Way of the turtle

Simple Lookbacks
If you consider at a very basic level what trend following is, you can
devise even simpler mechanisms for determining the potential start
of a trend. One method that works reasonably well is to simply look
at a price some number of days earlier. You can add those prices
by using a volatility-based measure such as ATR. For example, you
can buy if the prices exceed the price 100 days ago by 2 ATR.
Chapter 10 will explore some systems that use other types of sim-
ple lookbacks.
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Way of the Turtle
SB: Sugar #11 World-CSCE
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Figure 9-2
Moving Average with Volatility Channel
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Want More?
Over the years, hundreds of different types of indicators have been
invented. Recently, advances in technology have made it easier for
traders to program their own formulas and create their own indi-
cators, and trading magazines publish new indicators and systems
built on those indicators in each new issue. For those who want to
learn about other indicators and system building blocks in more
detail, some sources are included in the bibliography. However,
before you dig in too deeply, here are some words of advice. I’ll use
trend following as an example, but this advice applies to other types
of trading as well. 
If a market starts to go up, sooner or later it will trigger a long
entry signal using any of the trend-following building blocks. All
the building blocks can be tuned so that they react more quickly
or more slowly. Therefore, in effect you can use any of them to
build systems that will perform similarly to systems built with other
building blocks.
My advice is that there are better ways to spend your time than
searching for the perfect newfangled nuclear-powered indicator
that works perfectly in past years’ markets. I suggest that instead you
try out some simple systems that use the basic building blocks that
were outlined above. We will look at some of them in Chapter 10.
Turtle-Style Building Blocks
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