Testing a New Trading Strategy

I’m starting to look at some different things for my trading plan. I have the beginnings of a strategy starting to come together. With my emotional makeup and out-of-phase intuition, a mechanical system, even if I am manually executing it, is absolutely essential to me at this time.

I have a simple mechanical entry indicator, a mechanical trailing stop, and a situationally-based pre-emptive profit target exit. I ran a study on NQ 5 minute charts over the last 20 days, long side only so far. Here’s the intital results for one contract:

Strategy Report
Symbol: /NQ
Work Time: 2009-01-08 – 2009-02-06

Max trade P/L: 684.00
Total P/L 2,751.00
Total 142 order(s)

Win rate was around 50%.

On 142 orders, that would be $497 in commissions, so net $2,254.00 on one contract. This tells me that my strategy has merit, at least for the market environment that we have had. I’ll report more on the exact strategy, along with Think or Swim strategy files, later on as things get more concrete. Plus, I’ll have more detailed reports after I get something that automatically parses the ToS strategy output.

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