Hi Dale and other enthusiasts-soon-to-be-wealthy! l:^))
I have sumarised your system Dale for easier reading (just my view) and to make it easier to print out. Hope you don’t mind. I think this is an extraordinary thing you have accomplished here - not without pain either.
I think there is a bit more room for refinement eg limiting the signals to either RSI or Stochastics but not both. This would give you simpler charting set-ups (more screen ‘real-estate’ to view) and I do not think it would affect profitability much … if at all.
Anyway, while it has not been declared ‘finished’ officially, there may still be time for me to muddy the waters (heh heh):
[B]Dale’s Daily PSAR
Daily charts only.
When a PSAR entry signals to go short ONLY take the position WHEN:
RSI is above 70 (or has been within the preceding 1 to 3 bars) AND is still above 50.
Stochastics are above 80 (or have been recently within the preceding 1 to 3 bars) AND are still above 50.
MACD has crossed down.
Akram’s ‘Alligator’ lines are NOT intertwined (or ‘look’ like they are changing direction). i.e. at very least the ‘lips’ (or green line) must have crossed the ‘teeth’ (or red line) and the ‘jaw’ (or blue line))
ADX is equal to or above 20 (and/or ADXR must also be above 20)
Assuming that an entry EVER meets ALL of the above criteria:
Once PSAR has ‘locked in’ profits on the daily TF, switch to the next shorter TF available and start tracking PSAR until stopped out. Do NOT stop and reverse at this point. The option remains to re-enter IF PSAR reverses again on this TF only if PSAR on the daily TF still has not reversed. i.e. position is not stopped out on the daily timeframe yet. NEVER stop and reverse i.e. wait for all of the above criteria to be met before taking another position.
When a PSAR entry signals to go long ONLY take the position WHEN:
RSI is below 30 (or has been within the preceding 1 to 3 bars) AND is still below 50.
Stochastics are below 20 (or have been within the preceding 1 to 3 bars) AND are still below 50.
MACD has crossed up
Akram’s ‘Alligator’ lines are NOT intertwined (or ‘look’ like they are changing direction) i.e. at very least the ‘lips’ (or green line) must have crossed the ‘teeth’ (or red line) and the ‘jaw’ (or blue line))
ADX is equal to or above 20 (and/or ADXR must also be above 20)
Once again - assuming that an entry EVER meets ALL of the above criteria:
Once PSAR has ‘locked in’ profits on the daily TF, switch to the next shorter TF available and start tracking PSAR until stopped out. Do NOT stop and reverse at this point. The option remains to re-enter IF PSAR reverses again on this TF only if PSAR on the daily TF still has not reversed.
ie position is not stopped out on the daily timeframe yet. NEVER stop and reverse
ie wait for all of the above criteria to be met before taking another position.
Additional guidelines:
Don’t base ‘entry’ on RSI and Stochastics - but base your ‘non entry’ on RSI and Stochastics. ie - If RSI and Stochastics are NOT at their limits then take the trade.
Put another way: - If RSI is above 70 and Stochastics are above 80, a PSAR entry signal to go long then that trade would be a disaster.
And vice versa: A PSAR entry signal to go short when RSI is below 30 and Stochastics are below 20 would be foolhardy.
As long as RSI is between 0 and 50 and Stochastics are between 0 and 50 - with both pointing up preferably - then take PSAR entry signal to go long - and if RSI is between 100 and 50 and Stochastics are between 100 and 50 - with both pointing down preferably - then take PSAR entry signal to go short. This would increase the number of ‘valid’ trades.
This will certainly limit the number of trades available - BUT - if all of the above criteria are met – it is almost 100% sure that the position is a ‘winner’.
[/B]
I did see your earlier comments … yes we do have Captain Morgan here in the antipodes, but in limited supply - the locals keep drinking the stuff - we have been experiencing severe drought here, and we are saving the drinking water to wash in … for as long as the rum lasts!
With best wishes
Ingot
