What is the Elder Force Index?
Dr . Alexander Elder is one of the contributors to a newer generation of technical indicators. His force index is an oscillator that measures the force, or power, of bulls behind particular market rallies and of bears behind every decline. The three key components of the force index are the direction of price change, the extent of the price change, and the trading volume . When the force index is used in conjunction with a moving average, the resulting figure can accurately measure significant changes in the power of bulls and bears. In this way, Elder has taken an extremely useful solitary indicator, the moving average, and combined it with his force index for even greater predictive success.
This version adds Ehlers' bandpass filter to calculate the dominant cycle to then infer period input length. This is option. You can choose from both Fixed or Band-width Dominant Cycle adaptive.
This indicator makes use of the Moving Averages found in the Baseline Backtest indicator:
![Baseline Backtest [Loxx]](https://static.tradingview.com/static/images/svg/idea-image-placeholder.svg)
Volatility Types
v1.0 Included Volatility
Average True Range (ATR)
True Range Double ( TRD )
Signals
Signal Crosses
Initial Long (L): Hard flip downtrend to uptrend; EFI crosses up Signal line
Initial Short (S): Hard flip uptrend to downtrend flip; EFI crosses down the Signal line
Continuation Long ( CL ): EFI already above Signal, EFI trigger crosses up Signal
Continuation Short (CS): EFI already below Signal, EFI trigger crosses down Signal
Post Baseline Cross Long ( BL ): EFI crossed up over Signal XX bars ago but Baseline didn't agree (that is, is still showing downtrend), if Baseline then catches up and agrees with direction within XX bars since the EFI crossup, then this signal is triggered
Post Baseline Cross Short (BS): EFI crossed down under Signal XX bars ago but Baseline didn't agree (that is, is still showing downtrend), if Baseline then catches up and agrees with direction within XX bars since the EFI crossup, then this signal is triggered
BL Recovery Continuation Long ( RL ): EFI above Signal. Baseline crossed down into downtrend, then baseline crosses back up to uptrend while EFI is still above Signal then this signal is triggered
BL Recovery Continuation Short ( RS ): EFI below Signal. Baseline crossed up into uptrend, then baseline crosses back down to downtrend while EFI is still below Signal then this signal is triggered
Middle Crosses
Initial Long (L): Hard flip downtrend to uptrend; EFI crosses up Middle line
Initial Short (S): Hard flip uptrend to downtrend flip; EFI crosses down the Middle line
Continuation Long ( CL ): EFI already above Middle, EFI trigger crosses up EFI signal
Continuation Short (CS): EFI already below Middle, EFI trigger crosses down EFI signal
Post Baseline Cross Long ( BL ): EFI crossed up over Middle XX bars ago but Baseline didn't agree (that is, is still showing downtrend), if Baseline then catches up and agrees with direction within XX bars since the EFI crossup, then this signal is triggered
Post Baseline Cross Short (BS): EFI crossed down under Middle XX bars ago but Baseline didn't agree (that is, is still showing downtrend), if Baseline then catches up and agrees with direction within XX bars since the EFI crossup, then this signal is triggered
BL Recovery Continuation Long ( RL ): EFI above Middle. Baseline crossed down into downtrend, then baseline crosses back up to uptrend while EFI is still above Middle then this signal is triggered
BL Recovery Continuation Short ( RS ): EFI below Middle. Baseline crossed up into uptrend, then baseline crosses back down to downtrend while EFI is still below Middle then this signal is triggered
Take profit philosophy
The Take Profits and Stop Loss are based on multiples of volatility . So, if you set Take Profit 1 to a multiple of 1, which is the default, then the the Take Profit 1 for a Long is:
source + 1.0 x volatility in price
If you set the Stoploss to a multiplier of 1.5, then the Stoploss for a Long is set to:
source - 1.5 x volatility in price
Trading Rules
Volatility: If price crosses the baseline, we check to see how far it has moved in terms of multiples of volatility denoted in price ( volatility in price x multiple). If price has moved by at least "Qualifier multiplier" and less than "Range Multiplier", then the strategy enters a trade.
