In the sixth article of this series, we will continue to summarise a collection of commonly used technical analysis trading models that will steadily increase in mathematical and computational complexity. Typically, these models are likely to be most effective around fluctuating or periodic instruments, such as forex pairs or commodities, which is what I have backtested them on. The aim behind each of these models is that they should be objective and systematic i.e. we should be able to translate them into a trading bot that will check some conditions at the start of each time period and make a decision if a buy or sell order should be posted or whether an already open trade should be closed.
Algorithmic Trading Models – Cumulative Sums Filter (algofin.substack.com)
What do you think?