This algorithm is used on a “real account” as it is clearly shown in the graph below.
Trend / Reverse
“TREND FOLLOWING”
Trend following is one of the most effective and easy-to-use methods to make money by trading on a market.
This strategy works well especially in a volatile market, in a market with high volatility (eg 2015 or 2020) the trading system in question outperforms compared to years with lower volatility.
“Reversal Trading Strategies”
The main reason for a reverse strategy is that it gives us the opportunity to enter the Trading System very close to support or resistance.
As in the example below, at the end of an uptrend there is usually a directional loss, and less volatility is often seen with prices in a narrow range, before witnessing a market reversal.
The example below is in an uptrend but it slavishly also happens in a downtrend.
Using Stop and Reverse Orders for Trade Management:
A stop and reverse order exits the current trade you are involved in and immediately afterwards enters a new trade in the opposite direction.
Stop and reverse orders are effectively an extension of stop loss orders.
The Trading System used on the Dax employs all three systems described above, adapting to the changing volatility of the market in question.
The examples below are taken from operations with the trading system
The trading system was optimized on 30 July 2017 .
Below is the system performance from 1st August 2017 to today.
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