detecting grinding/oscillating market intraday

NexusFi · 2014-03-08T10:52:00-05:00

I have been building an automated trading system in SierraChart to trade CL which is based on intra-day trend following. This is my first attempt of doing it and it seems to be doing well periodically when backtesting. After reviewing bad trades it looks like it falls apart when CL starts grinding and oscillating around a semi flat long term moving average. I would appreciate if anybody could share some pointers to strategies that help to determine whether the market is trending or oscillating. I looked at …

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Updated March 8, 2014

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detecting grinding/oscillating market intraday

March 8th, 2014, 10:51 AM	#1 (permalink)
dominikos Houston, TX Elite Member Experience: Intermediate Platform: Sierra Chart, Bookmap Trading: emini ES Posts: 20 since Jan 2014 Thanks Given: 4 Thanks Received: 6	I have been building an automated trading system in SierraChart to trade CL which is based on intra-day trend following. This is my first attempt of doing it and it seems to be doing well periodically when backtesting. After reviewing bad trades it looks like it falls apart when CL starts grinding and oscillating around a semi flat long term moving average. I would appreciate if anybody could share some pointers to strategies that help to determine whether the market is trending or oscillating. I looked at a few indicators but none of them provided consistent ability to detect those types of conditions. Currently my strategy looks at a single fixed volume chart and trades of the indicators on this chart. Perhaps aligning it with other type of charts is the way to go. I appreciate any pointers, Thanks, Dom