@yannick Thanks for sharing that. I do agree that it would be best to be able to identify each market type, a combination of volatile + momentum type of filter would definitly be the best idea i think. Does anyone here use a combination or just either or? The systems that im currently using seem to work, but i definitly see that they are not dynamic enough to be able to work 100%. Just having a couple of “static” conditions is not enough i feel like. I think it would be much better to filter out and perhaps “define” what type of market we are in, and then take trades accordingly, wether it would be mean reversion or breakout or momentum or whatever.
Break it down structurally to pinpoint what needs measuring then work out HOW to measure and define the key points . A range bound ( sideways ) market is typically a smaller range over ‘x’ period that fails to make higher highs or lower lows over a similar period . Work out what you need to measure first and then work on the best way to accurately define the measurement and set the required parameters . Its always going to be a semi compromise to a degree .
Break down each condition you want to define . Use a forensic scientific approach , get a solution for each individual problem in isolation first . It will be much easier in the long run to gain some accuracy , trust me ..
If you cant get the definitions you are looking for using generic indicator/filters think about writing your own . Its what i do most of the time . I write exactly what i need to measure instead of using the compromize that most generics offer . dont bend your thinking to what the generics offer bend the indicator to suit what you require . IF you write your own indic/filters you will have a far greater understanding of what they are trying to represent . I suggest all coders get a copy of TA A-Z by Stephen Achelis . gives the maths formulas for most generics and explains the science behind it in many cases .. heres a link https://www.metastock.com/customer/resources/taaz/
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