Advanced Trading Methods

[gloe]

What I still need to do:

Go back over the 120 days of data with a 60 min chart with the ADX, to see how well the ADX did in fact catch the "mini-trends" and the changes from trending to consolidating.

Something to consider: Alex Elder's "triple screen" idea (from "Trading for a Living"): Trade only "in the direction of" the longer time frame using signals off a the smaller times frame. He recommended using a smaller time frame that was about 1/5 the longer time frame. Eg. Trade the weekly trend taking signals off daily charts; trade the 50/60 min trend taking signals off 10 min charts (which is what I am using for GIPS); trade signals off the 5 min charts based on the trend on the 25 or 30 min chart.

The trend is your friend till it ends and it bends.

Something to think about: If you trade WITH the trend, you will only be wrong once, when the trend changes; if you trade against the trend trying to catch the top or bottom, you will only be RIGHT once, when the trend changes.