For those of you who are active in the chat will know that I have been working on a new system that will hopefully be automated in the coming weeks/months. This system will be strictly based on Cumulative Delta.Delta refers to the net difference between buying and selling volume at each price level. Cumulative Delta builds upon this concept by recording a cumulative tally of these differences in buying vs selling volume.
Without going into to much detail this system will be extremely straight forward and only has a few rules. It will use our basic price action based system for finding trends and looking for trades. With this system there will only be one pattern for both bullish and bearish entries. The whole idea behind this is to take traders who have a very limited amount of experience and introduce them to a system that actually works and will produce results. There will not be a need to look at specific entry candles like we do now, you will be simply buying and selling when signaled in.
At the moment the system has an 82% win rate for the current year. Now we will be going back and seeing how it preformed over the past 10 years and throughout many different market types from bullish,bearish and ranging type markets.
At the moment the focus of this system will be based around the MES, a few reasons for this. For one I am a big fan of the MES and still think in the coming years we will see the MES volume increase and be very similar to the ES as US based retail traders leave FX. The second reason is this system is being made for the entry level trader, someone who does not have a ton of experience to spend 1000+ hours learning how everything works. Now just because the system has a good win rate and is simple to use does not mean you should skip out on all learn all the basics and advanced features and information about futures and price action.
The goal would be to roll this system out by the middle to end of the summer. There is still immense amounts of testing and tweaking that needs to be done. This blog is by no means a guarantee that a system will be produced due to the fact if the long term testing comes back negative then it is not something I will put my name on and Gorilla Futures name on.
Still need to be done:
Long term Testing
Course Built around new system
Addition to website
As you can see this is still in the early phases of what it will hopefully turn into. I will try and make sure everyone stays updated on the roll out of this system. If you have any questions please post them in the comments section below.
(Patrick M )