8-1

The Dromedar
Making use of a divergence


FESX (15 minutes), AroonOscillator, AroonOscillator Divergence. When the market trend is different from the AroonOscillator above/belwo a trheshold than a divergence is indicated.


FESX (15 minutes), when the AroonOscillator Divergence occurs we change the trendfollowing position until the opposite divergence occurs.


The market wasfallingbut in the afternoon the divergence ovccurred, maybe in alignment with the US stock market. So the long move was caught excellently. It, of course, almost never happens that perfect.


A nice equity curve, but mainly due to the bearish trend of 2008.


The equity curve became even better when a trendfilter and better trailing stops were added. but it slightly smells of over-optimization then.


back to chapter 8 overview