Eric Lefort: Improve your trading strategies

Everybody agrees that the trend is a key factor in trading. For French trader Eric Lefort it is THE key factor. His tool is therefore capable of identifying the market trend in a more granular way than the usual bullish, bearish, sideways. Indeed, his Mogalef trend filter can identify eight different market trends! Using his tool you can back-test your strategy in each of these eight market trends. Once you identified which trend(s) is (are) perfect for your strategy, you set the tool to only accept signals when the trend is optimal for you.

These are the advantages of the Mogalef trend filter:

• Eight different market trends can be identified.
• Can be used to together with nearly every trading strategy.
• Can increase the profitability of trading strategies.
• Reduces the number of trades.

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THE EIGHT MARKET TRENDS

These are the eight trend situations, which the Mogalef trend filter identifies. Each has a value between 1 (most bearish) and 8 (most bullish).

1. The trend is bearish and the last candle is bearish.
2. The trend is bearish but the last candle is bullish.
3. The market is in a range with a bearish orientation, the last candle is bearish.
4. The market is in a range with a bearish orientation, the last candle is bullish.
5. The market is in a range with a bullish orientation, the last candle is bearish.
6. The market is in a range with a bullish orientation, the last candle is bullish.
7. The trend is bullish but the last candle is bearish.
8. The trend is bullish and the last candle is bullish.

This illustration shows the Mogalef trend filter below the main chart. On the Y-axis you can see the values from 1 to 8.

IMPROVE YOUR STRATEGY & SAVE MONEY

Using Eric Lefort's tool you can back-test your strategy in each of these eight market trends. Once you identified which trend(s) is (are) perfect for your strategy, you set the tool to only accept signals from your strategy when the trend is optimal for you.

This should increase your number of winning trades. In addition it will reduce the number of trades since you only trade when the trend is optimal.

This illustration shows the results of a trading strategy on the German market index DAX. The Mogalef trend filter is switched off. The market trend is not taken into account. The strategy did 136 trades and made a profit of 1.861 Euro.

This illustration shows the same DAX trading strategy. The Mogalef filter is switched on. The eight market trenda are taken into account. The strategy did 34% less trades (90 instead of 136) and made 51% more profit (2.815 Euro instead of 1.861 Euro). In addition the trader saved commission on 46 orders.

CONCLUSION

By being able to identify no less than eight different market trends, Eric Lefort, gives trend following traders a GREAT tool to improve their trading results without having to change their strategy. High value for a minimum effort. Explore it.

Trader Eric Lefort uses NanoTrader.

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