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 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.
This idea is another mean-reversion system, based on work of Larry Connors and Cesar Alvarez.
This idea is from Technical Analysis of Stocks & Commodities (TASC) magazine’s website, https://traders.com. This is the second in a series of three system ideas that TASC features on their website.
This idea will use a relatively fast Kaufman’s Adaptive Moving Average (KAMA) and a profit target.
This week’s idea is taken directly from John Ehlers’ third book, Cybernetic Analysis for Stocks and Futures, the Instantaneous Trendline, or iTrend as a prefer to call it.
This week’s idea is based on the concept of Fractals, popularized by Bill Williams in his books Trading Chaos and New Trading Dimensions.
This week’s idea is from Technical Analysis of Stocks & Commodities magazine’s website. They call this system the Optimized MA, and it is a classic moving average crossover system.
This week’s idea comes to us by way of Jeff Swanson, of EasyLanguageMastery.com. In one of his recent newsletters, he presented a trading system based on MACD (Moving Average Convergence Divergence)
This week’s idea comes from Sintia, who has been experimenting with SuperTrend and Parabolic SAR technical indicators over the past year.
This week’s system was inspired by Jeff Swanson’s article this week at EasyLanguage Mastery, on the topic of John Ehlers’ zero-lag indicators.
Since I am primarily a futures trader, I wondered how well it would work on these markets, since a lot of these types of systems are written. Here is my first mean reversion system ever.