Author:
FORTRADER.RU
The VLT Trader system is all about capitalizing on volatility compression. This innovative trading approach generates signals when the market presents the smallest candlestick within a set number of bars.
How to Identify Entry Signals
- Once the next candlestick forms, we analyze the last 8 bars starting from the second-to-last one to identify the minimum value.
- If the first bar's size is smaller than the minimum, we take action by placing:
- A Buy order at the maximum candlestick value plus 1 point.
- A Sell order at the minimum candlestick value minus 1 point.
Backtesting Results:
The VLT Trader system was optimized from June 1, 2007, to January 1, 2008, and has been tested from that date to the present. The optimal parameters found during testing are a stop loss of 65 and a take profit of 70.
For a more in-depth report and a comprehensive description of the trading strategy, check out our magazine here: http://fortrader.ru/downloads/redirect.php?dlid=15
Your feedback on improving the system is always welcome at: letters@fortrader.ru
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