Simple Linear Regression Trading system. - page 4

Linuxser
5822
Linuxser  

A really Easy to read and understand paper about RA. Don't miss it.

Files:
Linuxser
5822
Linuxser  

Another PDF about LR, with a simple explanation, all details about this indicator, calculation and practical application.

Files:
wah_castle
12
wah_castle  

Thanks a lot for the article. It is a good reference.

vitaliy
14
vitaliy  

hello, I was trying this system for a few weeks now unfortunatly with some negative trades. Could you please check my screenshots with entry points and tell me whether my enters & exits are correct. Thank you

1st screenshot, I will exit if the current bar will close above the line.

2st screenshot buy order will be closed where the sell order plased ? and sell order closed 2 bars later ?

Files:
eurjpy.jpg  193 kb
eugbp.jpg  182 kb
Linuxser
5822
Linuxser  
vitaliy:
hello, I was trying this system for a few weeks now unfortunatly with some negative trades. Could you please check my screenshots with entry points and tell me whether my enters & exits are correct. Thank you

1st screenshot, I will exit if the current bar will close above the line.

2st screenshot buy order will be closed where the sell order plased ? and sell order closed 2 bars later ?

Hello,

As I answered the PM...

Your screen looks fine but this negatives are part of the system and comes often.

However I'm unable to decipher easily as I could with other indicators which trade would be a winner and which a loser with a certain level of accuracy. Maybe we need to read bit more

But to get another word than Chande's word I'm reading the attached article. Thanks to your post I've just discovered the pdf.

Note: Remove the channel and use simple Linear Regression Line.

Files:
266star.pdf  193 kb
vitaliy
14
vitaliy  

Thank you! Your advise to add RSI was pretty usefull. RSI eleminated some falty order however some are left ( see attached screenshot). Just want to make sure that I'm on the right track. Whenever the order is plased it has to go along with RSI, so RSI should show a bar in the direction of the order on previous candle? please see attached screenshot, just wondering whether it is my mistake to take short order when the bar marked by the red dot just got opened or it is unvoidable faulty order.

Files:
screen2.jpg  83 kb
Linuxser
5822
Linuxser  
vitaliy:
Thank you! Your advise to add RSI was pretty usefull. RSI eleminated some falty order however some are left ( see attached screenshot). Just want to make sure that I'm on the right track. Whenever the order is plased it has to go along with RSI, so RSI should show a bar in the direction of the order on previous candle? please see attached screenshot, just wondering whether it is my mistake to take short order when the bar marked by the red dot just got opened or it is unvoidable faulty order.

Well. We've talking about RSI for LabTrend but could be tested here I suppose.

The systems as is posted is the original Chande idea and with just a few changes using only linear regression indicators.

Losers are part of every system because there is no way to get 100% winners. But if we want a mechanical system where there is no too much space to human mind intervention to interpret the rules I suggest to start testing EAs.

Otherwise, If we like our mind plays a bit with the information coming from market (visual information) and we want to have last word on our hands before click for a trade we stay with a manual system.

The mind of an experienced trader is like the mind of a doctor who recognizes in a patient certain symptoms by just taking a look. On this case, a trader could recognize bad trades even when the indicators are saying another thing.

As example we could quote about the period when the market is almost empty (low volatility periods on certain hours). We have a lot of signals on that hours but our mind knows is not a good time to trade.

On that way (only LR indicators) I was thinking today on a variant. Please, see picture. And tell me how much see losers do you see.

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lr951753.gif  20 kb
lr951754.gif  20 kb
vitaliy
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vitaliy  
Files:
screen3.jpg  69 kb
Linuxser
5822
Linuxser  
Files:
lr951755.gif  20 kb
vitaliy
14
vitaliy  

I really tried to search for PolyfitMA but couldn't find it... Could you please post a link or file of that indicator ?