Universal Trading System Users Manual. The significant array of inputs that drive the trade generation rules for the system allows the user to create a specifically designed trading strategy that will fit well with most individual personal trading styles. All input times must be entered in 24 hour military format.
The time after which trading signals may be generated each day. This input sets the starting time for generation of new trades only. Exits, including stop outs and specific target exits, will be executed at any time independent of start or end times. No new trades will be generated after End Time. For example, using the first two inputs, setting the start time to and the end time at restricts new trade generation to the time period between 8: These two inputs set the starting time and ending time for generation of new trades only.
Exits, including stop outs and specific target exits, will be executed at any time independent of the start or end times set by these inputs. Time at which all trades will be closed out for the day. This input should be used only when using the system as a day trading strategy. For example, if one were using the system to day trade the Russell index entering a Close Time input to a time prior to the close of the market would exit the trade at the designated time.
To disable timed exits enter a value greater than The number of contracts futures , lots Forex or shares equities that will be opened upon the initiation of each new position. Cntracts is not a typo — contracts is a reserved word in programming language and cannot be used as an input identifier. The system has built in targets that can be used to partially exit positions at three separate points.
The next 6 inputs set the parameters for these targeted exits. The profit target level for target 1. The designated number of contracts, lots or shares will be exited at the entry price plus the target1 value for a long position or the entry price minus the target1 level for a short position.
The number of positions to be exited when the market reaches the target1 objective. The number of contracts, lots or shares to exit at the target 2 level. The number of contracts, lots or shares to exit at the target 3 level. The B1 and B2 inputs set the sensitivity for new long positions.
Higher values for these inputs will result in a lower number of trades generated. S1 S2 The S1 and S2 inputs set the sensitivity for new short positions. When a given net profit level is reached a trailing stop is placed such that the current profit for the day minus a trailing amount will be the minimum profit to be realized for the day. The next three inputs set the parameters for this feature.
This input enables or disables the equity out feature. If it is set to 1 the feature is enabled. Set it to 0 to disable this feature.
The amount of profit during the session that must be reached to engage the trailing stop on the amount of profit for the day. The trailing stop for the amount of profit for the day. When the system exits as a result of the equity out sequence detailed above there will be no more trades generated for the remainder of the session.
The system also offers the option of moving the stop loss to breakeven after the target 1 exit has been reached. The next two inputs set the parameters for the breakeven exit. This input enables or disables the target breakeven feature. The amount of profit to add to the breakeven stop. For example, one could enter an amount necessary to recover any transaction costs encountered for the trade here to assure these costs are covered if the breakeven stop is executed.
This input enables or disables the day loss feature. This activates on a 24 hour basis meaning that if the system is stopped out on a day loss situation it will not take trades until the next calendar day occurs. This may effect the way in which some of you use the system when trading overnight. Values for this input can also be optimized using the same guidelines as outlined above. The Universal System is most effective when the system is selectively optimized when necessary using TradeStation's newly released Walk- Forward Optimizer.
In my opinion this program has the potential to totally revolutionize strategy testing and trading. Watch this section for more info on this revolutionary system optimization utility.
In the meantime here's a link to an introductory video I did for TradeStation on February 28, For many items, including Forex and stock indices, it is highly recommended that tick charts be used with the Universal System. By using tick charts, time is effectively removed from trade generation calculations. Since tick chart bars are created each time the designated number of price changes have occurred the actual market is represented on the graph uninfluenced by an artificial time parameter.
Timed 5 minute, hourly, etc. During quiet market periods many bars can be formed from little or no price activity. Since the system analyzes the market on a bar by bar basis these inconsequential bars can improperly influence trade generation resulting in multiple consecutive unprofitable trades.
Although time is effectively removed from trade generation equations by using tick charts, it is still possible to effectively constrain the system using start times, end times and close times.
Users are to be cautioned that setting the close time in close proximity to the end of the actual market could result in trades not being properly exited at the end of the session as desired.
Recall that each bar is completed as the required number of price changes have occurred. Since the program executes commands only upon the closing of a bar the situation can arise whereby the bar on which the trade is to be closed may not completely form at the end of the session resulting the command to close the trade not being generated. Users are encouraged to closely monitor the setting of the close time bar during system testing to assure that trades are being properly exited at the end of the session if it is your desire to do so.
System users frequently compare historical or real time trading results with the developer or other system users. Keep in mind that tick chart bars are formed when the designated number of price changes has been received by the host computer running the system and that trade generation is dependent on specific bar formations that occur during the session.
Also consider that each computer running the system may have varying calculation capacity due to processor availability, the amount of RAM in the machine, the number of charts open and other processes that could be operating simultaneously. Also, it is likely that each computer will have data connections that are of varying speeds attributable to all the factors that impact internet efficiency. The result of these situations is that each computer running the system on the same chart will be doing so with varying chart patterns and therefore slightly different trading results.
Significant research confirms the existence of these differences and has not been successful in discovering a solution. Users are encouraged minimize the time and effort required to compare trades as the usefulness of any information gained from this task is highly likely to arise from situations beyond the control of the system or the trader.
Initial system support consists of a complete, permanent installation of the system and a full backup file. Equity curve indicators that allow on-chart, real time monitoring of system performance are a part of the installation package. Also included are trade-ready workspaces customized for use on up to five symbols as selected by the purchaser.
Unlimited support is available by e mail or telephone following initial installation.More...