There is no perfect strategy

Staring at the backtesting charts, and optimizing using my gradient checker, I can easily reduce the number of loss trades (and profit trades) during sideways market periods. However, the discovery of the slowly trending in the non-volatile market mentioned in the previous log entry has bothered me a bit. There is a long trend right […]

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 […]

Sideways Markets and MACD, RSI

MACD loses money in a sideways market and if we can do something to identify that the market is so, then we can get the MACD to ignore trade signals until it appears to be trending again. The use of Bollinger Bands can help identify sideways markets it seems. –       If the price has moved […]