Sunday, May 6, 2012

THE COMPUTER VERSION OF THE SYSTEM

I have done a computer version of this system.
Every day the computer take the statistical results for the ST, MT and LT and does the following:

-a) if the new day result has the SAME sign of the previous day result just update the previous day balance amount with the new QLD[QID] value (if the indicator have a positive sign)[if the indicator have a negative sign]

-b) if the new day result have CHANGED sign from the previous day result check the volatility of the market and compare with the volatility threshold of that particular indicator and:
-b1 if the indicator volatility threshold is HIGHER than the market volatility than execute the trade taking the previous day money balance and at the market open switch the total amount from QLD to QID if previous day result had a positive sign and now has a negative sign[QID to QLD if previous day result had a negative sign and now has a positive sign]
-b2 if the indicator volatility threshold is LOWER than the market volatility than put that particular indicator in a cash mode until the next trade (change of the result sign)
all this is done also for the TT indicator that is a sum of the other three indicators.

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