Advanced technique #9 (System Selection Technique)
Submitted by Edward Revy on September 18, 2008 - 10:21.
Choosing the right strategy for trading is a strategy by itself. (from Edward)
All credits and special thanks to Arsalan, the author of this technique.
--------------------------------------------------------------------------
Hello everyone and thank you Mr.Edward Revy for publishing my ADX+EMA SYSTEM.
I want to share one very good idea with everyone.
This is not a trading strategy but a technique to determine which system to use and when. There are many systems available to use some are trend following systems like moving average crossover and some are oscillator based system which utilize indicators such as Stochastic, Rsi and William %R but if all these systems are good then why they work sometimes and sometimes they fail?
The reason is selection of a good system at wrong time.
Read entire post >>>
Hi,
advanced #5 is one of the favorites :)
ADX 14 is a standard number for any time frame. If you want it sharper and faster, try ADX 7, if you want it smoother and slower, try ADX 20.
Cheers,
Alex
Hi Arsalan,
You mentioned that you trade primarily on nifty trading.
I am also beginning to trade on nifty futures, can you please suggest which charting software you are using for your technical studies that is reliable enough to subscibe.
Thank You in advance
Hi Arsalan,
Great finding. I track nifty and I use Metastock 9.0 (it is pirated version) and I've subscribed to EOD data from a data provider for Nifty and Sensex.
I've not used ADX before so I need one small clarification. You said when ADX is rising or ADX is falling, what exactly are you refering to the +DI/-DI movement or the Primary ADX line.
Thanks & Regards.
Rajat.
Thanks very much for your explanation. You are very kind and nice person. Regards.
Anis
Thank you for this system selection technique. I think it's brilliant. What an edge. Every system is to some extent "curve fitted" to a specific set of conditions in the market. The ability to plug the right type of system to the conditions seems so advantageous. Finally, it seems that this would work best on long time frames such as the Daily Charts, where specific conditions will play out over longer periods and one will have the chance to react to the change and implement the right system. This is brilliant stuff. Thanks again...
Eric A.
Thanks friends for your beautiful comments.
Arsalan.
hey Arsalan,
im a bit confused about ur explanation regarding the ;
4)ADX IS RISING FROM LEVEL BELOW 18 AND THEN GOING ABOVE 23 - USE TREND FOLLOWING SYSTEM.
5)ADX DECLINING FROM LEVEL ABOVE 30 AND THEN GOING BELOW 27 - USE OSCILLATOR BASED SYSTEM.
what do mean exactly?does this system only use 3 levels (20,30,45)?
Dear Arsalan,
can this system determine what strategy to be used if im a intraday trader?any suggestion?
Post new comment