Adaptive Price Zone Trading

[OpaBert]

The trading strategy using Adaptive Price Zone (APZ) cross overs
to trigger a trade looks very interesting.

I think there needs to be some other indicator to confirm the
trade and some way to better enter a counter trend position.

Looking at several charts with the APZ efs applied it occurs to me
that some entry rules might be helpful and need to be back tested.

In order to short / sell:
The High of the "Signal Bar" must be Above the Upper APZ Curve.
(on the chart this results in a Blue Dot above the high)

1st determine the mid price of the "Signal Bar" (((H - L) / 2)+ L)

If the next bar:
Open is > = Mid Signal Bar price and
Close is < Mid Signal Bar price and
and High is < the Upper APZ Curve Then
Sell @ Mid Signal Bar price or better with Stop @ High of Signal Bar.

In order to go long / buy:
The Low of the "Signal Bar" must be Below the Lower APZ Curve.
(on the chart this results in a Blue Dot below the low)

1st determine the mid price of the "Signal Bar" (((H - L) / 2)+ L)

If the next bar:
Open is < = Mid Signal Bar price and
Close is > Mid Signal Bar price and
and Low is > the Lower APZ Curve Then
Buy @ Mid Signal Bar price or better with Stop @ Low of Signal Bar.

Trading strategy could be either "Always In" unless Stopped Out,
or,
Set fixed $ or % gain target.

In any case, can this be coded for testing?

[buzzhorton]

"1st determine the mid price of the "Signal Bar" (((H - L) / 2)+ L)"

( H + L ) *.50 is faster!

[OpaBert]

APZ

Yes
((H + L) * 0.50) or ((H + L) / 2) is faster,

The next step would be to plot a horizontal segment from the
"Signal Bar" mid point, 10 bars / periods into the future (to the
right of the Signal Bar when / after the Signal bar is complete.

And, plot a horizontal segment from the HIGH of the "Signal Bar",
10 bars / periods into the future (to the right of the Signal Bar
when / after the Signal bar is complete when there is an upper Blue Dot.

And, plot a horizontal segment from the LOW of the "Signal Bar",
10 bars / periods into the future (to the right of the Signal Bar
when / after the Signal bar is complete when there is a Lower
Blue Dot.

Actually you could eliminate the Blue Dots if you wanted to an just
plot the corresponding 10 bar horizontal lines.

Then follow the approach described earlier.

[buzzhorton]

NO..

((H + L) * 0.50) is faster than ((H + L) / 2).

Usually computers can multiply about 4 times faster than they can divide.

Of course, with the new chipsets I could stand corrected.

[dviper]

EFS Code

Can anyone provide any examples of the actual code for OpaBert's trading rules below, it would be interesting to see how the lines would be drawn out for the rules he mentions...??

Cheers