Amibroker AFL Pivot Trading
Amibroker AFL Pivot Trading – In the previous post we discussed about a simple Pivot Trading technique which can be used for positional trading. It is an extension of a very simple intraday trading strategy. In the next post we will post a detailed backtest result of the same for traders who want to understand the strategy inside out. The principles on which the strategy is based makes it prone to less drawdowns. It also delivers robust and stable returns over a period of time. Since this is not a portfolio growth strategy, the results of the same do not reflect substantial growth in portfolio. This strategy is suited for those who want returns over long periods and want to limit the stress levels associated with trading a strategy.
In the chart below, the AFL is loaded. It is pretty clear from the chart that this simple strategy catches most of the market swings. There are also sections of whipsaws, but the impact for the same can be minimized with adequate position sizing strategy. Our aim has to be to profit on maximum positions and to lose on minimum positions. This is a buy only system but it can also be used for short selling. Once the market moves below the S2 (support) level, it does not move up till it crosses the R1 level. If a trader wants, short selling strategy can also be devised based on this technique.
Download the AFL and begin experimenting.
Amibroker AFL Pivot Trading (Click Here To View or Right click on the link and click ‘Save as’ to Download)