DTI offers educational services across all instruments but specialize in equities, commodities, and futures. They are lead by the talented Tom Busby and Jeanette Sims.

The format I used involved soliciting requests for favorite chart patterns ahead of my talk so that I could take such examples and model them during my presentation – very off the cuff and impromptu strategy configuration. Most of the time this usually generates sub-par strategies as measured by our backtesting tool, The OddsMaker – not today. Thanks to the group we stumbled onto unusually profitable strategies that I share with you now.

Here was the chart pattern request:

It produced this strategy that caught $DIN in the mid-morning (a beautiful chart):

“LONG – Above the 20Day MA Just Above 3Day Consolidation“

1 Alert:

and these backtest results from The OddsMaker:

The trade plan modeled for this strategy consisted of trading from the open until 3 hours before the close and holding each symbol generated from the strategy until the open 2 days later. A stop loss of $0.30 was consistently used.

The results?

The average winner was 5x the size of the average winner (even though the win rate was 1 out of every 4 alerts). That’s still a good strategy: when I lose, I lose only $0.30, but when I win, I win $1.50. Hand it over.

Note that the daily summary of results which show the date, the day’s P&L total, and the number of trades that day, reveals how the market rewards this strategy more recently than during the first days of the strategy. Viewed as a histogram I might consider being more aggressive with this strategy i.e., with profit targets and number of trades I take from the strategy.

I’ll be keeping an eye on this strategy and may tweet some example alerts. Stay tuned and follow me @TradeIdeas.