Discussing the article: "How to build and optimize a volatility-based trading system (Chaikin Volatility - CHV)"
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Check out the new article: How to build and optimize a volatility-based trading system (Chaikin Volatility - CHV).
In this article, we will provide another volatility-based indicator named Chaikin Volatility. We will understand how to build a custom indicator after identifying how it can be used and constructed. We will share some simple strategies that can be used and then test them to understand which one can be better.
In this article, we're going to look at one of these volatility technical indicators called the Chaikin Volatility (CHV). Throughout the article, you'll learn what is important about the Chaikin Volatility, what it means, how we can calculate it, and how we can use it in our favor to get better trading results. We will use the indicator based on simple trading strategies (CHV Crossover and CHV and MA Crossover).
Our approach is to understand how we can consider the Chaikin Volatility Indicator as a volatility tool to get better trading results that can be reliable in terms of volatility measurement to be a part of our trading system. So we will learn how to create trading systems based on volatility-based strategies and we will give an example of how to optimize our trading system by adding simple tactics or combining other tools to get better results compared to what we can get without this optimization. We will also learn how to create our own CHV indicator to be used as part of our trading system.
After a test of this strategy for one year (1/1/2023 to 31/12/2023) on the EURUSD and a time frame of 1 hour, our results are as follows
Author: Mohamed Abdelmaaboud