—— Additional Filters ——-
#
The advanced trade filters section is based on the concepts exposed by Martyn Tinsley in his algorithmic trading series.
Please watch the following videos to fully understand the meaning and use of the filters.
Supplementary Watching: #
Market Context Master explanation video
How to Interpret Market Conditions #
The real power of the Additional Market Context Filter lies in combining volatility and noise to understand the type of market you’re in. The table below summarizes the four main quadrants:
| Volatility | Noise | Market Type | Best For |
|---|---|---|---|
| 🔵 High | 🟢 Low | Strong directional trends | Trend‑following, breakout strategies |
| 🔵 High | 🔴 High | Volatile chop, wide ranges | Scalping, mean‑reversion strategies |
| 🟢 Low | 🟢 Low | Slow, steady drift | Position trading, patience‑required entries |
| 🟢 Low | 🔴 High | Tight consolidation, coiling | Breakout anticipation, volatility expansion plays |
“If you have a trend‑following strategy that catches trends after they start, you want high volatility and low noise. If you’re a mean‑reversion trader, you might prefer high noise markets where price oscillates.”
MA Trend Filter #
—— MA Trend Filter Mode —— (default = Disable Trend Filter (0)): This allows you to choose the behavior of the EA when using the advanced trend filter.
The trend filter uses a MA to determine trend conditions (price above the MA line means Bullish trend, while the price below the line is Bearish trend).
| Disable Trend Filter (0) | Disable Trend Filter |
| With Trend + Close Trades on Trend Change (11) | Only Trade setups which occur in Trend conditions will be taken as valid, all other setups will be ignored. Trend filter will close and exit the trade when the trend has changed from an uptrend to a downtrend or vice versa. |
| Counter Trend + Close Trades on Trend Change (22) | Only Trade setups which occur in Counter Trend conditions will be taken as valid, all other setups will be ignored. Trend filter will close and exit the trade when the trend has changed from an uptrend to a downtrend or vice versa. |
| With Trend Only (1) | Only Trade setups which occur in Trend conditions will be taken as valid, all other setups will be ignored. |
| Counter Trend Only (2) | Only Trade setups which occur in Counter Trend conditions will be taken as valid, all other setups will be ignored. |
Supplementary Watching: #
How to Develop Trading Systems using Trend Filters and Indicator Triggers
Advanced Trend Filter Indicator
Volatility Filter #
—— Volatility Filter Mode —— (default = Disable Volatility Filter (0)): This allows you to choose the behavior of the EA when using the advanced Volatility filter.
The volatility filter uses a percentile-ranked ATR to determine relative volatility for a given asset.
The higher the value of the Percentile Ranked ATR, the higher the relative volatility and vice versa.
| Disable Volatility Filter (0) | Disable Volatility Filter |
| Low Volatility Only (50% Vol or Lower) (1) | Only Trade setups which occur in Low Volatility conditions will be taken as valid, all other setups will be ignored.
Low Volatility is defined as 50% or less on the ATR Percentile indicator. |
| High Volatility Only (50% Vol or Higher) (2) | Only Trade setups which occur in HighVolatility conditions will be taken as valid, all other setups will be ignored.
High Volatility is defined as 50% or Higher on the ATR Percentile indicator. |
| Avoid Extreme Volatility (75% Vol or Lower) (3) | Avoid Trade setups that occur in Extreme Volatility conditions will be taken as valid, all other setups will be ignored.
Extreme Volatility is defined as 75% or Higher on the ATR Percentile indicator. |
| Extreme Volatility Only (75% Vol or Higher) (4) | Only Trade setups that occur in Extreme Volatility conditions will be taken as valid, all other setups will be ignored.
Extreme Volatility is defined as 75% or Higher on the ATR Percentile indicator. |
Supplementary Watching #
Using a ‘percent-based' ATR (Average True Range) Volatility Filter
Market Noise Filter #
—— Market Noise Filter Mode —— (default = Disable Market Noise Filter (0)): This allows you to choose the behavior of the EA when using the advanced Market Noise filter.
The market noise filter uses a Kaufman's Efficiency Ratio calculation (indicator available in the Bonus Scripts and Resources section) to determine relative market noise for a given asset.
The lower the value of the Kaufman's Efficiency Ratio, the higher the relative market noise and vice versa.
| Disable Market Noise Filter (0) | Disable Market NoiseFilter |
| Low Market Noise Only (50% Market Noise or Lower) (1) | Only Trade setups that occur in Low Market Noise conditions will be taken as valid, all other setups will be ignored.
Low Market Noise is defined as 50% or higher on the Kaufman's Efficiency Ratio indicator. |
| High Market Noise Only (50% Market Noise or Higher) (2) | Only Trade setups that occur in High Market Noise conditions will be taken as valid, all other setups will be ignored.
High Market Noise is defined as 50% or less on the Kaufman's Efficiency Ratio indicator. |
| Extremely High Market Noise (75% Market Noise or Lower) (3) | Only Trade setups that occur in Extreme High Market Noise conditions will be taken as valid, all other setups will be ignored.
Extreme High Market Noise is defined as 25% or lower on the Kaufman's Efficiency Ratio indicator. |
| Avoid Extremely High Market Noise (75% Market Noise or Lower) (4) | Trade setups that occur in Extreme High Market Noise conditions will be taken as invalid, all other setups will be taken.
Extreme High Market Noise is defined as 25% or less on the Price Density Percentile indicator. |
Supplementary Watching: #
Is Market Noise beneficial to Mean-Reversion Trading Strategies?
How Market Noise Affects Trend-Following Trading Systems | Whipsaws
Using a Market Noise Filter to improve Trading Edge | Research Results 3
-*- Additional Filters TimeFrame -*- (default = Base/Execution (0): This allows you to choose the timeframe the EA will use when calculating the additional Trend, Volatility and Market Noise Filters. Note: This will use standard MT4 time frames instead of MT5 ones for the advanced filters for simplicity.
| Base/Execution Timeframe (0) | Additional Filters will use the same Timeframe as the EA execution. |
| 1 Timeframe above Base/Execution (1) | Additional Filters will use 1 MT4 standard Timeframe above the EA execution timeframe. |
| 2 Timeframes above Base/Execution (2) | Additional Filters will use 2 MT4 standard Timeframes above the EA execution timeframe. |
| 3 Timeframes above Base/Execution (3) | Additional Filters will use 3 MT4 standard Timeframes above the EA execution timeframe. |
| 4 Timeframes above Base/Execution (4) | Additional Filters will use 4 MT4 standard Timeframes above the EA execution timeframe. |
No Comment