Linear Regression: Indicator Explained + How To Exploit It in a Trading System

[@UngerAcademyENGLISH]

▷Want to know how we can help you improve your approach to trading? autc.pro/GetAndreasHelp?PzwhgOhJKQ&sl=yt-mPzwhgOhJKQ

[@spencerwinston4334]

First rate presentation of the configuration of the linear regression indicator. In the "fog of the trading war", knowing how and why an indicator is giving a signal adds clarity and confidence in the decision making. The LR is one part of solving the trading Rubix Cube in stats analysis along with volume, trends, time cycles, market structure, and inter market analysis and risk/money management. Ty for sharing your trading expertise with traders across the world on youtube. The truth will set us all free on the market level, and more importantly on higher spiritual planes. New US subscriber.

[@pietronardi7372]

In the optimized strategy shown in the video, how are purchase levels and average periods set up? Also what kind of media was used (simple, exponential, etc.)?

[@UngerAcademy]

The video shows the optimized results on a basket of futures. In that case the value chosen for the "periods" input is 40. In the video they don't use averages; you are probably referring to the average true range which is an indicator of volatility and in this case it was set to 5 periods

[@tullochgorum6323]

I normally love the UA videos, but I'm a bit more sceptical about this one. Despite the fancy calculations required for the linear regression, if you overlay it with common compound MAs such as the HMA or the T3 and fiddle with the lookback values you can achieve a very similar result. The Linear Regression indicator seems to be a little more laggy at turnarounds, which can be a good thing or a bad thing depending on your strategy. But there's not a lot in it, so if your platform doesn't offer the LR, just use another smoothed indicator instead. If your strategy is so fragile that such small differences are significant, then it's probably not tradeable anyway...

[@alessandrontanos4499]

For sure there are many indicators that can be used in a better way. In this video we proposed Linear Regression just as an alternative inside a big world of possibilities :)

[@thicccolas4908]

I can’t understand this indicator. I already know it can work, but why exactly does it work so well?

[@UngerAcademyENGLISH]

Linear regression, like the moving average, tries to identify the current trend; however, compared to the moving average it does not suffer from the typical delay of averages in identifying trend changes and is more sensitive to price changes.

[@maximosh]

Question: How is this profitable when the risk to reward is 1:1 and your win rate is only around 32% ?

[@alessandrontanos4499]

Ratio avg win/avg loss is 2.45 (min 7:46) ;)

[@stanleysinatra4643]

How to choose the best strategy for u? Its from net profit/ profit factor / ratio avg win / max drawdown? Or something that maybe u can help me to get the best strategy… hopefully u will answer my question thx 🙏

[@stanleysinatra4643]

I mean what is the most importants component on backtest ? Is that net profit or anything else?

[@UngerAcademyENGLISH]

Check this out ungeracademy.com/blog/backtest-trading-strategy