ENTRY RULES:
1- For long trades, look at bar colours of stepchoppy (SC) indicators. If they are both blue AND they are below AQUA ATR Line + 10 pips (anywhere below it, NOT ONLY between GREEN and AQUA ATR Lines), then enter at the close or immediately at the open of next bar with 4 lots. Following charts show two examples of correct Long entries.
Look at vertical white line and the close of the bars. Both pictures show that repainting (on the chart) and NOT repainting (the bottom window) versions of SC indicator changed the bar colour to BLUE at the same time, on the same bar (see assumption below). The place of bars is not important, in the first picture close of the bar is between GREEN and YELLOW ATR Lines. In the second picture, it is between ORANGE and RED ATR Lines.
So we enter long with 4 lots at the close these bars or opening of the next bar by assuming downtrend ended and uptrend started because of BLUE bars.
Another assumption here during backtesting was repainting version on the chart repainted previous bar to LIGHT BLUE (14/3/2007 08:00 bar) at the end of the BLUE line (14/3/2007 12:00 bar) in the first picture and corresponding bar in the second picture so that we had BLUE bars on both versions of the SC indicator. If this assumption is not true in real time, then we'll use another entry method which will be explained in the next post.
1- For long trades, look at bar colours of stepchoppy (SC) indicators. If they are both blue AND they are below AQUA ATR Line + 10 pips (anywhere below it, NOT ONLY between GREEN and AQUA ATR Lines), then enter at the close or immediately at the open of next bar with 4 lots. Following charts show two examples of correct Long entries.
Look at vertical white line and the close of the bars. Both pictures show that repainting (on the chart) and NOT repainting (the bottom window) versions of SC indicator changed the bar colour to BLUE at the same time, on the same bar (see assumption below). The place of bars is not important, in the first picture close of the bar is between GREEN and YELLOW ATR Lines. In the second picture, it is between ORANGE and RED ATR Lines.
So we enter long with 4 lots at the close these bars or opening of the next bar by assuming downtrend ended and uptrend started because of BLUE bars.
Another assumption here during backtesting was repainting version on the chart repainted previous bar to LIGHT BLUE (14/3/2007 08:00 bar) at the end of the BLUE line (14/3/2007 12:00 bar) in the first picture and corresponding bar in the second picture so that we had BLUE bars on both versions of the SC indicator. If this assumption is not true in real time, then we'll use another entry method which will be explained in the next post.
Attached Images