NON-INDICATOR (indicator-less) Trading

[Random.Capital]

Quote from big_cabrito:

Trend is defined as HH - HL - HH - HL (or reverse).

Sorry it wasn't clearer - need to define the minimum size of move to qualify as "trend". This is completely separate from determining an entry point.

In your example, two ticks of movement would potentially be enough to qualify as a "trend", which is obviously non-sensical.

 

[trackstar]

it is visually more pleasing than i would bet the results are.

 

[big_cabrito]

Quote from Random.Capital:

Sorry it wasn't clearer - need to define the minimum size of move to qualify as "trend". This is completely separate from determining an entry point.

In your example, two ticks of movement would potentially be enough to qualify as a "trend", which is obviously non-sensical.

Oh, gotcha. I'm getting the HH/HL from the "Swing" indicator which looks for the highest high in the last ten bars (configurable). Yes, it does mark a few bars that I would probably not consider when I'm looking at the chart, but they are pretty much legitimate highs. The important thing is the indicator doesn't mark any bars that are definitely wrong.

By looking at the trades taken, the trends the strategy is catching seem to last anywhere from about five minutes (failed) to several hours.

On another note, I'm playing around with Jahajee's ideas and it looks like Momentum is an excellent indicator all by itself! Using nothing but fading 2 sigmas of Momentum, I get the attached results. I'm sure when I add it to the strategy it will improve