Trend vs range market

Hi all,

I think that in order to diversify a good portfolio we have to run both trend and ranging strategies on the same instrument and/or with different time frames.

Is there  a way on SQ 3.8 to create only a strategy that works in trending markets (examples on breakouts) or a strategy that works only on ranging markets (buy the supports and sell the resistances)? If I use a trending expert and if the the markets doesn’t meet the criteria for trend the expert shouldn’t work and viceversa for for range.

thanks in advance

Claudio

Yes it is possible,

It is very depends on your SQ settings, you can configure all your priorities inside..,

for example set settings to generate trending algorithms by checking/unchecking everything that more or less seems to you your preferences as a trending algorithm, then save it as a settings file “trending search settings”,

do the same for flat/ranging and then save it as a settings file by the name “flat search settings”.

this way you can always switch between the settings and search for what ever you would like, if you have a good machine you can use 2 SQs at ones one for searching trending algorithms and the other for the flat algorithms.

hope it helps, good luck.

Yes it is possible,

It is very depends on your SQ settings, you can configure all your priorities inside..,

for example set settings to generate trending algorithms by checking/unchecking everything that more or less seems to you your preferences as a trending algorithm, then save it as a settings file “trending search settings”,

do the same for flat/ranging and then save it as a settings file by the name “flat search settings”.

 

this way you can always switch between the settings and search for what ever you would like, if you have a good machine you can use 2 SQs at ones one for searching trending algorithms and the other for the flat algorithms.

 

hope it helps, good luck.

can you give as an example of chop(non trending mrket setting?)

I attach a picture of a ranging market that is buy the supports and sell the resistances!

File: range.JPG

Ok daily TF is possible, but have you found something on H1?

This is H1.

You always have ranging markets on every pair and on very time frame.

File: H1.JPG

The question is if you found some strategies for ranging market in SQ

I’ve found lots of ranging strategies by limiting signals to time range where currency is not heavily traded and economic news for the pair is unusual.  E.g. Asian session for GBPUSD.

Problem with finding general ranging strategies, is price can breakout at any time, and by the time you see a ranging market it is often over.

Price tends to range hours before major economic news is released on the calendar, which would require SQ to know the economic calendar to make sure it closes trades before news release.

The question is if you found some strategies for ranging market in SQ

I was just wondering if it is possible and how under strategy quant!

I was just wondering if it is possible and how under strategy quant!

Select a limited time range where currency tends to range.  Select building blocks such as RSI and CCI (momentum).  Select reverse signal at market order type. 

That tends to find them.

good till the time range will change.

good till the time range will change.

Then you’ve little chance of finding ranging markets that are profitable, since they occur due to low trading and economic news activity.  If the market is active and there is news (invariably there is) the price will cease ranging. 

Since the time range is dependant on market sessions, there is very little chance that the time range will change.  The Asian session is the Asian session and is always the Asian session.

But if you feel that this is a problem, find your own solution.

Think bigger on a portfolio level. Find the pairs that range more than trend and pick mean reversion generated strategies. Then find pairs that are trend biased and pick trend following generated strategies for those. Just look at the pseudo code, and if thats not good enough backtest them in visual mode in MT4 and see where they excel. Put them together in the same account and they will compliment each other.

Defining ranging markets and trending markets and when the switch occurs is a topic called regime change. Theres quite a wealth of books out there on the subject and algorithms on defining these switches. For manual programming, the simplest most common and robust ones are ADX > 30 for trending and CloseX for trending. Close1 > close X and close1 < closeY for ranging. Auto-mined strategies don't tend to be this smart though.

The best way to force SQ to sell rallies and buy dips is to only use limit orders.

Very interesting answer. Thank you Threshold.

Threshold i checked your portfolio you have 1.x % gain for almost a year . But your equity has around 123% 

You keep your winnings open ?