Saturday, November 05, 2005

Round number trading

Don’t think, that profitable systems can’t be designed. As I said, they just no longer jump into your lap, but they are there for you to exploit. If you can trade them is another question, but to answer this question, I have expanded the results section, so you get more statistics, which will tell you whether the system you found, might be something for you or not.


As you can see, I redesigned the Backtest module (again). The reason was, that I wanted to know, whether Round Number trades work or not. Space was missing and things became a bit overcrowded.

The Round Number module takes a trade, when a round number is hit. What is a round number? That’s for you to decide!

On Russel2000 eg. 640, 645, 650. That’s the basis you would put in the Basis field.
The Delta tells the system, when you want to take the trade. EG: a delta of 5 (5 ticks) means, generate a Tradesignal Long, if prices come down to 640.50, or generate a Tradesignal Short, if prices go up to 639.50.

The Inc or Increment field is used to calculate the next Round Number. Eg a setting of 50 (ticks) means, take the basis and add /substract 50 ticks, to get the next Round number. With a basis of 640, the next long trade will be taken at 635, the next short trade at 645 (assuming a Delta of 0)

The Move field is actually some kind of chop filter. It makes sure, that a Long or Shortsignal is not generated multiple times, just because prices move very near to a triggerprice. A setting of 10 ticks is usually advisable.

Have fun playing with the new module.