Fixed vs Adaptive Parameters in Algorithmic Trading - page 2

[Ryan L Johnson]

Gio Rendel Masagca Rivadillo #:
Thanks!

You're welcome.

Just to be clear, that's a scalping strategy. We're talking a few points of repetitive leading/lagging many times per day, as opposed to extended leading/lagging for swing trading.

[Mobina Bayat]

To answer Gio's question about an EA "knowing when to adapt" (regime shifts, trend vs mean-reversion): the practical approach is a two-part classifier rather than a single indicator, since one signal alone tends to flip back and forth right at the threshold. ADX(14) on H1/H4 works well to separate trending vs ranging conditions (e.g. above ~25 = trending, below ~20 = ranging, leaving a dead zone in between so price sitting right on the line doesn't cause constant switching). Pair that with an ATR ratio - current ATR vs its own longer-period average - to see whether volatility is expanding or contracting, which tells you a lot about whether a breakout is likely to hold. The part people usually skip is confirmation: only update the regime label after the classification holds for 2 consecutive closed bars, not on every tick or every new bar. That alone removes most of the false regime flips a single-bar read produces. Once the regime label is stable, you don't necessarily need two separate strategy blocks - the same core logic can just scale its position size, SL/TP distance, and entry filter strictness based on the current regime, which is a lot less to maintain than fully separate trend/mean-reversion systems.