The condition of volatility is a very valuable indicator, because the market often alternates between low volatility and high volatility, or consolidation and trend market.
But, There will be a bug in SQX signals style,
//------------------------------------------------------------------ // Rule: Trading signals //------------------------------------------------------------------ Value1= SQ_ADX(ADXLowerPeriod, 0)[2]; LongEntrySignal = (Value1<20); Value1= SQ_ADX(ADXLowerPeriod, 0)[2]; ShortEntrySignal = (Value1<20);
But it will never get a short entry, because that the short entry needs negative longentrysignal, but the long and short signals are the same -- consolidation.
if LongEntrySignal then begin ... end; ... if (ShortEntrySignal and (LongEntrySignal = false)) then begin ... end;
I have to say that the SQX signals style is still very nice. Of course we cannot completely deny this. So there are two suggestions in this case.
1, One idea is that the volatility condition cannot be used alone in the signal.
longentrysigal = adx < 20 and close > average(c,60); shortentrysignal = adx < 20 and close < average(c,60);
But I don't think that is a good choice. Using high time frame trend constraints, just like multi-timeframe strategies, also has pros and cons.
2, The best idea is to not restrict the opposite entry signal to be false when entering the market if there are only volatility conditions in the signals -- the long and short signal conditions at this time are often the same.
Status changed from New to Refused
You can easily do it by customizing the default signal strategy template and remove the requirement from the Short entry rule.