Baseline Filter: This adds another layer of filtering (See Post Baseline Cross signals above). This is a simple over/under qualification filter. If price is above the baseline, then that means it qualifies for a long, if price is below the baseline, then this qualifies for a short. This filter must be active for Post Baseline Cross signals to trigger.
Take Profit/Stoploss Quantity Removed
1 Take Profit: 100% of the trade is closed when the profit target or stoploss is reached.
2 Take Profits: Quantity is split 50/50 between Take Profit 1 and Take Profit 2
3 Take Profits: Quantify is split 50/25/25.
Example: If you select 3 Take Profits and you long 1 BTC , then when Take Profit 1 hits, the strategy will remove 50% of the trade, meaning you'll have 0.5 BTC left in the trade. When Take Profit 2 hits, the strategy will remove 50% of 0.5 BTC leaving 0.25 BTC in the trade. When Take Profit 3 hits, then whatever is left in the trade is removed from the trade.
Moving Stoploss
1 Take Profit: The Stoploss doesn't move
2 Take Profits: After Take Profit 1 is hit, then the Stoploss moves to the trade Entry
3 Take Profits: After Take Profit 1 is hit, then the Stoploss for Take Profit 2 and Take Profit 3 is move to trade Entry. When Take Profit 2 is hit, then Take Profit 3 Stoploss is moved to Take Profit 1
Date Range
Select starting (from) date for the backtest and ending (through) date for the backtest.
Other things to know
The strategy does't exit on the entry candle. This is a safety measure to keep the backtest results clean and accurate. After the strategy enters a trade, it will wait until the entry candle close to set take profits and stoploss. This should have minimal effects on the backtest results compared to live trading. This may or may not be updated in the future
Tips and tricks
-Try toggle the volatility qualifiers on/off when trading different types of assets. See how the backtest results change.
-Change the Baseline type used in the Baseline filter, see how the results change. The Baseline filter used here doesn't need to match the core Baseline you choose to use for your trading system
Additional moving averages, volatility types, qualifiers, and other advanced features will be added in future releases.
Dr . Alexander Elder is one of the contributors to a newer generation of technical indicators. His force index is an oscillator that measures the force, or power, of bulls behind particular market rallies and of bears behind every decline. The three key components of the force index are the direction of price change, the extent of the price change, and the trading volume . When the force index is used in conjunction with a moving average, the resulting figure can accurately measure significant changes in the power of bulls and bears. In this way, Elder has taken an extremely useful solitary indicator, the moving average, and combined it with his force index for even greater predictive success.
This version adds Ehlers' bandpass filter to calculate the dominant cycle to then infer period input length. This is option. You can choose from both Fixed or Band-width Dominant Cycle adaptive.
This indicator makes use of the Moving Averages found in the Baseline Backtest indicator:
![Baseline Backtest [Loxx]](https://s3.tradingview.com/0/0Jbdwapf_big.png)
Volatility Types
v1.0 Included Volatility
Average True Range (ATR)
True Range Double ( TRD )
Signals
Signal Crosses
Initial Long (L): Hard flip downtrend to uptrend; EFI crosses up Signal line
Initial Short (S): Hard flip uptrend to downtrend flip; EFI crosses down the Signal line
Continuation Long ( CL ): EFI already above Signal, EFI trigger crosses up Signal
Continuation Short (CS): EFI already below Signal, EFI trigger crosses down Signal
Post Baseline Cross Long ( BL ): EFI crossed up over Signal XX bars ago but Baseline didn't agree (that is, is still showing downtrend), if Baseline then catches up and agrees with direction within XX bars since the EFI crossup, then this signal is triggered
Post Baseline Cross Short (BS): EFI crossed down under Signal XX bars ago but Baseline didn't agree (that is, is still showing downtrend), if Baseline then catches up and agrees with direction within XX bars since the EFI crossup, then this signal is triggered
BL Recovery Continuation Long ( RL ): EFI above Signal. Baseline crossed down into downtrend, then baseline crosses back up to uptrend while EFI is still above Signal then this signal is triggered
