Overview

This is a combo strategy that combines trend reversal and moving average crossover strategies to generate more accurate trading signals.

Strategy Logic

The strategy consists of two parts:

1. 123 Reversal Strategy: Go long when close price rises for 2 consecutive days and 9-day slow stochastic is below 50; Go short when close price falls for 2 consecutive days and 9-day fast stochastic is above 50.

2. Bill Williams Average Strategy: Calculate 13, 8 and 5 days median price moving averages and go long when faster MAs cross above slower MAs; Go short when faster MAs cross below slower MAs.

Finally, an actual trading signal is generated only when both strategies agree on the direction; otherwise no trade.

Advantage Analysis

The combo strategy filters noise using dual trend validations, thus improving signal accuracy. Additionally, moving averages filter out some noise.

Risk Analysis

Risks are:

1. Dual filter may miss some good trades
2. Wrong MA settings may incorrectly judge trends
3. Reversal strategies itself have loss risks

Risks can be reduced by optimizing MA parameters or entry/exit logic.

Optimization Directions

The strategy can be optimized by:

1. Testing different MA combinations to find optimal parameters
2. Adding stop loss to limit losses
3. Incorporating volume to identify signal quality
4. Using machine learning to auto optimize

Conclusion

This strategy combines dual trend filters and MAs to effectively filter noises and improve decision accuracy. But risks exist, which need continuous optimization of logic before stable profitability.