CoFlex Enhancement

Hi All,

Today we are going to talk about CoFlex Risk Management and application of Weekly SSD on CoFlex.

As Ash from KL brought up a very good point in the KL Course, that if CoFlex is a trend following technique, how does ADX Filter applies in this technique? The following is what Courtney said. He said. Basically CoFlex works when the 2 lines crosses. TEMA is on top we go LONG and if Moving Average is on top we go short.

However, using this technique will create lots of paper cut. Hence, he looks at ADX Filter to increase or decrease the number of contracts for Risk Management. If ADX Filter trends down, he will put in a smaller position. If ADX Filter trends up, he will put in a normal position. (ADX measures how strong is the trend)

And regarding about Weekly SSD, when it happens, Courtney is always looking for reasons to go inline with the Weekly SSD direction. CoFlex is always one of the main reason in there to make it happen. Oh he also added he might break the rule of Reversal Bar to go inline with the Weekly SSD direction even if there is no confirmed trend :)

Hope this helps.

Your Friend,
Max