BL Recovery Continuation Short ( RS ): EFI below Signal. Baseline crossed up into uptrend, then baseline crosses back down to downtrend while EFI is still below Signal then this signal is triggered
Middle Crosses
Initial Long (L): Hard flip downtrend to uptrend; EFI crosses up Middle line
Initial Short (S): Hard flip uptrend to downtrend flip; EFI crosses down the Middle line
Continuation Long ( CL ): EFI already above Middle, EFI trigger crosses up EFI signal
Continuation Short (CS): EFI already below Middle, EFI trigger crosses down EFI signal
Post Baseline Cross Long ( BL ): EFI crossed up over Middle XX bars ago but Baseline didn't agree (that is, is still showing downtrend), if Baseline then catches up and agrees with direction within XX bars since the EFI crossup, then this signal is triggered
Post Baseline Cross Short (BS): EFI crossed down under Middle XX bars ago but Baseline didn't agree (that is, is still showing downtrend), if Baseline then catches up and agrees with direction within XX bars since the EFI crossup, then this signal is triggered
BL Recovery Continuation Long ( RL ): EFI above Middle. Baseline crossed down into downtrend, then baseline crosses back up to uptrend while EFI is still above Middle then this signal is triggered
BL Recovery Continuation Short ( RS ): EFI below Middle. Baseline crossed up into uptrend, then baseline crosses back down to downtrend while EFI is still below Middle then this signal is triggered
Take profit philosophy
The Take Profits and Stop Loss are based on multiples of volatility . So, if you set Take Profit 1 to a multiple of 1, which is the default, then the the Take Profit 1 for a Long is:
source + 1.0 x volatility in price
If you set the Stoploss to a multiplier of 1.5, then the Stoploss for a Long is set to:
source - 1.5 x volatility in price
Trading Rules
Volatility: If price crosses the baseline, we check to see how far it has moved in terms of multiples of volatility denoted in price ( volatility in price x multiple). If price has moved by at least "Qualifier multiplier" and less than "Range Multiplier", then the strategy enters a trade.
Baseline Filter: This adds another layer of filtering (See Post Baseline Cross signals above). This is a simple over/under qualification filter. If price is above the baseline, then that means it qualifies for a long, if price is below the baseline, then this qualifies for a short. This filter must be active for Post Baseline Cross signals to trigger.
Take Profit/Stoploss Quantity Removed
1 Take Profit: 100% of the trade is closed when the profit target or stoploss is reached.
2 Take Profits: Quantity is split 50/50 between Take Profit 1 and Take Profit 2
3 Take Profits: Quantify is split 50/25/25.
Example: If you select 3 Take Profits and you long 1 BTC , then when Take Profit 1 hits, the strategy will remove 50% of the trade, meaning you'll have 0.5 BTC left in the trade. When Take Profit 2 hits, the strategy will remove 50% of 0.5 BTC leaving 0.25 BTC in the trade. When Take Profit 3 hits, then whatever is left in the trade is removed from the trade.
Moving Stoploss
1 Take Profit: The Stoploss doesn't move
2 Take Profits: After Take Profit 1 is hit, then the Stoploss moves to the trade Entry
3 Take Profits: After Take Profit 1 is hit, then the Stoploss for Take Profit 2 and Take Profit 3 is move to trade Entry. When Take Profit 2 is hit, then Take Profit 3 Stoploss is moved to Take Profit 1
Date Range
Select starting (from) date for the backtest and ending (through) date for the backtest.
Other things to know
The strategy does't exit on the entry candle. This is a safety measure to keep the backtest results clean and accurate. After the strategy enters a trade, it will wait until the entry candle close to set take profits and stoploss. This should have minimal effects on the backtest results compared to live trading. This may or may not be updated in the future
Tips and tricks
-Try toggle the volatility qualifiers on/off when trading different types of assets. See how the backtest results change.
-Change the Baseline type used in the Baseline filter, see how the results change. The Baseline filter used here doesn't need to match the core Baseline you choose to use for your trading system
Additional moving averages, volatility types, qualifiers, and other advanced features will be added in future releases.
Phát hành các Ghi chú:
Updated colors and continuation signals.
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