Linear Regression Slope Color Changes as Trading Signals

Summary

This trading system uses the ColorLinearRegSlope_V2 indicator. It opens a position at bar close when the indicator band changes color. Exits are handled either by a pending order or by another change in the band’s color.

The document describes a historical test on USDCHF using four-hour bars for 2011, with the expert advisor’s default inputs. It says the test used neither stop loss nor take profit, but supplies no numerical performance measures or detailed trade results in the text. The limited description does not establish whether the system is profitable or how it behaves outside that instrument and period.

Key ideas

• The system uses changes in the indicator band’s color to trigger entries at bar close.
• Positions exit through a pending order or a subsequent color change.
• The described test uses USDCHF four-hour bars for 2011 and default expert advisor inputs.
• The test description states that stop loss and take profit were not used, and gives no numerical performance results.

Tags

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