Stochastic Strategy Trading System

[Agento]

Time Frame 4H, Daily, and weekly

In this system, we defined both long and short entries as well as exit orders. We also did some setup work to calculate a 16-bar (16,5,3,)slow Stochastic with an overbought level at 70 and an oversold level at 30. The setups, entries, and exits are defined next.



Setup

a) Calculate a 16-bar slow Stochastic.

b) Set an Stochastic overbought level at 70.

c) Set an Stochastic oversold level at 30

Long Entry Position

a) Check for %K to cross above %D in oversold territory (below 30).

b) Place a buy stop one point above the high of the setup bar. This buy stop will remain in effect for six bars.

Short Entry Position

a) Check for %K to cross below %D in overbought territory (above 70).

b) Place a sell stop one point below the low of the setup bar. This sell stop will remain active for six bars.


Exit Order

a) Once we enter a long position, we’ll place a protective stop at the low of the setup bar; when we enter a short position, we’ll place a protective stop at the high of the setup bar.





Profit Target 4H Time Frame 20-30 pips;

Profit Target Daily Time Frame 40-60 pips;

Profit Target Weekly Time Frame 180-220 pips.

Activate a move stop loss to entry point after 65% of the gain predetermined.