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October 2014 Stocks and Commodities Traders Tips


Exploring Charting Techniques: Creating a Trading Strategy

AIQ Version:

Original article by Sylvain Vervoort
AIQ Code by Richard Denning

I was not able to code the Renko based charts and so the two moving averages, the simple average of the typical price (typSMA) and the simple average of the heikin-ashi close (haSMA) are based on the closing values from a conventional chart not the Renko chart.

In Figure 1, I show a chart of Netflix (NFLX) with the typSMA and the haSMA averages. In addition, this chart shows a trade that was opened on 1/4/13 and closed on 2/27/13 for a 90% profit.

Captions:
Figure 1 – Chart of Netflix (NFLX) with the typSMA and the haSMA averages and a sample trade marked with the white up and down arrows.

EDS Code:
Exploring.EDS
(right click and choose Save As)


 

Traders Studio Version :

Original article by Sylvain Vervoort
Traders Studio Code by Richard Denning

The following code files are contained in the download from the websites:

  • Function HA_SMA: returns the heinkin-ashi simple moving average of the close based on the “haLen” input.
  • Function TYP_SMA: returns the typical price simple moving average of the close based on the typLen input.
  • Indicator plot TYP_HA_SMA: for plotting the above two moving averages on a chart
  • System SVE_TYP_HA_SMA_SYS: system code for trading crossovers on the two moving averages

I was not able to code the Renko based charts and so the two moving averages, the simple average of the typical price (typSMA) and the simple average of the heikin-ashi close (haSMA) are based on the closing values from a conventional chart not the Renko chart.

In Figure 1, I show a chart of the S&P 500 full size futures contract (SP) using Pinnacle Data Corporation data ( www.pinnacledata.com ) with the typSMA and the haSMA averages. In addition, this chart shows a trade that was opened on 10/14/13 and closed on 11/11/13 for a $19,875 profit before commission and slippage.

Captions:
Figure 1 – Equity and underwater equity curves trading one contract for each signal on a portfolio of futures contracts for period year 2000 to 2014.

Traders Studio Code:
SVE_Exploring_TSZ.zip
(right click and choose Save As)

 

 

 

 

 

 

 

 

 

 

 

 

 

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