This indicator carries out performance optimisation for the biquad low pass differentiator (LPD) momentum oscillator which was introduced and made available here . It is very helpful to inspect the background information outlined in that indicator. The user of this present indicator sets the start and end optimisation dates, the indicator goes through a maximum of 500 iterations of a single parameter (the cutoff frequency fo), and tabulates the best and worst 5 performers. The best and worst three performances are plotted as a seven colour rainbow. The middle green coloured line is the mean performance of all iterations. The signal mode is set as an input option, being described in the indicator in the above link. The performance of this system is an "instantaneous performance". So the shape of the performances will be different from that obtained by the strategy tester.
Although this performance scanner is quite accurate, it is not meant to replace the strategy tester which gives the full range of necessary statistics. Rather, it offers an interesting and unique educational perspective, and helps understand the process of optimisation.
Because this is a momentum based system, the performance is notoriously dependent on market conditions, to the extent that an option is included among the inputs to reverse the signal logic! And this works occasionally.
In order to gain an appreciation for the indicator and its function, there is no alternative to trying it out, and spend some time playing with the inputs to learn the system.
The built in inputs are appropriate for the 4H time frame, but they can be changes - of course. The indicator does not run in real time, or provide trading signals.
