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- 28 December 2013
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So you managed to integrate the indicator to run inside your various strategies...nice. I'll be interested to see how it performs in the 'bounce' that we have currently. A timely signal should the bounce (start to) collapse into a second low, would be very advantageous and I daresay profitable. That is certainly where my current attention is: trading the bounce.
Duc, I've added to my last post with "What's next" & a "recap" explaining the three.
Trading the bounce
Your posts is a perfect explanation how the daily "Ducati blue bar strategy" trades the "bounce" by picking when a trend turns using two indicators "volatility & volume". If the trend is up (blue Bars) we buy & if the trend is down (red bars) we sell - the strategy is simple, effective & clean. Your idea using "volatility & volume" to generate signals is clever but "ONLY" when the Parameters, Filters & PositionScore are added to the strategy being vital components to the profitability of the strategy. Using just the raw code without the "Parameters, Filters & PositionScore" the strategy would generate a tremendous amount of signals which tends to be useless.
Back to "The Ducati Stop & Go Indicator"
(a) Integration was important. (b) Using the "monthly" ASX 200 Accumulation Index (XJOA) smoothes the signal. (c) The indicator works like someone saying - "get ready", "get ready","pull the trigger now" indicator. All strategies have entry & exit conditions "The Ducati Stop & Go Indicator" adds another layer to fine tune the "NOW" (pull the trigger now indicator) if that makes sense.
Skate.