The Characteristics of a Trend

Ok so I’ve completed the oscillator that I was aiming for, but unfortunately I didn’t quite get what I wanted. It is working as designed but it isn’t as useful as I thought it would be. However, it has definitely given me much food for thought and I have come up with some useful ideas […]

Categorizing Trends

Ok so I have done a couple of days work on this trend categorizing and I am making some progress. I have put together a new indicator, currently called TrendF, that attempts to identify the trends. I thought about this a lot and tried many things. We obviously want to focus on the gradient of […]

Fleet of Strategies

Continuing the thoughts from the November 1st post, we concluded with the mandates Your strategy should behave in all types of markets The markets are always changing, and the configuration must change too. Indeed, I know it is not possible to make a perfect strategy that works all the time (10th July post). At this […]

More aggressive Trend Strategy

The Trend_Rev strategy has been able to produce some good backtesting results, and now I am running it for AUDJPY for two different time frames, and currently optimizing on other currency pairs. When looking at EURGBP.m5 across the 2008-2009 period, I noticed a rather long trend in December 2008 where the strategy did not trade […]

Preventing Whipsaw – Using a longer moving average?

Can we possibly utilize a third, much longer time frame MA to prevent whipsaw and loss trades? Possible ideas are Only trade in the direction of the trend indicated by the longer MA If the longer MA has a flat gradient, we are in a sideways market so avoid trading. Add envelopes to possibly switch […]

Optimizing – Lot sizes and Margin Call

Today I updated the strategy such that it is possible to check the slow MA and fast MA gradients for a certain angle. I ran these through the optimizer and of course can find combinations of inputs that make money. However, it seems that the safest strategies are the ones that result in a very […]

Preventing Whipsaw using a Gradient Calculation

Continuing on from June 28th investigation… I extended the strategy to calculate the angle of the gradient for the moving averages and integrated this into the trading signals. Initial tests over a small window (Dec 2010) show less loss trades – this is good news, but also some bad news. Without gradient angle checking enabled Here […]

Preventing Whipsaw: MA Gradients and trading with the Trend

Taking a quick look at the journal entries May 31st and June 10th showed that there is some benefit to calculating the gradient of the moving averages. This can be used in two places Can be used to discourage new trades if the trade direction is against the current gradient direction. Can be used as […]