A trading system is only as good as your market intuition. You can forｭmulate and test virtually any trading system you can imagine with today's software. The previous chapters studied the basic principles of system design. This chapter develops and tests several original trading systems to illustrate the application of those principles:
1. A simple trend following system葉he 65sma-3cc system.
2. A pattern-based system for long trades only葉he CB-PB sysｭtem.
3. A trend-seeking, strength-of-trend system葉he ADX burst sysｭtem.
4. An automatic mode-switching system葉he Trend-Antitrend system.
74 Developing New Trading Systems
5. Intel-market systems for correlated markets葉he gold bond sysｭtems.
6. A system for picking bottoms預 bottom-fishing pattern.
7. A system for increasing bet size葉he extraordinary opportunity model.
In this chapter, each case illustrates a different design philosophy. The 65sma-3cc system is examined in the greatest detail; the same prinｭciples can be applied to all other systems. Long-term test results with continuous contracts are shown for every system.
This is not a recommendation that you trade these systems. These systems have all the limitations of hypothetical test results. They are disｭcussed here only as examples of the art of developing systems that suit your trading style.