Hi again guys,
Last post for the night, I promise to stop pestering you!
Here is a slightly more conservative system, with a -0.5 weighted price oscillator indicator to stop it from going long against the trend.
This makes the system very short biased and reduces the profit a bit from a less conservative play, but also smooths out the equity line a lot more!
Have placed hard stop at 10 points and take profit of 25.5 points i.e. max risk reward per contract is 1:2.55. We have to consider the system only has 1 contract open at a time, there is no position sizing to take advantage of compounded gains or losses. Also it won't extend the short if the intermediate trend happens to be downwards. If a bear market in gold eventuates this would be essential.
As you can see the expectancy for shorts is a lot lower than longs, because they are not supported by any indicator only my arbitrary time frames. But I think the fact stop-loss never hit on the shorts (see max loss for shorts) indicates there is some feasibility to the idea.
If Hour = 19 AND Minute = 0 THEN
Result = 1
ELSIF Hour = 5 AND Minute = 0 THEN
Result = -1
Result = 0
Return Result AS "Ind"
RETURN PriceOscillator[5,25](close) - 0.5
Would really like to see this tested over a longer timeframe but like I said my charts don't go back that far. Anyone willing to help me out? Would be much appreciated!
indicator1 = CALL timegoldshort
indicator2 = CALL priceosc
long = 0
IF indicator1 = 1 THEN
SELLSHORT 1 SHARES AT MARKET THISBARONCLOSE
IF indicator2 > 0 AND long = 1 THEN
SELL 1 SHARES AT MARKET THISBARONCLOSE
long = 0
REM Exit short
IF indicator1 = -1 THEN
EXITSHORT AT MARKET THISBARONCLOSE
IF indicator2 > 0 AND long = 0 THEN
BUY 1 SHARES AT MARKET THISBARONCLOSE
long = 1