Thursday 23 January 2014

Amibroker AFL for Butterworth Trending System


After a long gap, I am posting another AFL here. This AFL is known as Butterworth Trending system. The basic purpose of this system is to identify buy or sell signals that carries a high winning ratio. This AFL is most suitable for delivery-based trades and strictly not for intraday trader.

Before deploying this AFL, I request the trader to study the charts generated by the AFL. Because this system is good as a trend indicator rather than a buy sell generator. Therefore using this system along with another system to enter trade is advisable. Since long-term goals are looked for with this AFL, I would suggest that use of weekly or monthly mode in the chart patterns. 

It is always better to use another indicator along with this trading system. I also would like to suggest another AFL - Stochastic Momentum Index (download from here) that can be used along with this AFL. The suggested settings are look back of 35 smooth I of 3- smooth 2 of3 and the signal also at 3. Combination of these two AFLs (plotted separately on the chart window) could give out an early alert to the trader. The trader must study the system well and develop a trading plan. If cleverly used, this AFL is bound to bring in some profits.

I am not the creator of the AFL mentioned here The AFL has been coded by R.Rajandran of Marketcalls, who is doing an excellent service to the trader community. All credits goes to him.

Happy trading and good luck.