对冲楔形趋势系统 (Hedge Wedge Trending System)

One of the weaknesses of any trending system is that the price action has a tendency to stay to close to the actual trend. The simple premise is that prices always gravitate towards their means.

The idea behind this system is to create distance between the price action and mean thereby allowing for a longer adherence to price action during trending. This trading idea was inspired by Yezbick's work.

This is a very simple system. The rules are as follows:

1. Create a one hour chart
2. Create a 25 period weighted close moving average (WCMA) with 25 and -25 offset levels. This will create the WCMA wedge appearance.
3. Add a 50 period postive shift to the (WCMA)
4. The WCMA will appear as a Wedge on the chart.
5. Establish a spread Hedge (Long and Short simultaneous orders) whenever the price enters the Wedge. This is a neutral position.
6. Unwind the hedge (spread) whenever the price action leaves the wedge. For example, if the price is trending Long and exceeds the Long side of the wedge, remove the short side of the Hedge (spread) which will result in a Long position. If the price is trending Short and exceeds the Short side of the wedge, remove the Long side of the Hedge (spread) which will result in a Short position.
7. Once a trend has been engaged, enter an opposite side entry order to re-establish the spread should the price reverse. Do not place any stops. The opposite side hedge entry order will serve as the stop.

The attached chart illustrates the price action slicing through the Wedge that is created by the WCMA. This type of slicing action permits clean trade entry. Remember, the hedge wedge is a completely neutral zone where spreads are created which is an artifical stop...

TK