fractal trading strategies for bloomberg professional

Fractal Trading Strategies

Presented byQuant Trade Technologies, Inc.

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Contents

Fractal Strategy ModuleNo Mode StrategyTrend Mode StrategyRange Mode StrategyFast Forward StrategyBacktesting Engine

Fractal Strategy Module

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Fractal Strategy ModuleThe Fractal Suite comes with a built-in strategy module. The strategy signals are activated by clicking on the boxes located underneath the Plot Fast Forward indicator. The Momentum trend trigger, initial capital in $, Stop loss value in $, and Profit target value in $ are input fields that control the momentum figure, the stop loss, and profit target used by the strategy signals.

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Strategy TypesFour major strategies are included with the strategy module, but users are not limited to only four strategies. The four strategies can be used together or with the attached filters, profit targets, and stop loss settings to create a large number of strategy combinations.

No Mode Strategy

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No Mode

Use no mode – Activates a predictor reversion strategy based on entry points that use the entry channel indicator. It is called no mode, because the ARC is not used to determine a range mode or a trend mode. When activated with no other exits or filters, it will generate reversal signals across the chart.

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No Mode

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No Mode (Mean Flag)

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No Mode (Predictor Flag)

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No Mode (Predictor Flag, Auto Stop)

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No Mode (Predictor Flag, Mean Exit)

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No Mode (Predictor Flag, Predict Exit)

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No Mode (Predictor Flag, Stop Loss, Profit Target)

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Trend Mode Strategy

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Trend ModeUse trend mode – Activates a predictor driven and ARC filtered trend strategy. The idea in this case is to capture larger trend moves in the market rather than trading ranges. If the ARC flag is checked, this strategy will not allow any entry trades that the ARC indicates are in a range mode. This strategy does not have an automatic exit strategy, but bear in mind that all strategies are designed to work in conjunction with the other exits in the strategy module. 16

Trend Mode

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Trend Mode (ARC Flag)

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Trend Mode (Auto Stop)

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Trend Mode (One Bar)

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Trend Mode (ARC Flag, Stop Loss, Profit Target)

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Trend Mode (Stop Loss, Profit Target)

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Trend Mode (09:00 – 14:00 time frame)

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Range Mode Strategy

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Range ModeUse range mode – Activates a predictor reversion strategy very similar to no mode, but with several differences. The first difference is that the ARC is used to filter trades. If the ARC indicates a trend mode in the market, no trade will be entered with range mode on. The other difference is that range mode will exit a trade if the the ARC changes from a range mode to a trend mode. The purpose of these two differences is to maximize the chances of winning the trade using the reversion strategy.

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Range Mode

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Range Mode (Auto Stop)

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Range Mode (Mean Flag, Auto Stop)

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Range Mode (Predictor Flag)

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Range Mode (Predictor Flag, Predict Exit)

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Range Mode (Stop Loss, Profit Target)

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Fast Forward Mode Strategy

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Fast ForwardUse fast forward mode – Activates a strategy based on the Fast Forward Trend indicator. This strategy works by evaluating the strength of the signal (between -9 to 9) and compares it to the no trade zone value. If the signal is above or below the no trade zone, an entry signal is generated. The ARC flag can also be activated and used as a filter with this strategy.

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Fast Forward

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Fast Forward (ARC Flag)

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Fast Forward (ARC Flag, Auto Stop)

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Fast Forward (Auto Stop)

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Fast Forward (Profit Target)

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Fast Forward (Stop Loss)

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Backtesting Engine

These strategies can than be tested in the backtesting engine by simply copying the trade signal data from the data table and pasting the data into the backtest engine. This will be explained in detail under the section for the backtest engine.

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Pioneers in the fractal exploration of financial markets

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