Friday, June 5, 2015

The K-Trend System - I

Before we proceed with further exploration of the K-Trend Indicator let me share with you my Trading system based on the K-Trend Indicator. It was one of my early Indicators developed during my early days of TA journey.
The system is a simple Reversible one. The rules are follows

BUY Setup
When the momentum turns positive from negative, In other words when the K-Trend Indicator is negative and changes from negative to positive.
Buy setup = KT < 0 and KT (today) > KT (Yesterday)
The setup condition remains active for 6 Bars

Entry
Enter when the value is above the High of the Buy setup Bar+0.5 times a 5 bar Average True range.
Buy = High(Buy setup bar) + (0.5 x ATR(5) ) .  In fact the value 0.5 is adjustable.

Exit  setup
When the momentum turns negative from Positives, In other words when the K-Trend Indicator is positive and changes from positive to negative.
Exit setup = KT >0 and KT (today)<KT (Yesterday)

Exit
Exit when the value is below the Low of the Exit setup Bar-0.5 times a 5 bar the Average True range.
Exit = Low(Exit setup Bar) – (0.5 x ATR(5))

After experimenting I found that many trades were missed because the Ktrend quickly crossed above or below the zero line in less than 6 bars and the value was still less/more than the entry/exit threshold values and the stock went on to make big moves. So I added further conditions to take care of these opportunities as well. The revised Entry and Exit condition are as follows

Entry
Buy = High(Buy setup bar) + (0.5 x ATR(5) )  OR  KT cross above +40

Exit
Exit = Low(Exit setup Bar) – (0.5 x ATR(5))  OR  KT cross below -40

I found that the system was able to catch the big Trends and losses were quite limited  in the sideways moves. The system was useful for stocks which had the tendency to have some trends and useless for stocks which moved sideways most of the times.


The system has the facility to set the ATR multiplication factor which has a default value of 0.5.  Also one can set the traded quantity so the current Profit/Loss situation  is indicated exactly. 



A quick backtest on the Nifty (The Indian stock Index) is provided below.


The System can be downloaded and tested if one likes from the below link.  Looking forward to feed backs..


23 comments:

  1. my observation in this study please change the exit strategy using Bs volume trend reversal indicator and re entry option also need. Most of time more profit missed.

    ReplyDelete
  2. sir How can i get vchannel indicator

    ReplyDelete
  3. Vchannel Indicator? Can you provide any reference/link?

    ReplyDelete
    Replies
    1. Sir
      The one you've used in upper panel along with regularized RSI

      http://karthikmarar.blogspot.com/2013/05/regularized-indicators-part-2.html

      Delete
    2. Dear Sir

      Still waiting for your reply.

      Regards

      Delete
  4. Sir Is possible to make a TRADING SYSTEM using this MULTICYCLE indicator http://www.wisestocktrader.com/indicators/1545-multicycle-1-0

    ReplyDelete
  5. Amitabha, It was one of my experimental Indicators. LaterI found that it was looking to the future and did not proceed with it...
    Regards

    ReplyDelete
    Replies
    1. Dear Sir,

      Thanks for your reply. Can you suggest any indicator that is good for option trading.

      Regards

      Delete
  6. Dear Sir

    Can you suggest any good indicator/system for option trading?

    Regards

    ReplyDelete
  7. Sir,

    max drawdown -37%.i think this code need to be modified or need to be used with other analysis.

    thanks

    ReplyDelete
  8. Dear Sir,
    I can't download file K-Trend System from 4shared.com.
    The file link that you requested is not valid.
    pls reupload file K-Trend System.
    thanks,

    ReplyDelete
  9. Sir "The K-Trend System - I" is not available for download is the system backfired ??

    I need this AFL

    ReplyDelete
  10. Engineering companies have materials engineers to determine materials to be used in piping systems. Most pipe is of carbon steel (depending on service) is manufactured to different ASTM standards.
    pipes-tubes

    ReplyDelete
  11. "Amitabha, It was one of my experimental Indicators. LaterI found that it was looking to the future and did not proceed with it.."

    Sir what do you mean by it was looking to the future and did not proceed with it.
    I am getting some good result. are they wrong

    ReplyDelete
  12. Nice Post! Thanks for sharing great information about free Stock Market tips & Technical Analysis / Fundamental Analysis Training!

    ReplyDelete
  13. Q: Which platform to use with this software?
    A: You can use any trading platform! Yes, you can use MetaTrader 4, MetaTrader 5, TradeStation, NinjaTrader... because the software runs on dedicated computers and you only need a web browser to get the instant result online.

