Three Trading Systems Series Week 5 – Can I Ask You a Question?

This excerpt is for educational purposes only and is not to be interpreted as trading or investment advice.  See Terms Of Use here.

Welcome to Week Five of the Three Trading Systems series!

The Christmas period and the typically associated “Santa Claus Rally” has come good, and all three Systems are making money.  The Leap of Faith and the Dow/Gann Trading Systems are outperforming the All Ordinaries at this point too, which is partially expected.

Below is a chart of the returns since this experiment started (The All Ords are in Yellow):

2016_01_03_Week5 - 3TSComparative Returns

I added this chart to the excel spreadsheet I’m using to track the three systems now – something I didn’t think of when this experiment started.  It’s just a touch painful – and it’s not the only thing I didn’t anticipate, work-wise, when I started this a few weeks back.  Of course, that is part of why I started it, to see what would happen and what would evolve, and even if any discussion was generated from it.  Sometimes the only way to tell is to have a go, or as old Pat Hearne used to say – “You can’t tell until you bet.”  At the beginning, I didn’t know in advance what would be involved, what I should track, or how, etc.  So I’m kind of adding bits as they come up or become applicable.

Which brings me to a question I would like to ask you.

Given that the workload for this series is far more than I intended – running and tracking three completely different trading systems results, and it doesn’t seem to be too popular (compared to my other posts), I thought I would ask:

  • Does this series interest you?

Please, tell me honestly.  And if it does in any way:

  • Where would you like to see this series go?

Is there anything you would like to see more, or less of in this series.  For example, that chart above – I thought it was a good way to visualise it all.  But even if there is something completely different or new (a new system, less of something, a different way to track or show things) let me know.  All feedback is welcome!

You can leave a comment below, or email me (dave [at] asxmarketwatch [dot] com).

Ok, let’s check out the trades and results!

Leap of Faith Trading System

Starting Value: $50k,  Current Portfolio Value (since November): $50,493.76

Equity Curve for the Year (2015):

Leap of Faith Trading System Week 5

Current Trades:

2016_01_03_Gap Up_Leap of Faith TS_returns

Dow/Gann Trading System

Starting Value: $50k,  Current Portfolio Value (since November): $52,242.00

Equity Curve for the Year (2015):

2016_01_03_DowGann

Current Trades:

2016_01_03_DowGann_Returns

Moving Average Channel Trading System

Starting Value: $50k,  Current Portfolio Value (since November): $50,225.21

Equity Curve for the Year (2015):

2016_01_03_MA Channel TS

Current Trades:

2016_01_03_MA Channel TS_returns

I hope you’ve enjoyed this post.  Please leave a comment below!

Happy trending,

– Dave McLachlan

More Posts and Videos in the “Three Trading System” series:

  1. Three Trading Systems (Wk 11) – All Filters On, New Buys
  2. Three Trading Systems (Wk 10) – Leap of Faith System Index Filter Switches On
  3. Three Trading Systems (Wk 9) – When There’s Nothing Doing, Do Nothing
  4. Three Trading Systems (Wk8) – Two Additions, Dry Powder and “No Psychics”
  5. Three Trading Systems (Wk7) – Lessons, Ideas, Tests, Drawdowns
  6. Three Trading Systems (Wk 6) – Thank you, Drawdowns, and Trading System Talk
  7. Three Trading Systems Series Week 5 – Can I Ask You a Question?
  8. Three Trading Systems Week 4 – Buys, Sells and YTD Returns
  9. Three Trading Systems Week 3 – Current Trades and YTD Returns
  10. Three Trading Systems Week 2 – Current Trades and YTD Returns
  11. Three Current Trading Systems – Buys and Sells and YTD Returns

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January 3, 2016  Tags: , , , , , , , , ,   Posted in: Trading Diary

10 Responses

  1. Dennis OFlynn - January 3, 2016

    Dave, I appreciate your efforts in explaining to, especially the newer recruits to trading, the benefits of mechanical trading.

    Both newbie and mediocre traders use subjective methodologies to create their buy/sell decisions. Some with success, others without.

    Psychology is a maker or a killer of traders. It may take a long time to master your own personna.

    System trading is well worth a look, in my opinion.
    cheers
    Dennis

  2. David McLachlan - January 4, 2016

    Hey Dennis – wise, wise words. Your comment is very welcome in a place like this!

    I know I’ve been through all those stages myself – starting with an ad-hoc approach, moving to fundamentals only, then a “discretionary, rules based” approach, and now finally, mostly systematic.

    Interestingly, I’m finding a few mechanical trades where I hesitate – for reasons that obviously aren’t coded into the system. I was not expecting this. Always learning 🙂

    In fact I’ll probably always be a student of the markets – and I love passing on the things that I learn too.

    Happy trending – Dave

  3. keith toghill - January 4, 2016

    Hello Dave,

    Can’t tell just how much I appreciate what you are doing in all of your tutorials etc. I,ve been using AmiBroker for many years but solely as a chartist so only now assisted with your tutorials am I beginning to gain the real value of AB.

    So I am new at trading systems and the related coding but keen to learn more. I have searched for but not found the coding of your personal trading system Dow/Gann Trading System. Can you please assist me with this. Thanks so much. Keith

  4. David McLachlan - January 4, 2016

    Hey Keith,

    Great! I am actually similar – using Amibroker for charting and now starting to learn the code. Doing the vids is a nice prompt for me to learn more myself, as my skills are really very basic, so it’s a nice win/win scenario I think 🙂

    I haven’t shown the code for the Dow/Gann trading system as it’s the system I personally use. The theories and rules ARE out there on the web, but they aren’t common. So – one could find the rules, but they’d have to search hard, which is probably for the best. Having said that, it is certainly no holy grail (nothing is 🙂 ). Without a few big winners this year, it would have had < 10% returns, but still beating the All Ords which was down for the year. Happy trending! Dave

  5. Michal - January 5, 2016

    David you are a brilliant guy

  6. David McLachlan - January 5, 2016

    Thank you Michal! I am merely average, but I’ll take a complement where I can, 🙂

    Happy trending – Dave

  7. Alessandro D'Aquino - January 5, 2016

    Hi Dave,

    Have you thought about a subscription based service for the above stock signals wether it be your system or any of the others above?
    I’m interested to know if the Leap of Faith system would achieve similar results on a weekly timeframe than a daily timeframe? Maybe you can do the above on weekly timeframe if it reduces workload.
    Alex.

  8. David McLachlan - January 5, 2016

    Hey Alex,

    Thanks for the suggestion! I had not thought about that. I must admit I’m enjoying the free way currently, because of the discussion and ideas it generates (like your ideas just now :))

    I’ll definitely do a test on a weekly time-frame and show the results next week – nice one!

    Happy trending – Dave

  9. Barry - January 9, 2016

    Hi Dave

    got to agree this is great website particular for learning Amibroker coding.
    I would prefer more videos on coding different things in Amibroker.

    cheers
    Barry

  10. David McLachlan - January 9, 2016

    Excellent, thank you Barry!

    Yes I have a few ideas on how this will all evolve, and it is definitely heading mostly in that direction. In fact, your comment sort of helped me solidify my thinking a little. Let me know what you think of the below – it’s what I have in mind for now:

    I’ll continue with weekly postings of Amibroker coding.
    I’ll use the Three Trading System series to generate discussion and input in creating, and analysing better trading systems.
    I can then put those systems back on this site in the Amibroker coding videos.

    Answers to this post have helped me a great deal, and I’m a bit excited to see where it heads.

    Cheers – Dave

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