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 since 1983.

                    TREND TRADES            |       TREND TRADES TOTALS
 # WEEK-OF   SYSTEM   EXIT  REVERSE  TOTAL  |   SYSTEM      EXIT   REVERSE
--------------------------------------------+-----------------------------
 1 23NOV84    7343    4031    3312-    718  |     7343      4031      3312-
 2 20DEC85   17562   17843     281   18125  |    24905     21874      3030-
 3 29JAN88   14750   10218    4531-   5687  |    39655     32092      7561-
 4 07JUL89   12343    9593    2750-   6843  |    51998     41685     10311-
 5 16JUL93   22343   21156    1187-  19968  |    74341     62841     11498-
 6 01APR94    7812    8812    1000    9812  |    82153     71653     10498-
 7 08JUL94    3125-     31    3156    3187  |    79028     71684      7341-
 8 09AUG96    3218    1312    1906-    593- |    82246     72996      9247-
 9 12JUN98    3218-   4562-   1343-   5906- |    79027     68433     10590-
10 19APR02    2531    2687     156    2843  |    81558     71120     10433-
11 13JUN03   17843   15812    2031-  13781  |    99401     86932     12464-
12 04FEB05   11906   11281     625-  10656  |   111307     98213     13089-
13 05MAY06   11906   11687     218-  11468  |   123213    109900     13307-
14 24NOV06    2968-   3156-    187-   3343- |   120244    106743     13494-
15 05JUN09   25312   25718     406   26124  |   145556    132461     13087-
16 06AUG10   20203   18484    1718-  16765  |   165759    150945     14805-
17 08OCT10    6156-   4468-   1687    2781- |   159602    146476     13117-
18 16MAR12     937    2875    1937    4812  |   160539    149351     11179-
19 06SEP13   18750   14250    4500-   9750  |   179289    163601     15679-
20 30JAN15   28875   28125     750-  27375  |   208164    191726     16429-
21 08JUL16   35281   35531     250   35781  |   243445    227257     16179-
22 05OCT18    4906-   1375-   3531    2156  |   238538    225882     12647-
23 20MAR20   13125   21312    1250   22562  |   251663    247194     11397-
24 05JUN20     937-   3250    5093    8343  |   250725    250444      6303-
25 08OCT21    4281-    656    4937    5593  |   246443    251100      1365-
26 17JUN22   14468-   3906-   7500    3593  |   231974    247193      6135
27 28OCT22   12875-   6562   19437   26000  |   219099    253755     25572

Some results are hypothetical.

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