Discussing the article: "From Novice to Expert: Extending a Liquidity Strategy with Trend Filters"
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Check out the new article: From Novice to Expert: Extending a Liquidity Strategy with Trend Filters.
The article extends a liquidity-based strategy with a simple trend constraint: trade liquidity zones only in the direction of the EMA(50). It explains filtering rules, presents a reusable TrendFilter.mqh class and EA integration in MQL5, and compares baseline versus filtered tests. Readers gain a clear directional bias, reduced overtrading in countertrend phases, and ready-to-use source files.
Consider a strong prevailing trend. If a liquidity indicator identifies a supply zone against that trend, the signal may indicate temporary exhaustion or a minor pullback rather than a full reversal. Whether such a setup succeeds or fails is a matter of probability, not certainty. Consistently trading against dominant momentum increases exposure to drawdowns and reduces expectancy.
The practical solution is to align liquidity opportunities with the dominant market bias. In other words, we trade liquidity in the direction of the trend, not against it. This requires the introduction of constraints—objective rules that define acceptable market conditions.
Common categories of constraints include:
Understanding these concepts is valuable beyond this specific strategy. Once mastered, they can be applied to virtually any trading system to improve consistency and robustness.
To demonstrate the concept, we consider our liquidity zones indicator combined with one of the most widely used trend tools: the 50-period exponential moving average (EMA 50). When liquidity setups form in the direction of the EMA slope, trade outcomes tend to improve noticeably.
Author: Clemence Benjamin