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Mach-Trend platinum pro settings interpretation and user guide. 

 

To get the best from the Mach-Trend system it is best to start with a visual eyeballing of the indicator on 10 or more trending markets.

Plot the chart on the screen with as much data as possible ( 3 years of daily data or more )  or at least six months of hourly data.

Insert the Mach-Trend indicator or paint bar.

You are looking to find settings which identify the major trends and have long periods in uptrend mode and downtrend mode.

If you get too many trend changes, try increasing the length of Mach-Trend and reduce length if the signals appear to be coming "too late"

If you see that the market is more in an uptrend than a down trend, you can experiment with the skew settings.

For example if you set skew to 0 it will give an equal bias to long or short. If you put in -5 in the skew it will buy easier than sell, so this is appropriate for bull markets. (If you view the general market as bearish you set skew to a positive number which will make it go short easier than long.)

Skew adjustments will make the system settings you choose have an entirely new dimension, allowing asymmetric entries to suit the markets.

The delay feature will create a dead spot in the "trend equilibrium" point of the system. This could be defined as a trading range which might occur after a prolonged trend. When it is not clear if the trend is up or down this feature will stay in the current trend until it becomes very clear that is has changed. Basis of this feature is simply using logic. As the general tendency of a trend analysis is that it is more probable that the trend will resume after a long congestion phase than it is to reverse.

Mach-Trend is trader friendly in the sense that it does not over trade. It saves excessive costs in over trading.

Once you have found an approximate set of settings which appear to identify the major trends you can then proceed to insert the Mach-Trend strategy and optimise the variables in finer increments based on your observations.

Do's and Don'ts

Do test hundreds of markets and trade those which show more extended periods of times being in "trend mode".  Or in other words to catch more fish, go where the fish are.

Do test in many time frames. Try 20 years of weekly data as well as 2 years of 5 minute data....the holy grail is often no more than a sampling period.

Do log your results in excel sheets paying close attention to system draw downs and risk reward ratios as well as profits as it is vital to employ a systems which one is able to stick to without jumping on and off.

Don't test on just "your favourite market(s)" this is just like walking in a beautiful forest or location while wearing blinkers on your eyes to restrict the view.

Don't ever trust your test results until you have fully understood the effect of the settings used and made exhaustive notes.

Don't trade real money with this model until you have had a few weeks practice with it.

Do be patient to wait for the signals

You can find more information how to test a trading system here. giving details examples of exactly what to look for to find a robust system.

You can find general tips on eyeballing markets for best characteristics here.

Do practice trading in the Trading IQ Game, remember you cant be a World Champion unless you enter to contest ( which is 100% free)

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