Trend Following + Range Trading

[Wide Tailz]

Greetings!

Here is the range system to harvest the chop. 5 lines and p/f 5++
I may just scrap the trend system after seeing this:

 

[trend2009]

nice idea. but I doubt it is easier than timing the market itself.

Quote from Wide Tailz:

I had a crazy idea when looking at a trend following equity curve. It looked a lot like a trending stock.

The various channeling and horizontal resistance triggers looked like they may be useful.

Then it occurred to me that these thresholds could be used to switch the capital in the trend system on or off.

However, the inverse of a trend following system is a range system (I.e. market maker). Stewart Thompson calls it the Pgen.

So why not switch the trend system off and run a Pgen while the market is thrashing, then switch back when the trend system's equity curve starts outrunning the Pgen's?

 

[athlonmank8]

Run it till it breaks

 

[Wide Tailz]

Quote from trend2009:

nice idea. but I doubt it is easier than timing the market itself.

The idea is to let the higher order trend system do the timing between the two equity curves, the same as how the main trend system times the instrument.

I can't seem to get tradestation to recognize two equity curves at the same time. Oh well. Time to move on?

 

[JaiSreeram]

TradersStudio has the feature of "Equity Curve Feedback". Please see here:
http://www.elitetrader.com/vb/showthread.php?s=&postid=3366121#post3366121

 

[Wide Tailz]

Thanks for that.

I've got a funny feeling I'm going to settle for 2 simultaneous strategies running from one common program with a money management subroutine based on an historical array of daily buying power divided by leverage, or similar. You would think tradestation should have something like this built in. So far it's been the best out of three platforms I've tried (compared to seer and ninjatrader).

I just opened the taps on the trend program this week. First time I've ever traded real money on an automation. It's a strange feeling!

 

[murray t turtle]

Quote from J.Joseph:

So you can pick the end of a trend as it is happening?
So you can tell in real time when the end of a trend will lead to a sideways move as opposed to a trend reversal? Do whatever you want. You are clearly god and you will be the richest man on earth in 2 years.

====================
Good sarcasm

And while trend following is NOT predicting;
i just did a brief study on the East TX piney woods;

It's definite area, map marked by an edge, where the rainfall differs much from the TX desert[Ft Bliss/Mexican border TX, LOL ]

Actually the Bible, [as your sarcasm perhaps hinted ], makes only few, but infallible predictions about cattle,wheat,barley, silver or gold.....

 

[trader198]

yes,when one strategy does not work, the opposite one will work well.
if fading does not work,then breakup works.

most markets are in the middle of range-band and trend. only few markets trend very well, also only few range waves well. those are two extremes.

That is why I do not stick to one strategy, I frequently switch. but I stick to my rules: the plan corresponidng to every strategy.

switch is not so easy. often when I saw a double bottom on a rally, I tempt to buy,but I also see double top. that makes me hesitate.
at the mean time, if the market is dropping, I saw a double bottom, I also see a double top (if it drops continuelously).

after a while, I get used to it. but the better way is: stick to one sttargty. if the market condition does not warrant the strategy, walk away or shut down the computer. so your mind is not in either or state.

 

[dwpeters]

I have a hard time predicting a trend or trading range in advance though they are easy enough to recognize after the fact. I keep my trading real simple. I have a long term (months) trend following strategy and a short term (days) counter trend strategy among others that I just run all the time. Not trying to be the best, just trying to make money consistently and it has been working for me.

 

[brisvegas]

Quote from Wide Tailz:

Interesting.

I still maintain that coupling a proven trend system with a proven range system and switching when the curves cross (plus a threshold amount) would beat either system, hands down, had they gone solo.........

Your thoughts?

+1