Bago system can be categorized as a trend following system based on
the cross of ema 5 and ema 12. When used properly on hourly chart it
can capture daily swings of 100+ pips.

The use of small number emas gives Bago system the sensitivity to
generate early signals following 10-20 minutes scale waves, but also
produces a great deal of false signals that can quickly drain a trader
's account. So filters are extremely important for Bago system.

While Bago system is largely a discretionary system, the integration of
two excellent filters may make it possible to use a computer program
generate signals with great high successful rate. This program is
writtern to investigate this possiblity.

The mechanism to generate a raw Bago signal is simple: ema 5 crosses
ema 12 in the same direction as RSI 21 crosses 50 level. To abstract
real signals, we need to pay attention to context: where the price are,
and when the crosses happens.

The greatest meaning of integrating Vegas tunnel into Bago system is,
the tunnel as well as its fibo lines changes the original plain 2-d
space into a twisted 2-d space. The twisted price trends now have the
coordinates. With this coordinates system we may see the entry and exit
with higher accuracy.

So, this program will first construct the simple rules upon which the
the raw signals are generated, then will add rules to filter those
signals. Those new rules are quantified as parameters so they can be
easily changed and optimized based on the output results.

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