The Function TREND makes the ATS-ZB32 almost Perfect

The function TREND was designed to monitor the system while it is trading. If a trade startes to lose money, TREND checks the direction of the market. If the market is not moving in the direction of the trade, TREND takes the system out of the market with a small loss, preventing the system from getting in a deep loss, and thus reducing the drawdown.

The ATS-ZB32 takes its signal to go SHORT or LONG from the stochastic. If the stochastice goes above 80% the system goes Short. If the stochastic goes below 20% it goes LONG.

However the stochastic can go above 80% and the market can still keep going up. Similarly the stochastic can go below 20% and the market can stll keep going down.

In each of these cases, the system will keep going SHORT or LONG, because the stochastic is over bought or over sold, and the trade will start to lose money, sometimes a lot of money.

This is where TREND kicks in. If a trade starts to lose money, TREND checks the direction of the market. If the system is LONG, but the direction of the market is going lower and lower, and the trade is losing money, TREND gets the system out of the market, before the trade becomes a big loser. The same applies if the system is SHORT, but the direction of the market is going higher and higher.

These are the results from the TREND function.


                    TREND TRADES         |       TREND TRADES TOTALS
 # WEEK-OF   SYSTEM   EXIT  REVERSE  TOTAL  |   SYSTEM      EXIT   REVERSE
--------------------------------------------+-----------------------------
 1 23NOV84    7343    9281    1937   11218  |     7343      9281      1937
 2 07JUL89   12343   11343    1000-  10343  |    19686     20624       937
 3 01APR94    7812   12562    4750   17312  |    27498     33186      5687
 4 08JUL94    3125-     31    3156    3187  |    24373     33217      8843
 5 12JUN98    3218-   4562-   1343-   5906- |    21154     28654      7499
 6 19APR02    2531    2687     156    2843  |    23685     31341      7655
 7 15AUG03     718-  10187    9906   20093  |    22966     41528     17561
 8 05MAY06   11906   11687     218-  11468  |    34872     53215     17342
 9 05JUN09   24937   24640     296-  24343  |    59809     77855     17045
10 06AUG10   20203   17921    2281-  15640  |    80012     95776     14763
11 08OCT10    6156-   4468-   1687    2781- |    73855     91307     16450
12 16MAR12     937    4812    3875    8687  |    74792     96119     20325
13 06SEP13   18750   14250    4500-   9750  |    93542    110369     15825
14 08JUL16   35281   39468    4187   43656  |   128823    149837     20012
15 05OCT18    4906-   1687    6593    8281  |   123916    151524     26605
16 20MAR20   13125   18062    2000-  16062  |   137041    169586     24605
17 05JUN20     937-   4281    6125   10406  |   136103    173867     30730
18 08OCT21    4281-    562-   3718    3156  |   131821    173304     34448
19 25MAR22    6500-   2875-   6906    4031  |   125321    170429     41354
20 17JUN22   14468-   3906-   7500    3593  |   110852    166522     48854
21 28OCT22   12875-   6562   19437   26000  |    97977    173084     68291
22 17MAR23     343-   3531    3968    7500  |    97633    176615     72259

How to trade the Signals from "TREND"
The TREND function is constantly being improved to work even better.
While it is IMPOSSIBLE to create the Perfect System,
I will keep working to get as close as I can.

To be a Successful Trader, you have to be able to Trade without
the Stress and Pressure of knowing what the Market is doing on a Daily Basis

All results are Hypothetical