This strategy is named “Trend Following Strategy Based on PMax Indicator”. It uses the PMax indicator to determine price trend direction and its moving average line as key reference to generate trading signals.

The PMax indicator combines the strengths of the support/resistance indicator SuperTrend and trend change indicator MOST. It builds price channels using the Average True Range (ATR), together with moving averages to judge trend direction.

When price crosses above the PMax line, it signals an upside trend reversal. When price crosses below PMax, it flags a downtrend reversal. Moving average crossover above PMax generates buy signals, while crossover below produces sell signals.

Moving average parameters directly affect trend sensitivity. Shorter periods are more sensitive to minor moves. Longer periods only capture major trends. So parameters need market-adjusted optimization.

The advantage of this strategy is PMax is sensitive in detecting trend changes. Combining with moving averages helps filtering to identify major reversal points of mid-to-long term trends. But overtrading should be avoided.

In conclusion, the combination of PMax and moving averages forms a relatively mature trend following strategy. Through parameter optimization it can adapt to different market characteristics and capture significant directional opportunities. But traders still need flexibility in adjusting strategy parameters according to actual conditions.