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.

These are the results from the TREND function.

                    TREND TRADES         |       TREND TRADES TOTALS
 # WEEK-OF   SYSTEM   EXIT  REVERSE  TOTAL  |   SYSTEM      EXIT   REVERSE
--------------------------------------------+-----------------------------
 1 23NOV84    7343    9281    1937   11218  |     7343      9281      1937
 2 07JUL89   12343   11343    1000-  10343  |    19686     20624       937
 3 01APR94    7812   11750    3937   15687  |    27498     32374      4874
 4 08JUL94    3125-     31    3156    3187  |    24373     32405      8030
 5 19APR02    2531    2687     156    2843  |    26904     35092      8186
 6 15AUG03     718-  10187    9906   20093  |    26185     45279     18092
 7 05MAY06   11906   11687     218-  11468  |    38091     56966     17873
 8 05JUN09   24937   24640     296-  24343  |    63028     81606     17576
 9 06AUG10   20203   23453    3250   26703  |    83231    105059     20826
10 08OCT10    6156-   4468-   1687    2781- |    77074    100590     22513
11 16MAR12     937    4812    3875    8687  |    78011    105402     26388
12 06SEP13   18750   16875    1875-  15000  |    96761    122277     24513
13 08JUL16   35281   39468    4187   43656  |   132042    161745     28700
14 05OCT18    4906-   1687    6593    8281  |   127135    163432     35293
15 20MAR20   13125   18062    2000-  16062  |   140260    181494     33293
16 05JUN20     937-   4281    6125   10406  |   139322    185775     39418
17 08OCT21    4281-    562-   3718    3156  |   135040    185212     43136
18 25MAR22    6500-   2875-   6906    4031  |   128540    182337     50042
19 17JUN22   14468-   3906-   7500    3593  |   114071    178430     57542
20 28OCT22   12875-   6562   19437   26000  |   101196    184992     76979
21 17MAR23     343-   3531    3968    7500  |   100852    188523     80947

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