Posted by The Otter Way on January 02, 2012 (09:50AM)

Over the past two years I wanted to find what combination of indicators would give me the greatest success when trading... I didn't want to have to look at 4 indicators at once for 20 stocks... I wanted the chart to speak to me.. tell me now is a good time... and so on....

Now I am not showing you all of what I do... and I am leaving out a lot of code...but, I am sharing the best chance percentages that I've found over the last two years...  Instead of showing you how to place an order... I am just painting the background of the chart to reflect a positive or negative buy signal...  For those who are trying program "bots"... this might save you a little time...

Go Long when

if ((SMA(3)[0] >= SMA(14)[0]) && (SMA(3)[0] >= SMA(40)[0])

{
BackColor = Color.LightGreen;
}

Go Short when

if((SMA(3)[0] 14)[0]) && (SMA(3)[0] 40)[0])

{
BackColor.LightCoral;
}

Posted by stoicathos on January 02, 2012 (10:55AM)

Does that mean to go long when the 3-day Simple Moving Average is greater than both the 14-day SMA and the 40-day SMA?

Posted by Stevie B on January 02, 2012 (01:38PM)

Thanks for the information otter. I have been developing/tracking my own long short signals for months now and they have been hit and miss.

If I remember correctly you are a day trader, so how do you think your screen would apply to swing trading?

If I understood your script correctly and I wrote it correctly I am assuming you are feeling pretty bullish right now. When I run it I'm get long: XLF, XLE, XLI, USO, XLU, XLK, XLB, XLP, XLV, KBE, XOP, XLY, XHB, DVY, SMH, IVW

Posted by The Otter Way on January 02, 2012 (02:52PM)

stoicathos said: Does that mean to go long when the 3-day Simple Moving Average is greater than both the 14-day SMA and the 40-day SMA?

As far as the definition of ADX I will let you look that one up.  The code says there should be 3 conditions met...

The current 3 bar Simple Moving Avereage (SMA) >= 14 bar SMA and
The current 3 bar SMA is >= 40 bar SMA and
ADX 14 bar is > 0....

Then you are safer to buy here.... but does not mean to blindly buy without juding other things... Market direction.... etc.....

Stevie B said: Thanks for the information otter. I have been developing/tracking my own long short signals for months now and they have been hit and miss.

If I remember correctly you are a day trader, so how do you think your screen would apply to swing trading?

If I understood your script correctly and I wrote it correctly I am assuming you are feeling pretty bullish right now. When I run it I'm get long: XLF, XLE, XLI, USO, XLU, XLK, XLB, XLP, XLV, KBE, XOP, XLY, XHB, DVY, SMH, IVW

Steve, the answer to your question is that if you are swing trading.... this will  avoid most false signals.... but, it will show a safer entry point that will not  last as long...  In other words... you won't get in on the beginning of a trend... but the middle to tail... It really depends on your candles... 1 minute, 5 minute, etc...

If you're looking at swing trading... you may want to use range candles with a RSI of 7 with bollinger bands of 12/2 with murphymath and use the indicators that I posted above...  Murphymath will show you the possible stopping points, retracements, and key areas of concern...

Currently, my browser both ie9 and Mozella are having problems with TK's pages and it won't allow me to post a picture...    Also Steve, I am definatly not bullish.. As you see the indicators are setup to go either long or short...   I have a program that just combins multiple stocks and tells me that the majority are ready to up or down and I trade the ES 03-12 mini's to day trade a 1/4 (.25) of tick to a tick (1) for a value of \$50 per tick.

Posted by OldFart on January 02, 2012 (03:51PM)

thx for sharing, otter! Any backtest results? I have a program which scans for DMI +/- crossover which should be the same as ADX, it should be interesting to add the MAs part

Posted by The Otter Way on January 02, 2012 (05:35PM)

OldFart said: thx for sharing, otter! Any backtest results? I have a program which scans for DMI +/- crossover which should be the same as ADX, it should be interesting to add the MAs part

I do not use these by themselves, but as a basis to begin with... I have bots that can get 96 to 1 wins, but they might not trade as frequent and they scalp a few cents at a time...  Currently working on one that has the most promise... but it wins 67 to 33 and it can scrape off a lot more money, and will run to the peak's and valleys - a complete tick...

The one thing that I've found... Back testing has no real value to true outcome... Some of the worst indicators that I've used turned out to have completely different results in a live environment.. What I do now is test live by simulating orders and have given up completely on back testing...

I paint everything I do on the candle chart and so I can validate the actions are sane and the results are consistent  with the desired outcome..

These combined indicators paint that entry is probable and that 70% of your trades can and will be successful with just the ones I've listed... But one should not fight the trend of the whole market when using these...

Intuitive ones that take charge of pivots and pull backs add additional flavor to any bot... and increase success rates almost by 10 to 20 percent...  The rest is rules...

I was able to upload a picture after I downloaded Chrome... The green area is right to buy... the grey is no action to be taken... the wheat is non-intraday and do not touch,buy,or sell.  This chart is run under a bot that controls all the picks from better stock entries and enters, exits, and etc... based on passed parameters.

The original shares were 50, 25 sold off and a unrealized profit of 5 still exists...  This allows me to run up to 50 stocks and not worry about how and when anything occurs except a communications failure....