Sideways Trading

May 23rd, 2017, 07:43 AM

Hello everyone, I currently am trading /CL and have an algorithm that I run on NT. It does very well in trend based markets, however, sputters in sideways range bound markets. Can anyone point me in the direction of an indicator or machine learning method to identify a sideways, rangebound market (intraday) or a way to stop trading during these periods?

May 23rd, 2017, 11:06 AM

If the sideways market is killing the overall profitability of your system,
try the following approach :

1. detect that the market is going sideways,
with S/R
low ATR

2. then only put your algo on when the market
breaks out of the situation and let it trade only
for a number of trades of until it runs into a looser

go back to 1.

if that improves, you can make more sofisticated approach

June 26th, 2017, 02:05 PM

Hey I created a method in my systems that identifies consolidation by x number of reversals contained within a range. If I reach x I do nothing. When I break the high or low of range I then reconsider entering. Hope that helps

June 27th, 2017, 03:03 PM

I personally do not use it, but there is an indicator called the ADX that can be used to detect trending activity.

Sideways Trading

Discussion in Traders Hideout

Sideways Trading