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Volatility Entry Signal

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C0mput3r
162
C0mput3r  

Hi guys,

I would like to hear your thoughts on this. I have spent a few months developing my EA that seeks out momentum and tries to capitalize on it while having enough downside protection to be profitable.

My EA has 9 entry conditions and is currently profitable, however I feel that I am missing out on many opportunities due to one of my entry signals.

In order to make sure that the price has the legs to reach TP before forfeiting the advantage that my entry conditions give, I built in a volatility condition and ran hours of optimization on it.   

Basically it just states that  Std Dev > MinimumStdDev before it is allowed to enter any trades. I ran optimization on the timeframe of the Std Dev, the period and the minimum amount needed.

It turns out that the best minimum Std Dev is 0.0013-0.0015, on 6 periods and 60min timeframe. It works well most of the time on my live account, however because it is on a 60min timeframe I miss out on many opportunities as it sometimes takes a whole day before the Std Dev is high enough.

I have tried to reduce the timeframe but the results aren't nearly as good as the 60min timeframe.

I've looked into other measures of volatility such as ATR or even Volume but none perform better than Std Dev.

I'd like to you hear your thoughts? Do any of you use another measure of volatility as an entry condition?

Thanks in Advance,

Anton 

C0mput3r
162
C0mput3r  
Forgot to add this, you can see at the bottom what I mean about the STD DEV
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