    Q: How many currency pairs does Forex Trendy scan?
    A: It scans 34 Forex pairs on 9 time frames from 1-minute to monthly. Together 34 pairs x 9 time frames = 306 charts.

    Q: What method is used to determine the trend?
    A: The trend reliability is determined by the "Trend Drawdown" - a method that uses no indicators, but pure price action. This method is explained in the ebook you will get in the subscription.

    Q: Which configuration do I need?
    A: Use the latest version of any major web browser (Internet Explorer, Firefox, Chrome, Safari, Opera...)

    Q: Does it work on mobile devices?
    A: Yes, it has been tested on several mobile devices and browsers.

    Try it now:

    ==> http://www.forextrendy.com?laush394758


    "I really like your idea of taking only the best trending pair and even time frame. I am very impressed with such a simple and effective approach. I am not a tech guy and I am amazed how it works online without anything to install... I just log in two times a day and check for any interesting pairs."

    Stephen Ross, NY

    "I use this software every day together with my own system and two EAs. I execute trades only when trend drawdown is below 15% so I decreased the trade frequency, but I got two times better results. I am also interested in pattern recognition, I haven't tried it yet, but it looks amazing!"

    JulienLabonne, Florida, USA

    "I would highly recommend this service to anyone serious about forex trading. Another one that gives back much more than he receives. The real value for such a low price is rare in the forex industry."

    Sebastian, Germany


    ==> http://www.forextrendy.com?laush394758

    ReplyDelete
  14. Let me explain the basic principle how most Forex systems work. They are tuned up to work in a specific market condition. They often make money in a trending market, but loose money in a choppy market. It is not a problem as long as the market is trending and the system is making more money than it loses. Such a system can be profitable for several months and you would be happy with it. BUT...

    PREPARE FOR THE WORST...

    Market change over time. A well designed system starts with trend analysis to stay away from potentially losing trades. There are two problems of how a Forex system recognizes the trend.

    PROBLEM: FALSE "STRONG TREND" INDICATION.

    The system responds only to immediate price action. An explosive price movement that is usually the result of news release is tempting people to jump in and make a profit. It looks like a "strong trend", but what usually happens next is a hard fall.

    To avoid falling into this trap, check for the SOLUTION to find a REAL trend:

    ==> http://www.forextrendy.com?nsjjd92834

    SECOND PROBLEM: TREND RELIABILITY

    Most systems use various indicators to determine the trend. Actually, there is nothing bad about using indicators. One Simply Moving Average can do the job. The problem comes with the question: "Is the market trending NOW?" Whether the market is trending or not trending is not like black and white. The correct question is: "How well the market is trending?"

    And here we have something called TREND RELIABILITY.

    Trends exist and they can be traded up and down for a profit. You have to focus only on the most reliable market trends. "Forex Trendy" is a software solution to find the BEST trending currency pairs, time frames and compute the trend reliability for each Forex chart:

    ==> http://www.forextrendy.com?nsjjd92834

    ReplyDelete
  15. Let me explain the basic principle how most Forex systems work. They are tuned

    up to work in a specific market condition. They often make money in a trending

    market, but loose money in a choppy market. It is not a problem as long as the

    market is trending and the system is making more money than it loses. Such a

    system can be profitable for several months and you would be happy with it. BUT...

    PREPARE FOR THE WORST...

    Market change over time. A well designed system starts with trend analysis to

    stay away from potentially losing trades. There are two problems of how a Forex

    system recognizes the trend.

    PROBLEM: FALSE "STRONG TREND" INDICATION.

    The system responds only to immediate price action. An explosive price

    movement that is usually the result of news release is tempting people to jump in

    and make a profit. It looks like a "strong trend", but what usually happens next is a

    hard fall.

    To avoid falling into this trap, check for the SOLUTION to find a REAL trend:

    ==> http://www.forextrendy.com?nsjjd92834

    SECOND PROBLEM: TREND RELIABILITY

    Most systems use various indicators to determine the trend. Actually, there is

    nothing bad about using indicators. One Simply Moving Average can do the job.

    The problem comes with the question: "Is the market trending NOW?" Whether the

    market is trending or not trending is not like black and white. The correct question

    is: "How well the market is trending?"

    And here we have something called TREND RELIABILITY.

    Trends exist and they can be traded up and down for a profit. You have to focus

    only on the most reliable market trends. "Forex Trendy" is a software solution to

    find the BEST trending currency pairs, time frames and compute the trend

    reliability for each Forex chart:

    ==> http://www.forextrendy.com?nsjjd92834

    ReplyDelete
  16. Q: Which platform to use with this software?
    A: You can use any trading platform! Yes, you can use MetaTrader 4, MetaTrader 5, TradeStation, NinjaTrader... because the software runs on dedicated computers
    and you only need a web browser to get the instant result online.

