Strategy #0000000092 · Trend strength and directional indicators
Wilder directional movement and ADX trend filter
Enter +DI, −DI, ADX, a strength threshold and long/short return assumptions to inspect direction and filter.
DMI smooths positive and negative directional movement into +DI and −DI; ADX measures trend strength, not direction. A common rule follows the larger DI when ADX is high and reduces trend exposure when ADX is low. Indicators require historical highs, lows and closes; ranges and parameter choice can cause whipsaws.
Inputs are manual scenarios, not computed Wilder indicators; gaps and data quality are not handled.
Three ways in
Understand the story. Then inspect the risk.
Start with a familiar situation, check the payoff, then test how the numbers change.
The idea · in two minutes
When ADX clears a trend threshold, how do +DI and −DI set direction?
DMI smooths positive and negative directional movement into +DI and −DI; ADX measures trend strength, not direction. A common rule follows the larger DI when ADX is high and reduces trend exposure when ADX is low. Indicators require historical highs, lows and closes; ranges and parameter choice can cause whipsaws.
Enter +DI, −DI, ADX, a strength threshold and long/short return assumptions to inspect direction and filter.
Inputs are manual scenarios, not computed Wilder indicators; gaps and data quality are not handled.
- Signal inputEnter +DI, −DI, ADX, a strength threshold and long/short return assumptions to inspect direction and filter.
- Return scenarioInputs are manual scenarios, not computed Wilder indicators; gaps and data quality are not handled.
Illustrative research examples only. They are not live signals or a recommendation.
The mechanics · payoff and exposure
Signal=\operatorname{sign}(PDI-MDI)\cdot\mathbf{1}(ADX\geq k)
+DI and −DI are smoothed directional indicators; ADX is strength; k is the user-set trend threshold.
Greeks: the directional intuition
- 資料
- Measures sensitivity to implied volatility.
- 門檻
- Measures sensitivity to implied volatility.
- 執行
- Measures sensitivity to implied volatility.
Signal=\operatorname{sign}(PDI-MDI)\cdot\mathbf{1}(ADX\geq k)
Practical context · published observations
Wilder directional movement and ADX trend filter: read the record with its caveats.
The chart uses the published figures or explicitly labelled study inputs below. A historical index or model replay is not the same as an investor’s realised account return.
Inputs are manual scenarios, not computed Wilder indicators; gaps and data quality are not handled. Source ↗ · Methodology ↗
Change assumptions and inspect the scenario
Inputs illustrate the strategy mechanics; they are not live quotes, forecasts or investment advice.
Variants · same family, different risk levers
Signals within a family use different assumptions.
Compare horizon, frequency and trend/fade interpretations.
| Related strategy | Relationship | What changes | New cost or risk |
|---|---|---|---|
| Base indicator | Technical signal | DMI smooths positive and negative directional movement into +DI and −DI; ADX measures trend strength, not direction. A common rule follows the larger DI when ADX is high and reduces trend exposure when ADX is low. Indicators require historical highs, lows and closes; ranges and parameter choice can cause whipsaws. | Inputs are manual scenarios, not computed Wilder indicators; gaps and data quality are not handled. |
| Confirmation version | Multi-indicator filter | Add trend or volume confirmation. | Confirmation can delay entry. |
| Contrarian version | Mean reversion | Fade extreme deviations. | Can lose while a strong trend persists. |
Inputs are manual scenarios, not computed Wilder indicators; gaps and data quality are not handled.
Read beyond the summary
References
Primary sources and research used to describe the strategy and its limits.