Discussing the article: "Trend criteria in trading"
Interesting article, will you write a sequel about other trend criteria? Also - what settings did you test with for the results in the images? Tried running optimisation on the same pair to determine but to no avail.
I'll give it a try... There are some other interesting criteria, including determining the pivot point. I need to figure out how to explain them in a simpler way.
about the tester, I don't know what the problem is. I get this.
I'll try... there are some other interesting criteria, including the definition of a pivot point. I need to figure out how to explain them in a simpler way.
I don't know what the problem is with the tester. I'm getting this.
Thanks, I'll give it a try. And where do you look for explanations of the criteria and mathematical mechanisms for detecting them? Looks like scientific sources ...
Thanks, I'll give it a try. And where do you look for explanations of the criteria and mathematical mechanisms for their detection? Looks like scientific sources ...
there is a lot of literature, but all the criteria are mostly scattered here and there. Here's a good selection of different criteria
I am working on the practical application of the Wald-Wolfowitz trend criterion described in your article. As I understand it, the Wald-Wolfowitz criterion tests the hypothesis of randomness/stationarity of data. In the code of trading Expert Advisors, it is important to understand what exactly the indicator returns?
Do I understand correctly that the Indicator calculates the probability (in per cent) that the sequence of prices (in this case - open values) is random on the basis of the Wald-Wolfowitz criterion.
The result is stored in buffer buffer[0] and represents the percentage probability (from 0 to 100).
The closer the value is to 100%, the higher the probability of randomness (no trend).
The closer to 0%, the higher the probability of non-randomness (presence of trend or clustering)?
Calculation logic:
The indicator ranks the open values for a selected period ( iPeriod ), then calculates statistics based on the ranks and converts it to a percentage value via CDF (empirical distribution function):
buffer[i] = 100. * cdf / cnt; // Percentage probability
Levels in the graph:
indicator_level1 = 33 and indicator_level2 = 67 are benchmarks for interpretation:
<33% - strong non-randomness (trend possible).
>67% - high randomness (flat).
Do I understand the interpretation of the indicator presented in your article correctly?
I am working on the practical application of the Wald-Wolfowitz trend criterion described in your article. As I understand it, the Wald-Wolfowitz criterion tests the hypothesis of randomness/stationarity of data. In the code of trading Expert Advisors it is important to understand what exactly the indicator returns?
Do I understand correctly that the Indicator calculates the probability (in per cent) that the sequence of prices (in this case - open values) is random on the basis of the Wald-Wolfowitz criterion.
The result is stored in buffer buffer[0] and represents the percentage probability (from 0 to 100).
The closer the value is to 100%, the higher the probability of randomness (no trend).
The closer the value is to 0%, the higher the probability of non-randomness (presence of a trend or clustering)?
Calculation logic:
The indicator ranks open values for a selected period ( iPeriod ), then calculates statistics based on the ranks and converts it to a percentage value via CDF (empirical distribution function):
Levels in the graph:
indicator_level1 = 33 and indicator_level2 = 67 are benchmarks for interpretation:
<33% - strong non-randomness (possible trend).
>67% - high randomness (flat).
Do I understand the interpretation of the indicator presented in your article correctly?
Yes, you understand everything correctly. The only thing is that I set the levels 33 and 67 just because I needed some levels. You can set other levels, for example, 25 and 80.
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Check out the new article: Trend criteria in trading.
All traders know the phrase "The trend is your friend". Indeed, trending price movements can bring quite large profits. Trend trading is based on the assumption that price movement will continue in the same direction. The main problem with this type of trading is to determine the start and end time of the trend with sufficient accuracy.
Today, there are many approaches to defining and calculating trend parameters. In this article, we will look at the most interesting of them and try to apply them in practice.
Author: Aleksej Poljakov