There are three methods of entry: (a) Enter on the close of the day on which the countdown is completed (b) Long Trades: Enter on the close if Close > Close Short Trades: Enter on the close if Close High Short Trades: Enter on the close if Close < Low. When the countdown reaches 13, the countdown is completed and we get a sell signal unless one of the following conditions occurs: (a) A new setup is formed simultaneously as the countdown process is taking place (b) There is a close that exceeds the lowest intraday low that occurred during the setup stage. Long Trades: Once the setup and intersection are satisfied, we count the number of days in which the close is lower than the low 2 days earlier (Close High Index: i ~ Current Bar). The days that satisfy this requirement do not need to be in a row. This rule assures that prices are advancing in an orderly fashion. Short Trades: The low of any day on or after the 8th day of the setup is lower than or equal to the high of any day 3 or more days earlier. This rule assures that prices are declining in an orderly fashion. Long Trades: The high of any day on or after the 8th day of the setup is greater than or equal to the low of any day 3 or more days earlier. Note: Each day in a look back period is a trading day. In the case where today’s close is equal or smaller than the close 4 trading days before, the setup must begin again. Long Trades: At least 9 consecutive closes are lower than the corresponding closes 4 trading days earlier (Close Close Index: i ~ Current Bar). Tested Variables: Setup_Length & Countdown_Length (Definitions: Table 1):įigure 1 | Portfolio Performance (Inputs: Table 1 Commission & Slippage: $0). The final picture shows sensitivity of Equity Curve. Sensitivity TestĪll 3-D charts are followed by 2-D contour charts for Profit Factor, Sharpe Ratio, Ulcer Performance Index, CAGR, Maximum Drawdown, Percent Profitable Trades, and Avg. Portfolio: 42 futures markets from four major market sectors (commodities, currencies, interest rates, and equity indexes). Long Trades: Enter on the close if Close > Close Short Trades: Enter on the close if Close < Close. Index: i ~ Current Bar. Trade Entry: There are three entry methods explained in the Table 1. Trade Setup: There are tree stages explained in the Table 1 (Setup, Intersection, and Countdown). Research Goal: Performance verification of the TD Sequential™ pattern (TD Sequential™ is a trademark of Market Studies, LLC). Concept: Trend reversal using exhaustion points. Trading Strategyĭeveloper: Thomas DeMark: TD Sequential. TD Sequential | Trading Strategy (Setup & Countdown) I.
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