Eight classic trading systems
1. Turtle Trading System
Core trading ideas:
Enter the market when the price breaks through the highest point of 20 trading periods.
Exit when the price falls below the 10-period low.
System 1:
Entry: A short-term system based on a 20-day breakout (price exceeds the highest or lowest price of the previous 20 days)
Exit: For long positions it is the 10-day low price, for short positions it is the 10-day high price. If the price moves away from the position to a 10-day breakout, all units in the position will be exited.
System 2:
Entry: A simpler long-term system based on a 50-day breakout (price exceeds the highest or lowest price of the previous 50 days)
Exit: 20-day low for long positions and 20-day high for short positions. If price moves against the position to a 20-day breakout, all units in the position will be exited.
2. Larry Williams Gap Trading System
The Gap Trading System is a psychological trading system that focuses on measuring sudden price changes caused by excessive emotional reactions.
The basic trend is that in a downward trend, the price fluctuates near the lower end of the box range for 5 to 10 days, and then opens sharply lower and breaks through the trend line. The selling pressure sentiment is extremely high. If it then rebounds to yesterday's lowest price, it indicates that the market energy has reversed and another sharp rise is ready to start.
System buying mechanical rules:
The closing price is 4% lower than the five-day average price, ensuring that the signal occurs in a downtrend;
The opening price is 1% lower than yesterday’s lowest price;
The closing rebounded to above yesterday's lowest price.
3. Victor Sperandi 123 Rule Trading System
Identifying and following trends is the pursuit of every technical analyst. Based on Dow Theory, Victor Sperandi simplified the complex and arduous task of trend identification into the 123 rule:
First, the trend line is broken;
An upward trend no longer makes new highs, or a downward trend no longer makes new lows;
In a downtrend, prices break through the previous rebound high, or in an uptrend, prices cross through the previous short-term retracement low.
The basic idea is that if during a downtrend, prices have reached a new low and have failed to continue falling, and have risen back above the previous low, the trend may be reversing.
4. Tom DeMark TD Price Range Trading System
The TD DeMarker II indicator is created by connecting all price movements to certain supply and demand levels.
The numerator is composed of two buy pressure metrics. In the 8 candlestick chart, the difference between the highest point of the day and the previous day's close is added to the difference between the current day's close and the current day's low. If the highest point of the day is lower than the previous day's close, the buy pressure component is assigned a value of 0.
The denominator is composed of the 8-day numerator value plus the respective selling pressure value, and the selling pressure is composed of two metrics.
The first part is the difference between the previous day's closing price and the day's lowest price. If it is a negative value, the selling pressure part is assigned a value of 0; the second part is the difference between the day's highest price and the day's closing price. Add the two parts together, and then add the resulting value to the numerator to get the denominator.
5. Lawrence McMillan Volatility Trading System
System buying mechanical rules:
Historical volatility is in a bearish alignment, meaning the range of fluctuations is getting narrower, suggesting the calm before the storm;
Calculate the historical volatility for periods of 5, 10, 20, 30, and 100, and find its standard deviation;
The ac and ao indicators have been declining for five consecutive days.
6. Martin Pringle Swing Trading System
System thinking:
When the price is at an extreme oscillating price, a reversal is imminent. This idea can also be used in conjunction with volume swings to verify the convergence effect of the two and further increase the odds of success.
System mechanical buying rules:
The ratio of the day's closing price to the 28-day moving average is less than -10.
7. Constance Brown Derivative Oscillator Trading System
System thinking:
The RSI relative strength index is triple smoothed, and the calculation steps are as follows:
Calculate the 14-day RSI indicator;
Calculate the 5-day average of the 14-day RSI indicator;
Take the 3-day average of the results calculated in step 2;
Find the difference between the results of steps 2 and 3
8. Dolphin Trading System
Core concept: Trade with the trend and place orders on the right side
By using the moving average and MACD trend indicators during the trend judgment period to determine the trend and trade in the trading period;
By placing orders in line with the trend during the golden cross and death cross of the KD indicator during the entry and exit periods, you can place orders on the right side of the trading period.
1. Trading session selection rules
Choose the main trading period according to your personal trading habits. The principle of judgment is that the trading period you are good at is the main trading period to be selected, the period before the main trading period is the trend judgment period, and the period after the main trading period is the entry and exit period.
2. Trend judgment rules
Use MA26 and MACD to determine the trend of your main trading period during the trend determination period:
The price is above MA26, MACD Value> Signal>0, the trend is a bull market, go long;
The price is above MA26, MACD Signal> Value>0, the trend is rising and falling or rising and adjusting, close the long position and try to short;
The price is below MA26, MACD Value<Signal<0, the trend is a bear market, short sell;
The price is below MA26, MACD Signal<Value<0, the trend is a downward rebound or downward adjustment, close the short position and try to go long.