It can be tweaked. Buying the 70 period stochastic sub 35 on...

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Calvo

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31/10/22

23:11

Post #: 64511932
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Originally posted by kacy ↑

Hi Calvo, That's an interesting strategy. But it is unclear what stocks are in the universe. I suppose its all stocks in the ES (S&P500). Also, one comment on the youtube channel says:

"I backtested this strategy on the ES and noticed one big flaw. The strategy seems to have worked in the last 10 year bull market but shows consistent losses since the beginning of this year (bear market). I would advice everybody to be careful and do their own testing on stocks, often strategies work differently depending on what kind of market we are in."

I think the commentor has tested it on the ES index, which is different to the original test which was on a universe of ES stocks. But the comment could still be valid because the alg has a 40% stoploss and only buys stocks when they are under the 200 ma.

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It can be tweaked. Buying the 70 period stochastic sub 35 on MACD x is a sound strategy but will get caught on long down trends (this is where you need a trend lines instead of a trend filter) and take profits too early (this is where you need a trend filter) but above all in a normal market which is 60% of the time over five years it will make good money. Stop loss is weird ! no idea why he has it at 40% but 2x swing low will be more than fine providing you avoid long term downtrends.

Last edited by Calvo: 31/10/22

XJO Value at posting: 6,863.5
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0 Great analysis

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