Close position - Smart Grid

Walter248

Dear technical support team of the forum,

Mike

Hi, Walter, divergencies are not used in this strategy, as explained in a previous post the DiNapoli indicator works as below.

In addition to its own formula the logic for the DiNapoli indicators is as follows:

Bullish
if the result value (blue) > signal value (red) and the signal is rising apply the smooth curve formula

Bearish
if the result value (blue) < signal value (red) and the signal is falling apply the smooth curve formula

Crossover distance - smooth curve formula
This is a calculation for the distance between the result and signal lines to help filter fake crossovers.

The close position setting for the DiNapoli works as follows:

If the DiNapoli shows a direction change from bullish to bearish, close buy trades.
If the DiNapoli shows a direction change from bearish to bullish, close sell trades.

The DiNapoli indicator uses the settings for FastK, SlowK and SlowD, but this is only used to calculate the formula, it is not lines drawn on the chart, you only have the result and signal lines (blue and red).

hope that helps.

Walter248

Hello Mike, I thank you very much and the Clickalgo team, I have conceptual errors and thank you for clarifying them, I am trying to find the optimal parameters for the cBot, I have previously programmed cBots with c# and I was referring to the drawn lines, I made a mistake, because one That is, it is the series of stochastic values and the other is the signal. I was wrong. You are right. I meant wrong when pointing out the parameters. I also appreciate clarifying that cross over is the parameter that filters signals and not the one that detects divergences. I hope you don't find it uncomfortable or annoying that I ask you these types of questions, I hope you are doing well.

Walter248

What I need to clarify is then that the Close position parameter closes the positions only if there is a stochastic and signal crossing above the sale threshold and below the sale threshold, by default then it does not close the positions for a crossing that does not comply these conditions?

Mike

Morning Walter, the DiNapoli indicator provides a bullish or bearish signal based on the rules provided, but the smart grid strategy includes an additional check for the signals using an upper and lower threshold.

Smart Grid Logic

Bullish Signal
if the DiNapoli indicator is bullish AND the result value is less than the upper level

Bearish Signal
if the DiNapoli indicator is bearish AND the result value is greater than the lower level

Closing trades is based on the signals above being reversed, if you are using a confirmation DiNapoli indicator you will also need to take this into account as it will also need to show the same signals.