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

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 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

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

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..


  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.

  2. sir How can i get vchannel indicator

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

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

    2. Dear Sir

      Still waiting for your reply.


  4. Sir Is possible to make a TRADING SYSTEM using this MULTICYCLE indicator

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

    1. Dear Sir,

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


  6. Dear Sir

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


  7. Sir,

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


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

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

    I need this AFL

  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.

  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

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

  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:


    "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