So it seems to me that a problem that this system needs to overcome is determining when the market is trending, when it is ranging, and when its just acting randomly with not real direction.
I "may" have a solution for you, as I haven't seen anyone mention this yet, of if they did I somehow missed it.
Fractal Dimension Index (FDI)
The entire point of this indicator is to take into account a variety of inputs and give you a range of numbers to show you the general "state" of the market. Rather then go into the extreme details of what it does, I recommend people google it if you dont know, but here are the basics.
The indicator displays a range from 1 to 2.
The closer it is to 1 the more likely it is the market is "trending"
The closer it is to 2 the more likely it is the market is "ranging"
The closer it is to 1.5 the more likely the market is neither ranging or trending, meaning its a poor time to enter a trade based on a ranging or trending system.
At its core, the Nanningbog system makes its money in a ranging market, and takes its hits on draw down in a trending market. By using the FDI as a confirmation of a ranging or trending market, it should be possible to auto-adjust the EA's to see when its a good time to trade either style.
There are several commercial and free FDI indicators out there, but here's a free one I picked up somewhere. Do with it what you will, but I think when combined with the power of the EA it may be possible to use the FDI to improve its entries.
I "may" have a solution for you, as I haven't seen anyone mention this yet, of if they did I somehow missed it.
Fractal Dimension Index (FDI)
The entire point of this indicator is to take into account a variety of inputs and give you a range of numbers to show you the general "state" of the market. Rather then go into the extreme details of what it does, I recommend people google it if you dont know, but here are the basics.
The indicator displays a range from 1 to 2.
The closer it is to 1 the more likely it is the market is "trending"
The closer it is to 2 the more likely it is the market is "ranging"
The closer it is to 1.5 the more likely the market is neither ranging or trending, meaning its a poor time to enter a trade based on a ranging or trending system.
At its core, the Nanningbog system makes its money in a ranging market, and takes its hits on draw down in a trending market. By using the FDI as a confirmation of a ranging or trending market, it should be possible to auto-adjust the EA's to see when its a good time to trade either style.
There are several commercial and free FDI indicators out there, but here's a free one I picked up somewhere. Do with it what you will, but I think when combined with the power of the EA it may be possible to use the FDI to improve its entries.
Attached File(s)
Fractal_Dimension.mq4
16 KB
|
261 downloads