Building a Robust Trading System for TPL Stock
Leveraging CCI and VZO Indicators to Enhance Decision-Making and Performance in Volatile Markets
Walk-forward optimization is a crucial technique in algorithmic trading. It helps select the best-performing parameters for trading strategies under different market conditions. I regularly use this method to build a robust trading system based on indicators. As always, let's start by identifying the indicators we will use in this trading system.
Warning: The returns and results presented are solely based on backtesting using historical data. Although the system has undergone tests to enhance its robustness and resilience to market conditions, there is no guarantee that it will achieve similar profitability in the future. Markets carry inherent risks and volatility. Therefore, you should only invest money that you can afford to lose without causing financial distress.
Understanding the Indicators
Commodity Channel Index (CCI): This momentum-based indicator measures price deviation from its average. A high positive value indicates an overbought condition, while a low negative value suggests an oversold condition.
Volume Zone Oscillator (VZO): VZO measures the balance of buying and selling pressure using volume analysis. Positive values indicate accumulation, while negative values suggest distribution.