Alexander Elder Trading Strategies: The Triple Screen Strategy (Backtest)

New traders often think that there is that one indicator that would help them make big profits from the market all the time. Unfortunately, there is none, which is why the triple screen strategy was invented to exploit the strong points of different categories of indicators. But what is the triple screen strategy?

The triple screen strategy is a trading system that uses a mix of different categories of indicators to screen the market so as to enter a trade in the right direction and at the most appropriate time.

The triple screen aims to find short-term pullbacks that are about to end within an established long-term trend so as to open positions in the direction of the main trend and at the right time. The system is based on Alexander Elder’s theory that no single indicator can provide reliable signals or position plans.

Let’s take a deep look at this trading system. At the end of the article we make a backtest of a triple screen trading strategy.