Hi pixie
All THINKING men are atheists - Ernest Hemingway
Well being a bloke Pix I would qualify in the unthinking category
So I better direct you to a very competent female trader and author. Constance Brown's book Technical Analysis for the Trading Professional has a chapter on indicator optimization and she uses the stochastic in her example. Connie does use Tradestation software and examples shown are via this program.
the 00 system seems to have garnered a lot of attention in a short time at the factory forum. Daily candle matched with same colour hourly candle trading down to 15min on break of 00 price level all very robust multiple timeframe analysis. One concern is fixed profit of five pips with ten pip stop loss. Get a run of two misses and you require five trades to get back in the black.
If you have a positive expectancy then one to one with some form of letting profits run would be my idea
I haven't looked into it at any detail but I would lean to back testing a 7pip 1:1 with 3pip trail once 6 pips hit? If you are running on hourly chart I would want to know on average the swing or hourly move is ie 12 pips then set a fixed target based on price action or swings ie 9 pips from 12 av. Etc. rather than arbitrary 5 pip amount.
I know some systems sink once a trailing profit stop is put in and this may be the case with the 00 system that the guy has presented but two consecutive losses and it's 20pips down the hole.
