--- Foreword --- The Overbought and Oversold Index Swing Trading System or short: I11L Hypertrend primarily uses money management Strategies, EMA and SMA and my momentum Ideas for trying to produce satisfactory Alpha over a timespan of multiple years.
--- How does it Work? --- It uses 20 different EMA's and SMA's to produce a score for each Bar. It will credit one Point If the EMA is above the SMA.
A high score means that there is a strong Uptrend. Spotting the strong Uptrend early is important. The I11L Hypertrend System trys to spot the "UPTREND" by checking for a crossover of the Score(EMA) / Score(SMA).
A low score means that there is a strong Downtrend. Its quite common to see a reversal to the mean after a Downtrend and spotting the bottom is important. The System trys to spot the reversal, or "OVERSOLD" state by a crossunder of the Score(EMA) / Score(SMA).
--- What can i customize? ---
-> Trading Mode: You can choose between two different trading modes, Oversold and Overbought(trend) and Random Buys to check if your systems Profitfactor is actually better then market.
-> Work with the total equity: The system uses the initial capital per default for Backtesting purposes but seeing the maximum drawdown in a compounding mode might help!
-> Use a trailing SL: A TSL trys to not lose too much if the trade goes against your TP
-> Lookbackdistance for the Score: A higher Lookbackdistance results in a more lagging indicator. You have to find the balance between the confirmation of the Signal and the frontrunning.
-> Leverage: To see how your strategie and your maximum Drawdown with the total equity mode enabled would have performed.
-> Risk Capital per Trade unleveraged: How much the underlying asset can go against your position before the TSL hits, or the SL if no TSL is set.
-> TPFactor: Your risk/reward Ratio. If you risk 3% and you set the ratio to 1.2, you will have a TP at 3 * 1.2 = 3.6%
-> Select Date: Works best in the 8H Timeframe for CFD's. Good for getting a sense of what overfitting actually means and how easy one can fool themself, find the highest Profitfactor setting in the first Sector (Start - 2012) and then see if the second Sector (2012 - Now) produces Alpha over the Random Buy mode.
--- I have some questions about the System --- Dear reader, please ask the question in the comment Section and i will do my best to assist you.
Versionshinweise
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Corrected the Leverage input to actualy account for the Risk Capital unleveraged.
Are there those who set up automatic trading on Finandy?
prashant6241
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Iii
onurkarabag
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hi, for short position or signal?
I11L
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@onurkarabag, good Morning! I use the System for going long only.
onurkarabag
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@I11L, I've been examining at 15m and 60m since yesterday. and long signals seem to be successful. It makes perfect sense for scalp. Can't we also add short signals? I also added a few averages. I would like to add a short and share it with you according to the last combination.
I11L
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@onurkarabag, I am happy to hear that. I found it very hard to come up with a shorting strategy. Line 52 and 53 make it difficult since the signal fires from both directions. So the edges of the Signal might be the place to look for.
BabaVossHunter
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@I11L, thanks alot how to know it is time for long at which crossover can you add long label and alarm