Elasticity
Elasticity
Current Price : $ 1650

The Elasticity Trading System

Lifetime license
Compatible with all Metastock versions

Watch the video

Developed by
Straiton & Partner
Switzerland

"It is a mistake to look too far ahead. Only one link of the chain of destiny can be handled at a time“.
Winston Churchill

 The Elasticity trading concept takes this quotation to heart.


Trend Following-Myths & Reality

Traders tend to think that because trends always form in the markets, trend-following will always be a profitable style.
 However, the net profit from trend–following has two main components: profit from trends minus loss from choppy market activity.
Usually, choppy markets cause trend-following methods to lose money. Therefore, it is not enough to have trends, it is also necessary that losses from choppy markets are not substantial.

The Elasticity Concept

The Elasticity trading system  focuses on short-term market fluctuations and takes advantage of deviation or "elasticity" from the mean price.
One could visualize the action of a rubber band being stretched and at the moment where the expansion loses momentum, a contraction takes place, forcing movement in the opposite direction.
The Elasticity trading system opens a trade at the moment that deviation from the mean price loses momentum.

Trend following  - the reality

While most trend following strategies have a high loss to win ratio but in the long term generate positive returns, the psychological pressure on the user to abandon the strategy due to consistent small losses is immense.
 
The elasticity concept generates a relatively high win to loss ratio and therefore the user is less likely to abandon his trading plan.

Elasticity Trade Entry


High System Profitability - High profit/Loss ratio

 

 

Performance Summary

 

 

Equity Chart

How to select tradable stocks

  • Run the system tester for a selected market
  • Select stocks which show positive returns and which have a high win/loss ratio.
  • Save these stocks in a custom list.
  • Run a daily scan to find long and short trading signals and their corresponding stop loss levels, using the Elasticity Opening Positions exploration.

Once positions have been opened, run a daily scan using the Elasticity Closing Positions exploration to check if long or short exit signals have been generated for your open trades.


Elasticity Opening Position Exploration

Elasticity Closing Position exploration