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How to avoid situations like this?
Posted: Mon Mar 20, 2017 1:56 am
by gelsas
Hello guys,I am currently working on a strategy using Connors RSI and Trend direction & force indicator. It performs quite good, but there is one bottleneck which is pretty much causing a lot of false signals.Here is an example of such a situation:The signals are generated if both indicators are below their bottom lines. But changing those is no option because that would mean to also filter alot of good signals.
So basically I would like to ask you guys if you know any strategy/indicator, to detect those "waterfalls" to avoid getting so many false signals.Any help/tip is highly appreciated.Thank you.Kind regards,
gelsas
Re: How to avoid situations like this?
Posted: Mon Mar 20, 2017 6:11 am
by mladen
gelsas wrote:Hello guys,I am currently working on a strategy using Connors RSI and Trend direction & force indicator. It performs quite good, but there is one bottleneck which is pretty much causing a lot of false signals.Here is an example of such a situation:The signals are generated if both indicators are below their bottom lines. But changing those is no option because that would mean to also filter alot of good signals.
So basically I would like to ask you guys if you know any strategy/indicator, to detect those "waterfalls" to avoid getting so many false signals.Any help/tip is highly appreciated.Thank you.Kind regards,
gelsas
If you are looking for counter trend signals (and it seems that you are), why don't you generate signals when the indicators revert (exit) from OB/OS zones to neutral zones and not when they are entering OB/OS zones?
Re: How to avoid situations like this?
Posted: Mon Mar 20, 2017 6:16 am
by mntiwana
gelsas wrote:Hello guys,I am currently working on a strategy using Connors RSI and Trend direction & force indicator. It performs quite good, but there is one bottleneck which is pretty much causing a lot of false signals.Here is an example of such a situation:The signals are generated if both indicators are below their bottom lines. But changing those is no option because that would mean to also filter alot of good signals. ......
So basically I would like to ask you guys if you know any strategy/indicator, to detect those "waterfalls" to avoid getting so many false signals.Any help/tip is highly appreciated.Thank you.Kind regards,
gelsas
First,it is so strange when some of our friends hide some portion or part of their HG and then asking some thing about,for fast and max approximating it is good to view whole picture,any way increase periods of conners,may be it help you,just my guess.
Re: How to avoid situations like this?
Posted: Mon Mar 20, 2017 7:47 am
by mrtools
gelsas wrote:Hello guys,I am currently working on a strategy using Connors RSI and Trend direction & force indicator. It performs quite good, but there is one bottleneck which is pretty much causing a lot of false signals.Here is an example of such a situation:The signals are generated if both indicators are below their bottom lines. But changing those is no option because that would mean to also filter alot of good signals.
So basically I would like to ask you guys if you know any strategy/indicator, to detect those "waterfalls" to avoid getting so many false signals.Any help/tip is highly appreciated.Thank you.Kind regards,
gelsas
Gelsas, this indicator should do as Mladen was suggesting. You need to experiment with the levels though to get the arrows where you want them.
Re: How to avoid situations like this?
Posted: Mon Mar 20, 2017 11:50 am
by gelsas
Thank you! Great idea! I will try that! kind regards,
gelsas
Re: How to avoid situations like this?
Posted: Mon Mar 20, 2017 12:51 pm
by gelsas
After testing I came to the conclusion then using the exit of the OB/OS zones is "to late", with my current strategy the winrate would be below 52%.@mladen do you maybe have any other ideas? kind regards,
gelsas
Re: How to avoid situations like this?
Posted: Mon Mar 20, 2017 1:33 pm
by Pava
I told you so...
Re: How to avoid situations like this?
Posted: Mon Mar 20, 2017 1:55 pm
by gelsas
Pava wrote:I told you so...
With my normal strategy i got 60% win rate right now, but I want to improve it. There must be other ways to detect this waterfalls.
Idea: do not take trade if there are for example: more then 6 candle in a row which go in the same direction. only start taking trades again after first candle in oposite directon. But I think the problem with this idea is that it is still not filtering out waterfalls in a reliable way. (It will probably help, but not as much as I hope)
That is why I am asking for different suggestions.
kind regards,
gelsas
Re: How to avoid situations like this?
Posted: Mon Mar 20, 2017 7:26 pm
by mladen
gelsas wrote:After testing I came to the conclusion then using the exit of the OB/OS zones is "to late", with my current strategy the winrate would be below 52%.@mladen do you maybe have any other ideas? kind regards,
gelsas
Use some other indicators combination
Re: How to avoid situations like this?
Posted: Mon Mar 20, 2017 9:48 pm
by gelsas
mladen wrote:Use some other indicators combination
Okay, do you have suggestions? You probably know a lot more indicators that I do. What can you recommend? Kind regards,gelsas