Stochastics - An example of a trading system using Slow Stochastics |
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The Stochastic Oscillator was developed by George Lane. This simple trading system uses the slow stochastic which uses an additional moving average to smooth the %d line.
Rules:
Sell when the %k line crosses below the %d line from above the 80 Level.
Buy when the %k line crosses above the %d line from below the 20 Level.
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#Basic Stochastics System
#Sell when the %k line crosses below the %d line from above the 80 Level.
#Buy when the %k line crosses above the %d line from below the 20 Level.
#Get the Stochastics columns
my ($k,$d)=SS(5,3,3);
unless (Position) {
#Buy if the %k crosses above %d and if %k is less than 20
BuyOpen if Crossover($k,$d) and Today($k)<20;
}
else {
#Sell if the %k crosses under the $d and if %k is greater than 80
SellOpen if Crossunder($k,$d) and Today($k)>80;
}
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