In various posts CB says that he considers the trend to be signal and the rest to be noise. But is the signal the slope of the ULLMA or the ULLMA itself?
Suppose that we subtract the ULLMA of the HA from the price, and call the difference noise. Then we look at the ratio.. maybe log of the ratio.. to decide what is clutter and what is not. The ratio probably needs filtering, and it might be better to subtract the ULLMA of HA from the median of the HA bars.
I tried to do some of this to no avail, but my ability to program MT4 limits my ability to test ideas.
Another possibility might be a smoothed version of the ratio of HA bar height to price bar height. The HA bars tend to shrink when the market ranges, but price bars don't shrink as much. I tried this too, and got nowhere, but my failure should not prevent better programmers from trying if they think the idea has merit.
Finally, Ehlers adaptive Laguerre filter (ALF) has flat spots when the market ranges. The problem is that this filter has a lot of lag. Using the flat spots to filter trades would miss a lot of good entries, and allow a few bad ones. If this filter could be written with less lag, it might be useful. I have not found MT4 code for this one, so I had to code it myself. It is attached. Please excuse the programming, it works correctly.
MadCow
Suppose that we subtract the ULLMA of the HA from the price, and call the difference noise. Then we look at the ratio.. maybe log of the ratio.. to decide what is clutter and what is not. The ratio probably needs filtering, and it might be better to subtract the ULLMA of HA from the median of the HA bars.
I tried to do some of this to no avail, but my ability to program MT4 limits my ability to test ideas.
Another possibility might be a smoothed version of the ratio of HA bar height to price bar height. The HA bars tend to shrink when the market ranges, but price bars don't shrink as much. I tried this too, and got nowhere, but my failure should not prevent better programmers from trying if they think the idea has merit.
Finally, Ehlers adaptive Laguerre filter (ALF) has flat spots when the market ranges. The problem is that this filter has a lot of lag. Using the flat spots to filter trades would miss a lot of good entries, and allow a few bad ones. If this filter could be written with less lag, it might be useful. I have not found MT4 code for this one, so I had to code it myself. It is attached. Please excuse the programming, it works correctly.
MadCow
Attached File(s)
ALF.mq4
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