Stop getting Whipsawed! A simple Volatility Filter for BTC & ETH (Code

Viewing 1 post (of 1 total)
  • Author
    Posts
  • #256504 quote
    TradingDeckard
    Participant
    Junior

    Welcome to the Lab! 🧪


    To kick things off, let’s tackle the biggest enemy of crypto algo-traders: The Chop. We all know the feeling. Your breakout strategy works perfectly during a bull run, but then the weekend arrives, volume drops, and your algo loses all its profits on false signals (whipsaws). šŸ“‰ I wanted to share a simple Volatility Filter I’ve been using on my 1-hour ETH strategies. It checks if there is enough “juice” in the market before allowing a trade. 


    Here is the logic:

    1. It checks the ADX (trend strength).
    2. It compares the current volume to the moving average of the volume.
    3. If the market is “sleeping,” the code forces your strategy to stay FLAT.
    The Code Snippet (Copy/Paste this into your system):// --- VOLATILITY FILTER START ---
    MyADX = ADX[14]
    VolMA = Average[20](Volume)
    
    
    // Only trade if Trend is strong AND Volume is above average
    FilterCondition = MyADX > 25 AND Volume > VolMA
    
    
    IF FilterCondition THEN
        // Your Entry Signal Here
        // BUY at Market
    ELSE
        // Stay Flat / Do Nothing
    ENDIF
    // --- VOLATILITY FILTER END ---
    


    I have attached the full .itf file below with customizable variables so you can optimize the ADX levels. 


    šŸ‘‡ Discussion: Has anyone tried this on Altcoins like SOL or DOGE? I feel like the settings might need to be more aggressive there. Let me know your results!

    Nicolas thanked this post
    Crypto_Volatility_Filter_v1.itf
Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.

šŸš€ Crypto & Algo-Trading Lab

New Reply
Author
Summary

This topic contains 1 voice and has 0 replies.

Topic Details
Forum: šŸš€ Crypto & Algo-Trading Lab Forum
Started: 01/20/2026
Status: Active
Attachments: 1 files
Logo Logo
Loading...