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The Universal Moving Average Expert Filters avoid opening trades triggered by the basic setup explained in part 1 >>
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
01 c1>=hhd1
02 c1<hhd1
03 c1>=hld1
04 c1<hld1
05 c1>=lld1
06 c1<lld1
07 c2>=o2
08 c2<o2
09 c3>=o3
10 c3<o3
11 c1>=hhd2
12 c1<hhd2
13 c1>=lld2
14 c1<lld2
15 c1>=hhd3
16 c1<hhd3
17 c1>=lld3
18 c1<lld3
21 c1>=hhw1
22 c1<hhw1
23 c1>=hlw1
24 c1<hlw1
25 c1>=llw1
26 c1<llw1
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
31 c1>=hhw2
32 c1<hhw2
33 c1>=llw2
34 c1<llw2
35 c1>=hhw3
36 c1<hhw3
37 c1>=llw3
38 c1<llw3
39 c1>=hhw4
40 c1<hhw4
41 c1>=llw4
42 c1<llw4
43 c1>=hhm1
44 c1<hhm1
45 c1>=llm1
46 c1<llm1
47 c1>=hhm2
48 c1<hhm2
49 c1>=llm2
50 c1<llm2
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
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Image and article originally from www.mql5.com. Read the original article here.