Thread: Three Pole BW Filter - Vertex FX Expert Advisor

Three Pole BW Filter is a powerful VertexFX client-side auto-trading robot based upon Digital Signal Processing (DSP) concepts for identifying market trends.
DSP is used to eliminate noise (whipsaws) in the price and reduce lag (frequency delay) as much as possible to get accurate and fast signals. This indicator uses the Butterworth filter logic which is a low-pass filter. The number of poles is the degree of the low-pass filter.
We first calculate the filter based upon the Median price. Then 4rd order (3nd degree) of smoothing is applied to derive the indicator value.
This indicator successfully eliminates whipsaws without introducing lag, which helps it identify excellent trading opportunities.
Certain markets respond better to Three Pole Butterworth Filter compared to the Two Pole Butterworth filter due to the nature of the whipsaws and the characteristics of the market. Therefore, a trader must identify the most suitable degree of the Butterworth filter for each market.
BUY - Enter BUY trade when the price closes above the indicator. Place stop-loss at the nearest swing low.
SELL - Enter SELL trade when the price below above the indicator. Place stop-loss at the nearest swing high.
Inputs :
a) PERIOD - The period over which the indicator is calculated.
b) LOT_SIZE - The lot size of the trade.
c) TP_POINTS - The take profit in points.
d) SL_POINTS - The stop loss in points.
e) MAGIC - The unique identifier for trades generated by this robot.
f) POINT_DEFAULT - The point value of the current instrument.

Advanced Pro version of this EA is available in Vstore market.