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I have come up with a solution that has
served well for the past several years. It's
pretty simple. In the markets I follow I have
a determined a tick filter for each that
helps avoid whipsaws but at the same time
retains the validity of the methodology.
Example: In the Swiss Franc, I use a 4 tick
filter, i.e., if the signal is to go long the
SF at .5561 I add 4 ticks and enter at .5565
on a stop or limit. The same holds true for
short entries.
Each market , of course, has its own filter
which I have determined through trial and
error. The filters also have changed through
the years as the markets have evolved due to
range and volatility, etc.
I know of some other methods (like using the
high or low of the entry bar) that other
traders use successfully.
I would counsel that a "simple" method of
filters rather than some involved computation
would serve you well.
Trading is not "Rocket Science"...KISS works
well.
Jim
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