Okay -- I'd like to get another word in about ATR versus ADR band offsets...
There are many, many TMA-based strategies. Their upper and lower bands are based on ATR and require 3 settings -- ATRMultiplier, HalfLength and Period. These strategies are very flexible in that you can configure upper and lower bands to your heart's content. Furthermore, if you like testing for optimal values for different pairs and time frames then this alone will keep you occupied for many weeks and months. In fact, @George recommends several thousand hours, at least.
The BD strategy uses a special-case of the ATR -- ADR. Not 16% ADR, not 33% ADR rather, just ADR. That's all that separates the BD strategy from all the others -- it uses a special-case of the ATR called ADR.
If you don't like ADR then there is absolutely no reason to pursue the BD strategy. Using ADR as the band offset is the magic sauce. If you don't find value in the ADR then look into one of the many other TMA-based strategies. The reason why I resist moving away from ADR is because I'm not inclined to discard the magic sauce.
EDIT: One other thing. The reason why 16% ADR works is not because of anything special about the BD strategy. Rather, it's because it is TMA-based and any TMA-based strategy with an upper and lower band can be configured to detect extreme prices that you trade away from.
There are many, many TMA-based strategies. Their upper and lower bands are based on ATR and require 3 settings -- ATRMultiplier, HalfLength and Period. These strategies are very flexible in that you can configure upper and lower bands to your heart's content. Furthermore, if you like testing for optimal values for different pairs and time frames then this alone will keep you occupied for many weeks and months. In fact, @George recommends several thousand hours, at least.
The BD strategy uses a special-case of the ATR -- ADR. Not 16% ADR, not 33% ADR rather, just ADR. That's all that separates the BD strategy from all the others -- it uses a special-case of the ATR called ADR.
If you don't like ADR then there is absolutely no reason to pursue the BD strategy. Using ADR as the band offset is the magic sauce. If you don't find value in the ADR then look into one of the many other TMA-based strategies. The reason why I resist moving away from ADR is because I'm not inclined to discard the magic sauce.
EDIT: One other thing. The reason why 16% ADR works is not because of anything special about the BD strategy. Rather, it's because it is TMA-based and any TMA-based strategy with an upper and lower band can be configured to detect extreme prices that you trade away from.
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