To implement a trading system using Markos Katsanos’ Finite Volume Elements Indicator in the NeuroShell Trader, you should first create the FVE Indicator in a chart and then create a Trading Strategy based upon that indicator.
To create the Finite Volume Elements indicator, select ‘New Indicator …‘ from the ‘Insert‘ menu and use the Indicator Wizard to create each of the following:
| TYPICAL: Avg3 (High, Low, Close)MIDPOINT: Avg2 (High, Low)MF: Add2 ( Sub (Close, MIDPOINT),Momentum (TYPICAL, 1) )INEQUALITY: IfThenElseIfThen ( A>B ( MF, Mult (0.003, Close) ), Volume, A<B ( MF, Mult (-0.003, Close) ), Mult (Volume, -1), 0 )FVE: Mult ( Divide ( Divide ( Sum (INEQUALITY, 22), MovAvg (Volume, 22) ), 22 ) , 100 ) |
To create the Finite Volume Elements trading system, select ‘New Trading Strategy …‘ from the ‘Insert‘ menu and enter the following long entry and exit conditions in the appropriate locations of the Trading Strategy Wizard:
Generate a buy long MARKET order if ALL of the following are true: CrossAbove ( FVE, -5 ) A>B ( FVE, 0 ) A<B ( TYPICAL, 0 )Generate a sell long MARKET order if ONE of the following are true: A<B ( FVE, 0 ) BarsSinceFill ( Trading Strategy, 50 ) |
If you have the NeuroShell Trader Professional, you can also choose whether or not the system parameters should be optimized. After backtesting the trading strategy, use the ‘Detailed Analysis …‘ button to view the backtest and trade by trade statistics for the Finite Volume Elements system.
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