As I have been jumping back in the markets, working on LogicSWAP, and trying to prep for becoming a full time family hedge fund manager, I was wanting to see what kind of improvements I could make to the Logical Indicator PRO that is available with the Logical Trader's Club membership on Coin Logic.
I fed the script into good ole ChatGPT, and asked it what kind of improvements that it would make. It spit out a bunch of things, which I did like a few of them. This newer version of ChatGPT with the memory is freaking weird. I didn't like it, but that's a whole other thing. The suggestions that I liked were added and that's what I am going to discuss in this post. These changes will be released as version 2.5 very soon! I am wanting to make sure my defaults are perfect and do some major backtesting.
Volume Confirmation Filter
The first addition to the indicator was the volume confirmation filter. When this is enabled, which it is by default, it will be required that the trading volume exceeds the average volume multiplied by the volume filter multiplier to validate trade signals. Of course each setting has a tool tip to let you know what's happening and how it works. Traders can set both the multiplier number and the period length for the volume moving average.
Adjust the volume filter multiplier to set the sensitivity. Values greater than 1.0 will make the filter more strict, requiring volume to be higher relative to the average. Values less than 1.0 will make the filter less strict, allowing lower volume to be considered significant. When your multiplier is less than 1, you will get more buy and sell signal than you will when the value is above 1.
The Average volume period is calculated by the simple moving average of the volume, not the price. This value determines how many periods back the SMA will average the trading volume. For example, setting this to 20 means the average volume will be calculated over the last 20 bars. Adjusting this period will affect how sensitive the volume filter is to changes in trading activity.
Weighted Moving Average
The Weighted Moving Average (WMA) is a trading indicator that helps smooth out price data by giving more weight to recent prices. Unlike a simple moving average (SMA), where all data points are treated equally, the WMA prioritizes the latest prices, making it more responsive to recent market moves. This gives traders another option to set either their basis line on the indicator, or for the long period moving average.
Code Optimization and Defaults
Some other changes that I have been messing with in the background is a bit of code optimization to help with organization of the code, setting organization, and helping it to load a little faster. Some of the other work as been trying to get the best default settings possible to help get the best results with the buy and sell signals, take profit signals, and other built in features that the Logical Trading Indicator PRO offers!
I am still working on a few other things before the 2.5 code release to try and get the most edge possible out of the markets so be looking out for the full release notes coming soon! I will be working this weekend on backtesting the new features and trying to find some fixes for a couple of things I want to fix, but you know how it works, there will always be one little thing that will bug you till no end, lol. That is where I am at with one feature. I don't want to say what yet, because I haven't figured out how to get it working properly, haha.
Until next time, trade logically my dudes!
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