What is The Laguerre Filter

The Laguerre Filter (LF) was authored by John Ehlers. The LF requires the current price, three prior prices, a user-defined factor called alpha and a good deal of feedback to fill its calculation.

LF Indicator

The Laguerre Filter is a trend indicator. The indicator requires the current price, three prior prices, a user-defined factor called alpha and a good deal of feedback to fill its calculation.

Why Use LF Indicator

The Laguerre Filter is a trend indicator and may be used in conjunction with other studies. No trading signals are calculated.

How to Use The LF Indicator

Bullish Scenario:- Since LF is a trend following indicator, it is safe to assume that when SF goes up, the price also increases, indicating an upward trend. This refers to a bullish scenario. 

Bearish Scenario:- Similarly, if it starts going down, meaning the stock price is going down. That generally indicates a downward trend, i.e. a bearish scenario.

Laguerre Filter Trading Strategy

Building Laguerre Filter Trading Strategy in Mudrex

Strategy:- 

BUY:- LF factor(0.3) crosses up LF factor(0.7)

SELL:- LF factor(0.3) crosses down LF factor(0.7)

TIME FRAME:- 6Hrs

Creating on Mudrex:- 

We will use 2 LF compare blocks. One for selling and One for buying.

For buying, we will use the following settings:-

Laguerre Filter Trading Strategy

For selling, we will use the following settings:-

Final Strategy:-

Laguerre Filter Trading Strategy

Testing:- 

Running on Binance Futures: BTC/USDT with tick interval of 6H yielded an overall profit of 58.38%

Backtesting at Mudrex

Do this and a lot more at Mudrex. Invest with Mudrex today!

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