Trading Strategy for an oscillator of chaos

01 May 2011
In this trading strategy we will use CAO - chaos oscillator, which is somewhat similar to the standard MACD indicator .Only in the case MACD uses exponential FastEMA, SlowEMA and MACD EMA, and CAO - Simple Short MA, Long MA and Signal MA. CAO is also an indicator similar to the Bill Williams Awesome Oscillator, but they should not be confused, because the CAO is using chaotic fractals.
Rules of the trading strategy for the oscillator of chaos

Trade is conducted on a 30-minute chart, while ShortMA has period 32, LongMA - period 208, SignalMA - 32.

If the indicator value Xao greater than 0 and goes down, then open the deal to buy. If the appearance of such a situation is open for sale, you need to close it. A small clarification: the graph goes down, if the next value is less than the previous one.

If the value is less than 0 Xao all similarly, then get up for sale, when the graph rises skyward. Close the purchase, if such a position was open.

But if Xao value greater than 0, and the graph goes up, the open sale close immediately, but the purchase did not get up. The converse is true for the values of Xao less than 0.

Last. If the market admiring the downtrend , it is only open for sell. An up - only to buy, you can try at Flete transactions in both directions.




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