Recent Trades with the AAPL Deviant Cross Autotrader (click to enlarge)
Introducing the AppleInvestor Deviant Cross AAPL Autotrader. This is an exclusive of the AppleInvestor website. We broadcast the autotrader on the website live and completely free, all you have to do is register in the Chat Room.
The autotrader uses a sophisticated algorithm that trades based in part on my Deviant Cross indicator, which analyzes linear regressions and volatility of Apple’s stock price movements. The version you see here trades in the 90 minute timeframe, so that each bar represents 90 minutes of data. This makes it suitable for a Swing Trader’s style.
The autotrader employs sophisticated money management techniques, including separately configurable short and long stop losses, trailing stops, daily and monthly profit protects, and auto-position sizing based on relative volatility over a specified range of time.
There are two indicators that help you visualize when a trade is about to occur and what the size of the position the trader is going to take. The Deviant Cross is a multi-colored oscillator that measures the slope and acceleration of stock prices using linear regression. When the indicator crosses the zero line, the autotrader evaluates the conditions and determines whether or not to take a trade.
2 year Equity Curve for the AAPL Deviant Cross Autotrader (click to enlarge)
The ATR Position Size indicator is represented as a zero-based histogram that shows the number of shares the autotrader is likely to enter in the trade. Essentially this indicator shows more shares when volatility is low and fewer shares when it’s high.
Both the indicators have numerous settings and can be optimized in any number of ways. The current settings have been backtested over 5 years of data and take into account trade commissions, slippage, and even interest on margin. Here is an equity curve over the past two years. It’s interesting to note that the trader made money while Apple was rising to it’s all time highs, as well as when it fell from grace.
You can watch the auto trader live, all you have to do is register with the AppleInvestor Chat Room, where we talk about Apple, trading strategies, the markets, those darn analysts, plus anything else about Apple and the markets. This is a brand new service, so tell your friends, the aim is to create a vibrant community and become better traders!