The function TREND was designed to monitor the system while it is trading. If a trade startes to lose money, TREND checks the direction of the market. If the market is not moving in the direction of the trade, TREND takes the system out of the market with a small loss, preventing the system from getting in a deep loss, and thus reducing the drawdown.

The ATS-ZB32 takes its signal to go SHORT or LONG from the stochastic. If the stochastice goes above 80% the system goes Short. If the stochastic goes below 20% it goes LONG.

However the stochastic can go above 80% and the market can still keep going up. Similarly the stochastic can go below 20% and the market can stll keep going down.

In each of these cases, the system will keep going SHORT or LONG, because the stochastic is over bought or over sold, and the trade will start to lose money, sometimes a lot of money.

This is where TREND kicks in. If a trade starts to lose money, TREND checks the direction of the market. If the system is LONG, but the direction of the market is going lower and lower, and the trade is losing money, TREND gets the system out of the market, before the trade becomes a big loser. The same applies if the system is SHORT, but the direction of the market is going higher and higher.

To be a Successful Trader, you have to be able to Trade without
the Stress and Pressure of knowing what the Market is doing on a Daily Basis