Range Filter Trading System

Description

The Range Filter Trading System is an innovative, non-ATR-based trend-following strategy designed to provide traders with a clearer perspective on market trends by filtering out minor price fluctuations. This system aims to enhance trading performance by focusing on significant price movements, making it an essential tool for trend traders looking to minimize noise and capitalize on prevailing trends.

Key Features:

• Non-ATR Based Approach: Unlike traditional strategies that rely on the Average True Range (ATR) for volatility assessment, the Range Filter employs a unique calculation method that smooths price action, offering a different perspective on market trends.
• Clear Trend Identification: The system is designed to filter out minor price movements, allowing traders to focus on meaningful trends. This helps in identifying entry and exit points with greater accuracy, improving overall trading effectiveness.
• Simple Calculation Method:
  1. Smooth Average Price Range: The strategy calculates a smooth average price range to establish the foundation of the filter, which is then multiplied by a specified factor to determine the relevant threshold.
  2. Price Gating: The filter gates price movements that do not exceed the defined range, ensuring that only significant price actions are considered for trading signals.
  3. Target Range Visualization: The system plots target ranges that indicate the prices triggering filter movement, making it easy for traders to visualize potential entry and exit points.