CHAPTER 6

Trading Strategies That Work (or the Big Damn Chapter on Trading Strategies)

Are you ready for some good trading strategy ideas and the programming behind them? Over the past 20 years, we have seen thousands of trading ideas, schemes, and systems. Unfortunately, most of them ended up in the trash can. Sometimes, however, we have scratched our heads with raised eyebrows and said, “Hmmm.” The next strategies that we present are based on ideas that have proven successful time and time again. We present these systems as works in progress; as you will soon discover, trading system design has no end. No matter how long and arduously you work on a trading system, you will never be 100 percent satisfied with the results. We don't want you to be satisfied with the systems that we present. We want you to make them your own. Use the programs as templates and branch off in an entirely different direction.

The manner in which we present these trading systems will guide you through the steps necessary to translate a trading idea into software. We first start by describing the trading idea in general terms and our objectives. The tools that will be used to build our trading methodology are then defined. Pseudocode (half English and half computer-speak) is then used to bridge the gap between system description and actual code. Finally, the exact EasyLanguage program is provided. Since testing several different markets over an extended time period is cumbersome with TradeStation, we ...

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