The most basic vortex indicator strategy is to use the crossovers as trade signals: when +VI crosses above -VI, go long; when -VI crosses above +VI, go short. Exit when a crossover occurs in the opposite direction. Trading this basic strategy without filtering any of the signals can result in whipsaws. A whipsaw is when there is a crossover in one direction, followed shortly after by a crossover in the other direction. Whipsaws can result in a number of losing trades in a short period of time. To help avoid this, only take +VI crossovers (above VI) when the overall trend is up.
When the overall trend is down, only take -VI crossovers (above +VI).
In either case, use a crossover in the opposite direction as an exit signal. A manual stop loss should also be placed to control risk. For a long trade, place a stop just below a recent swing low, and for a short trade place a stop just above a recent swing high.
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AlgoTrading Certification, (University of Oxford, Säid Business School)
PGP Research Analysis, (NISM)
Electronics Engineer
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As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.