This system combines the power of the Stochastic Oscillator and the Awesome Oscillator into a very simple to use, high accuracy system. Due to its simplicity and consistency, it can very good system for those of you who are looking to possibly make the jump from part time trader to full time trader.
Chart Setup
Open a Daily Chart.
Add the Awesome Oscillator.
Add the Stochastic Histrogram, with 5,3,3 settings.
Long Entry Criteria:
The Awesome Oscillator has changed to green.
The Stochastic Histogram has changed to green.
Short Entry Criteria:
The Awesome Oscillator has changed to red.
The Stochastic Histogram has changed to red.
Money Management and Exit Strategy
Open 2 trades which together risk no more than 3% of your total available balance.
Set a stop loss of -100 pips for both trades.
Trade 1: Set a take profit at +50 pips.
Trade 2: Set a take profit at +100 pips.
When you reach +50 pips, set the stop loss for the remaining trade to break even.
I have been developing and demoing this system for roughly 6 months, trading live the last 2 months. I plan on posting Daily signals here so everyone can get a better idea of how this works, as well as see live statistics.
Have you backtested this extensively? If so, I would be interested in seeing the results. At first glance, it does not appear like it would perform very well over the long run.
Also, why not just simplify the rules and go/long short when the stochs turn green/red?
This system was created after about 6 months of testing different indicators and setups. Someone mentioned ozfx to me on another forum as well. After looking over his system, it appears that he used the AC indicator paired with stochastics. I have found that while AC is faster, it has proven to be less accurate than using the AO.
I’m going to update the following spreadsheets after every trade for performance tracking purposes. These links will also be in the first post of this thread.
Updated Trade Results for this strategy can be viewed here.
Updated Statistics for this strategy can be viewed here.
Now that’s a carbon copy of one of these methods (Bull101, ozfx) with PSAR simply tacked on. Someone’s aping someone else’s system. Not suggesting it is Bull 101, but the similarities between each of these are too strong to be coincidental. Maybe Oz found his inspiration here?
I’m not referring simply to the indicators. Do you want a side-by-side comparison?
Attached is an screenshot of OzFx’s presentation of his(?) method on his website.
OzFx:
So What Is The System?
Bull101:
The System
OzFx:
[I]Setup:
Open up a daily chart on EUR/JPY.
Apply Bill Willam�s Accelerator Oscillator (AC).
Apply Stochastic with setting 5,3,3 on top of AC. Download the template here[/I]
Bull 101:
Chart Setup
Open a Daily Chart.
Add the Awesome Oscillator.
Add the Stochastic Histrogram, with 5,3,3 settings.
OzFx:
Short Entry: RED AC below 0 and Stot below 0
Long Entry: Green AC above 0 and Stot above 0
Bull101:
[I] Long Entry Criteria:
The Awesome Oscillator has changed to green.
The Stochastic Histogram has changed to green.
Short Entry Criteria:
The Awesome Oscillator has changed to red.
The Stochastic Histogram has changed to red.
[/I]
OzFx:
[I]Money Management:
Trade with 5 Lots with Stop Loss 100 pips away
Take Profit on 1st Lot at 50 pips. Move Stop Loss to Break Even (BE).
Take Profit on 2nd Lot at 100 pips.
Take Profit on 3rd Lot at 150 pips.
Take Profit on 4th Lot at 200 pips.
Let the 5th Lot run until you see an opposite entry signal.
[/I]
Bull101:
[I] Money Management and Exit Strategy
Open 2 trades which together risk no more than 3% of your total available balance.
Set a stop loss of -100 pips for both trades.
Trade 1: Set a take profit at +100 pips.
Trade 2: Allow this trade to run until the Awesome Oscillator is showing a reverse signal.
Both Trades: When you reach +50 pips, set the stop loss for both trades to 0. (Break even)[/I]
Notice any similarities? Not just in indicators (OzFX AES did/does use AO, as well as AC), but in syntax, formatting, and layout?
Aside from a few MM niceties (different number of lots, different number of pips on first lot) and on what indicator confluence signals are taken (naught line v. color change) the systems are nearly identical. That’s one thing, but when the presentation of them is so uncannily similar, there’s little question someone’s copying someone else, and feigning ignorance of it to pass it off as their proprietary “system”.
Its a nice, organized, clean way of posting a trading strategy
The Ozfx system was posted before mine was, so I obviously can’t claim he based it off my work. And well, all I have is my word that I didn’t base mine off his.
As far as system similarities, there are actually some pretty hefty differences between the two. I suppose I can list them if you want in a PM, but this thread is for discussing my trading strategy with those who are interested in learning it.
The indicators can change colors during the current candlestick development. Do you have a certain time period you use to validate the trade or do you wait until the daily close?
If there is no signal by the time I am done analyzing the charts at the open of the new daily candle, then I ignore what happens throughout the life of that candle. So roughly 10 minutes. I really don’t have a set time, just whenever I have completed analysis.
