Giga Kaleidoscope Waddah Attar Explosion (WAE) is a Volatility / Volume module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is an NNFX algorithmic trading strategy?
The NNFX algorithm is built on the principles of trend, momentum, and volatility . There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility ; e.g., Average True Range , True Range Double, Close-to-Close, etc. 2. Baseline - a moving average to identify price trend 3. Confirmation 1 - a technical indicator used to identify trends. 4. Confirmation 2 - a technical indicator used to identify trends. 5. Continuation - a technical indicator used to identify trends. 6. Volatility / Volume - a technical indicator used to identify volatility / volume breakouts/breakdown. 7. Exit - a technical indicator used to determine when a trend is exhausted.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility , Number 1 in the NNFX algorithm) 2. GKD-B - Baseline module (Baseline and Volatility / Volume , Numbers 1 and 2 in the NNFX algorithm) 3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm) 4. GKD-V - Volatility / Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm) 5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
That is, the Baseline indicator passes its data to Volatility / Volume . The Volatility / Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Waddah Attar Explosion (WAE) as shown on the chart above
Confirmation 1: Halftrend Averages
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry 1. GKD-C Confirmation 1 Signal 2. GKD-B Baseline agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility / Volume agrees
Baseline Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility / Volume agrees 6. GKD-C Confirmation 1 signal was less than 7 candles prior
1-Candle Rule Standard Entry 1. GKD-C Confirmation 1 signal 2. GKD-B Baseline agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean Next Candle: 1. Price retraced (Long: close < close or Short: close > close) 2. GKD-B Baseline agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility / Volume agrees
1-Candle Rule Baseline Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 1 signal was less than 7 candles prior Next Candle: 1. Price retraced (Long: close < close or Short: close > close) 2. GKD-B Baseline agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility / Volume Agrees
PullBack Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is beyond 1.0x Volatility of Baseline Next Candle: 1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility / Volume Agrees
█ Waddah Attar Explosion (WAE)
What is Waddah Attar Explosion (WAE) Waddah Attar Explosion (WAE) Backtest is a momentum strategy that accounts for volatility in the market. It is the combination of MACD and Bollinger Bands with volatility cutoffs to determine entry and exit points. This version of WAE also includes a non-lag MACD option.
Other things to note The GKD trading system requires that a GKD-V indicator be present in the indicator chain, but the GKD-V indicator doesn't need to be active. You can turn on/off the Volatility Ratio as you wish so you can backtest your trading strategy with the filter on or off.
Additional features will be added in future releases.
Phát hành các Ghi chú
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Small fix on source types
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Added ability to run solo backtests with just GKD-BT Backtest and this indicator alone
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Small input update
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Added new Backtest type Baseline + Volatility/Volume
See here for details:
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Added GKD Stacking Protocol. This allows any GKD-C, GKD-C, or GKD-C to be combined into a confluence stack of indicators. This stack can then be injected into a GKD-BT Backtest to test long and/or short signals.
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Small error fix.
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Updated to handle GKD-V stacks
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Updated for new GKD backtesting modules
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Small update
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Additions and Subtractions:
-All signal logic has been transferred to the new GKD-BT Backtests. You can access these backtests using the links provided below:
-Removed all Volatility/Volume types except for Traditional. To backtest a GKD-V Volatility/Volume indicator you use the GKD-BT Giga Stacks Backtest without needing to change to crossing Volatility/Volume type.
-Implemented code optimizations to enhance the rendering speed of signals.
-Streamlined the export process by generating only a single value for export to other indicators or backtests. This exported value is named "Input into NEW GKD-BT Backtest."