Ryan Jones' PowerTrade

["Lance Fisher" <lance@xxxxxxxxxxxxxxx>]

Hello List,

 

I’ve been getting e-mails from Ryan Jones’ site “PowerTradeSignals.com”
lately. Although I normally dismiss this kind of stuff, I recently read
something about this that has me curious. 

 

PowerTrade is apparently a trend following type of method that trades in
the direction of the intermediate term trend after a retracement has
occurred. What I’m curious about is the method PowerTrade uses to define
“retracement”.

 

According to the following link, which I received in a recent e-mail,
“PowerTrade uses a proprietary oscillator that takes into account both
price and time as a COMBINATION before it generates a signal after a
retracement has occurred… the more shallow the retracement in terms of
price, the longer it will take before PowerTrade will generate a
signal”.

 

http://www.powertradesignals.com/upload/PTChart12-3-01.doc

 

My questions are…

 

1)       Does anyone know whether this method uses limit or stop orders
for entry?

2)       Is anyone familiar with a “time weighted oscillator” that would
fit the description in the above link?

 

TIA.

 

In the spirit of giving something in order to get something, below is
some code I wrote awhile back that is basically a modification to a
system Jones included in his book “The Trading Game”. It enters on a
volatility breakout after a retracement in an intermediate term trend.
Jones’ original system used market orders. I also included % based
profit target and stop loss exits and a Narrow Range filter. Although it
performs “OK” on the QQQ, SPY, and some volatile stocks, I have never
traded this system (and probably never will). 

I like the concept of buying retracements in the direction of the
intermediate trend, and the system below does that. It is also a perfect
example of a system that can be easily over fitted to the data, look
great on paper, but kill you in real trading. That said, I also believe
It's possible to make money with this type of system if you are VERY
careful with how you test and apply it.

 

Happy Holidays

 

-Lance Fisher

 

 

{*************Code Below*******************}

 

Inputs: Length1(25), {Intermediate Trend Length}

                Length2(6), {Minor Retracement Length}

                        Price(Close),

                LongStretch(1.3), {Long Entry = Tomorrow's Open +
(TrueRange[0] * LongStretch)}

                ShortStretch(1.8), {Inverse of above}

                NRfilter(00), {Calhoun/Crabel type Narrow Range filter}

                NRsize(01), 

                NRLookBack(05),

                ProfTgtPct(.05),

                StopLossPct(.08),

                MaxHoldBars(10);

 

Vars:   AvgVal(0),

                NR(00),

                SumFilt(00);

 

 

AvgVal = Average(Price, Length1);

 

Condition1 = AvgVal > AvgVal[Length2] AND 

                     Price < Price[Length2] AND 

                                     Price > Price[Length1 + Length2];

 

Condition2 = AvgVal < AvgVal[Length2] AND 

             Price > Price[Length2] AND 

                     Price < Price[Length1 + Length2];

 

If NRfilter = 01 then begin            

NR = Highest(H, NRsize)-Lowest(L, NRsize);

 If NR >= Lowest(NR, NRLookBack)[1] then Value1 = 1

            else Value1 = 00;

End;

 

SumFilt = Value1;

 

Condition99 = SumFilt = 00;

 

{Long Entry}

If Condition1 And Condition99 Then 

            Buy Next Bar at Open of Tomorrow + Round(TrueRange *
LongStretch, 3) Stop;

 

{Short Entry}

If Condition2 And Condition99 Then

            Sell Next Bar at Open of Tomorrow - Round(TrueRange *
ShortStretch, 3) Stop;;

 

 

{Long %ProfitTarget and %StopLoss}

If MarketPosition = +01 then begin

            ExitLong ("%L.pt") tomorrow at (1 + ProfTgtPct) * EntryPrice
limit;

            ExitLong ("%L.sl") tomorrow at (1 - StopLossPct) *
EntryPrice stop;

End;

{Short %ProfitTarget and %StopLoss}

If MarketPosition = -01 then begin

            ExitShort ("%S.pt") tomorrow at (1 - ProfTgtPct) *
EntryPrice limit;

            ExitShort ("%S.sl") tomorrow at (1 + StopLossPct) *
EntryPrice stop;

End;

 

{Max Bars in trade exit}

If BarsSinceEntry >= MaxHoldBars then begin

            ExitLong market;

            ExitShort market;

End;

Attachment: Description: "RYANS HOPE2.ELA"