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The video below shows a 10 year simulation run of the Precision stop 2011 version on 70 UK stocks.

 
  • Start capital         £10,000
  • End capital   £176,755,656

 

  • Maximum drawdown 24.29%
  • Max Underwater days 260
  • Maximum gearing used 4.71
  • Risk fraction used 25%
  • Number of stocks 70
  • Start date January 4th 2000
  • End date October 12th 2010
  • Total number of trades 17,270
  • Commissions applied 3% per trade
  • Slippage factor applied 50%

View full report details here

 

 

Note If you have trouble viewing all the numbers when watching the video, try adjusting the resolution to 720 HD which is found on the video toolbar HD.

 

17 Years of statistics demonstrating the robustness of the Precision stop system

The ratios are important

 

The chart on the right shows the risk reward ratio of the Precision stop system on the constituents of the FT-SE250 index simultaneously.

 

Achieving a high risk reward ratio is a vital part to any trading system, the chart on the right demonstrates the robustness of the system, over 17 years of historical testing it maintained a risk reward ratio always greater than 1.7:1 and overall it averaged a very healthy (black line) 2.26:1 over this period.

Operating at 1.7 RR, a system is profitable with any  win /lose ratio that exceeds 36.5%.

As the odds of winning on any trade come out at around 47-49.7% one can see easily that the maths work nicely.

 

The system sweet spot is between 15-20% of Equity risked  with 17% being optimal

Equity % risked

 

Knowing how much risk to stop losses on your portfolio is a frequently overlooked topic.

But this factor alone makes a STAGGERING difference to overall profits, draw downs and also the most important of the over looked subjects, HUMAN EMOTION.

 

If one builds a system with huge profits but has potential for huge 50% draw downs in equity, one would have a heart attack on most bad days!

The chart on the right shows the average draw downs of the Precision stop system produced by varying overall risk to stops.

 

More about how much to risk

 

 

17 Years of statistics showing the win to loss ratio of the of the Precision stop system

The ratios matter...

 

System win to loss ratio is another important factor to consider when testing.

If one of the two ratios is poor, the other must be higher to compensate this.

If you remove commissions and market spreads from the equations, you arrive at a 50-50 chance of winning on any trade.

When we allow for costs, this is reduced slightly as the chart on the right illustrates. 

As winning trades are left to grow, and losers are cut fast, the combined effect of these 2 ratios is PROFIT

 

 

The essence of trend following is to "let go of control" and go with the flow of events

Patience is the key

 

Having faith in your system counts, or you will be unable to stick to it. The chart shows 2 small losing trades (page centre) which lasted 1 and 2 months each, Sticking with the system paid off in multiples on the 2 later trades. The dead dull markets of 1995, didn't make much for trend following systems.  Sooner of later the market always makes its mind up where it wants to go..... The Russian crisis of 1998 and the Tech boom and bust of 1999,2000 paid out huge gains for trend followers.

 

 

 

                              Is the trend up or dowm? Its irrelevant, just follow it without asking "why?"

Why trend following?

  • It allows huge potential gains that are missed when profit taking at "target levels"

  • Improves risk reward ratios

  • The only logical method of trading

  • Cuts out the hard work

  • Ensures you will catch all the large moves

  • Keeps losing trades small

  • Relaxed stress free trading

  • Makes superior gains compared to other systems

Read more about the system

 

 

 

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Customer Comments

 

 

Expert  traders know the power of a well designed system in following a major trend

 

  1. A large trend up from 16 to 310 is caught with ease using the Mach-Trend Platinum pro system.

  2. The movements that the experts are predicting are expected to be much more dramatic than the examples shown

  3. Regardless of whether your trade tracks the short moves or the long moves, you need a good system to help you survive the financial meltdown.

Time is running out... Credit availability is drying up...The cost of borrowing is gradually rising....US National debt to be equal to 35% of the entire worlds GDP in 3 years....33% of all USA tax revenues will be required just to make the INTEREST PAYMENTS on the collosal national debt...... Eventually the US will have no option other than to print money or default on their debt repayments...... US Dollars will likely cease to be the reserve currency of the world........Stimulus is running out, the Federal reserve has fired all its bullets and the only options left are to print more money or to default on the debt payments.....The problem is infinitely worse than in 1929 due to the added problem of this huge government debt...... In 1929 the USA still had a positive trade surplus and a manufacturing based economy..... In 2011 the USA will have no such resources to fall back on........The two most likely scenarios are both likely to lead to disaster......Hyper-Inflation at 40%+ or Deflationary implosion....... Either of the two possibilities will lead to huge moves in the worlds financial markets........Trading of these massive moves could be the only way out..........Wise proffessional traders have already started building huge dollar short posistions in anticipation of the debacles to come.....Many people will suffer as a result of the irresponsible un-elected Federal reserve operatives..........Many more people will lose their homes......Millions of jobs will be lost......Those who are unprepared will become impoverished in ways that they could never imagine.....What is your strategy to trade these violent market trends?.........ARE YOU  READY?

