts (margin call may be triggered).

  Good news are there is not much difference selecting tick-by-tick mode.

  You should demo it for a few months.

  The best KISS rule to apply to any strategy (be it automatic or not) is “no Holy Grail” has still been invented (though attempts are still being made). If the above styrategy worked as the report says, all traders would be rich in few months (which, I’m afraid, will not be, actually can’t be)!

  This does not mean good strategies cannot be devoeloped, there are some good ones around and some people earn a living from them, but they cannot be so performing!

   

  

  robertogozzi

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