How ADX Trading System works in Amibroker (AFL)

APIBridge, Amibroker, AFL 

This tutorial shows how ADX AFL Trading System can be used on charts of Amibroker to Trade 

 
Strategy Premise

The ADX is perhaps the most popular trend detection indicator, developed by Welles Wilder.  The Plus Directional Index (PDI) calculate as the current high minus the prior high, provides it is positive. It assigns the value of zero if not positive. The Minus Directional Index (MDI) calculate as the prior low minus the current low, provides it is positive. It assigns a value of zero if this figure is not positive. 

Plus Directional Index (PDI), indicates the strength of the uptrend while Minus Directional Index (MDI) indicates the strength of the downtrend. Similarly, the low value of the Plus Directional Index or Minus Directional Index suggests that there is not any clear trend in the market. 

Currently, we do not add any other indicator to this system to test the technical strength of Average Directional Index.

Strategy Logic: ADX Trading System

Buy: Buy When Plus Directional Index crossed above Minus Directional Index, the value of the Plus Directional Index is greater than 25  and the value of the Minus Directional Index is less than 25. 

Sell:  When Plus Directional Index falls below Minus Directional Index. 

Amibroker Settings 

1st Step: Make sure you have completed Jump Start setup 

2nd Step: Download AFL from here. In Amibroker, Go to Formula editor and paste the AFL here.   

3rd Step: Add Separate Entry Exit Automation AFL after the strategy AFL and hit Apply. 

5th Step: Right Click on the chart and go Parameters to adjust the inputs of the strategy. 

This lesson demonstrated how to trade using the ADX AFL Trading System on the Amibroker platform.