Example Objective Trading Systems

A lot of stuff to read, perhaps some examples will make what I'm trying to say clearer.

Break-Out System With Trade Management

Rule Type	Description
Long - Entry Rules	Close Below High Of Previous 100 Bars
Long - Entry Values	High Of Previous 100 Bars
Long - Init. S/L Values	Low Of Previous 50 Bars
Long - S/L Mgmt Rules	Every Bar
Long - S/L Mgmt Values	Low Of Previous 50 Bars

Reverse for shorts.

Explanation: Whenever the close is below the high of the previous 100 bars, an order will be placed at that high of the previous 100 bars. If the order is taken up, i.e. the price goes above the intended entry point, the initial stop loss will be set at the low of the previous 50 bars.

On the completion of each new bar, the stop loss is re-set at the low of the previous 50 bars. Often this means the stop loss will not be moved, but when it does, it will only move to a position of decreased risk. Eventually, hopefully, the stop loss will be moved to a spot above the original entry price, and that's how this system would make it's money.

Break-Out System With Take Profit

Rule Type	Description
Long - Entry Rules	Close Below High Of Previous 100 Bars
Long - Entry Values	High Of Previous 100 Bars
Long - Init. S/L Values	Low Of Previous 50 Bars
Long - Init. T/P Values	50 Pips Above Entry

Reverse for shorts.

Explanation: Whenever the close is below the high of the previous 100 bars, an order will be placed at that high of the previous 100 bars. If the order is taken up, i.e. the price goes above the intended entry point, the stop loss will be set at the low of the previous 50 bars. The stop loss will not be moved from that point. The take profit will be set at 50 pips above the entry.

This system puts barriers on either side of the entry, and doesn't move them. Either we get our 50 pips profit, or we take the loss.

%b System With Trade Management

Rule Type	Description
Long - Entry Rules	Close Above Simple Moving Average (Period=50)
Long - Entry Rules	%b (Period=20) Value Must Be Below 1
Long - Entry Values	Price Where %b (Period=20) Would Equal 1
Long - Init. S/L Values	Simple Moving Average (Period=50)
Long - S/L Mgmt Rules	Every Bar
Long - S/L Mgmt Values	Simple Moving Average (Period=50)

Reverse for shorts.

Explanation: The %b value specifies where the price is in relation to the bollinger bands. A value of 0 means the price is at exactly the lower bollinger line. A value of 1 means it is at exactly the upper bollinger line. 0.5 is in the middle, etc. I could have just used the "Upper Bollinger Line" value in this case, but %b allows greater flexibility when it comes to experimentation.

This system has two Entry Rules. Firstly, the price must close above a moving average with period 50. It must also be below the upper bollinger line with period 20. When both of those rules are true, an order will be set at the upper bollinger line.

Should the price rise above the upper bollinger line, our order will be taken up, and the initial stop loss will be set to the value of the moving average.

With the completion of each new bar, the stop loss is adjusted so it remains at the same price as the moving average. However, my software does not allow stops to be moved to positions of increased risk. Therefore, if the moving average went down, the stop loss would not follow it.

This system relies on the moving average to eventually rise above the entry value.

By the way, these are just example systems, and may or may not be actually useful in real trading. My point is to simply give examples of purely objective trading systems.