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Contents
Trend following strategies are very popular on the Forex market. The idea is to determine a strong unidirectional movement, to find good entry points and — what is also very important — to properly determine the exit point. For the purposes outlined in this article, I selected some technical tools that directly or indirectly determine the trend. Based on these tools, 10 trading strategies were implemented in the form of Expert Advisors for MetaTrader 5. Based on the results of these Expert Advisors, I analyzed the advantages and disadvantages of each trading strategy and compared their performance. The purpose of the article is to provide the reader with the fullest possible information about the strong and weak points of trend following trading. Some other trend following strategies are also described in the article Several ways of finding a trend in MQL5.
Read more - Comparative Analysis of 10 Trend Strategies
- Introduction
- Defining the task when creating a trend following strategy
- Trend strategies
- Strategy #1. The ADXCloud indicator with a confirmation from RSI drawn as a histogram.
- Strategy #2. The Standard Deviation trend indicator drawn as a histogram with RVI used for confirmation.
- Strategy #3. A cloud interpretation of AC by Bill Williams and a combined Bears Power - Bulls Power indicator.
- Strategy #4. Ehlers' gravity center with a confirmation by the average price speed indicator.
- Strategy #5. A complex Binary Wave indicator.
- Strategy #6. A complex Weight Oscillator combined with LeMan Objective.
- Strategy #7. Donchian channel combined with MACD, in which the price series is replaced by Williams' AO values.
- Strategy #8. Schaff cyclical oscillator with a confirmation based on three Tyrone levels.
- Strategy #9. Keltner channel drawn as a histogram and the iTrend indicator drawn as a cloud.
- Strategy #10. The Average Change price momentum and the MA fan FigurelliSeries.
- Testing
- Conclusions
- Conclusion
Trend following strategies are very popular on the Forex market. The idea is to determine a strong unidirectional movement, to find good entry points and — what is also very important — to properly determine the exit point. For the purposes outlined in this article, I selected some technical tools that directly or indirectly determine the trend. Based on these tools, 10 trading strategies were implemented in the form of Expert Advisors for MetaTrader 5. Based on the results of these Expert Advisors, I analyzed the advantages and disadvantages of each trading strategy and compared their performance. The purpose of the article is to provide the reader with the fullest possible information about the strong and weak points of trend following trading. Some other trend following strategies are also described in the article Several ways of finding a trend in MQL5.
Read more - Comparative Analysis of 10 Trend Strategies