Seer logo - advanced backtesting for stock, futures and forex trading systems using using technical analysis indicators, charts, money management and position sizing
screenshot
screenshot
screenshot
screenshot

Stochastics - An example of a trading system using Slow Stochastics

example trading system

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.

This trading system is included in the example trading systems that come with the free 30 day trial EOD version of Seer. Once you have filled out this form simply download Seer to try this trading system.

#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;
}
© 2008 seer trading systems ltd
feedback FAQ legal privacy