hello now. I'm back with another review of the trading system. In this installment, I will test this trading system and find out how the most accurate buy sell indicator works.
consecutive deal. Where I offer five tips for improvement. And if this content is for you, that's better than landing
The name of this system is The Non Sequitur. And like most trading systems, it can be applied to forex, options, stocks, cryptocurrencies, indices, or any instrument with significant volume and market participants. This strategy uses three free TradingView indicators. As always, the first indicator is the Dzwine Trend Indicator A-V2 per the author of the system. The exponential moving average length will be set to 52, and the straightening length to 10.
This study takes two interpretations of the moving average. In this system it will be used to confirm entry. The second free TradingView indicator is our old and dear friend SuperTrend.
This system requires the ATR period to be set to nine and the ATR multiplier to be configured to 3.9. SuperTrend will provide our entry signals. The third and final study to put on the chart is the famous qualitative quantitative estimation, or QQE Mod.
This indicator integrates data from the RSI and ATR in an effort to identify trend and consolidation conditions. This indicator will provide us with entry confirmations. Let's move on to the entry criteria and review some examples as it always does to list the rules and details of the system.
This chart is the Australian dollar against the hourly candles of the US dollar. The rules for entering a non-sequential long position are: First. QQE Mod should show a blue bar. Secondly, the direction indicator must be green. Finally, we are looking for a SuperTrend to buy a signal.
All rules are met on this candle. This is our trigger. We place our stop under the Dzwine Trend Indicator and target one to two. This hits our target. I have another long example.
Blue QQE modifier. The trend indicator is green, and SuperTrend finally gives a buy signal. Everything converges on this candle. This is our trigger candle. The stop is placed below the trend indicator bar, and our target is one to two. And that multiplies one to two.
Now we move on to the shorts. This is what I would test with the shorts. First, QQE mode should provide a red flag. Second, the Dzwine indicator should be red. Finally, the SuperTrend study should show a sell signal. Our three rules are met when this candle closes and act as the trigger. We place our stop above the trend indicator and target one to two. This hits our target. I'll show you another quick short example. First, the QQE MOD graph is red. second,
Dzwine direction indicator in red. Finally, there is a SuperTrend sell signal. All of their criteria are met on this trigger candle. The stop is placed above the trend indicator bar, and the target is one to two. This setting will achieve our goal.
I am going to give you some great ideas on how we can improve this system along with the result of falling traders. Now it's time to do whaRemember, this is just 100 tests on one machine. If you are considering using this system, please do all required testing and be sure to let our community know what you find out. This test was conducted on the Australian dollar against the one hour candles in US dollars.
It took two months less than two years to find 100 machines and the most winning streak was six. Most consecutive losses turned out to be eight. The win rate was 43%, which isn't bad for a one-two risk/reward trader. If all trades are risked at 2% per entry,
The overall profit on the account was a healthy 52%, but I have five specific ideas on how to improve this system. You can see the equity curve here. It gets you to the fast green, then it's standardized for about half of the test. This can be mitigated by moving the break-even stop on one-to-one.
In this case, creating such would have been profitable, thus mitigating the downward force of the account balance. What result would you give to this . I give this system a trader's landing score of six, because while the system was profitable across 100 tests, the indicators didn't seem to follow one another. Hence the name Non Sequitur, and I'll get into that now. Remember that the enemy of the great is the good. I have five ideas on how to improve this system. Look at this chart. many times during the test,
I noticed that the stop is only hit to move in the direction of the trade immediately afterwards. You can see here by optimizing the stops, these trades can be profitable or exited at break even. Again, the signals given by the system, like most systems, and monotheism turns out to be a failure. Look at this chart where there are three losses in a row. The first thing I thought of to filter this out was to incorporate the Triple SuperTrend strategy. Plus, this particular set of indicators has a hard time making you make big moves often. Look at this chart where QQ Mod is filtering this huge traffic. This has happened quite often and indicates that you need to adjust the indicator settings or use another indicator altogether.
Continue up to the previous point to change the indicators. The HalfTrend indicator seems to work well in this setup as QQE is absent from this entry. Fourth, it is in this setup where the Dzwine Trend Indicator loses a move. This system hardly misses many big moves.
That is why it must be improved. In addition, during testing, I noticed that the winnings on the account, most likely, will increase significantly using the dynamic profit-taking system. On this chart, you can see that exiting a buy signal for this sell could trigger risk
bonus of 3.22. And on that chart, you could have walked away with an impressive four and a half. Have a nice day, because you deserve it.t I'm doing.