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What is a trend and is the market structure based on trend or flat?

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by , 11-27-2020 at 06:15 AM (652 Views)
      
   
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The concepts of trend and flat can be clearly and fully defined. Besides, it is possible to compare the trendiness degree of different instruments as well as of a single instrument on different scales. Such an analysis allows us to evaluate characteristics and features of instruments and construct trading algorithms considering individual behavior of each instrument.

Knowing statistical characteristics of an instrument and their change over time, we can get rid of optimizing parameters when developing a trading algorithm. Instead, we can perform measurements and deliberately change trading algorithm parameters depending on statistical characteristics of a traded instrument.
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