CMF Momentum Breakthrough Moving Average Strategy
This strategy combines the CMF Momentum indicator and 200-day EMA to construct trading signals.
Specifically, CMF Momentum reflects the rate of change in money flow. Upcrossing 0 is the buy signal, and downcrossing 0 is the sell signal. Meanwhile, only long above 200-day EMA, and only short below it.
The stop loss is set at 2 times ATR. Take profit is 2 times stop loss, achieving a 2:1 profit/loss ratio.
The advantage of this strategy is using CMF Momentum to judge fund flow direction combined with EMA for the major trend. The profit/loss ratio helps obtain steady gains. But due to lagging indicators, entry timing cannot be optimal.
Overall, the CMF Momentum breakout moving average strategy works better when trends are clear. But attention is still needed on timing of signal entries in live trading to avoid unnecessary losses.
/*backtest
start: 2023-08-11 00:00:00
end: 2023-09-10 00:00:00
period: 45m
basePeriod: 5m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/
// ***************************************************
// CMF Velocity with 200 EMA Strategy
// CMF Velocity Indicator by TheSadRhinoInvesting
// Author: TheSadRhinoInvesting, v1.0, 2021.05.16- 1