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In my first post, I accidentally left out a couple of formulas. It
was late last night I guess. Sorry if you follow the instructions and
didn't get all the bars. You will now.
Okay, Metastockers, your free expert system is ready. By using this
expert you agree to two things; you trade at your own risk—I'm not
responsible for anything you do with the system including losing
money, and two, you agree not to directly or indirectly use the
system for commercial purposes including by slightly altering the
formulas. You can't give it someone who is going to use for
commercial purposes either. You can only use it to trade for your
account.
To make this system work you must follow my directions exactly
including the trading rules that I will give you. This system was
designed specifically for SPY 30 min screens. To use it EOD, you have
to change the trading rules. You figure them out.
Open Expert Advisor under the Tools menu. Pick New and type FREE
EXPERT AND IT'S ALL MINE into the name box. If you do not use this
name exactly you will have bad trading karma for a long time.
Select the Highlights Tab. Click on New, and type Buy One into the
name. Paste this formula into the condition box: Ref(LLV(LOW, 34), -
1)<C AND Mov( C, 34, S ) - ( 2 * Stdev( C, 34 ))<C AND C>Ref(C,-2)
Click on Color and pick Dark Green. Click okay and okay to close the
box.
Click New again and type Short One into the name box. Paste this
formula into the conditions box: Mov( C, 34, S ) + ( 2 * Stdev( C,
34 ))>C AND Ref(HHV(HIGH, 34), -1)>C AND C<Ref(C,-1)
Select color and pick dark red. Click okay and go on to the next
thing.
Click on the Symbols tab. Select New. Type Buy One into the box.
Select the Graphic tab and pick the up buy arrow and color it black
with it placed below the price plot and below the symbol. Click ok
and under the condition box in the name tab paste this formula:
TroughBars(1,MACD(),28)=1 AND C<((Ref(HHV(HIGH, 34), -1)+
Ref(LLV(LOW,34), -1))/2) AND C<Mov(C,13,S) AND C-Ref(C,-1)>0
Click okay, select New, type Short One into the box. Go to the
graphic tab and select down arrow sell and pick navy blue for the
color. Select above price plot and above symbol. Click okay and move
on. Paste
PeakBars(1,MACD(),28)=1
Select New on the symbols tab. In the name box type Buy Two. On the
graphics tab select the up arrow buy and color it black. Pick below
price plot and below symbol. Paste in the formuala
(Ref(Cross(Stoch(45,5),20),2) OR
Ref(Cross(MACD(),Mov(MACD(),13,S)),+2) AND C<((Ref(HHV(HIGH, 34), -1)+
Ref(LLV(LOW,34), -1))/2) AND C<Mov(C,13,S))
Click okay, Click okay and close your expert. We're done programming
this part.
Open SPY 30 minute chart using your clean template. Left click on the
screen and pick Inner window properties. Where it says background
colors open the menu and pick the grey color directly above the white
block in the lower right corner. In the general tab select apply to
all inner windows. (Shut-up and just do it. I know what I'm doing,
and this is FREE!)
In color the plot of the SPY black. Then bring up the moving average
in your quicklist.
The first mov avg we're going to apply will be 34 periods simple on
the close. The color will be black. I also like to change the chart
to line instead of bars because it's easier to read.
Once that is on your chart, add a second moving average. This one
will be 13 periods simple on close. The color will be navy blue and
the style will be a dashed line.
Take a break. This is a lot of work. Wow, but it's FREE! Who was it
that said nobody gives away the really good systems……..
Break time is over. Open tools select FREE EXPERT AND IT'S ALL
MINE. Attach it to your chart. Select the plot of SPY and select a
larger line width down in the lower left corner. Plump up the line a
little.
Now you should see a green, red and black plot of SPY and some black
and blue arrows pointing down and up somewhere near the plot line. I
picked black and blue because that's how the market is going to leave
you.
Every good system needs trading rules and this one is no different.
Let me see if I can remember them (or make some up!)
