I would like to use the 20DMF signal for partially hedging (with IWM or TF futures) a portfolio of long traded stocks. My underlying assumption is that my long trades produce excess return, thus a trend following index hedging will improve risk adjusted returns; and that the 20DMF is better in identifying trend than 'simple' price moving-average or breadth based trend indicators. It seemed more appropriate than the robot signal as I want trend identification and not trade decisions; also it has less frequent signal.

Pascal - any feedback on this application? Do I miss something important?


Also:
Quote Originally Posted by Pascal View Post
Since the 20DMF is handing the trade decision to the robot, I decided to limit the porosity parameter as much as possible
If I do use the 20DMF signal for hedging it is standalone. Would it be advisable, and practical for me as a website user, to add the hysteresis (porosity) on my own?

A related comment: Would it be possible to add to the 'zoomed' 20DMF chart (and inverse ETFs graphs) the actual indicator reading, and the moving average value? When the signal is close to zero or MA level in the chart published before close it might be difficult to eyeball whether we have a transition or not.