Victor Likhovidov’s Candle Code Trading systems can easily be implemented in the NeuroShell Trader Trading Strategy Wizard by inserting his rules into the correct places.
Using the Indicators created for the March 2001 issue of Stocks & Commodities (these are located on the NeuroShell Trader free technical support web site in the STOCKS & COMMODITIES section) we can create the two systems that Mr. Likhovidov describes by following the steps below:
Detecting Turning points:
To insert the strategy:
1.Select Insert – New Trading Strategy
2.On the Long Entry Tab – insert the condition – CrossOver Above(X, Y)
3.On the Short Entry Tab – insert the condition – CrossOver Below(X, Z)
Where X = Avg(Avg(CandleCode(Open, High, Low, Close), 21), 3)
Y = 50
Z = 70
The numbers above are just examples for the parameters. You can use different values if you desire.
Moving Averages and Bollinger Bands:
To insert the strategy:
1.Select Insert – New Trading Strategy
2.On the Long Entry Tab – insert the condition – CrossOver Above (X, Y)
3.On the Short Entry Tab – insert the condition – CrossOver Below(X, Z)
Where X = Avg(Avg(CandleCode(Open, High, Low, Close), 21), 3)
Y = BBLow(Avg(Avg(CandleCode(Open, High, Low, Close), 21), 3),20,2)
Z = BBHigh(Avg(Avg(CandleCode(Open, High, Low, Close), 21), 3),20,2)
Again, the numbers above are just examples for the parameters. You can use different values if you desire.
If you have the NeuroShell Trader Professional or NeuroShell DayTrader Professional you can use our genetic algorithm optimizer to determine the best values for any or all of the parameters (as suggested by Mr. Likhovidov).
We’ve created both of the Candle Code Trading systems for you, and they can be download from the NeuroShell Trader free technical support website. Additionally, if you place the provided charts in your template directory you can apply this system to any new chart that you create.
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