VSTpro tests a new trading strategy.

Recently the ASX (XJO) index fell out of sync with the US S&P 500 index, and trading the ASX stock using the VSTpro's Market Trend Filter (the filter is based on the S&P 500 index) became difficult.

The Canadian TSX stocks also became difficult to safely trade, and this is when Terry, a member of the VSTpro User Group put forward an idea which led to Jose Silva writing an indicator, and incorporating it into the VSTpro.

Terry posts many ideas on the forum, and is always looking for new, and better ways to safely trade, this new idea is robust and the VSTpro testing is very promising.

The charts below display the system setup in the VSTpro.

• The MTF is using the S&P 500 data.
• Indicator x is using the security data.
• SmartStop is turned [OFF]
• View full stats in the commentary window to the left of the chart.

Chart details from left to right by numbers.

1. Entry. Indicator x is above the threshold and the MTF is positive.
2. Exit. MTF signals a timely exit.
3. The MTF would have given 3 entry signals, Indicator x negated these trades.
4. Entry. Trade conditions as in trade #1.
5. Entry/exit. Normal MTF signals. Timely exit and re-entry.
6. Exit. Indicator x signals an exit, and as of 1/7/2011 no new entry signals.

NOTE: The VSTpro User Group is only available to owners of the VSTpro MetaSTock trading platform.



Click on images to enlarge.

Many thanks to Terry for his enthusiasm and determination.