1. The trend filter, check my moving average ribbon for a basic one, or the ATR-ADX indicator
2. Only take longs when fisher oscillator has previously crossed beneath 0, and shorts when fisher has previously crossed above 0
// majorTrend = some kind of filter, either moving average or something that designates the major trend is 1, or -1 (up or down)
longCrit1 = majorTrend > 0
longCrit2 = barssince(crossunder(fisher, 0)) <= barssince(trendChange < 0) // when the fisher trend was down, at some point it was negative and below zero
shortCrit1 = majorTrend < 0
shortCrit1 = barssince(crossover(fisher, 0)) <= barssince(trendChange > 0) // when the fisher trend was up, at some point it was positive and above zero
long = trendChange > 0 and longCrit1 and longCrit2
short = trendChange < 0 and shortCrit1 and shortCrit2
mortdiggiddy
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After this you can do something where instead of crossing under/over zero for a long/short, you can do a threshold. This could be something in the range of 0.75 - 1.25 or something. This further constrains the trades to not take any whipsaws.
You could also do something where in order to exit a long, the fisher indicator must exceed that same threshold on the other side. i.e. to go long, it must have crossed underneath -1.00, then to even consider exiting the trade it must first cross back above 1.00.
nilux
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@mortdiggiddy, this is a great idea! Thanks for your input buddy. Appreciate it!
nilux
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@mortdiggiddy, I was thinking of combining it with something like Zero-Lag EMA/RMA but have to dig deeper into this :)
Are these values a percentage (%)?
If not percentages, how should we understand?
Can we convert these values to percentages?
Thank you very much in advance for your answer.