Free Trading System by Kevin Davey (3 times World Champion)

February 27th, 2020, 05:52 AM

Hi,

In a free book by Kevin Davey (3 times World Champion), there is this Trading System:
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Input: entry6_xr(5), entry6_daysback(10);
Var: entry6_rrange(0);

entry6_rrange=high-low;

if entry6_rrange>2*stddev(entry6_rrange, entry6_xr)+average(entry6_rrange, entry6_xr) and close>close[entry6_daysback] then buy next bar at market;
if entry6_rrange>2*stddev(entry6_rrange, entry6_xr)+average(entry6_rrange, entry6_xr) and close<close[entry6_daysback] then sellshort next bar at market;
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that I wanted to improve by adding Stop and Reverse, and in Internet I found this formula (adding in Inputs: StopRev(1100):

If MarketPosition = 1 then Sellshort at entryprice-(StopRev) Stop;

If MarketPosition = -1 then Buy at entryprice+(StopRev) Stop;

but Tradestation 8, asks to replace: entryprice with: next bar and then the formula would become so:

If MarketPosition = 1 then Sellshort at next bar-(StopRev) Stop;

If MarketPosition = -1 then Buy at next bar+(StopRev) Stop;

but still getting with: Tools / Verify / Verify succefuls, entering the Strategy, no Buy or Sellshort signal appears.

If someone can correct the Stop and Reverse formula, thank you in advance.

February 27th, 2020, 06:52 AM

Shaban

If someone can correct the Stop and Reverse formula, thank you in advance.

I'm sure you will get some responses that will provide help.

Let me just say that, if you don't have solid programming experience, it is exceedingly dangerous to try pasting code you found on the internet into a strategy that you are going to allow to enter trades for you. Just be very cautious about your use of any code if you aren't very confident of your programming skills.

This word of caution may be unnecessary, but I did want to give it.

And good luck.

Bob.

February 27th, 2020, 08:54 AM

Thanking you for the advice, I wanted to specify that the Stop and Reverse, is just one of the filters I use in my tests (in this case as an alternative to the classic StopLoss);
obviously I also use other filters: overbought / oversold Indicators, AvgTrueRange (or ADX), etc...I will use the T.S. tested only when I am more than satisfied with the results obtained, not before.

February 28th, 2020, 12:04 AM

P.S.: Wall Street collapses....

I'll tell you how to get rich.
Close the door.
Be afraid when others are greedy, be greedy when others are afraid.

(Warren Buffett)

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February 28th, 2020, 12:00 PM

Above my paygrade. Maybe Kevin himself aka @kevinkdog can help you with this. Also @ABCTG is often very helpful with questions like this.

February 28th, 2020, 02:37 PM

I just tried the code on ES 30 min.
For ES 30 multiplier of 2 is too big: no trades.
So I changed the multiplier to 1: now there are trades.

I corrected your stop-and-reverse formula for TS 9.5/10.

Input: stoprev(10);

Input: entry6_xr(5), entry6_daysback(10);
Var: entry6_rrange(0);

entry6_rrange=high-low;

// if entry6_rrange>2*stddev(entry6_rrange, entry6_xr)+average(entry6_rrange, entry6_xr) and close>close[entry6_daysback] then buy next bar at market;
// if entry6_rrange>2*stddev(entry6_rrange, entry6_xr)+average(entry6_rrange, entry6_xr) and close<close[entry6_daysback] then sellshort next bar at market;

if entry6_rrange>1*stddev(entry6_rrange, entry6_xr)+average(entry6_rrange, entry6_xr) and close>close[entry6_daysback] then buy next bar at market;
if entry6_rrange>1*stddev(entry6_rrange, entry6_xr)+average(entry6_rrange, entry6_xr) and close<close[entry6_daysback] then sellshort next bar at market;

//If MarketPosition = 1 then Sellshort at entryprice-(StopRev) Stop;

// If MarketPosition = -1 then Buy at entryprice+(StopRev) Stop;

If MarketPosition = 1 then Sellshort ("Reverse1") at next bar (entryprice-StopRev) Stop;

If MarketPosition = -1 then Buy ("reverse2") at next bar (entryprice+StopRev) Stop;

February 28th, 2020, 02:52 PM

Tom1978

I corrected your stop-and-reverse formula for TS 9.5/10.

Thank you very much, Tom. Tomorrow I'll send you an e-mail.

April 19th, 2020, 09:42 PM

I modified it but still needs a lot more before this strategy generates any hope

Code

Input: StopRev(14), p(5), z(1.96);
Var: range(0), zscore(0);

range = high - low;

If stddev(range, p) = 0 Then
  zscore = (range - average(range, p)) * 10000
Else
  zscore = (range - average(range, p)) / stddev(range, p);

If Absvalue(zscore) > z and close > close[p] then buy next bar at market;
If Absvalue(zscore) > z and close < close[p] then sellshort next bar at market;

If MarketPosition = 1 then Sellshort ("Reverse1") at next bar (entryprice-StopRev) Stop;
If MarketPosition = -1 then Buy ("Reverse2") at next bar (entryprice+StopRev) Stop;

Shaban

Thank you very much, Tom. Tomorrow I'll send you an e-mail.

April 20th, 2020, 12:54 AM

murty

I modified it but still needs a lot more before this strategy generates any hope
;[/CODE]

For murty: Thank you and ..you have a PM

Free Trading System by Kevin Davey (3 times World Champion)

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Free Trading System by Kevin Davey (3 times World Champion)