EF Distance Trend Signals with Flat Market Volatility Filtering

Summary

The system enters when a bar closes and the EF distance indicator shows a change in the direction of its moving average. A separate Flat-Trend volatility indicator can filter entries according to whether trend force is sufficient; a configurable volatility level sets the entry threshold. The document distinguishes this filtered expert advisor from a variant that omits the volatility indicator, and says exit signals do not use the volatility filter.

The cited example concerns EURAUD on a four-hour chart during 2011, using default inputs. The document says stop-loss and take-profit settings were not used in those tests, but supplies no numerical performance measures or enough detail to assess robustness. The approach is therefore described as an indicator-based trend system with a regime filter, while its evidence is limited to a referenced historical chart and test. It does not explain position sizing, costs, or risk management.

Key ideas

• Entries follow changes in the moving-average direction shown by the EF distance indicator.
• A three-state volatility indicator can filter entries when the market lacks sufficient trend force.
• The volatility threshold applies to entries, while exits are unfiltered.
• The referenced EURAUD historical test used default inputs and omitted stop-loss and take-profit settings.
• No numerical results or robustness analysis are provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.