Trend follwing avoid chopping

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    Dr Manhattan
    Participant
    Senior

    Hey, I’m looking into a trend following system and when it’s not trending of course I’m getting chopped up in the sideways market. What are some of your best advice for avoid getting chopped up? wide stops etc.

    #206930 quote
    JS
    Participant
    Senior

    Hi @Dr Manhattan
    You can use the standard deviation to see if there is a trend (standard deviation / volatility is high) or a sideways market (standard deviation / volatility is low) …
    The historical volatility ratio also works well for this…

    Scherm­afbeelding-2023-01-06-om-21.27.05.png Scherm­afbeelding-2023-01-06-om-21.27.05.png
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Trend follwing avoid chopping


General Trading: Market Analysis & Manual Trading

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This topic contains 1 reply,
has 2 voices, and was last updated by JS
3 years, 1 month ago.

Topic Details
Forum: General Trading: Market Analysis & Manual Trading
Language: English
Started: 01/06/2023
Status: Active
Attachments: 1 files
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