Advances >=4%: 10
Declines >=4%: 7
Daily Change: 0.43%
21-day Timed Exit
I started this section off by attempting to write a very detailed analysis of what was going on. The fact of the matter is that the results are the results and they are there for everyone to see and analyze for themselves. Anything I write is my interpretation of what I am seeing and others will undoubtedly see something else. Unlike many of the previous tests run on this blog, the advantages here are much more subtle and much less consistent.
My own conclusion is that unfortunately, the ADX is not something I personally feel comfortable using as a filter for significantly improving the reliability or expectancy of a breakout system. There are countless people out there who use the ADX, many of whom probably with some degree of success, but the test for me do not reveal a consistency or magnitude of improvement I’m comfortable with.