One of the nice characteristics of GE is the way it reacts to the pivots. In some cases more reliable than the Qs or my all time favorite IWM, GE momentum can be gauged fairly accurately by looking at proximity to the pivots. Friday’s intraday behavior – shown above in 2 minute bars – is an exceptional example of this behavior. By using the parabolics (white circles) and 8/16 MA crosses (white arrows) for trade triggers, it’s relatively easy to scrape several profitable trades out of GE each day with a minimum of risk exposure.
Generally, the better the technical alignment of a stock or ETF, the better the performance of a benchmark testing system. That being said, here are the results of using the High Count Reverse (HCR) system (profiled Friday) as applied to GE
The HCR is, of course, a short side only system, but with a 13:1 consecutive win/loss ratio, this is a highly attractive risk/reward approach, especially when one examines the max intraday drawdown of $160.
Finally, here is a little variation of the HCR system that produces twice the return of the HCR, with twice the Max intradday drawdown and a 9:2 consecutive win/loss ratio. The focus of the system is selling strength as defined over “X” number of days as defined by optimizing the “HighestFC” function of TS signal builder.
TS200oi code for the 3 day HLC Low system:
Inputs: Len1(3), Len2(6);
If Close=HighestFC(close, Len1) and low=highestFC(low, Len1) and high=highestFC(high, Len1)
Then Sell This Bar at Close;
Then ExitShort this bar at Close;
Since the code contains none of the dreaded <> symbols, Blogger has obliged me and allowed the post in open format.