SDA2 Trend Trading System Verion 2.0 AFL code

Earlier during October 26th, 2010 SDA2 Trend Trading System is introduced in marketcalls. After revising my old strategy with better improvements releasing the newer version of SDA2 Trend trading system(version 2.0).This version is more optimized for Long Only Signals (Short Signals are treated as exit from the long position and stay away from the market). In the older version the SDA2 trading system wont perform good if there is any gap up or gap down in the trading instrument. The new version overcomes those flaw and it is more optimized towards those Gap Up/Gap Down. Trading system is tested in both Amibroker 5.4 and 5.5 versions.

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The Above chart is for Educational Purpose only not for any kind of Buy or Sell Recommendation in Nifty

Now Upper Channel and Lower Channel are built using the formula

Derived=WMA(WMA(WMA(((H+L)/2)+(O-C),2),2),2);
i=WMA(Derived,3);
Upper=(Derived+StDev(Derived,7))+ATR(2)/1.5;
Lower=(Derived-StDev(Derived,7))-ATR(2)/1;

Buy and Sell Condition

Buy Condition : Buy the Next day open when there is a Buy signal on the chart.
Sell Condition : Sell the Next day open when there is a Sell Signal on the chart.

And the Colour of the Candlestick will be toggled between Green and Red each time when the candlestick close breaks Upper Channel or the the low of the breaks the Lower Channel. This effort minimizes the maximum risk of any long position.

color=IIf(BarsSince(Cross(Lower,Low))>
BarsSince(Cross(C,Upper)), colorBrightGreen,colorRed);

Trading system had been backtested for nifty during the period 1st Jan 2000 to 16th Mar 2012. And the Results are shown Below

Trading System Statistics

Equity Curve

Profit Ditribution

Profit Table for SDA2 Ver 2

Download SDA2 Trend Trading System Version 2.0 AFL code

Waiting for your feedbacks and Comments.