Why must we analyze Sideways Market ?

Our research shows that Forex Market isn't that simple as just bullish and bearish market. If you have only bullish and bearish view in your trading equation, then your equation is not complete. The market will often take sideways movement to restore its energy before bullish and bearish explosion. If you don't notice the Sideways Market period, your trading strategy will often outpace the Market and you will either enter too premature trend period or you will miss the important breakout level which might be harmful to your trading. Many Professional traders emphasize to be aware of Sideways Market for your successful trading. If you have a minute, then please view this interesting book for your own good. 

 

   

 

Introduction to Sideways Market Statistical Analyzer for Meta Trader Platform

Notable period of Low volatility and non trending movements in the financial market is considered as Sideways Market. Soon or later, the low volatility will increase and the price will pick up a trend after Sideways Market. In terms of trading point of view, Sideways Market can serve as the very good entry timing for traders. Loosely speaking, just think that Sideways Market as the resetting period of the financial market. The old trend will be reset and new trend will be born.  Sideways Market is also quite often the representation of accumulation of large orders from big investors. Therefore, knowing the presence of Sideways Market can help you to decide good entry and exit timing. The wisest thing you will ever do is to enter the market when the Sideways Market is detected because this is where your risk to rewards ratio is great for you.

Traditionally the Average Directional Index (ADX) indicator or moving average of standard deviation indicators was used to roughly determine the presence of Sideways Market. However both of the indicators are lagging with very low correlation with future price movement. They will not provide you clear idea on when the Sideways Market started and when they ended. Missing all these important information leave traders with very uncertain picture on the current market view. Here we have very accurate Sideways Market Analyzer inspired from the statistical theory. Indeed this Sideways Market Statistical Analyzer can detect Sideways Market just like human eyes can do. In addition, this Sideways Market Statistical Analyzer will immediately provide the expected trading outcome when you trade with the detected Sideways Market. Therefore, you will know how much profits/loss you should expect when you trade with the detected Sideways Market. Based on 9 month backtesting results, you can expect minim 300 pips to 1000 pips each month when you trade with this Sideways Market Statistical Analyzer.

 

How to trade when Sideways Market is detected

In terms of trading signal, you open buy order when the price breakout the top of the Sideways and you open sell order when the price breakout the bottom of the detected Sideways Box.  Normally pending order is good for this purpose. The Sideway Market Analyzer provides you with fixed stop loss and take profit level. The Sideways Market Statistical analyzer works well for most of currency pairs. Here are some backtesting results for 9 month period on five currency pairs using the built in backtesting machine. When you trade five currency pairs, you could expect minimum 300 pips to 1000 pips each month. These trading results are purely based on the assumption you open buy and sell orders when the Sideways Market is detected without looking at any other indicators. Of course, by making additional judgement using other technical indicators, you can remove bad trades and increase your profits even further.

 

Currency Symbol	Time Frame H1	Total Net pip gains	Monthly Pip gains
AUDCAD	H1	1519.00	159.89
GBPUSD	H1	1607.60	169.22
EURUSD	H1	1684.00	177.26
EURJPY	H1	1550.30	163.19
EURAUD	H1	3316.20	349.07
	Sum	9677.10	1018.64

Here I also provide you the good parameters set I found for these five currency pairs using the Built In backtesting machine with the Sideways Market Statistical Analyzer. The built in backtseting machine is very fast and they will help you to visualize the trading operations. So you can always trade with the most profitable parameter sets. Finding the parameter sets are done with the interactive buttons on your chart and normally it only takes less than 5 minutes to find the best parameters set for each currency pairs. You will see this buttons when you attach the Sideways Market Analyzer to your chart.

 

Symbol	Cut Probability	Box Buffer Pips	Take Profit	Lot Multiplier	Monthly Pip gains
AUDCAD	0.26	2	3.2	1.6	159.89
GBPUSD	0.16	0	2.4	1.6	169.22
EURUSD	0.34	0	1.4	1.6	177.26
EURJPY	0.43	0	2.6	1.6	163.19
EURAUD	0.30	7	2.4	1.6	349.07
				Sum	1018.64

 

 

I also found that this Sideways Market Analyzer works superb with Gold. Here is the backtesting results for 9 month period.

 

Symbol	Cut Probability	Box Buffer Pips	Take Profit	Lot Multiplier	Monthly Pip gains
XAUUSD	0.16	0	1.3	1.6	2870.09

 

 

Summary on Sideway Market Statistical Analyzer

• Sideways Market Statistical Analyzer was built based on advanced probability theory and they detect Sideways Movement just like your own eyes do.
• Sideways Market Statistical Analyzer is a complete trading system on its own. Without using any other indicators, the backtesting results indicate that you could achieve minimum 300 pips to 1000 pips each month. However you can improve the profitability always by combining other technical indicators.
• Sideway Market Statistical Analyzer contains the built in Backtesting machine running together with a set of buttons on the chart. This backtesting machine will help you to trade with the most profitable parameter sets every time. Finding parameter set only take less than 5 minutes for each currency pair.
• Email notification and sound alert function when new Sideway Market is detected.