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Trend Following Strategy Based on Triple EMA and Linear Regression

Cryptocurrency
Created: 2023-09-13 17:13:36
Last modified: 3 years ago
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This strategy is named “Trend Following Strategy Based on Triple EMA and Linear Regression”. It uses crossover of the triple exponential moving average and linear regression line to identify trend direction, and sets adaptive stop loss to lock in profits.

The triple EMA (TEMA) combines the strengths of single EMA and double EMA to more sensitively capture price trend changes. Linear regression line reflects the long-term equilibrium trend of prices. When the short-term TEMA crosses above the long-term linear regression line, it signals an uptrend for considering long trades. The opposite suggests downtrends for considering shorts.

After entry, the strategy uses an ATR-based adaptive stop loss mechanism to lock in profits. It sets and adjusts stop distance based on market volatility. This avoids fixed stops while allowing stops to adaptively trail market fluctuations.

The advantage of this strategy is the indicator combo identifies trend direction relatively accurately. The adaptive stop loss method is also more advanced. But parameters need prudent testing and optimization for specific products, constantly adapting to market changes.

In summary, the reasonable integration of multiple technical indicators, together with strict risk management measures, can improve the efficiency of strategy trading and the ability to mitigate risks.

Source
Pine
/*backtest
start: 2023-01-01 00:00:00
end: 2023-02-20 00:00:00
period: 1h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © Wunderbit Trading

//@version=4
Strategy parameters
Strategy parameters
What trades should be taken :
First Trend Line :
First Trend Line :
Length of the First Trend Line
Length of the Second Trend Line
Long Take Profit 1 %
Long Take Profit 1 Qty
Long Take Profit 2%
Long Take Profit 2 Qty
stop loss in %
SL Mutiplier
ATR period
Source
Backtest Start Year
Backtest Start Month
Backtest Start Day
Backtest Stop Year
Backtest Stop Month
Backtest Stop Day
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