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Thread: Stochastic Trading System - Highly profitable

  1. #1

    Smile Stochastic Trading System - Highly profitable

    Its a system I have recently developed, inspired by Jake Bernstein's great book, The Complete Day Trader. I changed a bit the stop loss and exit rules to make the profits run a bit more.
    I call it Stochastic OBOS, for Over-Bought-Over-Sold..
    This is basically a trend following system, works well in trend phases. I sometimes filter the trades with Range Indicator to avoid ranging periods.

    Pairs
    Works best on GBPUSD\EURUSD\GBPJPY

    Charts
    I use this system on 15M\1H\4H. Of course, If there are conflicting signals the higher timeframe wins...

    Indicators
    *Stochastic Oscillator (K%=10, D%=3, Slowing=3), remove the signal line (slowing) as you won't be using it here.
    *Awesome Oscillator

    Entry Rules
    Enter Long after Stochastic main line crosses 60 up.
    Enter Short after Stochastic main line crosses 40 down.
    Stop order is placed 1 pip above the high of the candle (for long), and 1 pip below the low of the candle (for short).

    Exit Rules
    Exit trade when Awesome Oscillator makes one bar in opposite direction of your trade. Explanation:
    If you are long and Awesome Oscillator creates a red bar - exit trade when the bar is closed.
    If you are short and Awesome Oscillator creates a green bar - exit when bar is closed.
    Just look at the pictures.. it doesn't really matter to be 100% precise in these exits, anyway the trends you'll catch are big enough so late exits won't hurt the profits too much.

    Money Management
    As usual I recommend not risking more than 2% of equity on a single trade.


    Trades:





    Visit my blog for more Free Trading Systems and Indicators!

  2. #2
    Senior Member
    Join Date
    Jan 2009
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    Australia
    Posts
    631

    Default

    Can someone tell me if there is an EA based on this system

  3. #3
    Junior Member
    Join Date
    May 2009
    Posts
    5

    Default indicators

    Quote Originally Posted by c0nundrum View Post
    Its a system I have recently developed, inspired by Jake Bernstein's great book, The Complete Day Trader. I changed a bit the stop loss and exit rules to make the profits run a bit more.
    I call it Stochastic OBOS, for Over-Bought-Over-Sold..
    This is basically a trend following system, works well in trend phases. I sometimes filter the trades with Range Indicator to avoid ranging periods.

    Pairs
    Works best on GBPUSD\EURUSD\GBPJPY

    Charts
    I use this system on 15M\1H\4H. Of course, If there are conflicting signals the higher timeframe wins...

    Indicators
    *Stochastic Oscillator (K%=10, D%=3, Slowing=3), remove the signal line (slowing) as you won't be using it here.
    *Awesome Oscillator

    Entry Rules
    Enter Long after Stochastic main line crosses 60 up.
    Enter Short after Stochastic main line crosses 40 down.
    Stop order is placed 1 pip above the high of the candle (for long), and 1 pip below the low of the candle (for short).

    Exit Rules
    Exit trade when Awesome Oscillator makes one bar in opposite direction of your trade. Explanation:
    If you are long and Awesome Oscillator creates a red bar - exit trade when the bar is closed.
    If you are short and Awesome Oscillator creates a green bar - exit when bar is closed.
    Just look at the pictures.. it doesn't really matter to be 100% precise in these exits, anyway the trends you'll catch are big enough so late exits won't hurt the profits too much.

    Money Management
    As usual I recommend not risking more than 2% of equity on a single trade.


    Trades:





    Visit my blog for more Free Trading Systems and Indicators!

    Hi ,

    Could you please post your indicators for this system?
    Thank you

  4. #4

    Default

    Indicators are the Awesome Oscillator and Stochastic, they are available in any MetaTrader program. IF you can't find it, reply...

  5. #5

    Default

    This looks like a good system too! Thanks for sharing.

    rptrader

  6. #6

    Default

    But on your screenshots system differs than AC and AO
    you have some indicator.
    Russian trader

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