Market State Indicators
Market State indicators try to determine if the market is trending or ranging. Each state of the market is best traded with different criteria and indicators. Trending markets should generally be traded with momentum-style indicators, and ranging markets should generally be traded with oscillators.
The Osi Cycle-Trend Discriminator uses that idea to determine the current state of the market. It essentially compares the amplitude of the dominant market cycle wave to a momentum indicator. Whichever is larger determines the state of the market. If the momentum is larger than the cycke amplitude, the market is either in a trend or about to break into one. On the other hand, if the cycle amplitude is greater, then the up and down movements of proce are exceeding the proce thrusts, so it should be more profitable to trade those movemenets. Ergo, we think that in that case, the market is in a range.
The Osi Cycle-Trend Discriminator is still in our beta test, but should soon be coming to a place near you !
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Futures and Options trading has large potential rewards, but also large
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system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.