TradeStation have lot of default strategies. Here in this post I will discuss about “Custom Strategy LE”.
Default logic:
By Default the strategy have C > O in the LECondition. It means the BUY will trigger in the next bar when the current bar’s Close value is greater than Open value. For example, if AAPL stock opened at 336 and closed at 337 the BUY will trigger in next bar at market value.
The Idea behind Default logic:
When C > O it means that the market is in uptrend since the value is getting increased. Its very basic and need a little bit of enhancement.
The Updated logic:
In LECondition just replace by the below
Time > 0929 and Time < 1549 and Totaltrades = 0 and C > O
The Idea behind Updated logic:
We don’t want to send market orders during pre/post market hours so based on EST I have added the logic to only execute during normal market hours (EST). Based on your time zone you need to adjust the Time values.
This strategy will work on the first trade and cant be repeated the whole day. Totaltrades is used to get the number of total trades during the chart timeline. So I added a check for Totaltrades = 0 which will make sure after the first trade, the strategy will not execute.
Exit strategy:
The exit strategy is described in detail here. Please go through it on how I designed my exit criteria.
Backtesting and simulated trading:
Make sure you backtest the code on daily chart and for a whole year. Simultaneously execute it daily in simulated trading account. After you have done all of your research please let me know in comments what do you think and your backtesting results.
Again this is not a full blown working strategy and there will be never! Its a good starting point.