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Mach-Trend Platinum Pro indicator and trading system for Tradestation

Mach-Trend Platinum Pro is an easy to use trading strategy that is compatable with Tradestation and stays on trends longer

This indicator for Tradestation can deliver very high risk reward ratios due to its resistance to be shaken out of an established trend without a valid reason

Video of Mach-Trend platinum pro locking onto some nice trends. Shown on speeded up daily data

Smooth trending stocks like this are not easily found so creating scanners to find them is well worth it. Trading systems matched to markets bring better results.

The large risk v reward ratios are demonstrated with the two biggest wins. Note how the ugly price action in the mid trend does not reverse the trading system

Mach-Trend Platinum pro shown below with length 50 on GC Gold futures 15 minutes

The indicator plot changes colour when the trend changes which give you a clear to understand signal. Settings for the strategy much be identical to match the indicator.

Mach-Trend Platinum pro on 15 minute Gold futures

Please visit the product guide above if you require this for a different platform.

 

Introduction and concepts of the Mach-Trend Platinum Pro strategy and indicator for Tradestation


This product does not fit into a "category" like other indicators do. The algorithm behind it is highly efficient at calling the trends. Very robust and solid product.

Features of this trading system: What is a trading system?

This is a method of having your trading decisions made for you. It can operate manually as you copy the trades, or automatically if you connect to an online broker and enable autotrading.

Features of this product and what they do


Length

This controls the period used by the central algorithm. Shorter values produce more trades and longer periods increase the frequency between trades.

Delay

This adds a "margin of nothingness" to reduce frequency of trades. If you imagine it like an examination pass rate being 60% under normal rules. If delay is 4 then the pass rate becomes 64% which makes it harder to pass the exam or in this analogy it makes it harder to change the trend from up to down and vice versa.

TradeLong - TradeShort 

The default setting is 1 which means if both are set to 1 it will take long and short trades. If TradeShort is set to 0 it will only take long trades.


Skew direction

This setting is used to favour a particular direction to make it easier or harder to take a long or short trade. EG it distorts the trend with a bias.

If you set skew to -3 it will go long much easier and it will be very slow to enter a short trade. Suggested for bull markets in strong up trends.

It is advised to keep these values to 4 or less with lengths > 30 and 3 or less with lengths of 30 - 60 and 1 or less when length is over 60.
To clarify short lengths can use bigger skew values and longer lengths need smaller skews.



Screenshot below top image = skew-3 middle image = skew 0 and bottom image is skew +3 notice the top image gets long faster.

Mach-Trend Platinum Pro skew settings, top =-3 middle =0 lower = 3




Skew =3 goes short easier than long.

To explain this setting better we use the analogy of a strategy that goes long on a 50 bar high but only a 20 bar low to go short ( short bias )

Skew =0

gives an equal bias to long and short

 

Skew =-3

To explain this setting better we use the analogy of a strategy that goes long on a 20 bar high but needs a 50 bar low to go short ( long bias )

 
Combo strategies using Mach-Trend can effectively take partial profits at a specified level.


Five percent rule

This is for those huge moves when being short of a market which is going into capitulation.
If there is just 5% of its value left Mach-Trend will exit the short position. Eg If you place the short at 100, the trade will exit at 5.
If it is not engaged by setting to 0, then it will stay in the short trade until the trend changes.


Exit on session close

Using this setting ticked is going to close out trades at the end of each day. Doing this will make drastic differences to end results. Cutting potential risk and potential gains.
This feature is part of Tradestation rather than Mach-Trend Platinum Pro, it is mentioned because of its importance.
Many traders do not like holding trades overnight, usually the reason is that they cant sleep with a big trade. The solution is to reduce trade size to a level that is comfortable or find markets with
a smaller deal size.


Timeframes

Mach-Trend Platinum Pro can be used on any time frame. Settings also influence results for example, if you used it will length 30 on a 15 minute chart, it will generate a similar amount of trades as it would if you used it at length 10 on a hourly chart.

 
Mach-Trend Platinum Pro strategy settings panel on Tradestation



How does Mach-Trend Platinum Pro indicator and strategy for Tradestation behave on "ordinary" markets?



Mach-Trend is a very clever system which when applied to dull markets generally behaves itself very well.

However a trader must understand that to achieve exceptional ratios, one will do much better by seeking exceptional markets to apply this systems to.

I have always tried very hard to explain the importance of market selection as it is of paramount importance to get good results, many people with intelligence bordering on the genius level have not understood me on this point, and the more I think about it the more incredulous it seems.

A word of advice: To catch more fish, go where the fish are. To catch more trends, go where the trends are.


What markets can Mach-Trend Platinum Pro be used with?