    Q: How many currency pairs does Forex Trendy scan?
    A: It scans 34 Forex pairs on 9 time frames from 1-minute to monthly. Together 34 pairs x 9 time frames = 306 charts.

    Q: What method is used to determine the trend?
    A: The trend reliability is determined by the "Trend Drawdown" - a method that uses no indicators, but pure price action. This method is explained in the ebook you
    will get in the subscription.

    Q: Which configuration do I need?
    A: Use the latest version of any major web browser (Internet Explorer, Firefox, Chrome, Safari, Opera...)

    Q: Does it work on mobile devices?
    A: Yes, it has been tested on several mobile devices and browsers.

    Try it now:

    ==> http://www.forextrendy.com?laush394758


    "I really like your idea of taking only the best trending pair and even time frame. I am very impressed with such a simple and effective approach. I am not a tech
    guy and I am amazed how it works online without anything to install... I just log in two times a day and check for any interesting pairs."

    Stephen Ross, NY

    "I use this software every day together with my own system and two EAs. I execute trades only when trend drawdown is below 15% so I decreased the trade frequency,
    but I got two times better results. I am also interested in pattern recognition, I haven't tried it yet, but it looks amazing!"

    Julien Labonne, Florida, USA

    "I would highly recommend this service to anyone serious about forex trading. Another one that gives back much more than he receives. The real value for such a
    low price is rare in the forex industry."

    Sebastian, Germany


    ==> http://www.forextrendy.com?laush394758

    ReplyDelete
  17. "I really like your idea of taking only the best trending pair and even time frame. I am very impressed with such a simple and effective approach. I am not a tech guy and I am amazed how it works online without anything to install... I just log in two times a day and check for any interesting pairs."

    Stephen Ross, NY

    "I use this software every day together with my own system and two EAs. I execute trades only when trend drawdown is below 15% so I decreased the trade frequency, but I got two times better results. I am also interested in pattern recognition, I haven't tried it yet, but it looks amazing!"

    Julien Labonne, Florida, USA

    "I would highly recommend this service to anyone serious about forex trading. Another one that gives back much more than he receives. The real value for such a low price is rare in the forex industry."

    Sebastian, Germany


    ==> http://www.forextrendy.com?laush394758

    ReplyDelete
  18. "Which Forex pair and time frame is best to trade" is the frequently asked question and I want do give you the DEFINITE ANSWER.

    Are you expecting that I am going to say something like EUR/USD on 5-minute time frame or GBP/USD on daily...? No, it is not so simple, but SIMPLE ENOUGH we can figure it out!

    The "PROBLEM" is that markets change over time. If GBP/USD was a well trending currency pair a few years ago, today it is another one.

    I actually want to let you know about a SPECIAL TOOL that I use to find the BEST TRENDING PAIRS among all the Forex pairs.

    http://www.forextrendy.com?vhbshygdf398432

    The software scans 34 Forex pairs on all time frames from minute to monthly. This way you pick the best trending pair and time frame at the current time.

    The system is running on our powerful computers, so you have nothing to download and install. Just join in and start using it within a FEW MINUTES! Get it on the link below:

    http://www.forextrendy.com?vhbshygdf398432

    ReplyDelete
  19. Do you think that to dramatically improve your success rate you have to read tons of thick books, buy expensive software and spend countless hours of learning more about Forex?

    What I'm going to share with you is something very EASY to use and very POWERFUL at the same time.

    Let me give you an EXAMPLE:

    Imagine you trade a system that makes 50% winning trades, but another 50% are losing trades. If you increase your odds of winning by only 20%, that would make 70% winning trades and 30% losing trades.

    Well, HOW TO accomplish that?

    Just pick the best trending pair at the current time and simply follow the trend! I have found ONE INCREDIBLE TOOL that continuously scans the Forex market and picks the most reliable trending pairs for you.

    http://www.forextrendy.com?vhbshygdf398432

    By taking signals in the direction of a strong trend you would REDUCE UNNECESSARY LOSSES and increase the odds of winning. You need to know "how well" the market is trending to avoid very short-term trends.

    STOP hunting the market for every potential trade. Pick only the best trending pairs and time frames and DO NOT take any trading signals in the choppy market (unless you know exactly what you are doing).

    Successful traders keep it simple and this is the way how the pros made fortunes in the markets - by trading less and making more.

    To increase the profitability of any system or robot you are currently using, check out this easy and powerful ultimate solution:

    http://www.forextrendy.com?vhbshygdf398432

    ReplyDelete