Foster–Stewart Trend Signals with Price-Based Stops and Entry Filters

Summary

The document describes an expert-advisor concept that uses the Foster–Stewart criterion to identify trend direction and strength, then opens long or short positions when a threshold is reached. It uses separate parameters for buys and sells to reflect potential asymmetry in price moves, with three trend horizons for each side. Stop-loss and take-profit levels are calculated automatically from price levels, and a best-price filter restricts entries relative to existing positions.

The reported optimization uses EURUSD hourly data over a stated historical interval, with parameters selected separately by signal. However, the text provides no performance figures or detailed test results, and explicitly says the aim was not to produce a consistently profitable advisor. It frames the criterion as a possible source of trading signals, not proof of a durable strategy. The parameter notes specify minimum trend period and a maximum threshold relative to that period; execution, risk sizing, and out-of-sample validation are not described.

Key ideas

• The Foster–Stewart criterion supplies trend direction and strength signals for entries.
• Buy and sell signals use distinct parameters, and each side considers intraday, weekly, and monthly trends.
• Stop-loss and take-profit levels are set automatically based on price levels.
• A best-price filter limits entries relative to prices of already open positions.
• The document reports an optimization setup but does not provide results establishing consistent profitability.

Tags

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