Trend-Direction Entries Filtered by Volatility Strength

Summary

This trading system uses changes in the VininI_Trend_LRMA indicator to generate signals when a bar closes. Traders can choose between entering when the indicator crosses its upper or lower levels, or entering when its direction changes. A ChangeOfVolatility indicator can filter new entries when its trend-strength reading is below a chosen threshold. The filter applies to entries only; exits are not filtered. A separate version of the expert advisor omits the volatility filter.

The document reports a test on USD/CHF four-hour data for 2011 and says default expert-advisor settings were used. It states that stop-loss and take-profit orders were not used in those tests, but provides no numerical performance results in the text. The described setup therefore offers limited evidence about robustness, transaction costs, or risk. The entry logic depends on indicator settings and should be evaluated across markets and periods before use.

Key ideas

• Signals are generated at bar close from either indicator level breaks or changes in indicator direction.
• A volatility-strength indicator can screen new entries using a configurable threshold.
• The volatility filter affects entries but does not filter exits.
• The cited test used USD/CHF four-hour data from 2011 and omitted stop-loss and take-profit orders.
• The document supplies no numerical performance measures or broader robustness analysis.

Tags

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