Dear all,
First of all I would like to Thank Pride for the excellant and simple method of scalping the market. I have been day trading in Stock markets and Currency crosses for the last four years and have tried various methods etc. I always had the gut feeling that a successful trading system will be sweet and simple, and Pride has shown us that system. In view of the fact that future cannot be predicted accurately, we must expect some ups and downs in any system. I went through every page of this thread and want to thank everyone who have contributed with their observations however minor it may be. I also thank Rajadhiraj for his afl on 30min stoch on 5 min chart which is very useful. I have been using Spider Iris for some time and a month back had switched to amibroker professional with RT data from TDI as I find the PIB is very slow in Updating. Although TDI does not supply futures data, I hear they are to provide same from 1st week August. Meantime I have been trading on heavy weight Nifty stocks like reliance and also Nifty futures But using Nifty spot chart quite successfully> i find if we follow the system strictly, the losses are very minimal compared to the gains. Losses mostly restricted to brokerage and slippage. I sholud also state that Although I follow the entry signal given by the system, I sometimes do not exit hastiliy the moment the 5 min stoch crossover so long as the gap between the emas are medium to large. i sometimes wait for it to narrow. I dont mean to say that i always do this, I use my short trading experiance and take decision accordingly. I have made an AFL for use with Amibroker which I made by modifying various afls like that of Rajadhiraj and use same for trading. This afl strictly follows the guidelines put down by Pride. according to my understanding, as follows:
for long
1. 30 min stoch to be bullish, doesnt matter if in overbought zone.
2. 5 mins stoch should be bullish but less than 80 (actually I haver set it as 75 in the afl)
3. Crossover of 5 ema above 13 ema.
when the above conditions are met will give a buy green upward arrow.
4. take profit when 5 mins stoch crossover to bearish or touches. indicated by a small hollow green circle.
in page 3 of this thread, Pride has clearly indicated the stoch settings as follows:
period: 8
%K 4
%D 3
But I have observed that most of the people are using 8, 3, 4 settings and also observed someone using 3, 8 4 while reading this thread.
In this afl i have used 8, 4, 3 settings.
for short trades the vice versa of above with 25 being the setting limitation on the 5 min stoch (for oversold) with red arrow indicating short and red small circle indicating cover.
As I said I have modified and compiled this afl, I mean to say I didnt write this afl but patched it up to show in a single chart Prides rules of the trade. here follows:
_SECTION_BEGIN("Stochastic_30_MINS");
periods = Param( "Periods", 8, 1, 200, 1 );
Ksmooth = Param( "%K avg", 4, 1, 200, 1 );
Dsmooth = Param( "%D avg", 3, 1, 200, 1 );
TimeFrameSet(in1Minute * 30);
k30 = StochK( periods , Ksmooth);
d30 = StochD( periods , Ksmooth, DSmooth );
TimeFrameRestore();
K = TimeFrameExpand(k30, in1Minute * 30);
D = TimeFrameExpand(d30, in1Minute * 30);
Hi = IIf(k > d, k, d);
Lo = IIf(k < d, k, d);
_SECTION_END();
_SECTION_BEGIN("Stochastic %D");
periods1 = Param( "Periods1", 8, 1, 200, 1 );
Ksmooth1 = Param( "%K avg", 4, 1, 200, 1 );
Dsmooth1 = Param( "%D avg", 3, 1, 200, 1 );
U = StochK( periods1 , Ksmooth1);
T = StochD( periods1 , Ksmooth1, DSmooth1 );
_SECTION_END();
_SECTION_BEGIN("ema5,13sound");
x = EMA(Close,5);
y = EMA(Close,13);
Plot(EMA(Close,5),"",colorBrightGreen,styleLine);
Plot(EMA(Close,13),"",colorRed,styleLine);
XR=(EMA(Close,5) * (2 / 6 - 1) - EMA(Close,13) * (2 / 11 - 1)) / (2 / 6 - 2 / 11);
Title = Name() + " " + Date()+" " + EncodeColor( colorYellow ) +"THE PRIDE system, (BUY-SELL GREEN ARROW-GREEN CIRCLE), (SHORT-COVER RED ARROW-RED CIRCLE)- When fast Stochastic reverses from it's upward move, curves downwards AND crosses the slow line from above, Sell half of the units.
if the next bar goes below the Low of the previous bar, exit completely, otherwise keep a tight trailing stoploss AND enjoy the continuing bull market" +EncodeColor( colorRed )
+ " O " + O + " H " + H + " L " + L + " C "+ C + "\n";
Plot(C,"SIMPLE TRADING SYSTEM",IIf(C>Ref(C,-1),colorLime,colorOrange),styleCandle);
Buy=((K > D) AND (U > T) AND (U < 75 AND T < 75) AND (x>=y));
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorBrightGreen, 0,L, Offset=-15);
Sell=Cross(T,U) OR (T>=U);
PlotShapes(IIf(Sell, shapeHollowSmallCircle, shapeNone),colorBrightGreen, 0,H, Offset=30);
Short=((D > K) AND (T > U) AND (U > 25 AND T > 25) AND (y>=x));
PlotShapes(IIf(Short, shapeDownArrow, shapeNone),colorRed, 0,H, Offset=-15);
Cover=Cross(U,T) OR (T<=U);
PlotShapes(IIf(Cover, shapeHollowSmallCircle, shapeNone),colorRed, 0,L, Offset=-30);
AlertIf( Buy, "SOUND C:\\Windows\\Media\\Windows XP Startup.wav", "Audio alert", 2 );
AlertIf( Short, "SOUND C:\\Windows\\Media\\Ringin.wav", "Audio alert", 2 );
AlertIf( Cover, "SOUND C:\\Windows\\Media\\Windows XP Startup.wav", "Audio alert", 2 );
AlertIf( Sell, "SOUND C:\\Windows\\Media\\Ringin.wav", "Audio alert", 2 );
_SECTION_END();
Above is the complete system as conceived by Pride although stoplosses are not covered in the afl.
The chart will show only candle sticks and emas although it will take into account 5 min and 30 min stochs and indicate buy-sell-short-cover accordingly.
I am of the opinion that it will be good to watch the 5 min stoch in addition to the above (the reason as i stated before, that i personally do not follow the "take profit" rules. if some one needs the afl only for the 5 min stoch, here follows
_SECTION_BEGIN("Stochastic %D");
periods = Param( "Periods", 8, 1, 200, 1 );
Ksmooth = Param( "%K avg", 4, 1, 200, 1 );
Dsmooth = Param( "%D avg", 3, 1, 200, 1 );
Plot( StochD( periods , Ksmooth, DSmooth ),"",colorRed,styleLine);
Plot( StochK( periods , Ksmooth),"",colorBrightGreen,styleLine);
_SECTION_END();
I once again thank pride and each one of you for this lively thread and if someone can improvise on the above afl (i am new to amibroker and am also working towards same) and post it here in this thread.
Best regards
Vinod
