Investing - Weekly EMA's mapped to Daily ChartWhen there isn't enough time in your day to day-trade, yet you want to utilise all the technical analysis skills you have... why not make a long term investing or swing trading indicator set to help you along the way!
So I did....
When it comes to long term investing and swing trading, I often find the weekly 12/26/52 EMA's do a great job in capturing the main market swings from bull to bear.
However, I like to use the Daily chart to see the candle patterns and shapes with more detail and divergences often show up better on the daily chart.
So I have decided to combine the two!
I have basically taken the EMA 12/26/52 from the weekly and transferred them over to the daily (mathematically they are not exact, but for me they are close enough).
I have also developed a simple scale in / scale out strategy for using these exponential moving averages. It isn't as simple as buying in on each signal, however I use my own special strategy to take advantage of the alerts.
Enjoy!
Swingtrading
[Backtest]QQE Cross v6.0 by JustUncleLDescription:
This is the Backtest version of the " QQE Cross v6.0 by JustUncleL" Tool, can be used to optimize settings.
Mean-Reversion Swing Trading Strategy v1A port of the TradeStation EasyLanguage code for a mean-revision strategy described at
traders.com
"In “Mean-Reversion Swing Trading,” which appeared in the December 2016 issue of STOCKS & COMMODITIES, author Ken Calhoun
describes a trading methodology where the trader attempts to enter an existing trend after there has been a pullback.
He suggests looking for 50% pullbacks in strong trends and waiting for price to move back in the direction of the trend
before entering the trade."
See Also:
- 9 Mistakes Quants Make that Cause Backtests to Lie (blog.quantopian.com)
- When Backtests Meet Reality (financial-hacker.com)
- Why MT4 backtesting does not work (www.stevehopwoodforex.com)
SPY Master v1.0This is a simple swing trading algorithm that uses a fast RSI-EMA to trigger buy/cover signals and a slow RSI-EMA to trigger sell/short signals for SPY, an xchange-traded fund for the S&P 500.
The idea behind this strategy follows the premise that most profitable momentum trades usually occur during periods when price is trending up or down. Periods of flat price actions are usually where most unprofitable trades occur. Because we cannot predict exactly when trending periods will occur, the algorithm basically bets money on all trade opportunities during all market conditions. Despite an accuracy rate of only 40%, the algorithm's asymmetric risk/reward profile allows the average winner to be 2x the average loser. The end result is a positive (profitable) net payout.
TRADING RULES:
Buy/Cover = EMA3(RSI2) cross> 50
Sell/Short = EMA5(RSI2) cross< 50
BACKTEST SETTINGS:
- Period = March 2011 - Present
- Initial capital = $10,000
- Dividends excluded
- Trading costs excluded
PERFORMANCE COMPARISON:
There are 657 trades, which means 1,314 orders. Assuming each order costs $2 (what I pay for at Interactive Brokers), total trading costs should be $2,628.
-SPY (buy & hold) = 132.73 ---> 193.22 = +45.57% (dividends excluded)
-SPY Master v1.0 = $12,649 - $2,628 = $10,021 = +100.21%
DISCLAIMER: None of my ideas and posts are investment advice. Past performance is not an indication of future results. This strategy was constructed with the benefit of hindsight and its future performance cannot be guaranteed.
Forex Master (EUR/USD)ATTENTION:
This is a symmetrical algorithm designed only for trading EUR/USD on the 1h time frame. For other currency pairs and time frames, you need to re-calibrate the RSI-EMAs as well as the profit targets and stop losses.
BACKTEST CONDITIONS:
Initial equity = $100,000 (no leverage)
Order size = 100% of equity
Pyramiding = disabled
TRADING RULES:
Long entry = EMA20(RSI10) cross> 50
Profit limit = 50 pips
Stop loss = 50 pips
Short entry = EMA30(RSI30) cross< 50
Profit limit = 50 pips
Stop loss = 50 pips
Long entry = Short exit
Short entry = long exit
DISCLAIMER: None of my ideas and posts are investment advice. Past performance is not an indication of future results. This strategy was constructed with the benefit of hindsight and its future performance cannot be guaranteed.
