Trading Idea #031 – Another Oddball 1
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.
This idea is based on the concept of Fractals, popularized by Bill Williams in his books Trading Chaos and New Trading Dimensions.
This is a variation of Moderate Scalp 2, a scalping idea where the Kaufman’s Adaptive Moving Average (KAMA) is within the body of the bar.
The premise is a simple 10-period/100-period moving average crossover system and use it across four sectors, i.e., a portfolio.
This idea is inspired by Sofien Kabaar. He took John Ehlers’ Fisher Transform and tweaked it a little. He calls the final value the Aggregate Fisher Index.
Fisher provided a trading pattern so simple, a kindergartner can trade it. Simpler trading systems are better, and this idea is about as simple as it gets.
This idea is from an article in the April 2021 issue of Technical Analysis of Stocks & Commodities (TASC). TASC is always a good resource for trading ideas, so I thought the trading system suggested in the article “A Simple Forex Trend-Following Strategy”, by Azeez Mustapha, would be fun to try.
This idea is from Technical Analysis of Stocks & Commodities (TASC) magazine’s website. This is the third and final system idea from the systems that TASC features on their website.
A few months ago, I was listening to an episode of Top Traders Unplugged and the participants were discussing trend following systems and made mention of the 40-in/20-out trading system. I did some digging and found the source, the 40in20out website.
For this trading system, I will be using Perry Kaufman’s Efficiency Ratio (ER), an indicator designed to show the ‘trendiness’ of an instrument, or lack of it.
Several weeks ago, I presented a scalping idea: SAT2021-09 Moderate Scalp 1 . That idea was to take a trade with a small profit target, based on the position of the Kaufman’s Adaptive Moving Average (KAMA) within a bar. This idea is a variation of that idea.