So far, we have let the trading system generate pure signals without trying to filter the signals in any way. As we have seen, this system will generate many short-lived or "false" signals when a market is in a consolidation region. A filter is simply a set of rules that will try to refine the entry signals. By design, this system is always in the market. Remember that we do not have a specific exit strategy, and the long entry signal is
94 Developing New Trading Systems