System Flowchart

Hello friends,
I am Amrut Deshmukh, Chartered Accountant. I work as Sr. Technical Analyst in a renowned financial services org. I track equity, commodities and forex with 7 years of experience. I am gradually switching from interpretative TA to mathematical TA. Hence ended up with Amiborker software.

After burning the mid-night oil, I have prepared a robust trading system. Please find its flowcart attached herewith.

Have started writing AFL code for the same. Shall keep you guys updated about the same.

Good one. Looks like pyrimid (go along with trend). May have to identify exit system.

Goodluck and all the best.
:thumb:

Hats Off:clap:

Amrut,

Good work.

Try using positional sizing along with this system. It should give you better results.

Tc.

Hello Amrut

Your system assumes that the noise on the trend you will be following will be mostly less than 50.

Substitute variable NoiseFactor for 50 in your algo.

The optimization can be based on the script/index, market condition, current phase and cycle.

:thumb:

Amrut

My understanding of your system gives the following result. We trade the break of 3 day high/low. Initial stops are 50 points away and we scale in every 50 point move in our favour trailing stops 50 points away. Take a look at the table for three scaling-ins and tell me if my understanding is correct. Exit is assumed when the trailing SL is hit. After three scaling in if the SL is hit the P/L is +1000. Have I erred some where in my understanding?

The 50 points mentioned seems to be for Nifty!!! (As nothing is mentioned about which Stock or future the flow chart regers to!!) Can we assume that we keep a 1.1% filter for having a look at other Stocks!!!

System Flowchart Elaborated

Hello friends,
I m glad to see the response to my previous post " System Flowchart" Lemme solve some of your queries:

You are right surya_sun. It is a Pyramid system also known as Scalein. I have kept the entries in 4 phases ie. Inception, Top up 1, Top up 2 and Top up 3. However exit is in one phase only. This is called "Asymmetrical Entry-Exit". (coined by Dr. Alexander Elder).Exit can also be made in multiple phases. But i dont want to make the system too complicated. My exits are in two ways. Exit when parabolic is hit (Technical SL) or exit when our Money Managment SL is hit, WHICHEVER IS EARLIER.

Yes raunakagarwal, position sizing is the most imp element. Thanx to Dr. Van Tharp's insights. I have used Fixed Fractional Method. Lemme discuss on rkkarnani's and Trader4242's point. In order to calculate at what level we should scale in and wat should be the magnitude of MM SL, i have considered ATR and future-lot-size of the stock / commodity / currency.Say for example ATR of Nifty mini is 100 points and its lot size is 20. If my maximum bearable loss per trade is Rs.10000 ( which is 1% of the total equity of Rs.10 lacs), i will buy 5 lots at inception ( 10000/(100*20), keep original SL at 100 points below inception level.WE will then add 2 lots at every 100 points rise, refered as Top1 , 2, and 3 and also trail SL by 100 points simultaneously. During this process if Parabolic SAR changes its mode, we shall offload all our positions at once. In other words, Exit at Parabolic stop or MM stop, whichever is earlier. In this way we can make a portfolio of diverse assets like Gold mini, Soyabean, Crudeoil, USDINR, Nickel, etc.

Hi trader.trends. U have correctly interpreted the flowchart. But the "Buy above 3 days high" is actually as exception and not the rule. We will use this exception when our MM SL is hit but SAR is still in the same (Buy) mode. This will help us to re-enter the trend.

Friends i bought Amibroker just one week ago. After lot of reading, I have tried my best to write the AFL code for the system (attached herewith.) I need your help guys. As explained above, I want my inception position size to be larger than the top ups. E.g. Buy 2 lots at inception and buy 1 lot each at Top1, 2 , 3. How do I do that? The SIgscalein and Positionsize variables does not solve my problem. Also let me know if there are any are any other problmes in the AFL.

Happy Trading
C.A. Amrut Deshmukh

Hello

Have a look at this site . you will get some more ideas

http://www.aussiestockforums.com/forums/showthread.php?t=1679&page=35

Regards

Saji