Using indicators and weight, we need to define what makes good market conditions for opening trades. For certain strategies, such as crossovers, the market condition should help determine whether a signal should be acted on or not.
Definitions:
[ ] Neutral market (weight around 0)
[ ] Bullish market (weight < 0)
[ ] Bearish market (weight > 0)
For instance:
If a signal is weak and the market conditions are heavily in favour of the direction, the signal should be valid.
If a signal is strong and market conditions are weak, but in favour of the direction, the signal should be valid.
If the signal is strong, but the market conditions are not in favour, the signal should be invalid.
Using indicators and weight, we need to define what makes good market conditions for opening trades. For certain strategies, such as crossovers, the market condition should help determine whether a signal should be acted on or not.
Definitions:
For instance:
These definitions should be backtested.