This product works on Forex, Futures, Stocks, Cryptocurrencies, Indices, Bonds and any other market that has a price you can display in the Tradestation platform

The shot below shows the method of colours used to make Mach-Trend Platinum Pro operate as a paint bar study. 


Mach-Trend Platinum Pro set up as a paint bar study


The enemy of trading systems is often caused by commission costs caused by high frequency over trading

Frequency = F


By reducing F by such a huge amount, traders can now enjoy the luxury of making money for themselves instead of just making their brokers richer with commissions from over frequent trading systems. This statement is particularly true of day traders of futures markets.

It is a horrible fact that brokers grab roughly half the value of your account each year in costs.

Mach trend will be able to save your account going the same way as 90% of losing traders.

It is widely know that 90% of traders lose money

Mach trend is here to help you change that horrific statistic.

The black hole in the image below is used as an analogy of a trading account caused by commission costs.


Black hole in outer space- Avoid having this in your trading account with Mach-Trend



Check out license prices for Mach-Trend Platinum Pro Indicator and strategy for Tradestation


User guidelines


Set up and importing instructions

After setting up on the chart and adding the strategy, it is time to do some study.

A good place to start is to run optimizations on the length.

If the top performing length is 54 then you can repeat the optimization with lengths from 34 to 64 and then also add the delay feature to the optimization with values from 0 to 10.

Then if you get the best result with length 48 and delay 4 you can repeat again and this time add the skew factor.

EG Length 48 can be set to 44 to 52
Delay setting from 2 to 6
Finally add in the optimization of skew from -6 to + 6

This manner of optimizing avoids the bad practice of curve fitting as you are growing on solid ground rather than finding a flukey result.


How to be a better trader by testing

Calculate on bar close = True ( typo corrected ) Mach-Trend is designed to signal no more than once bar bar as its for catching the big moves and not focused on little moves.

This page link below.  You can work through the steps shown on this page to find robust settings.

On this page (for advanced users only) is an in depth method to check a symbol and instrument and strategy combination for robustness showing how to test a trading system

Concepts behind Mach-Trend Platinum Pro
I am sure most of you will agree with this comment, but please correct me if I am wrong.

The single most annoying factor about trend following is the scenario below...

Our trend system signals a buy, so we buy, up she goes and we move up our stops to lock in the big gains and we feel happy that the trend will go much higher, then the uptrend makes a sudden larger than usual deflection and takes out the stop making us short.


The trend then begins up again and our short stop gets hit with a small but highly annoying loser, and we go long again making another nice profit. The "pig in the middle short trade" may have reduced the profit overall taken out of this difficult up trend by as much as 50%.

How many times does this happen to people? Very often I am certain. I don't know about you, but with me it becomes my mission in life to figure of different ways to remove the "pig in the middle" short trade from an otherwise "nice trend".

We have all doubtless experienced this situation many times and this is known as a "whipsaw trade". The usual response by the trader is to use slower systems and wider stops to give trades more space to breath. Or sometimes the trader will speed up his model to try and catch every little twist and turn, which results in a commission eating demon system which just over trades and makes the brokers richer.

A conversation with Ed Seykota about this dilemma spawned his memorable comment, "To prevent whipsaws, stop trading"

Reading between the lines of this comment, what he meant to say was he has had this problem many times, and nothing can be done about other than to stop trading altogether.

Whilst this statement is very valid, in the sense that killing off whipsaw completely is virtually impossible, there are many things we can do to reduce whipsaws. Mach-Trend is designed with this task in mind, often it reduces whipsaws as much as 30% and in certain nice trending markets it can achieve a 100% whipsaw reduction..

Rather than just slowing down a system, today's super fast computing speed enables us to make millions of calculations in the background, so putting this new found technology to good use Mach-Trend has reduced the problem considerably.


How does it work?

Mach-Trend first of all is monitoring a special trend algorithm and monitoring the urgency of the price action within the trend. In simple terms it is constantly buzzing away asking "Is this reversal going anywhere, is it serious". Its job is to follow instructions to stay on board the trend unless something really gives it hard evidence to reverse its position.

The key is to use intelligence in the code, instead of just making it desensitized to small movements. It has some real difference to the usual filters and is very robust in all market conditions.

View license prices for Mach-Trend Platinum Pro Indicator and Strategy for Tradestation

 

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The contact page here has my email address and you can search the site

 

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~ About ~

Precision Trading Systems was founded in 2006 providing high quality indicators and trading systems for a wide range of markets and experience.

Supporting NinjaTrader, Tradestation, MultiCharts, TradingView, MetaTrader 4 and MT5

 

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Page Created July 3rd 2023   - Updated Feb 10th 2024 New responsive page GA4 added canonical this. 5/5 html baloon  Cookie notice added