Thanks to rkkarnani, aman and dell.
Now, next point is to filter the wrong signals. It may any system whatever may be used by you.
For every day, there is more ups and downs in crude oil around 70 to 120 points movement per day.
Monthly, there is more than 400 to 600 points ups and downs on monthly basis.
We are doing positional trading. so, we should capture the major trend rather than daily trend.
Our aim is not to earn some points within intraday ups and downs. Our aim is to catch the 80 % of the trend of 400 to 600 points per month. So we should use various filters to avoid so many wrong signals in the normal trend following system.
For example, if the system gives 8 to 10 trades by using 30 minutes chart on monthly basis,
Now 8 to 10 trades per month should be reduced to 2 to 4 trades per month.
This is the next step... So, we can see at next level where howmany indicators are used to filter the wrong signals in the normal trend following system and what comparison should be used with EOD chart
Now, next point is to filter the wrong signals. It may any system whatever may be used by you.
For every day, there is more ups and downs in crude oil around 70 to 120 points movement per day.
Monthly, there is more than 400 to 600 points ups and downs on monthly basis.
We are doing positional trading. so, we should capture the major trend rather than daily trend.
Our aim is not to earn some points within intraday ups and downs. Our aim is to catch the 80 % of the trend of 400 to 600 points per month. So we should use various filters to avoid so many wrong signals in the normal trend following system.
For example, if the system gives 8 to 10 trades by using 30 minutes chart on monthly basis,
Now 8 to 10 trades per month should be reduced to 2 to 4 trades per month.
This is the next step... So, we can see at next level where howmany indicators are used to filter the wrong signals in the normal trend following system and what comparison should be used with EOD chart