Systematic Trading

As seen in real life

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Systematic trading is trading based on a set of rules.

Maybe, Perhaps, Yes

Are you undecided? Apparently Humans cannot make decisions without emotions. But what if you are an emotional ship-wreck?

The real quantum computer is the human dwelling on making a decision. No use for “maybe / I don’t know” in systematic trading the answer always has to be decidedly binary.

The image above is to illustrate how an RSI2 divergence based system has different layers of direction: the derived human digested instructions are a world apart from what the divergence finding part does, it looks for bleeding, then a divergence, factors in “flip back” conditions as well as holds off for a bit if selling/buying is too strong.
For the first time I actually have a sense of how the market can drop and recover without changing the holding direction.
Hoops plotted here for Maroon Fake-outs.

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Dr. Doxey’s Elixir

Since all systematic trading has to be able to call turns correctly, you could say that the basis is more or less always divergences.

I first touched upon the Stochastic Bars theme in 2017 on my old blog. The time frame did not crystalize until now, all optimization was done with lower time frames, and the ultimate filter ended up being the shadow lines of the Axel S pair (10 pips out from them).

In recent history this was the only signal that came early (whatever you do, the market couldn’t stop falling ooh-oooh):

There was 1 fluctuation size extra slack beyond Dr. Doxey’s sales pitch.

Otherwise, the system of Faith Healers and Maroon Fake-outs seems pretty systematic.

̿ ̿ ̿’̿’\̵͇̿̿\з=(•_•)=ε/̵͇̿̿/’̿’̿ ̿

̿̿ ̿̿ ̿̿\̵͇̿̿=(•̃●̮̮̃)۶

Qualify

Find things that repeat. Sort out what is what.

Wave 5 may be the strongest? Yes. Wave 3 cannot be the weakest? Absolute Rubbish.

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Thy Fighter

I’m only including the fact that the distance from the last 4-h consolidation mean mattered yet again, an the armada of X-Wings was the perfect spot to make a quick kill back to the overbought neckline before the whole situation escalated to have an excuse to include the Existential Troopers clip from Auralnauts.

Also, if you look at the Extra deep correction call on the bottom (which not only did not get all the way down to the oversold, but fell shy from even the sound barrier), the “golden ticket” (lending the plot’s color) had a target of 0.45-0.49. This is a code for somewhere around the dashed blue line (E-16 stretch band aka 0.47).