Build A Waves Surfing Strategy ( Auto Trading ) - Chapter 5

Build A Waves Surfing Strategy ( Auto Trading ) - Chapter 5

25 May 2016, 21:55
Juan Fernandez
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1. Introduction

In this chapter we will analyze range area killing our lead indicator combined with SnR. We will see if we can improve losses in that problematic moment and if we have change DashPIN priorities for adapt the mix better.


2. The problem solution 

When we add SnR out the box we can see some interesting things.

First we see almost all time price is outside SnR signal levels. If you remember, EA was set up for need Trend and SnR same signals for can open/close trade. That means while SnR have neutral or opposite signal EA will never have valid signal. 

First analisys looks very promising

 

But the best part is when we start to check what bad trades are removed. We have 15 trades in that area and SnR filter 14. Whatever not all traders are filtered for SnR only. The combination of both tools did the work.

SnR as filter for our lead indicator seem effective


For understand better why is working both tools we will see how is affecting SnR to the mix. We have 2 types of filtered trades when we add SnR to Trend.

First is filter for neutral zone. We can see in capture what trades were filtered for this approach.

The desynchronization of the signals is the most powerful feature of priorities. This lock signals in a dynamic way.


Second is filter for opposite signal. We can see in capture what trades were filtered for this approach.

We only have 2 trades removed for pure opposite signal. Really the hard job was done for neutral zones


3. Small change, new possibilities

Even is not covered in this series of articles, i added in last capture an example of future SnR feature. That example show what should happened if that trade is filtered for SnR first, and later we apply a fast filter for catch swings. We can convert BE or small loss trade in a fair profitable trade.

The important thing in this example is try have the entry enough time for can have a good oportunity of close it. Without SnR we will never have that opportunity because how we saw before we suffered many false entries in that area.


4. Final words

This time we got a very good surprise adding our filter. Without much work we resolved very well a critical area and we didnt need change EA parameters. This will reduce DD and improve win ratio at same time. But now we have a doubt for resolve. Will work SnR filter in trend moments? Or resolving range areas we created new problem in other auto trading area non-existent before?.

Next chapter will answer this question...See you soon :)


5. Links

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