 

Systems, Indicators and user functions for Tradestation and Multicharts.

 

This collection of user functions and indicators below have been carefully assembled to provide a versatile tool kit for the advanced trader.

None of the items below have lots of flashing lights, bells or buttons as you find in the "Holy grail" type worthless advertisements, and all have been carefully chosen because they actually work as trading tools.

 

Some have been coded by myself while others are the work of some of the best technicians worldwide.

I have re-coded most of these into Easy language format. (ELA, ELS)

 

There are some free items here which you can try out by sending me a mail and specifying which ones you wish to try out. Of course if you require something that is not here I would be very pleased to hear from you.

 

If you need any indicator, functions or systems coded into Easy Language, Metastock, vb.NET or C# format, then feel free request it.

 

                                                                      Request FREE indicators or ask a question

 

Please sample my free products before buying so you can assess that my programming is reliable, stable and accurate in its execution. Roger

© Roger Medcalf 2005 - 2010 ... You may not reprint text or images without permission

Compatible with....

Indicator

Volume flow indicator (VFI)

Designed by Markos Katsanos this oscillator has many excellent qualities. Useful as a trend confirmation indicator, an overbought oversold oscillator, divergences between the price and the VFI are usually very reliable

VFI gets the vote of confidence from Precision trading systems as being a "must have" tool in the discerning traders kit

Please click below to see some more detailed examples of charts with the VFI plotted...More details and examples

 

FREE   Stocks, Futures, Bonds, Forex (needs volume to run)

 

 

Author: Markos Katsanos. (Open EL code)

Compatible with....          Indicator + function

Demand Index

An excellent oscillator that is versatile in its applications, computing its values from price and volume. It can be used as a divergence indicator and a trend following indicator. I have added a smoothing length feature to suit the needs of the individual user.

I find this indicator very useful for observing intra-day price action in actively traded stocks and futures...........More details and examples

FREE  Stocks, Futures, Bonds, Forex, Indices etc

Author: James Sibbet. ( Open EL code )

 

Compatible with....         Indicator + function

Precision Lagless Average

A Lagless moving average with no overshoot that outperforms all other known industry standard moving averages. Comes with features including length changing algorithms and an anti-reverse option to minimise over trading in congestion areas, the result of 9 weeks intensive and complex coding after someone told me that the Hull average was better than the Jurikes JMA. In one session I was able to improve on the Hull average, but it took me a lot longer to improve on the Jurik JMA offering.......More details and examples

 

Price $297 (Pay-Pal)  Buy this item

Stocks, Futures, Bonds, Forex, Indices etc

 

Author: Precision Trading Systems. (Protected EL code)

 

Compatible with....    Indicator + function + signal

Precision Stop

Trend following system and indicator that self adjusts its distance to suit noise levels and volatility factors, making it more "intelligent" than Parabolic SAR, or ATR type indicators.

Can be adjusted to suit any time frame from day-trading to long term trend following by adjusting MULTI settings, features include a neat max and min percentage distance setting to cater for individual tastes.

Takes the guess work out of knowing when the trend is up or down, based on your own input values.......More details and example videos

 

Price $125 (Pay-Pal)   Buy this item

Stocks, Futures, Bonds, Forex, Indices etc

 

Author: Precision Trading Systems. (Protected EL code)

Compatible with....          Indicator + function                                     Insync Index

A "consensus" oscillator that highlights trend turning points, computing its values from an array of standard oscillators such as RSI Stochastic and Money Flow index.

It is best applied to range bound markets rather than trending ones.

 

I have added a REALVOLUME true-false feature  for users who use both tick volume and trade volume..........More details and examples

 

FREE     

Stocks, Futures (Unsuitable for Forex)

 

Author: Norm North. ( Open EL code )

Compatible with....           Indicator + function                       Precision divergence finder

A complex piece of code that observes multiple look backs of Demand Index lengths to hunt out when divergences exist.

