This strategy is designed to assist in reducing ownership of assets during downward or sideways movements, thus potentially improving the profit factors of said investments over a long-time horizon.
This strategy analyzes the changes of an underlying security over multiple timeframes. It then computes a value for defining how strong or weak a specific trend may be. This is referred to as the momentum. Once the momentum is accounted for, the strengths or weaknesses can be defined as the signal. Considering the momentum and the signal, we can then define the trend. The trend is displayed through a positive and negative background (green and red). If there is no background color designation, it is a neutral trend. The specific price inflection where the trend would switch to go to neutral prior to switching direction is marked by the orange line.
After the trend is defined. We then use the VAMP ( Volatility Adjusted Market Projections) to find overbought or oversold points to enter the position. The colored bands, red being overbought, and green being oversold are displayed on the chart.
The objective of the strategy is to buy when the trend is green and the price is oversold (at the green line) or short when the trend is red and the price is overbought (at the red line).
Use the link below to obtain access to this indicator. Thank you
*This is not a strategy that claims any realized returns or an emphasis on potential returns. Any returns achieved with this strategy are not guaranteed and should not be indicative of future results. Nor should this be used as the sole decision prior to making an investment or as investment advice*