Another way of using Keltner Channels

["Gaius Marius" <magnus@xxxxxxxxxxx>]

Here's another system I've created a long time ago that uses Keltner
channels as supplements to the main system.  Essentially, we use William
Blau's TSI to trigger the trade and when the prices moves beyond the Upper
or Lower Keltner Channels, we add a second position to the first trade.
--------------------------------------------
First thing you're gonna need is the following function (based on William
Blau's book," Momentun, Divergence and Direction"):

{function: MTM}
Input: R(Numeric),S(Numeric);

if close-close[1]<>0 then
MTM=Xaverage(Xaverage(Close-Close[1],R),S)/Xaverage( XAverage(AbsValue(Close
-Close[1]),R),S);

--------------------------------------------
{System: Keltner TSI}
Inputs: R(21),S(12),Q(6),Len(25),Fc(1.75),Extra(1);
Vars: Mo(0),Avg(0),Upper(0),Lower(0),Ncontr(0),Mp(0);

Ncontr=1;                                        {Number of Contracts to
trade is initialized to 1}
Mo=MTM(R,S);
Avg=XAverage(MTM(R,S),Q);
Upper=XAverage(Close,Len)+Fc*XAverage(TrueRange,Len);
Lower=XAverage(Close,Len)-Fc*XAverage(TrueRange,Len);
Mp=MarketPosition;

If Mp<>1 and Mo crosses above Avg then buy ncontr contracts on close;
If MP=1 and Close crosses above Upper then buy Extra contracts on close;
If MP<>-1 and Mo crosses below Avg then sell ncontr contracts on close;
If MP=-1 and Close crosses below Lower then sell Extra contracts on close;


-----------------------------------------------------------------------
Never, ever, invest any money in a fund
whose principals include financial academics.
-from www.adtrading.com