Comments on: MMDI Portfolio Filter in Trading Blox

By: david varadi

david varadi — Thu, 04 Feb 2010 01:45:10 +0000

hi jez, cool app thanks, and the blox software looks pretty good too.

cheers
dv

By: bb

bb — Wed, 03 Feb 2010 14:22:27 +0000

Thanks Jez, I appreciate it.

By: Jez

Jez — Wed, 03 Feb 2010 11:21:15 +0000

No worries for the question bb. The filter rule is simply that: trades on the shorter timeframe are only taken in the direction of the trend on the longer timeframe.

In practice: only take the “long/buy” channel breakout signals when the MMDI is positive and only take the “short/sell” channel breakout signals when the MMDI is negative.

Note that the MMDI is the difference between the short moving median and a long moving average – so it will only be positive when the short median has crossed the long average.

By: bb

bb — Tue, 02 Feb 2010 23:54:49 +0000

Sorry for the simpleton question, but what does ” filter rules” mean in this context? Tried searching your blog and previous entries linked on this entry and couldn’t find the answer.

Do you mean that you’re looking for a cross of the Short MMDI over the Long MMDI to initiate a trade?