When the line is green SPY is going up. Sometimes the line is green
and SPY is going down but don't worry the line will change color
shortly or SPY will change direction.
When the line is red, SPY will mostly be going down, and when the
line is black SPY is confused and don't know which direction it wants
to go in. No problem, there's rules.
Rule one: When you see a black arrow it's time to buy—well most of
the time. When you get a black arrow and SPY is headed up watch it
closely to make sure it breaks the dotted 13 day moving average. This
is a point of resistance and so is the black 34 day moving average.
Most of the time the SPY will break through and keep on going but
sometimes the resistance is too strong and it will head back toward
the moving average when it does this you will get a blue arrow. That
means close your position right now and way for the next buy arrow.
Rule two. If the SPY breaks the two moving averages keeps heading up
and both moving averages have turned up, you can add to your position
if you want to. When you see the blue arrow sell your position. If
the SPY has been above both moving averages for at least an hour and
you get a blue arrow, you can take a short position after you've
closed out your long.
Rule three. If you take a short position, watch out for the moving
averages again. If SPY bounces off of one and heads up, cover your
short. If it break through both moving averages and keeps heading
down, even if you get a black buy arrow, you can keep your short as
long as both MA lines are trending down and the SPY has not broken
the blue 13 day moving average. If you get a black arrow and the SPY
breaks the 13 day moving average, close your short.
Rule four. Things always look better on static screens than they do
on live screens. 30 min screens take time to develop and you're going
to have some slippage because of it. You will also get whipsawed a
little. Paper trade the system for a few days until you get the feel
of it and then put very little capital at risk for a few more days.
Rule five. Figure out the trend for the day. Read John Clayburg's
book Four Steps to Trading Success. He has an indicator that will
give you the trend of the day, and it's generally pretty good. Wait
until the market has been open one hour before you start trading this
system on a 30 minute screen. Don't take any new trades after 1:30
and don't hold any over night.
Rule six, the most important rule. Don't ask me any questions, figure
it out yourself!
I don't know if this system will work on other stocks. Who cares! I
don't care… I don't know how well it will work in other time frames.
I didn't write it for other time frames. How does it compare to the
TM expert optimized for SPY on this time period? It's very similar.
FAQs
Do you trade with this system.
I use one that's very similar put it has some proprietary stuff in it
I'm not giving away.
Do you make any money with your system.
Yes, I do, but I don't trade SPY unless it's a really slow day
everywhere else or unless I see a setup that grabs my wallet as it's
going by.
How long did it take you to write the system?
About an hour and a half. It's based on Donchian channels.
What was the hardest part of writing it?
Writing this dopey explanation and my finger hurt. I'm suffering from
mouse fingers, and now I have squint eye too.
Is this as good as other systems that sell for thousands of dollars,
especially the ones that sell in infomercials.
Well, frankly, it's no better than your ability to use. Hmmm, in that
case Rule seven should be save your money.
Why did you give it to us?
Because it's not that hard to write systems that work for a
particular stock. You can learn to do it by studying all the experts
that came with metastock and then getting 50 or more that are posted
around the internet. Pick the group of stocks you want to trade
(they should have similar betas) and then try all the experts on them
until you find the ones that work the best. Then figure why they work
and tune them up to fit what you are doing.
Rule 8..Stop whining, stop asking for free stuff, stop asking people
to write programs for you, and stop searching all over the freaking
place for new high tech sounding crap like chaos theory. I've got a
bunch of graduate degrees in really technical stuff and all that
theory of strings stuff doesn't work any better than this.
All you Ganns, Fibs, chaos, fractal and Chinese astrology guys see if
you can come up with a better system using loops and swoops and
ladders or whatever. Okay. There's your challenge. Move your butts
and show me up. Then sit down and right up the rules and how to use
it just like I did.
Here's the link to the Chinese astrology site:
http://www.fourpillars.net/finance/predic.html
Their annual predictions are dead on. But they don't have a free
expert system, now do they!
JO
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