All the articles of Active Trader Magazine include trading strategies, trading system tests, market analysis, news, commentary, and much more. In strategy articles you will find objective trading rules, market examples, and test (or trade) results so you can carry on to research and experiment on your own. Here, I am giving an article review:
Article: “Better breakout trading: The Noise Channel system” by Dennis Meyers (Sept. 2001)
In every part of breakout trading, you have to deal with the reality of false moves and whipsaws. The noise channel breakout system demonstrates how a filter can get better the performance of intraday breakout trading.
The subsequent discussion analyzes a difference on the easy channel breakout system that uses the latter kind of filter to reduce whipsaws on an intraday basis. This strategy is checked on International Business Machines (IBM). The discussion is broken into two divisions, covering 1) the system rules and data collection and 2) testing procedures. This will provide you the essential tools for performing comparable research and tests on other markets.
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