Massimiliano Scorpio’s Finding Key Reversals systems can be easily implemented in the NeuroShell Trader Trading Strategy Wizard by inserting his rules into the correct places.
To insert the strategy:
1. Select Insert – New Trading Strategy
2. On the Long Entry Tab:
A. Select to “Generate a buy long ‘MKT CLOSE’ order if ‘ALL’ of the following are true.
B. Insert the condition – A
D. Insert the condition – A not equal to B(Lead(Close,1), Lead(High,1))
Note: The reason we use leads here is to buy the instrument at the market close as Scorpio suggests.
3. On the Long Trailing Stop Tab add the price level –
PriceFloorPnts(Trading Strategy, 1)
4. On the Long Exit Tab:
A. Select to “Generate a sell long ‘LIMIT’ order if ‘ALL’ of the following are true.
B. Insert the condition – A>=B(Lead(High, 1), ValueEntryFill(Trading Strategy, High, 1))
C. Insert the limit price – High
Note: The reason that we use leads here is due to the presence of both stops and limits. This way the limit is only placed when needed
As Scorpio acknowledges, it is difficult to buy exactly at the market close (which is unknown until the end of the day), so this system can only be used for backtesting. Even though Scorpio describes this system as an end of day system, it should probably be implemented using an intra-day chart so that the values can be calculated on the fly and decisions can be made in real time (like buying near the end of the day). This can be done using the NeuroShell DayTrader Professional. Furthermore, an advantage of NeuroShell is that neural nets can be used to predict today’s close.
We’ve created the Finding Key Reversal system which you can download from the NeuroShell Trader free technical support website. Additionally, if you place the provided chart in your template directory you can apply this system to any new chart that you create.
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