Confirm across timeframes
A signal is stronger when the bigger trend agrees with it. A multi timeframe filter keeps you from fighting the dominant trend, one of the cheapest ways to improve a strategy's quality.
Trade with the bigger trend
This strategy only takes long trades when the bigger trend is up: it buys a momentum turn on the daily chart, but only while the close is above the 200 day SMA, the slow line most traders use for the long trend. It simply refuses to buy dips inside a larger downtrend, where so many entries go to die. On Power and above you can split the two across timeframes, a 1 hour entry with a daily filter (write 'daily' for both the close and the average so the parse reads a daily leg rather than a 200 hour one); the run below keeps both on one chart so it works on every plan.
No look ahead, by construction
TextToQuant resolves the daily leg on its own aligned series and only ever reads completed higher timeframe bars. A 1 hour strategy consulting the daily trend sees yesterday's finished daily bar, never today's still forming one, so the filter can't cheat by peeking at the future.
Fewer trades, better ones
A filter's job is to say no. Run this, then delete the 'but only while' clause and run it again. Compare the two trade counts and win rates: the filtered version should take materially fewer trades, on setups where the wind was at your back.
Run it live
The strategy for this lesson, in plain English:
“Buy ETH on the daily chart when RSI crosses above 40, but only while the close is above the 200 SMA; exit when RSI crosses below 50, last 3 years.”
It opens already parsed, so you can read the rules before you spend a run.
Key takeaway
Filters trade fewer, better setups. Compare this run's trade count and win rate to the same rules without the daily filter.
Terms in this lesson
Check yourself