1-2-3 Reversal Strategy

[eSignal]

File Name: 1-2-3ReversalStrategy.efs

Description:
1-2-3 Reversal Strategy

Formula Parameters:
KLength: 14
KSmoothing: 1
DLength: 3


Notes:
This System was created from the Book "How I Tripled My Money In The
Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies.

The strategy buys at market, if close price is higher than the previous close
during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50.
The strategy sells at market, if close price is lower than the previous close price
during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50.


Download File:
1-2-3ReversalStrategy.efs



EFS Code:

/*********************************
Provided By:  

    eSignal (Copyright c eSignal), a division of Interactive Data 
    Corporation. 2008. All rights reserved. This sample eSignal 
    Formula Script (EFS) is for educational purposes only and may be 
    modified and saved under a new file name.  eSignal is not responsible
    for the functionality once modified.  eSignal reserves the right 
    to modify and overwrite this EFS file with each new release.

Description:        

    1-2-3 Reversal Strategy

Version:            1.0  09/24/2008

Notes:

    This System was created from the Book "How I Tripled My Money In The 
    Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies.
    
    The strategy buys at market, if close price is higher than the previous close 
    during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50. 
    The strategy sells at market, if close price is lower than the previous close price 
    during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50.

Formula Parameters:                     Default:

    KLength                              14
    KSmoothing                            1
    DLength                               3

**********************************/

var fpArray = new Array();

function preMain() {

    setPriceStudy(true);
    setStudyTitle("1-2-3 Reversal Strategy");
    setShowCursorLabel(false);
    setColorPriceBars(true);
    setDefaultPriceBarColor(Color.black);

    var x=0;

    fpArray[x] = new FunctionParameter("KLength", FunctionParameter.NUMBER);
    with(fpArray[x++]) {
        setLowerLimit(1);  
        setDefault(14);
    }

    fpArray[x] = new FunctionParameter("KSmoothing", FunctionParameter.NUMBER);
    with(fpArray[x++]) {
        setLowerLimit(1);  
        setDefault(1);
    }

    fpArray[x] = new FunctionParameter("DLength", FunctionParameter.NUMBER);
    with(fpArray[x++]) {
        setLowerLimit(1);  
        setDefault(3);
    }
}



var bInit = false;

var xStochK = null;
var xStochD = null;

function main(KLength, KSmoothing, DLength) {

    if(bInit == false) {
        xStochK = stochK(KLength, KSmoothing, DLength);
        xStochD = stochD(KLength, KSmoothing, DLength);
        bInit = true;
    }

    var nStochK = xStochK.getValue(0);
    var nStochD = xStochD.getValue(0);

    if(nStochK == null || nStochD == null) return;

    if(getCurrentBarIndex()==0) return;

    if(!Strategy.isLong()) {

        if(close(-2) < close(-1) && close(0) > close(-1) && nStochK < nStochD && nStochK > 50)
            Strategy.doLong("Long", Strategy.CLOSE, Strategy.THISBAR);
    }

    if(!Strategy.isShort()) {
        if(close(-2) > close(-1) && close(0) < close(-1) && nStochK > nStochD && nStochD < 50)
            Strategy.doShort("Short", Strategy.CLOSE, Strategy.THISBAR);
    }

    if(Strategy.isLong())
        setPriceBarColor(Color.lime);
    else if(Strategy.isShort())
        setPriceBarColor(Color.red);

    return;
}