Trend 2 - No Limits, No Stops - Up, Up, Down

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Rules:

Data set taken from 01/01/10 to 31/03/10

Trading Type: Stocks
Start Time: 08:00
Finish Time: 16:00
Stop Loss: None
Limit: None
Long/Short Trading: Long
Buy Rule:
-7 Day Close < -2 Day Close
-2 Day Close < -1 Day Close
-1 Day Close > 0 Day Open
Sell Rule:
If Day 0 Profits at Close > x% then take Profits; else
If Day 1 Profits at Close > x% then take Profits; else
If Day 2 Profits at Close > x% then take Profits; else
If Day 3 Profits at Close > x% then take Profits; else
Day 4 Close take Profits/Loss

Results:

Report:

Now this trend is a little more intersting. It shows some progress when the return percentage trigger is 1%, but tails off towards the higher ends. But this kind of hit and run tactics can be dangerous. It takes a long time to build up your gains when they are so small, and it can take one loss to wipe them out. But with a win average of 56% and a risk reward ratio of over 3 it may be worth looking futher into.

This trend actually beat the FTSE 100 which rose only 3% over these three months, but did not beat the FTSE 250 or FTSE AIM which both rose at just under 7%. At a growth rate over this period, which did include a Correction, of 5% this is never going to give amazing results, but for steady growth I am sure no one would complain if they had their money in a bank account that returned 5% per quarter.

All in all, this actually might be worth looking into. I will flag it up and go over it with more data at another time.

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