Fractal Dimension Trade

Entry Logic

• The fractal dimension is used to measure the complexity of the price series.
• A low fractal dimension indicates a trending market, while a high fractal dimension indicates a choppy market.
• A long entry is triggered when the fractal dimension is low and a bullish trend signal occurs.
• A short entry is triggered when the fractal dimension is low and a bearish trend signal occurs.
• Confirmation is provided by a price action signal that is consistent with the trend.
• The timeframe is determined by the data used to calculate the fractal dimension.
• The location context is provided by the fractal dimension.
• The market condition is a trending market.

Exit Logic

• The exit is triggered when the fractal dimension increases, indicating that the market is becoming choppy.

Stop Loss Structure

• The stop loss is placed at a level that invalidates the trend signal.

Risk Management Framework

• Risk management rules are applied to the trades generated by the fractal dimension analysis.

Position Sizing Model

• Position sizing can be adjusted based on the fractal dimension.

Trade Filtering

• Trades are filtered based on the fractal dimension.

Context Framework

• The fractal dimension provides the context for the market.

Trade Management Rules

• The trade is managed based on the evolution of the fractal dimension.

Time Rules

• The strategy can be applied at any time.

Setup Classification

• The strength of the setup is determined by the fractal dimension and the quality of the trend signal.

Market Selection Criteria

• The strategy is best suited for markets that exhibit clear trends.

Statistical Edge Metrics

• The edge is determined by backtesting the strategy.

Failure Conditions

• The strategy can fail if the fractal dimension gives a false signal.

Psychological Rules

• The main challenge is to be able to identify and trade with the trend.

Advanced Components

• A variety of methods can be used to calculate the fractal dimension, such as the Higuchi method.

Location

• The strategy is most effective in markets that exhibit clear trends.