Monday 27 October 2008

TRIN Oscillator Turns Up and System Update

First of all I have to make a disclosure. I am not currently trading my Better TRIN Systems. The current volatility in the Emini is generating plenty of day trading opportunities with 10+ point swings almost the norm. The Better TRIN Systems are designed for swing trading and holding positions over-night. For me personally this is just too much volatility and risk, so I'm 100% day trading right now.

Having said that, the Better TRIN Systems are holding up well and making new equity highs. The charts below show the recent signals, equity chart and performance report.

Emini TRIN Oscillator Image

TRIN Oscillator Turns Up (Emini daily)

We had a Bullish Divergence warning signal on the Better TRIN Friday (red dot) and the Better TRIN Oscillator turned up today. We could see the start of a new upswing tomorrow - but we're awfully close to the 830 level. Gunning the stops below 830 might prove too tempting for the Professionals.

The chart above shows the Better TRIN Systems making multiple short entries over the last 2 weeks. These were closed out for a profit at the end of trade today (blue dotted lines are winning trades, red dotted lines are losing trades). These have more than made up for the cluster of mostly losing long trades taken back in September.

Emini TRIN System Equity Curve Image

Equity Curve Making New Highs (Better TRIN Systems)

I have to say, I'm quite proud that the Better TRIN Systems are continuing to make new equity highs long after their development and release to the public. I attribute this to 2 things:

There is the minimum of optimization in the system code, with each pattern being a single line for a long or short trade.
All the patterns use the same exit - a turn in the Better TRIN Oscillator. This has proved to be a very robust profit taking signal.

Emini TRIN System Performance Image

Profit Factor 3.05 (Better TRIN Systems)

Lastly, here's the latest TradeStation Performance Report. The Profit Factor is 3.05 and average trade $788. If you own the Better TRIN and want to check these results, make sure you have all the patterns (TypeA to TypeE) set to True; DoubleUp set to True; and "Allow multiple entry orders in the same direction" ticked.

You can learn more about the TRIN Indicator and systems here. Good luck with your Emini trading.