Here's a custom chart for you guys, a mechanical system using
Stockcharts. This chart uses 8/21 EMA crossovers for swing
trade signals on the SPX.
However I have a few other custom indicators on this chart that
work well and in conjection with each other:
1. TRIX works well 90% of the time just following the
crossovers, however sometimes divergence will occur so it's best to
use it more as a confirming indicator
2. 7/21 EMA crossovers work great most of the time, they
catch trends when they occur:
3. I have a modified MACD Histogram using (13,144,13)
settings. Buy/Sell signals are when it goes above/below
zero.
4. 60 period stochastics are something to note:
Lately it has been better for sell signals
5. I have modified Stochastics to work like the 5/3/3
stochastics on the daily chart
The link for the stock chart members is still the 8/21 ema and
not the 7/21 youmentioned in the news letter. some people may just
add this chart to their saved charts and not notice.
Posted by canadianguy on 24th of Feb 2009 at 12:42 pm
Matt do you have one of those little performance tables
saying what return SSO/SDS would have using this 60 minute 8,21 ema
swing system going back a year - with your monthly performance,
number of good and bad trades, etc.
no I don't, that system uses TRIX, MACD, etc. you can
enter trades before the EMA's cross if TRIX, Stochastics, Histogram
confirm, sometimes that that happens before the EMA's. Or
sometimes I would exit if the 60 period stoch gave a sell (when
were are in a downtrend), not simple way to code that
Posted by poohnana on 24th of Feb 2009 at 10:32 am
One more question, which is the modified Stochastics that work
like the 5,3, 3 on the daily? Is it the 60 period or the 14 period
that you have on this chart? Also is it 9,16 EMA or 8, 21EMA
like on the second chart on this system that you posted?
Posted by poohnana on 24th of Feb 2009 at 10:13 am
This chart says 9 and 16 EMA, but other places it says 8 and 21
EMA- just want to be sure to do it right. Thanks so much for
giving us a swing mechanical system.
Mechanical System 60 min SPX chart
Posted by matt on 24th of Feb 2009 at 10:01 am
Here's a custom chart for you guys, a mechanical system using Stockcharts. This chart uses 8/21 EMA crossovers for swing trade signals on the SPX.
However I have a few other custom indicators on this chart that work well and in conjection with each other:
1. TRIX works well 90% of the time just following the crossovers, however sometimes divergence will occur so it's best to use it more as a confirming indicator
2. 7/21 EMA crossovers work great most of the time, they catch trends when they occur:
3. I have a modified MACD Histogram using (13,144,13) settings. Buy/Sell signals are when it goes above/below zero.
4. 60 period stochastics are something to note: Lately it has been better for sell signals
5. I have modified Stochastics to work like the 5/3/3 stochastics on the daily chart
Here's a link for Stockchart members (only works if you have a membership to Stockcharts).
Matt
Posted by RM686 on 25th of Feb 2009 at 09:39 am
The link for the stock chart members is still the 8/21 ema and not the 7/21 youmentioned in the news letter. some people may just add this chart to their saved charts and not notice.
I changed it to 7/21
Posted by matt on 25th of Feb 2009 at 01:30 am
I changed it to 7/21
cci
Posted by fats on 24th of Feb 2009 at 02:29 pm
great chart thans but add the cci with a 5
SPX mechanical system
Posted by winter39 on 24th of Feb 2009 at 12:08 pm
Since one can't buy the index (only for futures users), what are you using this for, as a goahead to buy other stocks?
use it for SSO/SDS
Posted by matt on 24th of Feb 2009 at 12:12 pm
use it for SSO/SDS
FYI - the system uses
Posted by matt on 24th of Feb 2009 at 12:07 pm
FYI - the system uses 8/21 EMA instead of 9/16. However honestly they both give about the same results, but the 8/21 is easier to see
Matt do you have one
Posted by canadianguy on 24th of Feb 2009 at 12:42 pm
Matt do you have one of those little performance tables saying what return SSO/SDS would have using this 60 minute 8,21 ema swing system going back a year - with your monthly performance, number of good and bad trades, etc.
sds results with 20k lot
Posted by 1800promote on 24th of Feb 2009 at 01:01 pm
no I don't, that system
Posted by matt on 24th of Feb 2009 at 02:42 pm
no I don't, that system uses TRIX, MACD, etc. you can enter trades before the EMA's cross if TRIX, Stochastics, Histogram confirm, sometimes that that happens before the EMA's. Or sometimes I would exit if the 60 period stoch gave a sell (when were are in a downtrend), not simple way to code that
Title: SSO swing system Here's another
Posted by bkout3 on 24th of Feb 2009 at 01:30 pm
Here's another test done using Ninja with $10K positions. Done as a swing system (no EOD exit). Just testing the EMA values (see Ninja settings on the right) so no accounting for the other indicators on Matt's chart. Looks like 16/25 would do better as a base EMA system. Highlighting is of top parameters under each col with final sort by % profitable. 8/21 has been cut and pasted in at the bottom. Test is from 12/1/2008. Different time periods could of course give different results. Am posting sheet directly rather than as a link to see if it's clearer. As usual clicking on it will help and zoom may also help. PM me with your email if you'd rather have a copy of the spreadsheet.
One more question, which is
Posted by poohnana on 24th of Feb 2009 at 10:32 am
One more question, which is the modified Stochastics that work like the 5,3, 3 on the daily? Is it the 60 period or the 14 period that you have on this chart? Also is it 9,16 EMA or 8, 21EMA like on the second chart on this system that you posted?
thanks matt
Posted by cspirit on 24th of Feb 2009 at 10:13 am
thanks matt
This chart says 9 and
Posted by poohnana on 24th of Feb 2009 at 10:13 am
This chart says 9 and 16 EMA, but other places it says 8 and 21 EMA- just want to be sure to do it right. Thanks so much for giving us a swing mechanical system.
SPX 60, 9,16 EMA system.png Here's
Posted by matt on 24th of Feb 2009 at 10:11 am
Here's a cleaner chart: I changed the colors of the EMA's and put stochastics above the price
dynamic Chart
that chart is a bit
Posted by matt on 24th of Feb 2009 at 10:06 am
that chart is a bit noisy, but you can still see the signals. Maybe if you move the stochastics off the price it would clean it up a bit.
The 8/21 EMA crossovers work well on their own honestly, though the TRIX and custom histogram are not bad
Nice.Is it possible to adjust this
Posted by eugenijus on 24th of Feb 2009 at 10:23 am
Nice.Is it possible to adjust this system to 15 min chart?