Falling MMI 4

Quote

Thus, when we know that MMI is rising, we assume that the market is becoming more efficient,
more random, more cyclic, more reversing or whatever, but in any case bad for trend trading.

However when MMI is falling, chances are good that the next beginning trend will last longer than normal.

jcl


Figured I should visualize this falling MMI 4 trick I've been using.

And it sort of works just as I imagined - as a smart throttler.

A means to recognize start of the trend and follow it.


Code
function run() 
{
	set(LOGFILE|PLOTNOW);
	BarPeriod = 60;
        MaxBars = 200;
	asset(""); // dummy asset
	ColorUp = ColorDn = 0; // don't plot a price curve
	vars Sine = series(genSine(60,30));
	var mmi = MMI(Sine, 4);
	plot("Sine",Sine[0]-0.5,MAIN,BLUE);
	plot("MMI 4", mmi, NEW, RED);
	plot("MMI Falling", falling(series(mmi)), NEW, GREEN);
}


[Linked Image]

On 2 bars it (logically) refuses to speak.
On 3 bars it skips.
On 5+ bars it lags.

I mean - indicator itself is definitely useful on longer periods.
It's just not how I've built my algo.

Here's numbehs to show crucial role this single rule is playing:

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Trades 4069 Win 59.8% Avg +6.7p Bars 59
AR 117% PF 1.08 SR 1.90 UI 10% R2 0.00

Trades 2096 Win 60.2% Avg +62.8p Bars 109
AR 1217% PF 1.66 SR 9.53 UI 1% R2 0.00

Last edited by Lapsa; 10/29/21 10:11.