Mark Pescatrice

This idea is a trend-following system, with Bollinger Bands at the core. This is a stop-and-reverse system with careful, well-defined money management rules.

The idea I present here is based on the Momentum Pinball system described by Laurence Connors and Linda Bradford-Raschke in their classic book, Street Smarts.

I have been wondering about momentum systems for a while, so after hearing and learning about the differences between momentum and trend-following methods, I figured I would pick an idea from the ether and apply it to the forex markets.

For this idea, I want to try to apply some of the mean-reversion techniques that I have used with success in other systems, but I wanted to try Williams %R, which is a similar oscillator.

The idea that I present here uses a similar exit to SAT-007 Fractals 1. That system passed our trading system development process and is currently part of our hypothetical portfolio, trading Heating Oil (HO), so I have confidence in this exit.

This system, our first of 2022, is based on a John Ehlers’ creation, the RSI with Hann windowing, or RSIH as I will be referring to it here. Ehlers has spent decades smoothing, reducing lag, and calculating cycles.

I just took a one-bar trade on a monthly chart based on 2-period RSI stochastic coming out of oversold territory. In other words, a bounce from oversold. 

This idea is another mean-reversion system based on work of Larry Connors and Cesar Alvarez, but with a wicked twist. 

This Trading System is another scalping idea, but this time it’s to take a trade when the volume is greater than 2 times the average volume.

This system is a redux of our Trading Idea #018, the Aggregate Fisher Index, based on Sofien Kabaar’s original idea. This time, I put this through my entire process and see if this idea is a good one or not.