Ultimate Volatility Expert – Amibroker AFL – System Review

Ultimate Volatility Expert is a system created based on ADM(Average Daily Movement). It is a system based on breakout trading and quite similar to Open range breakout trading. And here the breakout levels are decided based on the ADM movement. The credit goes to the system creator Mr Murali Krishna

Utimate Volatility Expert

What is Average Daily Movement?

Average Daily Movement(ADM) is nothing but the average price movement of last N day (High-Low). And in Ultimate Volatility Expert ADM play a major role in deciding the Breakout and Target Levels.

How the Breakout Levels are decided?

Breakout levels are decided when the current price breaks above (prev day close + 0.382*ADM) level which generates the Buy Signal and when the current price break down below (prev day close – 0.382*ADM) levels generates the sell signal

Buy= C>((DayC)+((.382)*(ADM)));
Sell= C<((DayC)-((.382)*(ADM)));

How the Target is Decided?

BuyTarget1= (0.45*ADM)+BuyPrice;
BuyTarget2= (0.95*ADM)+BuyPrice;
BuyTarget3= (1.95*ADM)+BuyPrice;
SellTarget1= SellPrice-(0.45*ADM);
SellTarget2= SellPrice-(0.95*ADM);
SellTarget3= SellPrice-(1.95*ADM);

Risk Reward Ratio

1. low risk reward= 1:1 , Example: Target is minimum 1/2 ADM points and stop loss also same points (normal Profit)
2. medium risk reward= 2:1 , Example: Target is minimum 1 ADM points and stop-loss is 1/2 ADM points (good Profit)
3. high risk reward= 3:1 or above , Example: Target is minimum 1 1/2 or 2 ADM points and stop-loss is 1/2 ADM points

Left side of the window show Monthly, Weekly and Previous day High Low Levels, this levels are major Support and Resistance levels for trading,(PDH = Previous day High, PDL = Previous day Low, CWH= Current week High, 1WH= first week high CMH= current Month High CML= current Month Low etc.)

The System Creator recommend to set target & stop-loss levels with minimum 2:1 ratio, and also to lookinto the left side dashboard for major Trading levels. And the ideal timeframe for trading this strategy is 5min

Download Amibroker AFL code

Download the Ultimate Volatility Expert System – AFL code

Related Readings and Observations

Rajandran R

Rajandran is a trading strategy designer and founder of Marketcalls, a hugely popular trading site since 2007 and one of the most intelligent blog in the world to share knowledge on Technical Analysis, Trading systems & Trading strategies. More From Rajandran R »

25 comments… add one

  • Harsimran December 15, 2013, 10:59 am

    Can u make this availabel for mt4

    Reply
    • Rajandran R December 15, 2013, 11:24 am

      As of now we dont have any plans to replicate the same in MT4

      Reply
      • Harsimran December 15, 2013, 11:27 am

        Then do you have anything similar for MT4

        Reply
        • Rajandran R December 15, 2013, 12:01 pm

          One have to took his own time to put effort to build similar stuff! As of now we dont have similar stuff with MT4.

          Reply
  • Parthasarathy December 15, 2013, 3:18 pm

    Dear Mr.Murali Krishna
    A good input. The multiplier of 0.382 is okay for MCX ?

    Reply
    • Rajandran R December 16, 2013, 3:31 pm

      Parthasarathy,

      You can Optimize the ADM multiplier using Optimization method. Prior to that you need to backtest the system.

      Reply
  • BHAILALBHAI December 15, 2013, 4:14 pm

    Sir

    Pls put backtesting report for above AFL. Is it better than Super Trend (7,3) ?

    Reply
  • Anandha December 15, 2013, 6:31 pm

    I think this is already there from smartfinance.

    Reply
    • Rajandran R December 16, 2013, 3:27 pm

      Not sure about it. Concept is simple but looks powerful!

      Reply
  • MEENAL December 15, 2013, 6:58 pm

    I WANT TO LEARN HOW TO WRITE AFL CODES IF WE HAVE THE LOGIC. CAN YOU SUGGEST ANY ONLINE COURSE? CAN ANY OF BLOG MEMBERS HELP?

    Reply
    • Rajandran R December 16, 2013, 3:27 pm

      As of now iam not concentration on tutorial on How to do afl code. I will be available in my workshops in the future.

      Reply
  • zain December 15, 2013, 7:09 pm

    hi,
    i want to about know the white line on intra day levels. can i treat as a sl for long or short position.

    Reply
    • Rajandran R December 16, 2013, 3:29 pm

      Stop loss is 0.5 of ADM and you can vary it depends upon your ability to take risk.

      Reply
      • zain December 17, 2013, 3:47 pm

        No trade if the stock is trading between buy trigger & sell trigger?

        Reply
  • BHAILALBHAI December 18, 2013, 10:38 pm

    sIR

    Is it better than Super Trend Indicator ?

    Reply
  • zain December 20, 2013, 11:32 pm

    Dear Rajan,
    I need the scanner for the above AFL for signals.

    Buy= C>((DayC)+((.382)*(ADM)));
    Sell= C<((DayC)-((.382)*(ADM)));

    regards

    Reply
  • amit December 23, 2013, 11:10 pm

    Dear Rajandran and Murali Thanks. Both of you are rocking by doing selfless service to the small retails traders like me. Keep it up. May God Bless You

    Reply
  • Murali Krishna December 23, 2013, 11:30 pm

    hi rajendran, thanks for sharing my afl in this site, small correction in this review 2nd paragraph, about ADM, i received this word from (www.dynamiclevels.com), so read that subject and re post that paragraph, it very useful for your viewers.and Would be nice if you write a comment on the site(www.wisestocktrader.com) from where it has attained.

    Thanks
    Murali Krishna

    Reply
    • Rajandran R December 24, 2013, 10:07 am

      Hi Murali,

      What correction needs to be made? Can you brief?

      Reply
  • aditya jain January 1, 2014, 10:10 pm

    dear rajandran
    i am follower of sir illango and your website, but unfortunately so far i have not come across single afl which support good elliot wave method as explained by robert beckham and also not a good afl to give good results in commodities market. may be my expectations are too high as i know its lot of hard work but still i would appreciate if somebody can come up with some great afl which suppot both the markets and can help all the traders or if you can come up with some special software that will also be appreciable.
    regards
    aditya jain

    Reply
  • mehul January 2, 2014, 3:13 am

    Mr Rajandran
    I want your inputs on my strategy. Can you give me your email id

    Reply
  • rajamani January 7, 2014, 6:41 am

    hi,

    can you give an afl…to point inside and outside candles in intraday day chart

    Reply
  • saim February 11, 2014, 8:34 pm

    Dear Rajandran sir
    Kindly murli sir mail id .I am using his indicator.I want just support with them.Or if u can then i will send u by mail.Plz sir send quick

    Regards
    saim

    Reply
  • Chandrakant March 17, 2014, 11:40 pm (5 weeks ago)

    Hello Rajandran sir,
    Can you tell me how to backtest this indicator?
    I am using amibroker 5.7. I tried to backtest it but i cannot see anything.
    Thanks

    Reply
  • siva March 30, 2014, 8:02 am (3 weeks ago)

    dear sir,

    thanks for give the details ‘Ultimate Volatility Expert ‘. i nee muralikrishnan mail id. i am new comer for commodity. can u pls tell the performance ratio for commodity like crude, copper, lead,

    Reply

Leave a Comment

Follow Us

Recommend on Google

About the Author

    • Rajandran is a Market Analyst and founder of Marketcalls, one of the most intelligent blog in the world to share knowledge on Technical Analysis, Trading systems & Trading strategies.