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Instructions for the Precision stop for Tradestation and Multicharts.
Precision Stop for Tradestation and Multicharts instructions for use. Importing into Tradestation In Tradestation, open power editor and import the Precision stop indicator and the Precision stop signal for Tradestation. (There are two extra functions required, called PrecisionNOISE and PrecisionVOLA which should verify automatically) Importing into Multicharts In Multicharts go to power language editor and import the Precision stop indicator and the Precision stop signal for Multicharts. (There are two extra functions called PrecisionNOISE and PrecisionVOLA which need to be compiled manually before precision stop will function)
Multicharts set up and instructions
Tradestation set up and instructions
Make a visual observation of the points where Precision Stop changes from long to short, and then adjustments can be made as follows
You will also see the features MAXPERCENT and MINPERCENT These are to prevent PS from going too tight to the price, or too far away from the price, and if you notice the stop is not getting tighter when reducing MULTIPLE values, you may like to try reducing MINPERCENT.
Once you have established settings that look approximately correct to suit your trading style, then you can add the Precision Stop SIGNAL. Making sure you repeat the above procedures to set max number of bars the study will reference to “user specified “ 90 and all the relevant MULTIPLE, MAXPERCENT and MINPERCENT.
At this point you can choose POSITION to be true or false
Once you have decided on your time frames and parameters, you can then add commissions and slippage to the properties and begin optimizing to test the best parameters. Note: The MULTIPLE setting is most sensitive to small changes, and huge differences to performance can be observed from small changes in this setting. Generally to get maximum efficiency it is best to first optimize a broad range of MULTIPLE values and then plot the results to see if you have a BELLCURVE shaped distribution of readings. If you achieve this, then there is a good chance that the PS will work very well in the mid point of the BELLCURVE. If you do not see a bell curve distribution then experiment with different time frames of the market and different MULTIPLE settings. The final system you select to use should produce a nice smooth rising equity curve chart with low draw downs which are low relative to the profit achieved. If you have not produced a smooth rising equity curve, then you will likely not have the best results from PS in the modes selected.
See the tutorial video on this link http://www.precisiontradingsystems.com/Stop.htm
It is not always possible to achieve a suitable performance report when testing PS, and if you have the slightest doubt that the PS is not robust in the chosen market and timeframe then it is often best to select another market and/ or timeframe to test. This is a trend following method, which will win handsomely in trending periods if set up correctly. Finally, if you experience any difficulties in your application of this product, please drop me an email to precision@ukonline.co.uk and will try to resolve your issue. I wish you the best of success with your trading!
Coming soon from Precision trading systems .................... .
Pi-osc was created to provide trade timing signals by Precision Trading Systems in 2009, and is a consensus indicator which has some powerful improvements and differences to industry standard oscillators. At first glance to the untrained eye it would appear like another other oscillator, but when testing it side by side comparing system performance the true power of this excellent indicator begin to emerge. PI-osc is extremely simple to use and trading signals come if + or - 3.14 is hit, the actual signal to buy or sell is when the oscillator moves back to + or - 10. This signal indicates a 86% probability that the next bar will close higher. It is comprised of 439 different mathematical equations which measure price and volume movement in multiple timeframe sampling that predict with a high degree of accuracy where turning points in trends are likely to occur. The designer Mr Medcalf is a successful trader with more than 12 years trading experience. His work on PI-osc began more than 10 years earlier when observing the limitations of conventional RSI, Stochastics, Williams %r etc. Conventional oscillators just don't have enough intelligence to offer any real concrete evidence to put your hard earned money down. Although viewing other oscillators as having some uses, I also noted their shortcomings. The resulting observations of oscillators not coping with trending situations, whilst being excellent in ranging or cycling markets spawned the concept of designing the PI-osc. The PI-osc indicator uses some very ingenious and logical factors in its calculations, some of these factors are found within conventional oscillators and some are not. The components that go into computations are identified below. Money flow index provides a simple snapshot of how sold out a stock or future really is and when measured in three different time frames gives a slick consensus view of money flow. Relative strength index (RSI) still the No1 most popular indicator in use today as its power to identify overbought and oversold qualities in sideways markets is exceptional. Its poor performance in trends is greatly reduced when seamlessly integrated with the PI-osc algorithm. Demand index, being one of the designers favourite indicators for measuring the future direction caused by a large volume trade is incorporated here as well as its exceptional efficiency as a divergence indicator. James Sibbet's creation provides an additional stellar incisive cutting accuracy to the PI-osc. Divergences. PI-osc measures divergences which occur in five different time frames from two different indicators, realising that divergences are often spurious in their reliability, the designer only factors 4% of the total indicator reading from these. Paradoxically the buy and sell zones have to have at least one observation of a divergence to trigger a signal. Volume is always a factor that precedes a price change, as stock prices cannot move without a real money value being assigned to it either as a recent trade or a bid-offer order being placed. The designer's understanding of volume patterns is very useful addition incorporated into the PI-osc indicators unique conception. Please note you must have trade volume enabled in Tradestation or Multicharts for PI-osc to function correctly. Momentum frequently decelerates prior to market turning points and PI-osc is monitoring several timeframes of smoothed momentum samples in its calculations. But unlike a conventional rate of change or momentum indicator the PI-osc indicator scores a neutral reading when momentum is rising or falling fast, and a reading is only factored into the output when momentum is reducing, thus indicating a higher probability of success. Probability is another feature of this algorithm. Although rarely used in industry standard oscillators, the designer has added a standard deviation (3.3) factor into this indicator as the more usual 2 standard deviations used in Bollinger bands is just not reliable enough to bet hard earned cash on. Normally distributed price sets have a 99.9% containment within 3.3 standard deviations, so when this is breached the PI-osc adds or deducts a further value to its output number. Stochastics have similar attributes to RSI oscillators and have contributed a factor into PI-osc due to their smooth and reliable ability to identify buying and selling points on non trending markets. Price patterns. Generally the industry standard oscillators just use the closing price to calculate their values, and although some indicators such as the stochastic use the high and low in their mathematics, few oscillators are actually programmed to respond to unique candlestick chart set ups. PI-osc is setting the standard with its intelligent programming to recognise when the current chart pattern is shouting Buy! Several of the more reliable patterns are factored into the algorithm.
When all the maths is done, PI-osc does an exceptional job of determining true buying and selling points. Basically the trading interpretation is made very simple for you, as the buy and sell zones are so logically determined, not by one factor but from a large consensus "vote" from more than one different computation. The benefits of this indicator are that it saves valuable time in "confirming technical analysis signals" and all trades know time is precious as large price changes can be missed in seconds while checking other confirming factors. It takes the hard work out of it, and lets your computer do the brain work. Ideally this indicator is best used with the Precision stop indicator which provides a very intelligent logical trend following exit, often the PI-osc will run right to the other extreme and issue a reverse signal. |
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