Trend-Following With The ADX by Martin Boot
Have you ever been interested in a system, but weren’t quite sure how it worked? Here’s a simple and robust trend-following system using the ADX, with only one entry condition and one exit condition.
To design and develop a sound trading system, we need a clear and logical basic idea. From this, we must derive proposed entry and exit points. A sound trading system must be robust; for the system to be as robust as possible, the idea must be as simple as possible. A robust system is one that behaves consistently in different markets; a robust system should not need constant adjustments for any new market to which it is applied. I kept these criteria in mind when I decided to develop a trend-following system.