Advanced Support Resistance And Trendlines Afl. Automatic Support Resistance Channel Afl is a concept in technical analysis that the movement of the price of a security will tend to stop and reverse at certain predetermined price levels. These levels are denoted by multiple touches of price without a breakthrough of the level. Amibroker (AFL) Indicators That Use PeakBars. Advanced Support Resistance Submitted by kevinx72 almost 11 years ago Trading Trix bars. Advanced Trend Lines. Automatic Support Resistance Channel Afl – Automatic Support Resistance Channel Afl is a concept in technical analysis that the movement of the price of a security will tend to stop and reverse at certain predetermined price levels. These levels are denoted by multiple touches of price without a breakthrough of the level. Prices respect a trend line, or break through it resulting in a massive move. Drawing good trend lines is the MOST REWARDING skill. The problem is, as you may have already experienced, too many false breakouts. You see trend lines everywhere, however not all trend lines should be considered. You have to distinguish between STRONG and WEAK trend.

This is a breakout strategy where buy/sell signal is generated when price crosses a dynamic support/resistance. The calculation of support/resistance is based on highest high value and lowest low value for a particular lookback period. This strategy seems to work well in Trending markets.

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Paramter	Value
Preferred Timeframe	Daily, Hourly
Indicators Used	None
Buy Condition	Price crosses above dynamic resistance.
Sell Condition	Price crosses below dynamic support.
Stop Loss	2%
Targets	No fixed target, Stop and reverse when AFL gives opposite signal
Position Size	150 (fixed)
Initial Equity	200000
Brokerage	50 per order
Margin	10%

Click here to download AFL code for this system.

Advanced Support Resistance And Trendlines Afl

Parameter	Value
Parameter	NSE Nifty
Initial Capital	200000
Final Capital	1275626.60
Backtest Period	01-Jan-2007 to 19-02-2016
Timeframe	Daily
Net Profit %	537.81%
Annual Return %	22.48%
Number of Trades	243
Winning Trade %	41.56%
Average holding Period	8.93 periods
Max consecutive losses	6
Max system % drawdown	-28.78%
Max Trade % drawdown	-60.73%

Download the detailed backtest report here.

Please note that you can expect even better results if you allow compounding of your returns.

Additional Amibroker settings for backtesting

Goto Symbol–>Information, and specify the lot size and margin requirement. The below screenshot shows lot size of 75 and margin requirement of 10% for NSE Nifty:

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Additional Amibroker settings for backtesting

Disclaimer:

Auto Trend Line With Buy And Sell Signal Support Resistance

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