You can only trade with complete confidence, when you understands
why and how your system generates BUY and SELL signals.

The heart of any good trading system must be the various functions it employs to filter out insignificant price reversals. This prevents the system from being whipsawed, it prevents the system from getting out prematurely of a good trade and also prevents the system from entering into potentially unprofitable trades.

No matter how good a trading system is, unless it has an efficient filtering system at its nerve center, it will always be plagued by false trend reversals which will dissipate profits, produce very small average trades and may even drag the system into a deep drawdown or into a long string of losing trades.

The real strength of a powerful trading system is its ability to avoid losing trades, to stay in a good trade for maximum profits, and to prevent a good trade from turning into a bad one.

The ATS-ZB32 generates a BUY or a SELL signal if the stochastic is either over sold or over bought. After the trading signal is generated the various filtering functions of the system take over, to keep the system in a good trending market and to maximise profits.

The ATS-ZB32 has functions to accomplish this:

1. The main adaptive Filter(F). Default value is 1.00. The filter is dynamic and changes with changing market conditions. During a sideways market the value of the filter gets adjusted depending on the speed of the market. In highly volatile markets the filter also is increased to allow for a greater degree of fluctuation.

2. The V-Filtering System is a set of adaptive genetic algorithms that keep the system with the major trend. This network of algorithms prevents the system from closing a good trade prematurely.

3. The Stop Loss Function is the safety valve of the system and takes it out of the market if a trade turns bad. The parameters are adjustable. To make the system more adaptive to market conditions.

4. The Trailing Stop Function protects profits and is responsible for preventing many profitable trades from turning into losing trades. This function also practically eliminates consecutive losing trades.

5. The TREND Function. This function takes the system out of the market if a trade starts to make a loss and the direction of the market does not support the trade.

6. The GET Out function. The default value is a loss of $250 At the close on Friday, If the trade is making a loss of $250 or more, and the market is no longer moving in the direction of the trade, then the system issues a signal to "GET OUT" with a loss. This means that the market has changed direction. This parameter will prevent the system from re-entering the market if it is not safe to do so. This parameter will keep the system out of the market with a "STAY OUT" signal until it is safe to get back into the market