Detrend Oscillator with Trend

The "Detrend Oscillator with Trend" trading system is a strategy designed for capturing trend momentum in the financial markets, particularly suited for high time frames such as the 4-hour chart and above. It utilizes a combination of technical indicators including moving averages, Parabolic SAR, and the Detrend Price Oscillator (DPO) to generate buy and sell signals.

Here's a breakdown of the setup and rules for executing trades.

Indicators Setup:

Exponential Moving Average (EMA) with 14 and 34 periods, based on closing prices.

Parabolic SAR with settings (0.02-0.2).

Detrend Price Oscillator (DPO) with a 21-period calculation.

Trading Rules

Buy Signal

Price is above the 14-period EMA.

The 14-period EMA is above the 34-period EMA.

The Parabolic SAR dot is positioned below the candle's price.

The Detrend Price Oscillator is greater than 0 (avoid entering when it's close to zero, indicating a flat market).

Sell Signal

Price is below the 14-period EMA.

The 14-period EMA is below the 34-period EMA.

The Parabolic SAR dot is positioned above the candle's price.

The Detrend Price Oscillator is less than 0 (avoid entering when it's close to zero, indicating a flat market).

Exit Strategy

Place the initial stop loss above the previous swing high for sell positions and below the previous swing low for buy positions.

Take profit when the EMA or Parabolic SAR changes position or set a profit target with a stop loss ratio of 1:1.25.

Money Management with D'Alembert

The D'Alembert progression system involves adjusting the trading size based on wins and losses. After a losing trade, increase the bet size by one unit or a certain percentage (e.g., 30%). After a winning trade, decrease the bet size by one unit or a set percentage (e.g., 30%).

Example of D’Alembert Progression

Example of D'Alembert's progression when you lose you increase by one unit or by a % for example 30%, however when you win you decrease by one unit or by an X percentage value for example 30%:
1(L) X 1 = 1 L
2(L) X 1 L = 2 L  Cum= -3L
3(L) X 1 L= 3L   Cum= -6L
4(L) X 1 L = 4L  Cum= -10L
5(W) X 1 = 5W Cum= -5L
4(W) X 1= 4W Cum= -1L
3(L) X 1 =3L Cum= -4L
4(W)  X 1 = 4L Cum= 0
3(W) X 1= 3W Cum=3
2W X 1= 2W Cum= 5
1

In summary, the "Detrend with Trend" strategy aims to capitalize on trends in the market using a combination of technical indicators and sound money management principles like the D'Alembert progression.
Examples of trades.