Often produces stunning signals at exact market bottoms.

This is not an "always in the market" indicator and only flags up when sets up occur that show a real divergence in a market.

As Demand Index uses volume, to perform at its best this indicator needs real volume enabled..............More details and examples

 

Price $167  (Pay-Pal)   Buy this item

Stocks, Futures, Bonds  (Unsuitable for Forex)

 

 

Author: Precision Trading Systems. (Protected EL code)

Compatible with....              Indicator + function                     Trade Volume Index  ( TVI )

Beautiful piece of work by Steve B Achelis, which I used in some of my early systems. Makes for a smooth analysis of volumes flowing in and out of markets and has always been one of my favourites.

I have altered the code to allow length changes and smoothing.

.

Adds the "Volume dimension" to your price analysis in a clear and precise manner. This indicator is a valuable addition to system filters to confirm trend direction...........More

 

FREE

Stocks, Futures, Bonds, Forex, Indices etc

 

Author: Steve B Achelis. ( Protected EL code)

Compatible with....              Indicator + function                                    Q-Stick

A Simple and yet very efficient way of defining if a trend is in a bull or bear phase. Probably the best piece of work that Chande ever turned out, and yet seemingly forgotten by the whole world.

Setting lengths to 80 or more makes for a smooth analysis of trend, and the crossing of zero indicates trend direction.

 

See how early it signalled a bear move in the example when it crossed zero. Can be used as an short term oscillator with lengths less than 10 and often gives very early signals...More

 

FREE  

Stocks, Futures, Bonds, Forex, Indices etc

 

Author: Tushar Chande. ( Protected EL code)

Compatible with....                Indicator + function Precision Volume (Tick volume for real-time )

An indicator I made for measuring demand-supply imbalances.

This indicator will only work correctly if used on real time data with tick volume enabled.

 

Early warning indicator ( Requires confirmation )

An oscillator type indicator which measures demand and supply imbalances in an easily understood form

 

Above zero = Demand > Supply over sampling period

 

New indicator highs or lows over a chosen long length of (100 bars+) often foretell a strong move is coming..........More

 

FREE     

Stocks, Futures, non-traded Indices (Unsuitable for Forex)

 

Author: Precision Trading Systems. (Protected EL code)

Compatible with....           Indicator + function           Precision Index Oscillator ( Pi-Osc )

 

Highly sophisticated "consensus" indicator comprised of many different component signals. A real technicians tool that measures everything from divergences to probabilities to unique chart patterns in a single market indicator. 

Best results are given when analysing range bound and choppy markets rather than trending ones.

 

Some of its components use real volume so for this to perform at its best this indicator needs real volume............More

 

Price $397  (Pay-Pal)   Buy this item

Stocks, Futures, Bonds  

 

Author: Precision Trading Systems. (Protected EL code)

Compatible with....

 Indicator + function + Signal

Precision Mach-Trend

Designed to reduce whipsaw trades in trending periods and help the user reduce costly F expenses.

Mach-Trend is superbly simple to use, and is suitable for all ranges of traders. Calculated using advanced mathematics, this indicator will reduce your F and improve your overall performance. Mach-Trend Platinum pro has fully available parameters enabling advanced optimisations for the sophisticated user.........more information.

 

Price $995  (Pay-Pal)   Buy this item (demo available $197)

Stocks, Futures, Bonds, Forex  

 

Author: Precision Trading Systems. (Protected EL code)

 

Compatible with....          Indicator + function                              Precision Gravity System

 

A complex piece of code that observes multiple phases of planetary orbits, to calculate extreme points of price sets. The relative gravity of the "sun" and "moon" are calculated using advanced physics mathematics.

The first system of its kind to be introduced to stock market trading systems, its is still under developments.........more

 

 

Coming soon

 

Stocks, Futures, Bonds  (Unsuitable for Forex)

 

Author: Precision Trading Systems. (Protected EL code)

Compatible with....           Indicator + function

  Money flow index MFI

 

Highly effective volume indicator showing money flowing in and out of securities. Works well as an over bought oversold oscillator and can be used for divergences as well. Ranging between 0 to 100 the MFI crossing above or below 50 can be used to identify a bullish or bearish condition of a trend changing even.....More details and examples

 

FREE

Stocks, Futures, Bonds, Forex, Indices

 

Author: Unknown. (Open EL code)

     

 

 

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                To request a free indicator, drop me an email and I will send it off to you (usually within one hour)

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