Ok, this could be interesting
: As mentioned I have been looking at incorporating some of NB10.2 Oct's ideas into this to see if we could filter trades. It's quite easy to calculate what the pivot values for the day, week and month, both in retrospect and at the time within the EA. Paraphrasing heavily, for a buy trade NB would be looking for the weekly pivot to be above the monthly pivot (and you would enter as the price crossed the daily pivot in an upwards direction), and the position of the daily pivot would give you an idea as to whether the trend was strong (above the weekly pivot) or ranging (between the monthly and weekly pivots).
The first chart below show the results for the same set of parameters I was using in my previous post or 2 (the EA defaults), with the addition that the trade would only be taken if the weekly pivot was the "right" side of the monthly pivot (above for a buy, below for a sell). As you can see, not great and unprofitable at lower SL levels. I also tried with the day pivot on the "right" side of the weekly as well, which was even worse (not shown).
So back to the drawing board. But the point of Stretchy is that it alerts us to a tension that suggests that something is about to happen, that the position is "wrong" and is going to be pulled back to be "right". What if the stretch is telling us the pivots are the wrong way round but are going to flip?
So look at the second run, this time I am only accepting the trade if the weekly pivot is below the monthly pivot for a buy. Results look OK, interestingly though you would have made more with lower SLs. Even more interestingly, look at the third image, where I am showing the same run but only the losing trades. The TPs down the side start at 100, that means that I didn't have a losing trade with a TP of 90 or less i.e. every trade saw 90 pips profit or more before heading off towards the SL!! This seems firmly in the "too good to be true" camp, so I will be doing more testing with different ranges of starting D1 slopes etc, but this looks like pretty amazing stuff so far. I will also look at a new version of the EA so I/we can start testing this forwards as well.
I will tidy it up and try and post before the open on Sunday so we can have a play.