What's next?

A couple of things to blog about tonight;

• New indicators


• Trading system update

I used to use a "squeeze" indicator when I traded stocks, it was mainly focused on day trades and worked well on the US markets but not too well on the Canadian markets due only to the number of high volume stocks on the TSE (lower than those on the NASDAQ). The pattern day trader rule in the US was an issues. It worked even worse for FOREX. I recently came across a system that uses the squeeze, MACD and bollinger breaksouts. I'm looking into combining the indicators for a system that will trade short term moves in FOREX. Take a look at the videos at this site. While I'm doing that, I'm letting my current system run on the IB paper account to work out any bugs. That brings us to the second item I want to talk about tonight.


I have been slowly working on my new automated trading system and have some success. Back testing has produced results that are too good to be true. I've check the trade logs and they look right, so things are promising. Let me give you a quick brief of a post I hope to make shortly, if things work out. I ran across an excel spreadsheet that allows you to quickly calculate the periods needed to make a million based on the percent gain per period (I used a daily period). This got me thinking about more of a long term approach to profits, with short term gains, as in baby steps. So all I want to say right now is that I have a plan and I'll outline it shortly. Stay tuned.

The Squeeze

I have an indicator for Amibroker that is very similar to the TTM Squeeze over at tradethemarkets.com. You can go there and view the video for instructions on how to use it. I find it somewhat useful, but look at the chart below, it doesn't look like a long term indy. I think this would be OK to capture 20 pips or so, not sure as I haven't studied it enough. If any readers have used this please comment on your strategy.

I was also reading some posts over at forexproject.com on this.

GBPJPY

Head and Shoulders - This looks like an easy kill, but it is rarely that easy. Be careful out there. Will the gap be filled? My data is empty for a few days around new years, it's not a gap.