The Average Directional Index (ADX) was developed by J. Welles Wilder to help traders determine the strength of the trend. Two components that help you determine the direction of the trend are the Positive Directional Indicator (+DI) and Negative Directional Indicator (-DI).

 

The built-in ADX System uses two factors to signal and entry:

The strength of the trend (ADX) needs to be greater than a certain threshold

The cross over of the +DI and -DI

 

It uses a fraction of the ATR plus/minus the close to set the stop price.

 

The ADX System uses the following parameters:

 

ADX

 

Average True Range (days)

Sets the number of days to use when calculating the Average True Range

 

ATR Stop (fraction)

Sets the fraction (.5, 1.5, 3) of ATR to use for the stop width

 

ADX Periods to use (bars)

Sets the number of bars to use in calculating the ADX

 

ADX Trend Limit (adx)

Sets the minimum threshold for entering a trade

 

DI Period to use (bars)

Sets the number of bars to use in calculating the +DI and -DI

 

 

Entry Script

IF  adxIndicator > adxTrendLimit AND
   positiveDirectionalIndicator > negativeDirectionalIndicator AND
  instrument.position <> LONG THEN
   
  IF useATRStops THEN
      broker.EnterLongOnOpen( instrument.close - averageTrueRange * atrStop )
  ELSE
      broker.EnterLongOnOpen
  ENDIF
   
ENDIF
 
IF  adxIndicator > adxTrendLimit AND
   positiveDirectionalIndicator < negativeDirectionalIndicator AND
  instrument.position <> SHORT THEN
   
  IF useATRStops THEN
      broker.EnterShortOnOpen( instrument.close + averageTrueRange * atrStop )
  ELSE
      broker.EnterShortOnOpen
  ENDIF
   
ENDIF

 

 

Adjust Stops

' ---------------------------------------------
' Enter stop if "Use ATR Stops" is true
' ---------------------------------------------
IF useATRStops THEN
 
  broker.ExitAllUnitsOnStop( instrument.unitExitStop )
ENDIF

 


Edit Time: 9/20/2017 07:56:26 AM


Topic ID#: 103

 

Created with Help & Manual 7 and styled with Premium Pack Version 2.80 © by EC Software