Key Reversals Trading System

 

To Import this Trading System,

1. Open the Configure Modules Window and
2. Right click on the window. 
3. Then choose Import and select KRUpDn.mod

This module is included in Stormset2

This method scans for symbols that have reversed directions and are now trading near their open. Many times a symbol will trade down in the first half-hour to hour of trading, then reverse to the long side.  These reversals can also happen in the first few minutes of trading.  

For Longs, if the price has declined 0.75% from the open and is now trading at the open, it's alerted for a potential long entry

For Shorts, if the price has traded up 0.75% from the open and is now trading at the open, it's alerted for a potential short entry

For higher probability trades, the criteria of prices > 50 is included

In both Long and Short cases, if it's traded both 0.75% above and 0.75% lower than the open, then it will not be alerted.  

In Stormset2 Key Reversals Down(only the short alerts) had the following backtesting results

568 Wins, Avg Win 0.22

670 losses Avg Loss -0.11

Total of 52.83 points

Other parameters 0.25% sliding stop, 1% target. Entries only between 10:30 and 12 pm EST

ALL THESE PARAMETERS ARE PRECONFIGURED IN STORMSET2

From 1/1/2005 through 12/22/2005, using this symbollist

Possible Variations:

•  Vary the percentage of 0.75% up/down from the open
• Add Daily Volume Strength criteira( DvsD) to specify Volume Criteria