Ned Davis 4% Backtesting Strategy Beta Version 0.9

By : August 1, 2011 at 12:15 am

We are releasing a cool first past strategy using the new TradeStation 9.0 Price Series Provider object to generate a long only entry and exit for backtesting the Ned Davis 4% system.

 

It is not limited to just the Ned Davis system which uses a 4% move in the Value Line index for entries and exit, you can change your trigger symbol and percentages.  It is currently fixed to triggering on weekly moves of the tracking symbol however.  You can on the main chart also pick which instrument you wish to trade.  Currently we trade the UWM.

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(Click on image to enlarge)

With the ELD we are packaging both the strategy and the indicator shown at the bottom of our sample worksheet.  Each time the value line moves more than 4% in a week the system generates a buy signal.  A drop of 4% am exit sell signal.

To read more about the Ned Davis indicator and how to set it up please go here: http://www.redliontrader.com/headline/ned-davis-4-indicatoror-a-generic-4-weekly-indicator/

The setup for the strategy is currently the same as the indicator:

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One need only pick the tracking symbol to look for a weekly change and the percentage number that will enter the trade.  The trades will be executed on the Main symbol of the chart.

This is a great example of how to use the PSP in a different timeframe and a different symbol to generate trades.  It is also a great research vehicle for finding the best symbols to trade using the 4% system.

To download the strategy you must be logged in a gold member.  If you are not a gold member you can upgrade here:

http://www.redliontrader.com/membership/

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This content is only available to premium members.  If you would like to join and have access to all my indicators checkout the current special being offered here:  <a href=”http://www.redliontrader.com/membership/”>Premium Membership </a>

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Download:

Installation Instructions:

1. Download the ELD and install first

2. Download the sample worksheet

ELD Download:

!Worksheet Download:

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