Trend Identification Insurances
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introduced two new Trend Identification Insurances designed to bring more flexibility to the . There are currently 2 types of trend identification insurances; and . These new work by allowing from a when the sideways or volatile trend matches. The insurances disallow if that trend is not currently present in the market.
It is important to note that these Trend Identification Insurances are going to lag by the very nature of how they work. This means that it if a market goes from sideways to volatile, it may not immediately allow/block trades following some price action in the market.
Disclaimer - The text below is just a hypothetical example of how a user may use the new trend identification insurances. We are not promoting a specific trading strategy and this is clearly a hypothetical case. It is the user's responsibility to determine their own strategies and any mention of specific strategies is merely for educational purposes. Haasonline Software is not liable for any losses due to use of any trading strategy and users of Haasonline Software's products must do their due diligence when formulating their own trading strategies.
These new Trend Identification Insurances open the door to far more flexible . Users should do some research to figure out which work well in both a sideways market and a volatile market, then adapt their to dynamically start and stop trading. I will give you an example below.
E.g. Lets say that I know that the (with specific settings) works quite well during a sideways market. Lets also say that the time interval is small; say 5 minutes. If we know this strategy works well we can add the to the RSI based .
Now that we have our strategy for a sideways market let us formulate a strategy that does well in Volatile markets. Supposing a moving average based works well in volatile markets and I specifically want to trade with (with some specific settings), then we will want to combine the to the MA based . Hypothetically, if the market is currently sideways, we may wish to have a set up like this:
Bot 1 - Sideways Market Trade Bot - with specific settings - Trade only sideways - Bought (lets just say thats how this starts).
Bot 2 - Volatility Bot at the Bought Position - with specific settings - Trade only Trending - Bought because we don't know what the position will be when Bot 1 stops trading.
Bot 3 - Volatility Bot at the Sold Position - with the same settings at Bot 2. - Trade only Trending - Sold because we don't know what the position will be when Bot 1 stops trading.
In our example scenario the market (as it starts out) is sideways, so our trading strategy for sideways markets will trade as it should. Once the market becomes volatile, the will eventually stop trading and the insurance will allow trading for both Bot 2 and 3. The reason why we have 2 bots for the is because we don't know what the will be when Bot 1 stops trading. Keep in mind, this specific set up will only be good for going from a sideways market to a volatile market, but only in that direction. After the volatile market ends, the user should re-evaluate the market and change their trading configuration accordingly. While this is not a completely dynamic solution it is a step in the right direction. There are many more uses and configurations than this example case but this should give you an example of how to use these new Trend Identification Insurances.