Traders.com

NEUROSHELL TRADER: SEPTEMBER 2012

Multi-instrument strategies such as those described by Vladimir Vladimirovich Voznjuk in his article in this issue, “Developing A Multi-Level Strategy,” can be easily implemented in NeuroShell Trader.

First, create a new chart with a different chart page for each instrument in the pair or group of instruments in which you want to synchronize trading. For instance, to synchronize trading of EUR/USD and USD/JPY, a new chart would be created with EUR/USD and USD/JPY as the two chart pages. To synchronize trading of three or more instruments like EUR/USD, GBP/USD, and EUR/GBP, simply create a new chart with the desired three or more instruments, each as a separate chart page.

FIGURE 1: NEUROSHELL TRADER. This NeuroShell Trader chart shows a multi-currency trading system.

To create the trigger indicator for opening and closing positions, select “New Indicator” from the Insert menu, use the Indicator Wizard to create one of the following and select “Other instrument data” to choose the instruments as indicator parameters.

TRIGGER
(for two instruments moving in the same direction such as EUR/USD and GBP/USD):

Multiply2( Add( Subtract( EUR/USD Close, EUR/USD Open ), Subtract( GBP/USD Close, GBP/USD Open) ), 10000 )

TRIGGER
(for two instruments moving in different directions such as EUR/USD and USD/JPY):

Multiply2( Subtract( Subtract( EUR/USD Close, EUR/USD Open ), Subtract( USD/JPY Close, USD/JPY Open) ), 10000 )

To create a threshold-based or crossover-based trading system for trading a pair or a group of instruments moving in the same direction, select “New Trading Strategy” from the Insert menu and enter one of the following formulas in the appropriate locations of the Trading Strategy Wizard:

THRESHOLD SYSTEM
Generate a buy long market order if all of the following are true:

A>B( TRIGGER, 100)

Generate a sell short market order if all of the following are true:

A<B( TRIGGER, -100)

CROSSOVER SYSTEM
Generate a buy long market order if all of the following are true:

CrossAbove( TRIGGER, 0)

Generate a sell short market order if all of the following are true:

CrossBelow( TRIGGER, 0)

To create a trading system for trading a pair or group of instruments in different directions, simply create different entry conditions for each chart page, as shown in Figure 1. Each entry condition shown combines both the threshold or crossover condition for each instrument and a condition that compares the chart page’s close history to the other instrument data close history to identify which instrument’s chart page is being fired. Trading in opposite directions is accomplished by putting the same threshold or crossover condition (for instance, trigger > 100) in the opposite buy long or sell short condition list for each instrument.

THRESHOLD SYSTEM
Generate a buy long market order if ONE of the following is true:

AND2( A>B(TRIGGER,100), A=B(Sum(Close,10), Sum(Instrument1 Close,10) ) )
AND2( A<B(TRIGGER,-100), A=B(Sum(Close,10), Sum(Instrument2 Close,10) ) )

Generate a sell short market order if ONE of the following is true:

AND2( A<B(TRIGGER,-100), A=B(Sum(Close,10), Sum(Instrument1 Close,10) ) )
AND2( A>B(TRIGGER,100), A=B(Sum(Close,10), Sum(Instrument2 Close,10) ) )

CROSSOVER SYSTEM
Generate a buy long market order if ONE of the following is true:

AND2( CrossAbove(TRIGGER,0), A=B(Sum(Close,10), Sum(Instrument1 Close,10) ) )
AND2( CrossBelow(TRIGGER,0), A=B(Sum(Close,10), Sum(Instrument2 Close,10) ) )

Generate a sell short market order if ONE of the following is true:

AND2( CrossBelow(TRIGGER,0), A=B(Sum(Close,10), Sum(Instrument1 Close,10) ) )
AND2( CrossAbove(TRIGGER,0), A=B(Sum(Close,10), Sum(Instrument2 Close,10) ) )

If you have NeuroShell Trader Professional, you can also choose whether the parameters such as the trigger threshold should be optimized. After backtesting the trading strategy, use the “Detailed Analysis” button to view the backtest and trade-by-trade statistics for the strategy.

Users of NeuroShell Trader can go to the Stocks & Commodities section of the NeuroShell Trader free technical support website to download a copy of this or any past Traders’ Tips.

—Marge Sherald
Ward Systems Group, Inc.
301 662-7950
sales@wardsystems.com
www.neuroshell.com