As you know, we've designed the Remek! System in BloodHound, our tool of choice for trading strategy design. What we have done is based on many years (37, combined, to be exact) of actual day-to-day trading, rigorous research and a relentless pursuit to uncover what works and what doesn't. The result? The Remek! System. Here's a rundown of what's in it:
a) We established 'areas of business' aka 'vicinity' based on information from multiple 'timeframes'. This is where we trade from - when we trade.
b) We defined our raw signal (evaluating 27 conditions or so, at the lightning speed of 200 milliseconds)
c) We defined 'trend', Trend, actually, with a capital T, based on another sophisticated set of conditions that evaluate three different 'price horizons' (aka timeframes).
d) Then we defined the exact location where we want to consider entering a trade at the smallest amount of risk possible and for the largest amount of gain possible.
That's all. All these are then connected with an AND logic node, meaning, all three must be true for the signal to occur.
Now, since the market is dynamic and mostly random, we need some 'wiggle room' in our code (just as skyscrapers move in the wind, they must, or they'd break). That's what fuzzy logic* is for, which is an integral part of our system (and of BloodHound). So if something is not exactly 1.00 but, say, 1.02 here and there, but all other conditions are just fine, we'd still get the signal. That's on top of the complex time-proven algorithm that is the Remek! System. Automated enough to give you peace of mind, but also discretionary enough not to tie you down.
We welcome you to take it for a spin!
* "Using fuzzy logic allows your strategy to behave less like a robot and more organically like a human trader, allowing you to operate in shades of grey instead of black and white." - from Shark Indicators' website