How to define flat market by programm?

[elechim]

Hello,

I want to develop a new strategy in the case where the market is ranging (or flat).
Unfortunately I am not able to define it wiht the technical indicators.
Is somebody can give me advice.

Thanks.

Michel

[NinjaTrader_Joydeep]

Hello Michel,
Unfortunately it is more of a trading advise and thus I will leave this query to our forum members who are more apt to share their experience.

[borland]

For swing trading, most of the time the markets are range bound. If you can define your rules for a breakout (or breakdown), then you can program exceptions (override) to your range bound trading rules.

For my multi-timeframe automated swing trading system, I define a breakout based on a 20 day lookback period. My breakout rules are more complex, but basically I want to see a break above the highest high for the last 20 days, and subsequently on a daily basis, higher highs and higher lows as confirmation that the breakout condition exists.

The override keeps me in the trade to take advantage of the runup while oscillators/indicators generally consider things to be overbought.

Not all breakouts are successful, so if the breakout rules are broken (no override), the systems simply reverts back to range trading rules.

In fact, most breakouts fail, so if you system is flat, you might want to wait for additional conditions as confirmation before entering a trade. If I'm in a trade and the breakout rules are broken, then the range trading rules apply towards looking for a good exit on shorter timeframes.

It takes good planning to develop a reliable breakout strategy, so good luck.

[sledge]

Hello,

I want to develop a new strategy in the case where the market is ranging (or flat).
Unfortunately I am not able to define it wiht the technical indicators.
Is somebody can give me advice.

Thanks.

Michel

AKA the holy graile that doesnt exist?!

Range bars can take up some of the time issues... But anything else is lacking (errr lagging)...

[elechim]

Thanks for your responses!