Use of Filters

Sometimes it is useful to add a filter to reduce or modify the number of signals that a strategy generates.

This can be done by modifying your strategy. The following shows an example, using the GUPPY multiple moving average strategy ( but this could be any strategy).

The objective is this case was to stop any signals which fire form the strategy when the current share price is below a 20 day moving average share price. The reason for this idea is that we only want to take votes on up trending shares.

To learn on how filters work  go Help, Content and search for Filter also search for Trading strategies

You can also  review the tutorial seminar on trading strategies  which came with the software

For further education watch a detailed 14 minute video on creating filters - this is part of a longer seminar - download this to watch

Here is the strategy block with the filter added. Once done the strategy is saved with a new name. Only long filter entered since the strategy is only searching for long opportunities, if shorts were to be scanned then a short filter would be entered ( same but reversed)

Here is the Vote line outcome showing the modified and unmodified strategies - we have added to the chart a 20 moving average to highlight the filter at work. The modified strategy vote line is the bottom vote line and it shows how signals have been filtered

For those interested here is the Orders Block with a modified exit - a simple trailing stop 2.5 ATR