Dear all,
A comment earlier in the thread warned against using this on lower timeframes. Why? Because this is a range based system,. and if you scroll down enough, there is always trend.
And trends with a certain slope are very deceiving when using LWMA centered channels and viewing historical data. However, the same principles will apply to all timeframes, high or low. The market is fractal. Here are two pictures from strategy tester. loaded with BDX, 4HR, 100%. One picture is real_time, triggering many entries, in strategy tester, and as it appears live, and one is after-the fact rendering of the channel on historical data. Somewhat shocking if you are not used to working with centered MAs and extrapolated data.
Perhaps this could be fixed with a slope filter on the LWMA? Essentially turn of the system and avoid trades when there is a certain slope over x number of bars. Thats the classical manual technique, and with this wonderful automation, should be possible to include.
That would also enable to have the system running on lower time frame also, and shutting itself down when the slope was too steep. (and possibly activate a trend following system, but thats another story)
A comment earlier in the thread warned against using this on lower timeframes. Why? Because this is a range based system,. and if you scroll down enough, there is always trend.
And trends with a certain slope are very deceiving when using LWMA centered channels and viewing historical data. However, the same principles will apply to all timeframes, high or low. The market is fractal. Here are two pictures from strategy tester. loaded with BDX, 4HR, 100%. One picture is real_time, triggering many entries, in strategy tester, and as it appears live, and one is after-the fact rendering of the channel on historical data. Somewhat shocking if you are not used to working with centered MAs and extrapolated data.
Perhaps this could be fixed with a slope filter on the LWMA? Essentially turn of the system and avoid trades when there is a certain slope over x number of bars. Thats the classical manual technique, and with this wonderful automation, should be possible to include.
That would also enable to have the system running on lower time frame also, and shutting itself down when the slope was too steep. (and possibly activate a trend following system, but thats another story)
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