This strategy combines multiple EMAs with different parameter settings and the EOM volume indicator to determine trends across multiple timeframes and build a trading strategy with both long-term and short-term judgments. It aims to leverage the multi-timeframe resonance of different period moving averages to uncover longer-lasting trend patterns.
The strategy uses 4 groups of EMAs with different period parameters - 13, 21, 50 and 180. These 4 EMAs establish multiple time dimensions to determine price trends and uncover longer-term trend patterns.
The strategy uses the EOM volume indicator to confirm trends. The EOM combines trading volume and price volatility range to effectively gauge buying and selling pressure. The strategy determines long conditions when EOM is above 0 and short conditions when EOM is below 0.
The strategy has two options. Option 1 goes long when shorter EMA crosses above longer EMA and closes long when shorter EMA crosses below longer EMA. Option 2 goes long when shorter EMA crosses above intermediate EMA and closes long when shorter EMA crosses below intermediate EMA. The two options allow more comprehensive trend confirmation.
This strategy integrates multi-timeframe EMA trend determination and volume indicator filtering to achieve trend following and noise removal. There is still large room for optimization by testing different parameter combinations and adding more indicators to further improve robustness. Meanwhile, dynamic stop loss and position sizing can also significantly optimize performance.
/*backtest
start: 2022-10-02 00:00:00
end: 2023-10-08 00:00:00
period: 1d
basePeriod: 1h
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/
// © SoftKill21
//@version=4
strategy("4x ema + volume", overlay=true,initial_capital = 1000, default_qty_type=strategy.percent_of_equity, default_qty_value=100, commission_type=strategy.commission.percent , commission_value=0.1 )
//ema x 4
ema1l=input(13)
ema2l=input(21)
ema3l=input(50)
ema4l=input(180)
ema1=ema(close,ema1l)
ema2=ema(close,ema2l)
ema3=ema(close,ema3l)
ema4=ema(close,ema4l)
long1 = close > ema1 and ema1 > ema2 and ema2> ema3 and ema3 > ema4
long2 = crossover(ema1,ema2) and crossover(ema1,ema3)
short1 = close < ema1 and ema1 < ema2 and ema2< ema3 and ema3 < ema4
short2= crossunder(ema1,ema2) and crossunder(ema1,ema3)
//eom
length = input(14, minval=1)
div = input(10000, title="Divisor", minval=1)
eom = sma(div * change(hl2) * (high - low) / volume, length)
option1=input(true)
option2=input(false)
if(option1)
strategy.entry("long",1,when=long1 and eom>0)
strategy.close("long",when=short1 and eom<0)
if(option2)
strategy.entry("long",1,when=long2 and eom>0)
strategy.close("long",when=short2 and eom<0)