Strategy Indicator - Percent winning trades for a trading rule

Let us say you have a trading system that contains three trading rules, imagine if you have a indicator that acts like a backtester or simulator; it analyzes each trading rule before it is applied to a stock or a security and tells you whether this rule was profitable for that stock during a specific number of bars. If the rule is not profitable then the trading indicator disables it.

If you have never used the Buy Indicator, maybe it is time to start using it. The buy indicator can do exactly what I have described above.

The strategy indicator is an adaptive indicator that uses the same logic as the buy indicator but returns a different time series. Instead of returning the performance of a strategy that buys a stock when the provided rule is TRUE and sells it after a given number of bars, this indicator returns the percentage of winning trades that are above a given threshold. You can apply this indicator to any trading rule and in any market (Stock Market, futures, commodities, currencies).

Here is a simple example:
You would like to create a trading rule that buys a stock when its RSI or relative strength index crosses above 30 (cross(rsi(14), 30)).
The following indicator allows you to test the profitability of this rule by returning for each trading day the percentage of winning trades (Buy when RSI crosses above 30 and sell after 10 bars) that returned more than 1%. This function also instructs the application to return the result only when there are at least 8 trades during the 300 bars lookback period.
SIndicator_PP(cross(rsi(14), 30), 10, 1, 8, 300)

If for the bar number 1000 the function returned 100%, this means that for the previous 300 bars (700-1000), all trades that were generated by this strategy had a performance that is higher than 1%.

To apply this indicator to your trading rule, you can use the following formula:
cross(rsi(14), 30) AND SIndicator_PP(cross(rsi(14), 30), 10, 1, 8, 300) >= 60

This tells the trading software to disable the RSI crossover rule when less than 60% of the trades generated by its corresponding strategy had a higher return than 1%.
The result is that the RSI crossover will be applied to some stocks for certain bars and not to others.

This strategy indicator is a very powerful tool and it can be used to develop trading systems and strategies that outperform the market in bull and bear periods.

The adaptive strategy indicator (SIndicator_PP) parameters are:
Rule: The trading rule to analyze
Bars: The number of bars to hold the trade or position
Threshold: The return threshold
Trades: The minimum number of trades
Lookback: The lookback period used to backtest the strategy

Technical Analysis

• Z-Score (Standard Score)
• Hhv-llv
• Volume * Price Momentum Oscillator
• % bars in last N trading days where stock close price increased
• R Squared of a Trading System Equity Curve
• Inside Period
• Average Stock Performance for each U.S Exchange
• Global Market Rotation Strategy V1.4
• Stock/ETF Rotational System Metrics
• Disparity Index
• More trading objects...

Fundamental Analysis

• Yale - Valuation Confidence Index
• Historical economic calendar data by currency symbol
• Short Selling Data
• Industry and Sector Information for the US Stock Market
• Smartmoney news for US equities
• Research and Development Percentage - US Stocks
• Ivey PMI Index - Canada
• Stocks with an EPS Several Times Higher than the Industry Average EPS
• Historical Jobless Rate
• Roubini Sentiment Indicator
• More trading objects...