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The buy condition used in the backtests
Buy = EMA( C, 20 ) == HHV( EMA( C, 20 ), 200 ); //plus a series of other filters & parameters not disclosed.

Index Filter versus a "Relative Strength Line"
A traditional "Index Filter" is a simple measure of an index. If an index is below or above a Simple Moving Average (SMA) the index is either on or off. The disadvantage of using an "Index Filter" it keeps you out of the markets when obviously there are some positions making new highs. The advantage of a traditional "Index Filter" it keeps you from trading in unfavorable market conditions.

An alternative that keeps you in the markets
Using a "Relative Strength Line" rather than an "Index Filter" allows you to keep trading whilst a "Traditional Index Filter" places you on the sideline resulting in more trades over the same period. Professional traders keep trading no matter what the market or an index of the market is doing, it's only our type of trading that uses these as a matter of course.

Skate.

<blockquote data-quote="Skate" data-source="post: 1180251" data-attributes="member: 57364">The buy condition used in the backtestsBuy = EMA( C, 20 ) == HHV( EMA( C, 20 ), 200 ); //plus a series of other filters &amp; parameters not disclosed.Index Filter versus a &quot;Relative Strength Line&quot;A traditional &quot;Index Filter&quot; is a simple measure of an index. If an index is below or above a Simple Moving Average (SMA) the index is either on or off. The disadvantage of using an &quot;Index Filter&quot; it keeps you out of the markets when obviously there are some positions making new highs. The advantage of a traditional &quot;Index Filter&quot; it keeps you from trading in unfavorable market conditions.An alternative that keeps you in the marketsUsing a &quot;Relative Strength Line&quot; rather than an &quot;Index Filter&quot; allows you to keep trading whilst a &quot;Traditional Index Filter&quot; places you on the sideline resulting in more trades over the same period. Professional traders keep trading no matter what the market or an index of the market is doing, it&#039;s only our type of trading that uses these as a matter of course.Skate.</blockquote>

[QUOTE="Skate, post: 1180251, member: 57364"] [B]The buy condition used in the backtests[/B] Buy = EMA( C, 20 ) == HHV( EMA( C, 20 ), 200 ); //plus a series of other filters & parameters not disclosed. [B]Index Filter versus a "Relative Strength Line"[/B] A traditional "Index Filter" is a simple measure of an index. If an index is below or above a Simple Moving Average (SMA) the index is either on or off. The disadvantage of using an "Index Filter" it keeps you out of the markets when obviously there are some positions making new highs. The advantage of a traditional "Index Filter" it keeps you from trading in unfavorable market conditions. [B]An alternative that keeps you in the markets[/B] Using a "Relative Strength Line" rather than an "Index Filter" allows you to keep trading whilst a "Traditional Index Filter" places you on the sideline resulting in more trades over the same period. Professional traders keep trading no matter what the market or an index of the market is doing, it's only our type of trading that uses these as a matter of course. Skate. [/QUOTE]

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