Overview

This strategy combines stochastic oscillator and OTT indicators to generate trading signals. It will trigger orders when fast and slow OTT lines cross. To filter fake signals, stochastic oscillator is used for validation.

Strategy Logic

1. Calculate fast and slow OTT lines based on moving averages and stop loss percentage.
2. Compute stochastic oscillator based on high, low and close prices.
3. Judge long or short direction when fast and slow OTT lines cross. Check stochastic for verification.
4. Enter orders according to crossover and directions.

Advantage Analysis

1. OTT itself has good reversal effect and is sensitive to turning points.
2. Stochastic filters fake signals and avoids getting trapped in consolidation.
3. Customizable average types for flexibility facing different markets.
4. Profit taking and stop loss for risk control.

Risk Analysis

1. Improper parameter tuning might lead to overtrading or bias.
2. OTT may generate wrong signals in trending markets.
3. Overall market cycle should also be considered.

Optimization Directions

1. Optimize parameter combination for best performance.
2. Judge effective periods combining trend indicators.
3. Introduce money management module.

Summary

This strategy integrates OTT’s reversal and stochastic’s filtering ability to control risk effectively. It works well for reversal or ranging markets. But market cycle and tunings require attention. Further improvements can be made in parameter optimization and money management.