China XLX Trend Score Case Study

This is a case study of using Trend Score Indicator on China XLX.

For definition of Trend Score Indicator, please refer to my earlier post.

Entry Rules:
1. Today’s trend score is less than -5.
2. Yesterday’s trend score is greater than -5.
3. Enter a short position on the next trading day at the market opening price.

Exit Rules:
1. Close the trade after 10 trading days.


The trading result is as follows:

Entry Date	Entry Price	Exit Date	Exit Price	% Change	Draw Down %	Max Gain %	Bars Held
8/1/2007	1.25	8/16/2007	1.03	17.6	-0.8	17.6	10
10/25/2007	1.16	11/9/2007	1.21	-4.31	-15.5172	1.7241	10
11/15/2007	1.16	11/29/2007	0.97	16.38	-0.8621	22.4138	10
1/4/2008	1.04	1/18/2008	0.93	10.58	-19.2308	12.9808	10
1/15/2008	1.04	1/29/2008	0.92	11.54	-1.9231	24.0385	10
2/27/2008	0.82	3/12/2008	0.805	1.83	-10.9756	9.1463	10
3/10/2008	0.765	3/25/2008	0.56	26.8	-5.2288	39.2157	10
4/1/2008	0.76	4/15/2008	0.745	1.97	-11.1842	3.9474	10
5/27/2008	0.92	Open	Open	8.7	-2.7174	9.7826	5
5/30/2008	0.925	Open	Open	9.19	-0.5405	10.2703	2

Average gain is about 10%.