Filters that improve the result are found optimizing in the setting FilterTest and then given in in the set Filters.
The Filters add a condition to trigger a trade.
Most of these conditions refer to the lines the EA draws into the chart, Highs & Lows of former days, weeks & months.
The lines drawn in the chart are the same as explained in the free indicator: Resistance Support Levels >>
The list below shows what means a filter number.
In best case setting a filter improves the backtest result – and hopefully the live trading result.
A good example is the filter nr 48 in the latest set file for GBPUSD M5 sell scalping.
Nr 48 exceeds: c1<hhm2 – close of the last finished candle (c1) must be below the highest high of month 2
A close over that high would mean that the symbol is in a strong medium term uptrend.
It is nearly self explaining that opening sell trades in that case should cause loss.
A several years backtest with & without that filter shows the high impact of that filter for the trading result.
Of course there’s also win trades suppressed by the filter, but the overall result improves a lot with the filter.
But the use of that filter means that as long as the price is over that 2 month high there’s no trade triggered – that may last several month.
In a system trading only this one symbol and strategy this would be fairly bad – but as we trade a handful or more symbols it is no problem.
But the filters also allow to optimize for just that case that in the “general” setting is suppressed:
Activating filter 47: c1>=hhm2 would show in a backtest with the given settings of the “general” setting a overall loss, of course.
But modifying the “general” settings may lead to a backtest with profit even in that special market fase.
This just to give you an idea what is possible.
Right now and already for several months many USD related currency pairs are under llm2 (lowest low of month 2).
Maybe it makes sense to create 2 set files for the same chart, one with c1<llm2 set as condition (current situation) and one with c1>=llm2 (filter 45)
Maybe with different setting for SL & TP etc. the overall test result for both cases can be improved (a lot).
I’ll check that later.
For now I go to holidays this weekend, I’ll be offline until Aug. 24.
Then more info will follow.
Good trades! 🙂
Filter number Filter condition
27 h1==hhd – current high must be the high of the current day
28 h1!=hhd – current high must not be the high of the current day
29 l1==lld – current low must be the low of the current day
30 l1!=lld – current low must not be the low of the current day
From nr 50 on the filters are more complicated. Here an example, Filter 51, it sums up 3 conditions.
More info about the compound filters later.
51 (hhd<hhd1) + (hhd1<hhd2) + (lld>lld1) – only when all 3 conditions are met the EA suppresses a trade
Image and article originally from www.mql5.com. Read the original article here.